we can't see anything you mentioned. the IRS does make mistakes. review the 1099-B from the broker to make sure the mistake wasn't yours and that schedule D reported the correct sales proceeds cost and any adjustments. if your schedule is correct send the notice back with a letter of explanation and a copy of the 1099-B pointing out the sales proceeds, costs, and adjustments as shown on the 1099-B agree with the Schedule D filed with your return.
Something like Dear Madam or Sir enclosed is ............ you will see that the 1099-B enclosed agrees with what was reported on schedule D. therefore, I request you change your records accordingly to show I owe no additional taxes. penalties or interest
sign and date the letter. send ASAP since the USPS is also behind in deliveries or use some other service. whatever service you use make sure you get proof of delivery. sadly it could be months before you hear back.
