Hello. I'll try to be brief.
Facts:
1. Received a K-1 from the estate CPA for 2018, in December 2019.
2. Distribution made to me in 2019.
3. Sold the stock in 2019 with a short term loss of $5600. (D.O.D. to time of sale)
3. Estate closed in September 2019.
4. CPA told me to file the interest income in my 2019 return, I did and also paid the tax on this income.
5. Received IRS letter stating income was to be declared on my 2018 return, wants tax paid again plus penalty.
6. Just filed an Abatement Request.
Questions:
1. Should I put the K-1 info in my 2018 return to check the IRS numbers?
2. Which return(s) should the short term loss be reported in?
3. Which returns should be amended-2018 & 2019, or just 2019?
4. Will the 2018 & 2019 returns need to be amended before I can accurately prepare my 2020 return?
5. Anything else I should do?
Thank you in advance for any assistance you can provide!
