I'm not sure exactly what I'm supposed to do at this point. Anyone have any suggestions?
Respond in writing that you dispute and you intend to amend.
Prepare Form 1040-X with Schedule D and Form 8949.
Do not include your old 1040 nor your revised 1040 because the Form 1040-X reflects any changes there and becomes your new tax return.
Send to the address in the Form 1040-X Instructions,
or, to the address in your letter if it says to do that.
