I owned a house in 2018 that I had lived in for 3.5 years. I bought the house in 2015 for $300k and sold it in 2018 for $350k. I received a letter in the mail stating I didnt claim a $350k profit on the house and the tax liability is somewhere in the $150k range. I sent a response with a statement stating that this was my sole and primary residence, a copy of the HUD-1 statement from the purchase of the property, and the final settlement statement from the sale of the house which easily shows the gain was only $50k from the property. I received another letter today stating that, from what I sent, there is no sufficient evidence and Im still liable for $350k of income. This is truly outrageous as I provided itemized evidence and a coherent explanation. What do I do now? It seems like they are trying to strong arm me and it feels criminal. Any advice would be greatly appreciated. Thanks
