Thank you so much for the reply. I feel IRS should show one-time mercy or new traders will come in bigger trap. A good faith honest apology with promise never to trade again. For example if you have 100K in profits in good trades and 200K in losses in bad trades , than bad trades are wash sales so you end up paying high taxes which will never be replaced.
As such trading is a risk, on top some brokers I fear could be attaching any other stock bought in same sector as near similar and counting as wash sale. Like if you replace one consumer defensive stock with another one. Trading is near impossible with such restrictions.
I do know why this is not such a big issue and why there is not more awareness on it. Not everybody knows all tax laws and I feel it is too much a price to pay for common everyday traders.
