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CP2000 Notice - RSU Sell to Cover Transactions
I received a CP2000 notice for tax year 2020. It lists all of my RSU sell-to-cover transactions as missing from my tax return. As my RSUs vested, Morgan Stanley sold a portion of the shares to cover taxes and I sold the remaining shares in the same year (but not on the same day). I entered these sell-to-cover transactions when I entered the shares I actually sold. But the sell-to-cover details aren't shown on Form 8949 so I see why the IRS thinks I didn't report them.
What's the best way to respond to the IRS and do I need to file an amended return?
May 25, 2022
8:36 AM