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knr1210
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Can I get a help with a letter from IRS, correcting incomes from securities for RSU sell-to-cover sales? I did not sell any vested shares.

 
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Can I get a help with a letter from IRS, correcting incomes from securities for RSU sell-to-cover sales? I did not sell any vested shares.

If you purchased Audit Defense for your tax return, call Tax Resources, Inc. at (877)-829-9695, or report your notice on their web site at http://intuit.taxaudit.com/. Do not contact the IRS. Let Tax Resources contact them for you.

This is the membership email you should have gotten:  https://ttlc.intuit.com/questions/1901569-when-will-i-get-my-audit-defense-membership-kit

Also read the member agreement at this website -https://turbotax.intuit.com/corp/auditdefense.jsp


If you did not purchase Audit Defense:


TurboTax has a special phone number for help with IRS tax letters, which will be easier than going through regular Customer Support.   At the page below, click on the blue button that says "Get Help from TurboTax Support".  Then it will ask you what tax year is your letter.  Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

https://support.turbotax.intuit.com/irs-notice/audit-support/

 

 

Can I get a help with a letter from IRS, correcting incomes from securities for RSU sell-to-cover sales? I did not sell any vested shares.

"Can I get a help with a letter from IRS, correcting incomes from securities for RSU sell-to-cover sales? I did not sell any vested shares."

 

The terminology "sell-to-cover" refers to a situation where something vests - shares of your employer in this case - and simultaneously some of those shares are sold.  The cash raised by the sale those shares goes back to the employer either to cover the exercise price (e.g., you exercised a typical Non-Qualified Stock Option) and/or to cover the taxes created by the exercise or vesting. 

 

In the case of an RSU the shares that vest are legally yours the second they vest, so any sell-to-cover activity means that you sold the shares, even if you didn't pick up the phone, call the broker, and say "sell".   If you received a 1099-B and didn't report that sale on your income tax return, thinking that it wasn't necessary, and the IRS is now questioning you about the "missing" 1099-B then you can either amend your income tax return to include the sale, (a "same day" sale typically results in a small loss due to selling commissions and fees, so you might be due a small refund), or you can explain the situation to the IRS in a letter, indicating that including the 1099-B would not cause you to owe additional taxes.  The letter probably indicates your course of action.

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