topic Forgot to file one of my 1099-B in 2017 in After you file

Forgot to file one of my 1099-B in 2017

Amir1361 — Fri, 28 Jun 2019 04:56:58 GMT

Hi there,

Today, I received a (legit) letter from IRS claiming that I sold some stocks in 2017 tax year, and did not report them.

After some investigation, I noticed that I did not entered the information for one of my 1099-B(*).

Those stocks were RSU (through my employer and I had paid %40 tax on them). The 1099-B says I had ~10K long term gain.

The letter from IRS says I had $54K income, from selling the stocks and I have to pay ~$25K (for unpaid tax) + $4K (for Penalty and Interests). The letter also states that I have to either pay the amount by July 24th or say "I do not agree with some or all of the changes".

I believe I should go with the second option. Wondering if I should file an amendment to my 2017 taxes, right now, or just send the document to IRS and wait for them to send me a bill?

Thanks,

* I imported the data from Charles Schwab through TurboTax (I had two accounts on Charles Schwab) and but TurboTax just imported the information from one them :(

Re: Forgot to file one of my 1099-B in 2017

Anonymous — Fri, 28 Jun 2019 08:02:49 GMT

2nd choice.

if you have two accounts with Charles Schwab it's like having one account with A and one account with B. each must be separately imported.

send the 2nd 1099-B. sort of surprised that the IRS didn't get the cost basis off it - but perhaps it was in the section cost basis not reported to IRS. include a signed letter stating that your including the 1099-B for the sale of X and that you are claiming cost basis of Y as shown (it was shown wasn't it) on form. therefore the gain isn't $54k as shown on notice but $xx. if there is no cost basis on 1099-B also send whatever proof you have as to cost basis.

Re: Forgot to file one of my 1099-B in 2017

Amir1361 — Mon, 08 Jul 2019 04:54:39 GMT

Thanks @Anonymous .

I collected all the information I needed. Looks like there are two issues in my 2017 tax:

1) I forgot to file one of my 1099B (from Charles Schwab).

2) The 1099B from ETrade reports "Cost Or Other Basis" for the stock I sold in 2017 as 0. But also ETrade issued a "Stock Plan Transaction Supplement" document in which it reports 0 as "Cost Basis" but "n > 0" as "Adjusted Cost Basis" for the stock I sold with loss.

The letter, I received from IRS, says "If you have cost basis for the stock transactions in question, provide a completed Schedule D, Capital Gains and Losses, along with a completed Form 8948, Sales and Other Disposition of Capital Assets....

I wonder if I could use Turbo Tax to amend my 2017 tax and send the two forms back to IRS?

Do I need to send the 1099B and "Stock Plan Transaction Supplement" as well?

Re: Forgot to file one of my 1099-B in 2017

Amir1361 — Mon, 08 Jul 2019 05:40:47 GMT

I am trying to amend my 2017 return. I downloaded the TurboTax amend image, for Mac, but it keeps asking me to "Install California" to continue (I click on "Install", select California, the app says "Congradulations! Your state is now installed. Select OK to continue.

When I click Ok, it asks me to install "California" Again!:((

Re: Forgot to file one of my 1099-B in 2017

mesquitebean — Mon, 08 Jul 2019 06:11:07 GMT

Amir1361 wrote:
I am trying to amend my 2017 return. I downloaded the TurboTax amend image, for Mac, but it keeps asking me to "Install California" to continue (I click on "Install", select California, the app says "Congradulations! Your state is now installed. Select OK to continue.
When I click Ok, it asks me to install "California" Again!:((

You started another thread on that technical issue while I was answering here. So I moved my response in regard to that issue to your other thread at the link below:

https://ttlc.intuit.com/community/after-you-file/discussion/re-amend-2017-return/01/824951