topic Should I amend my 2016 return? in After you file

Should I amend my 2016 return?

psy1ocke1 — Tue, 04 Jun 2019 00:00:13 GMT

Like an idiot, in 2016, I somehow didn't push the button in TurboTax to claim the $ from investments that I sold. The government hit me with a tax bill and penalties for which I'm on a payment plan on right now. If I went back to amend my 2016 return, would that be advisable? Or do you think the IRS would say, "Oh wait, an amended return! You still owe us taxes on $38K." Am I making sense.

Take a good look at the tax bill for 2016 they sent you....

MichaelL1 — Tue, 04 Jun 2019 00:00:14 GMT

Take a good look at the tax bill for 2016 they sent you.

Also get a transcript from IRS for 2016. https://www.irs.gov/individuals/get-transcript

The reason for this is when IRS sees stock sales NOT reported they many times give you a $0 cost basis and tax it at Short-term gain, when you have a cost basis and it should be long-term.

So YES, if that is the case I would Amend and the tax on the return is actually what is assessed on the tax transcript by IRS.

Yes, you make perfect sense, and this Amended return could save you a lot of money.

Thank you so much for your quick and thorough response!

psy1ocke1 — Tue, 04 Jun 2019 00:00:16 GMT

Thank you so much for your quick and thorough response!

My pleasure

MichaelL1 — Tue, 04 Jun 2019 00:00:17 GMT

My pleasure