I just got a letter from the IRS saying I owe backtaxes of about $600 on Stock Sales in 2010 that I did not report on my tax return. I had an etrade account, that had about $1000 in it, and I used it to buy and sell some stock in 2010, and at the end of the year I made a net loss, so I did not report it. However, etrade did report it to the IRS, and only reported the sales amounts, so it looks like I made about $2000, because I sold shares twice.
So, I went into etrade, and they indeed have a 1099 for me, which I should have included in my 2010 tax return. My question is, what can I do about it now? Is there some process I should follow? Or am I screwed, and have to pay the extra taxes? The fact of the matter is, if I include the 1099, I think the IRS would owe ME money!
The letter they sent has to responded very soon, with information about the transactions, etc. I was wondering what the process is in general for these kinds of things, specifically about including the 1099 that I should have...
So, I went into etrade, and they indeed have a 1099 for me, which I should have included in my 2010 tax return. My question is, what can I do about it now? Is there some process I should follow? Or am I screwed, and have to pay the extra taxes? The fact of the matter is, if I include the 1099, I think the IRS would owe ME money!
The letter they sent has to responded very soon, with information about the transactions, etc. I was wondering what the process is in general for these kinds of things, specifically about including the 1099 that I should have...