Just found old mutual fund account - what do I do about back capital gains?
I just found out about a mutual fund account that is in my name that has been accruing capital gains for the past 9 years. I have never received any statements on this account and never realized that it existed. Therefore, I have never paid any taxes on these gains. Of course I will have to now. My concerns are (a) how do I go about this (amended returns for 9 years?) and my biggest concern is (b) fines!! Has anyone out there heard of something like this happening? I think I could "prove" that I was unaware of the account all this time. Is there a way to plead my case to the IRS about this to avoid huge fines? I know that I will need a tax advisor and/or lawyer to deal with this but I wanted to get an idea of what I am looking at here. Thanks to any who respond.
-- North Carolina resident (but past taxes will be NC and GA)
I just found out about a mutual fund account that is in my name that has been accruing capital gains for the past 9 years. I have never received any statements on this account and never realized that it existed. Therefore, I have never paid any taxes on these gains. Of course I will have to now. My concerns are (a) how do I go about this (amended returns for 9 years?) and my biggest concern is (b) fines!! Has anyone out there heard of something like this happening? I think I could "prove" that I was unaware of the account all this time. Is there a way to plead my case to the IRS about this to avoid huge fines? I know that I will need a tax advisor and/or lawyer to deal with this but I wanted to get an idea of what I am looking at here. Thanks to any who respond.
-- North Carolina resident (but past taxes will be NC and GA)
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