Tax on Past Year

[Oscar1972]

What is the name of your state (only U.S. law)? NC
I filed my taxes for tax year 2007. I did not include the 1099 that I received from my brokerage company. I just receive a notice from IRS that I owe some money which is calculated from the stock sales that I made for that year. I have the 1099 and the purchase amount far exceed how I sold the stocks for. How can I correct this. This is for tax year 2007

 

[davew128]

Respond to the letter.

 

[Oscar1972]

Respond to the letter.

They are correct but that is just because I did not file the 1099 for that year eventhough my loss were more than my gains. Can I file an adjustment?

 

[davew128]

They are correct but that is just because I did not file the 1099 for that year eventhough my loss were more than my gains. Can I file an adjustment?

Yes. And respond to the letter.

 

[tranquility]

What dave128 is trying to say, is that the letter you received tells you what to do if you disagree. You disagree.

Respond to the letter.

 

[efflandt]

Why did you neglect to file Schedule D? That is needed to account for cost basis, and if you sold stock for less than you paid for it, you could have taken up to $3000 loss deduction and carried any more than that over to following year. Without cost basis info, the IRS thinks that your stock sales were 100% profit (instead of a loss). So they think you owe them tax, even if they actually owe you money after you account for everything.

 

[Kiawah]

And you should thank them for bringing this oversight to your attention!