Tax IRS problem…I think its there mistake?
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Back in 07,,.I had some stocks in my name and I had to sale to pay for tuition, books and house fees…I get a letter 2 weeks ago from the IRS saying i need to pay 2500 dollars…I’m not sure what i did wrong, the money was not profit…What can i do to claim that they weren’t…I need help very bad, and fast…for more details let me know, i need to get this done with because uncle Sam is gona be on me for a while if I don’t.Thanks
Prepare a Schedule D for 2007 showing the stock transaction details. You should have done that when you filed your return last year.
The IRS only gets the information on the stock sale (Form 1099-B) and if you fail to report it on Schedule D and show the purchase date and price, they assume that it’s all short term gain at 100% of the sales price.
Dig out our purchase and sale records on the stocks and use them to prepare Schedule D http://www.irs.gov/pub/irs-prior/f1040sd–2007.pdf and instructions http://www.irs.gov/pub/irs-prior/i1040sd–2007.pdf . If you have a loss on the sale you won’t owe any tax and may actually be due a refund though you’ll probably have to file an amended return using Form 1040-X http://www.irs.gov/pub/irs-pdf/f1040x.pdf to claim the refund.
you still have to pay taxes on the money you recieved. the best thing you could do right now is to talk to an actual tax person and have them explain it to you.
talk to a tax attorney…or figure out what "Stock Basis and Holding Period" means.
Where did you get the stocks from?
I suspect that you forgot to report the sales on your 1040–find your cost basis, fill out the schedule D and turn them in. If your cost basis is more than what they sold for you have a loss. If your cost basis is less, you have a gain.
The IRS will not determine your basis for you.
You neglected to report the sale and, in the absence of documentation from you, IRS is presuming the entire sale proceeds are taxable. You need to provide the information to show how much of the sale was profit.A return preparer could put this together for you. You don’t need an attorney.
You might want to amend your 2007 tax filing — looks like you could save a lot of money in taxes and interest that way. I’ve linked below to a company that specializes in helping people quickly prepare their tax returns — you can file with them below.