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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Finance
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Experience:  Certified Public Accountant
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It's now Oct. 18th and I have not yet completed my TurboTax

Customer Question

It's now Oct. 18th and I have not yet completed my TurboTax Deluxe edition single tax return. I will have about 800 stock trades for 2015 w/a substantial short-term capital gain w/taxes to go along with it. I usually can import the tax documents from TdAmeritrade (all I see is 1099 consolidated). 1 - What are the penalties/fees everyday after today? 2 - I am currently have about -5K realized short-term gain/loss for 2016. Is there anyway to apply it to last year's (2015) now since I don't have any extra cash now (I haven't worked in over a year)? In other words, is it too late to try and file as a trader (trader tax?)? Or, is there a way to back date or any other suggestion to not have to pay 2015 taxes if I take a substantial loss this year (2016)?
Thanks in advance!
Submitted: 3 days ago.
Category: Finance
Expert:  PDtax replied 3 days ago.

Hi from just answer. I'm PDtax. The number and content of your questions suggest a higher price.

I'll post an offer to advise. Please let me know by 9 am EST tomorrow.

Expert:  Mark Taylor replied 3 days ago.

Hi, my name is Mark. I will be happy to help you with your questions. Please give me a moment to prepare your response.

Expert:  Mark Taylor replied 3 days ago.

The penalty for a late filed return is 5% of the tax due. This is for each month or fraction of a month. This is also a late payment penalty of 0.5% of the tax due. This would only be applied to months where the late file penalty is not applied. The maximum late file penalty is 25%. If the return is more than 60days late the penalty is $135 or 100% of the tax that is due.

Expert:  Mark Taylor replied 3 days ago.

It is very difficult to be treated as a securities trader. A number of factors are considered. Some of these include the number of days that you traded, the character of your trades. Court cases have determined that traders would take advantage of daily or short term changes in prices of securities.

Expert:  Mark Taylor replied 3 days ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

Customer: replied 2 day ago.
I just now received your answer MArk. I already purchased the TurboTax Deluxe Edition but still haven't finished the return (I guess I'll be paying penalties anyway). But still may need help. Will it cost extra even though I purchased a justanswer membership?
Expert:  Mark Taylor replied 2 day ago.

If you owe any taxes there would be penalties. You would need to file the return by November 15th to avoid another late file penalty.

Customer: replied 2 day ago.
If for so e reason I didn't do it accurately, will I be automatically audited or will it be by chance? Just not sure about the consolidated 1099 that TdAmeritrade provides.
Expert:  Mark Taylor replied 1 day ago.

The IRS matches information that they receive to your return. So the IRS would match the dividends income, interest income, and stock sales, wages, mortgage interest etc. If there are errors in matching the IRS will send you a notice with a proposed change. You would either agree to the change or dispute it and provide support for your position. For instance, you could provide an amended return.

Customer: replied 1 day ago.
Oh! So if they're going to do my taxes then why do I have to do them? Perhaps, they don't include ANYTHING that wud contribute to someone paying LESS taxes or receiving a HIGHER refund? I heard about the IRS not being owned by federal govt. But that the Rothchilds etc. are the RElAL recipients and own all the central banks. True? See Sherry Peel Jackson FORrner IRS Agent on YouTube!
Expert:  Mark Taylor replied 1 day ago.

If you do not file it is true that the IRS would prepare a tax return for you. It is known as a Substitute for Return. Yes, you are correct that they would assume the worst. The IRS would pick up all of the income, assume that the stock had zero basis and send you a notice. The IRS is under the US Treasury.

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