How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask DanielleCPA Your Own Question

DanielleCPA
DanielleCPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 683
Experience:  Years of Experience in Business & Personal Taxes
Type Your Tax Question Here...
DanielleCPA is online now
A new question is answered every 9 seconds

RA - RB

Customer Question

: I received a letter from the IRS in which indicates I owe them a certain amount of money. After I checked and compared my files with my forms (w2-1099, etc). I figured out that the information must be included it in, my report (but for some unknown reason is not...). However, as I filed my taxes with Turbotax in 2010, I don't remember why they are not there. So it looks like there is not possible appellation in my case, and I would have to pay them what they say I owe. DO YOU THINK IS THERE ANOTHER LEGAL TOOL I CAN USE IN MY DEFENSE? such as an involuntary act or lack of knowledge.. Please give me some help. Beside that most of the amount is based on securities sales, how are they base the tax on that sale?
Submitted: 2 years ago.
Category: Tax
Expert:  DanielleCPA replied 2 years ago.
Welcome and thanks for your question!

Sorry to hear you are in this situation.

The IRS will have assumed all of the proceeds from the security sales is gain. They are basing the tax off the gross proceeds.

Since you state most of the amount due relates to security sales, your best option will be to amend your 2010 tax return to report the sales and their related cost basis. Since reporting the cost will drastically reduce the gain (or maybe create a loss depending on the cost), this will greatly reduce the amount of tax that the IRS is saying you owe. Be sure to include any other additional income the IRS reported if you do not dispute it. If you do not have records of your security sales (you should have received a Form 1099-B from the brokerage firm), you will need to contact the brokerage firm.

Lack of knowledge or involuntary act will not get you out of owing tax to the IRS on the income. If after you file an amended return, you still owe a significant amount of tax, it may get you out of paying some of the penalties (if the IRS is assessing any) but you will still be responsible for the tax and any interest charges on unpaid tax.

Please let me know if you need additional clarification and I will gladly assist you. If not, then I ask you to please give my answer a positive rating. Thank you!
Expert:  DanielleCPA replied 2 years ago.
Hi Washingtonian, I noticed you rated my answer "poor service." Did you have any additional questions or need any further assistance? I will gladly help you in any way I can if you are not fully satisfied.

I understand that I may not have given you the best news, so if that is reflected in your rating, I politely ask you to please reconsider rating my answer at least a "3" as the answer is what it is and even if it is not good news does not mean I provided you with poor service.

Again, if you needed further assistance, please use the "reply" button and I will gladly answer any follow-up questions you may have. Thanks and have a great night!

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.