We just got a notice from IRS
saying they had changed some of our information. This was filed as a married filing
. Nita also filed that year married filing seperately and had no profit and she got a similiar letter. Both letters said we had not sent our W-2
info so they cut the amount Steve had withdrawn when he received a distribution
from UBS (our fianancial advisor). We called H & R Block as we had used their software
and they explained how we had mistakenly doubled Fed. tax
from Steve's W-2.
They assigned a case number XXXXX are sending a letter to IRS. Is it too late to do an amended return
filing joint as H & R block showed us
we would be far better off. They said we could but I thought Oct. 15, 2011 was the last day we could file an amended return for 2008.
Also UBS did not send a 1099 R showing tax withheld from our our proceeds but they did send a 1099 R to us after asking for our entire year report. UBS called back and said IRS should have the supplemental info as it was sent electronically.The report said that we had dividend's paid of 23,000 and that we had a short term capital loss
of $124000. They reinvested our dividends
for an even bigger loss. Do we have to report the $23,000 as part of our AGI? Also please explain our basis.
Steve retired June 30, 2008 and they rolled over his 401K in the amout of $430,000 and their end of the year report said our ending balance was $288,900. So was our basis $430,000 or $288900 or something else. The bulk of our distribution was from the cash account so we did not gain or lose on that account so I could not show a loss on the distribution I understand that part and we had witholding taken out but IRS sent a transcript to IRS about the rollover and beginning and ending balance but not an a 1099 R to IRS. I had put in our distribution but IRS said they had no proof. Please help. Thanks, Nita