Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
The CPA is correct - you should file an amended return. You're going to have to keep documentation of the cost basis of your stock, since it was not reported. Even after you file the amended return, you will get a CP2000 because your reported income will be much less than what is reported to the IRS. Ideally you would have your brokerage firm correct the statement they sent you, but if they don't you will have to send the IRS documents on your cost basis
You will most likely get a CP2000 but that does not increase your probability of a regular audit
After amending the return how will I still get a CP2000. As with the amended return I guess my CPA will also include the statement from Brokerage Firm that was sent to me which has the cost basis and the sale value.
You will get a CP2000 with the amended return because your gain is $900 but the IRS will think it's $14,000
they won't have the cost basis piece
So you are saying even if I did the Schedule D they would have still sent the CP2000.
And one last question.
Okay -- they will send the CP2000 unless your gain matches their gain and if no cost basis is reported the entire amount is looked at as gain by the IRS computers - but you won't owe tax on all that you will just have to send in more information
I know it is subjective and would like an answer the best you can. Based on my profile is chance of audit around 1% or is it more or less
If you cant answer this question that is fine
I can't tell you what the probability is, but I can tell you that as long as you have records of your cost basis you will be fine no matter if you are audited or not