I think Merrill Lynch is knowingly reporting Income
to the IRS
incorrectly. My husband sold securities through his Bank of America account. Since Bank of America acquired Merrill Lynch the sale was done by Merrill Lynch even though he bought the securities through Bank of America. The sale of the securities resulted in a $6,000+ loss, but Merrill Lynch just reported the sale as income to the IRS and they are now charging us
$18,000+ as a tax
increase including penalties and interest
. The issue is that we filed the taxes through a Bank of America advertised version of Turbo Tax
where Turbo Tax gets all the information from Bank of America itself. So if Merrill Lynch sold the securities at a loss, and we are using a program though its owner Bank of America, why is the IRS saying that we owe it money? We call Bank of America and it refuses to answer our questions saying it cannot access the Merrill Lynch account and that we need to call Merrill Lynch, never mind that Bank of America owns Merrill Lynch. The question wasn't about the Merrill Lynch account, in so much as why Turbo Tax didn't catch this and why Bank of America did not provide this information to Turbo Tax. Regardless, Bank of America owns Merrill Lynch, so whey the separation? We call Merrill Lynch and they say all of the information is disclosed and online. However, we have never received a copy of this information and what's more so we used software
that was advertised by Merrill Lynch's parent company, Bank of America, to ensure that we would not miss anything. What seems sinister is that Merrill Lynch is reporting this as income that we didn't report, which is not the case, it was a loss, and we are not the only ones. What should be done? How do we get answers from Turbo Tax, Bank of America and Merrill Lynch? How can Merrill Lynch report securities they sold as a gain when they know it was a loss because the company that acquired the securities was their now parent Bank of America...