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I received a letter from the IRS on my 2016 tax return. It…

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I received a letter...

I received a letter from the IRS on my 2016 tax return. It show I owe $8531.00 in taxes (includes tax penalty & interest).

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Reason for charges is: I forgot to record interest from one bank account for $308.00 (which I agree with) and I also forgot to report my taxable dividends and schedule D/Capital Gains from my 1099-DIV. now I need respond with an amended return/ why I disagree response. I called the IRS and the said to send my original 1040 2016 tax return, along with a filled out form 8949. Not sure how to fill this out? Do I have to or can I just send a copy of the 2016 tax reporting statement from the National Financial Services LLC? Do I also have to redo my 1040?

Accountant's Assistant: Is there anything else important you think the Accountant should know?

Not sure ?

Submitted: 1 month ago.Category: Tax
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3/20/2018
Tax Professional: Lev, Tax Advisor replied 1 month ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,706
Experience: Taxes, Immigration, Labor Relations
Verified

It looks as you had sale transactions for assets held in your brokerage account

and these sales are reported on form 1099B.

You will need to prepare form 8949 and list all these transaction

https://www.irs.gov/pub/irs-pdf/f8949.pdf

then you will calculate the gain or loss separately for each sale transaction.

That gain or loss will be transferred to schedule D and you will also report qualified dividends on schedule D as well.

after that - you will recalculate your tax liability.

It should be much less than the IRS calculated because they did not use any deductions.

Let me know if that works.

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Tax Professional: Lev, Tax Advisor replied 1 month ago

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