IRS Accepts Audit Reconsideration for Unreported Security Sales Transactions in Seattle, WA
IRS Revised Audit Outcome – 08-26-2020
Taxpayer Situation: The taxpayer received a CP 2000 for unreported security sales transactions in 2018 and did not respond. He believed that since he had an overall loss in the trades, he did not have to report them. The taxpayer was accessed with $55,846 in additional taxes for 2018. The taxpayer did not know how to respond, so the situation worsened, and the IRS issued a Letter of Determination. The Letter of Determination gave the taxpayer the right to Petition the U.S. Tax Court. A friend told the taxpayer he was way in over his head and suggested contacting Legacy Tax & Resolution Services. He had worked with Legacy for his own tax issues.
Resolution Outcome: Legacy Tax & Resolution Services successfully negotiated an Internal Revenue Service Audit Reconsideration for a client in Seattle, WA. Legacy Tax & Resolution Services petitioned the U.S. Tax Court and got the case moved back to appeals. Appeals deferred the case back to the Audit Division. Over the course of 4 months, Legacy Tax & Resolution Services worked with the audit division and provided all securities transactions and their cost basis. Legacy Tax & Resolution Services secured a “no change” audit result for the taxpayer. The taxpayer actually received a tax benefit by using $3,000 of the loss against ordinary income.
Total Savings: $55,846, plus $630
If you need help negotiating with the IRS or State, don’t hesitate to contact Legacy Tax & Resolution services at (855) 829-5877.