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being audited by IRS, should i still file tax return for 2012?

Asked by: jhuntres 925 views YA Discussion

ok, i am being audited by IRS based on false informations they recived from my stock broker company in 2010. now i am filing petitions with tax court. i was jjust wondering is it safe to file for my 2012 tax return? i have over 8K tax withhold….or irs will not refund those withholding until everything gets clear?
please help/advise.
my stock broker did not give me 1099. i initially had 4000$ from my saving transferred to my stock broker account and the through out the year, EVERY-TIME i bought and sold stock with my 4k, they ADDED all those moneys and securities, and at the end they said that i had over 28,000$ securities in stock market and did not report all these money. they considered these as income….for the whole year, i had total of 300$ profit out of my own 4000$ saving money that i transferred to my stock account!!!
they told me that i have to pay 4500$ taxes and interest on the money I NEVER HAD..!!!
well even if i hire someone and redo my taxes for 2010, what should i do with 200$ interest IRS charged me???
they send me so call “THREE NOTICED” I NEVER RECEIVED DURING PAST YEAR.. finally they send a certified letter stating that its too late for negotiations.. i either have to pay whole taxes + interest OR file with tax court…. which i did the second one…they answered the court and now i am waiting for IRS to call me for conference!!

3 Answers

  1. Quick Answers on Jan 23, 2013 Reply

    How exactly was it false? Did you or did you not sell the items in question for the proceeds shown?

    You might as well get an extension. Unless the IRS shows litigation on the account, they will just apply any refund to the amount owed (and refund later if you prevail).

    HIRE someone to review your records and submit a CORRECT 2010 schedule D with proof of basis using a 1040X.

    Clearly you have no clue how that the brokerage house did give the IRS a 1099-B showing proceeds only (as was the norm for 2010) and without you showing your basis, the IRS used zero.

    Had you filed and showed the basis, you would have shown the $ 300 profit to begin with.

    Petitioning the tax court when a simple submission of the correct forms would be cheaper and faster.

    PPS A CP2000 is not an audit. It’s a proposed change. If you ignore it, it becomes the change and you have to pay it off and then amend.

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  2. sanèe w on Jan 23, 2013 Reply

    u shuld definitely file! if anything they will hold your refund but it doesn’t matter still fly because if they hold it they hold it nothing gained nothing loss and if they don’t hold it you get sum money

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  3. tahjeeka Morrison on Jan 23, 2013 Reply

    You have to get them to report a corrected 1099 or you can provide your own documentation showing how it comes out to your account your claiming.

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