irs 1099 question?

Question

few yrs back i put like 1400k in to ameritrade i lost about 300 overall,,
today i got a letter from the irs saying i owe money like 290--
i pulled up my ameritrade account and all my sales of stock add up to the irs crap i sold xx shares for 1800 so i that is more than i had but i sold and bought a few times so my sold column adds up to 1800 so now i owe tax's on 1800 why the hell do i owe money to the irs if i lost money and i paid tax's on that money when i got paid from my employer to begin with??

if you guys do not get what i am asking please email me @ [e-mail]

thanks

confusing question
it is a 1099-b form
i lost a few hundred over all and irs wants taxs on the money i made from the sale of my stock but over all i lost

Answer 1

Sounds like you are mixing apples and donuts.

1099 income isn't something to do with your employer. It's what you earn as an independent contractor. So are they dunning you for your stock trades or underreported employment earnings? I'm not going to email you, if you can't fit it into this format....oh, well.

Answer 2

Agree with the other answers. I can see two situations.

Situation 1 - IRS is questioning your return and is therefore assuming that the entire proceeds of all your stock sales from Ameritrade is entirely profit. They get no information from Ameritrade what you paid for those shares. Just gather up all your Ameritrade statements, copy them and send them in or schedule a visit and they will copy them for you.

Situation 2 - You didn't report any stock sales for the year in question or did not report enough stock sales to match the amount reported to the IRS by Ameritrade. Again, gather up all your Ameritrade statements, make copies or schedule a visit with them and just let them make copies. Let them figure out what you didn't report and maybe you owe them some or maybe they owe you some.

Most likely if there are a lot of statements or stocks, then they will only look at a few of the statements. If you do not have the statements and cannot get duplicates from Ameritrade, then be prepared to pay a big bill. If they find mistakes, then they will look at more. If they don't find mistakes, then they will look at less.

The burden is on you to prove what you paid. IRS already has the report from Ameritrade to show how much you received for each trade.

Answer 3

I'm guessing here. Pluralize "1099", "sale", "loss" and "price" as needed. You mean 1099-B from Ameritrade.

You received a 1099 reporting the sale. You did not put the sale on Schedule D and record the loss in the year of the sale. The IRS received the 1099, which shows only the sales price. The IRS is figuring tax on the sales price without knowledge of the purchase price.

Respond to the letter, documenting the sales and the losses. This may be sufficient, or the IRS may request an amendment (which may result in you getting a refund if this occured in 2003 or later).

Some of the $290 may be a penalty for underreported income, so respond quickly and see if you can get it abated. Otherwise, pay it and be sure to fill out all your transactions in the future, even the losses.

Answer 4

When you sell a stock, the only thing that gets reported to the IRS is the sale price. They have no idea what you paid for it and, if you don't tell them what you paid for on Schedule D, they assume it was zero.

You will need to ammend the returns to establish the loss. This was your error, not the IRS's or Ameritrade's.

Answer 5

question is not very clear with facts. I guess it may have to do with profits in a specific year although you had losses over the time.....

Answer 6

It sounds like you didn't file a schedule D. Amend your return & refile.