Guest
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 Posted:
Mon Nov 14, 2005 9:00 am Post subject:
IRS says I owe $20,000 for a short sale |
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I was shocked to get a notice from the IRS saying I had to
pay $15,000 is missed taxes for 2003 and $5,000 in interest
and penalties.
The issue:
On 12/30/2003 I sold short 1000 shares of Yahoo at $45.65.
I covered this for a small loss on 01/01/04.
The IRS says that I didn't report the $45,650 of income in
2003, and I owe tax on it! They are assuming I had a
zero-cost basis for this sale, which can't be fair. Any
advice on how to handle this is appreciated.
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