John H. Fisher wrote:
- quote -

Not to me. The revenue procedure used a capital loss
carryover as its EXAMPLE -and in that example, the source
year was closed (i.e. beyond the 3 year window to amend [and
no worthless security issue which would hold that open up to
the 7th year]).

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John H. Fisher wrote:

- quote -

Not really--the IRS has done a lot of work in the courts to
sustain the position that a carryover reported on a return
"stands alone" and is a factual matter independent of what
was reported on prior returns. The IRS has done this
primarily to allow them to disallow things like net
operating loss carryovers that arose from closed years where
the IRS finds information that would change the original
loss. The same logic would work for the capital loss.

That said, clearly you'd need to be able to support the
carryover amount reported on the return. But the prior year
Schedule D is neither sufficient in and of itself to
support, nor would it appear that it is required to claim
the prior year loss carryover.

--
Ed Zollars, CPA
Phoenix, Arizona

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John H. Fisher wrote:
- quote -

Not to me. The revenue procedure used a capital loss
carryover as its EXAMPLE -and in that example, the source
year was closed (i.e. beyond the 3 year window to amend [and
no worthless security issue which would hold that open up to
the 7th year]).

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John H. Fisher wrote:

- quote -

Not really--the IRS has done a lot of work in the courts to
sustain the position that a carryover reported on a return
"stands alone" and is a factual matter independent of what
was reported on prior returns. The IRS has done this
primarily to allow them to disallow things like net
operating loss carryovers that arose from closed years where
the IRS finds information that would change the original
loss. The same logic would work for the capital loss.

That said, clearly you'd need to be able to support the
carryover amount reported on the return. But the prior year
Schedule D is neither sufficient in and of itself to
support, nor would it appear that it is required to claim
the prior year loss carryover.

--
Ed Zollars, CPA
Phoenix, Arizona

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"D. Stussy" <kd6lvw[at]bde-arc.ampr.org> writes:
- quote -

Seems to me the amended Schedule D would be support needed
to verify amended carryover???

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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DaveR wrote:

- quote -

1) An amended return isn't needed where there is no change
in tax.
2) There was a revenue procedure (and an article in "Tax
Practice" about it) that dealt exactly with changes such
as this - about 2 years ago.
3) For what the IRS computers track for carryovers and
such, only the original return causes such entries.
Amounts from amended returns aren't picked up; only
AGI and TI are (and sometimes, those aren't adjusted
either).

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"DaveR" <NOSPAM_drubin[at]NOSPAM_i-2000.com> wrote:

- quote -

You are probably better off by filing an amended return. The
IRS cross-matching program will pick up the proceeds listed
on the 1099-B, but will assign a cost basis of zero, thus
assuming that the proceeds equal gains.

Gary

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DaveR <NOSPAM_drubin[at]NOSPAM_i-2000.com> wrote:

- quote -

You should file an amended return, because it will reduce
the amount of the carryover you carry forward (again), hence
it will affect future taxes.

Seth

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- quote -

Even tho the tax amount is not affected, your carryforward
is and that is the grounds I would amend on.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

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DaveR <NOSPAM_drubin[at]NOSPAM_i-2000.com> writes:

- quote -

I would. It's just cleaner that way. Assuming the sale was
for a gain less than your loss carryover there won't be any
additional tax due, but everyone's records will match.

Phil Marti
Topeka, KS

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DaveR <NOSPAM_drubin[at]NOSPAM_i-2000.com> writes:

- quote -

You will owe no taxes, interest, or penalty on taxes you do
not owe. However, you would want to file the amended return
so that you will have the correct carryover losses. Not
only that; what you didn't report will be viewed as 100%
taxable 'cause you did not report your offsetting basis.
Whether or not it is picked up by IRS computers, it is to
your greater advantage to properly report the transaction.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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IRS shouldn't do anything. However, you might have an
easier time in the future with your carryover loss if you
correct this year. Sometimes it's hard to prove a 2005 loss
when it originated back before 2002 and you haven't
corrected the figures along the way.

Nan, EA in LA

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Our return was filed and then we found a 1099-B form that we
had forgotten to list on Schedule D.

Since we have a carryover loss from prior years, this
transaction would not affect the tax due.

Should we file an amended return anyway, since the IRS
computers will probably pick it up?

If we don't file an amended return, and the IRS computers do
pick it up, will we owe penalties or interest, despite the
fact that our tax amount is unaffected?

Thanks in advance for the advice.

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