"Dennis G. Rears" wrote:

- quote -

If you filed a return you should have read the declaration
on the return... you certify the return is "true, correct,
and complete" to the best of your knowledge. Obviously, that
is not true if you failed to report a transaction that you
had knowledge of.

A

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"Dennis G. Rears" <drears[at]runningpagespam.org.lga.highwinds-media.com> wrote

- quote -

I would like to thank you all for your replies. To summarize
I think the answers were:

1) The IRS will assume all income reported on a 1099-B as
income with 0 basis unless an entry exist on a 1040-D.
2) Someone said something about CA but I am a resident of NJ.
3) In actuality no income/capital gains is realized no
taxable liability occurs, only a "penpal" dialogue exists.
I am trying to minimize filing time not taxes. I guess
I lose....
4) The technical answer to my question is "I don't have to
report the sale of my stock but the IRS will impute the
sale of the stock as 100% income".....

The question is of on time. I lose on this stock. This is
all because I invested in LU which spun off AV and then
AGR.A and AGR.B which became AGR. I not only lost money,
I lost time which is more important.

Thanks.

dennis

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Dennis G. Rears wrote:

- quote -

No, it is not true as stated. Tax law requires you report
all your income from all sources unless specifically
excluded. The only information sent to the IRS regarding
your sale of securities is the amount received. If you fail
to report the sale the IRS will assume you failed to report
$2000 of taxable income.

--
Alan
http://taxtopics.net

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She told me, it doesn't matter, IRS regulations require any
sale of securities be reported. Is this true?

You may receive a letter from uncle Sam (but more likely
uncle Arnold because California is more thorough). There
should be schedule 1040D line for every line on a 1099B or
the somebody may send you a letter. Amounts usually dont
matter. They may request further taxes, assuming a 100%
because you didnt report the cost basis (purchase price).

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Dennis G. Rears wrote:

- quote -

Absolutely. Unless you report the sale and calculate your
loss, the IRS will assume that you have unreported income of
$2,000. After all, they receive a copy of the 1099-B showing
GROSS sales price, but have no knowledge of your "cost
basis". It is worth the paperwork to avoid becoming a pen
pal of the IRS.

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"Dennis G. Rears" <drears[at]runningpagespam.org.lga.highwinds-media.com> writes:

- quote -

What paperwork? A few lines on Sched D.

- quote -

Yes. And even if you do nothing, the sale is reported,
though not the way you'd like.

The broker sends a 1099-B showing the sales proceeds to
you *and the IRS*.

If you don't report the sale on your return, the IRS will
assume your basis in what you sold was zero. So if you sold
$2000 of stock for $300 loss, the IRS will assume you had a
$2000 *gain* unless you put the sale on your Sched D showing
the $2300 basis.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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I was at a recent family gathering. I had mentioned to a
person who was a CPA tax accountant that I had sold some
small stock shares at a loss (total value about 2K with a
loss of $300.00) this year and it wasn't worth the paperwork
to save some $75.00 in taxes. She told me, it doesn't
matter, IRS regulations require any sale of securities be
reported. Is this true?

dennis

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