Nick D wrote:

- quote -

Have you sold this one share? If not, you do not have a
claimable loss or a worthless security.

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Nick D wrote:

- quote -

One reason you may be confused is that you are trying to use
the 8275 for the wrong purpose. In addition, the 8275
should be colored red as it has the effect of running a red
flag up the pole for the IRS.

Just file your return; report the loss; and claim your
refund. If the IRS wants more information they will ask for
it.

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"Nick D" <jnemail1[at]nycap.rr.com> wrote:

- quote -

Why? When they process your amended return, if they're
curious they'll ask.

--
Phil Marti
Clarksburg, MD

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Dick D <jnemail1[at]nycap.rr.com> wrote:

- quote -

I don't think you have a problem but, if you are worried
about it, just don't indicate the number of shares. Simply
enter "XYZ Co." as the description. The IRS computers do
not verify the per share information.

I would not, repeat not, attach any explanation, whether
Form 8275 or otherwise. My basic philosophy is that you
shouldn't tell IRS anything that they have not specifically
asked for. The more explanation you give them, the more
things they can ask about.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

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Hello.

I'm amending my 2004 return to show a loss on a worthless
security.

The amount of the loss is rather high (five figures). The
initla stock purchase was for 1000 shares. Later the
company changed names, and did a reverse stock split. I
ended up with 1 share of the new company.

So now when reporting the worthless security, it shows on
Sch D as "1 XYZ Co.", with a value of say $20k. I'm worried
that will draw attention, so I was thinking of filing a form
8275 to disclose the history of all transactions related to
that worthless security.

Unfortunately the instructions for 8275 are, well... crap.
(to me at least)

Part 1 - specifically columns A and B... Can someone
suggest what type of information goes there?

I assume that in part 1 would make some statement about the
worthless security loss, and then in part 2 (and 4) I would
go into as much detail as I would like?

Thanks

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