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TOPIC: Cp2000 letter
#7340
Rlangan (User)
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Cp2000 letter 7 Years, 2 Months ago Karma: 0  
Hello .. I am clearly not a tax expert and I'm looking for some tax help.

I received a cp2000 letter in the mail today stating I owe $9054 from my 2009 return. The items listed primarily are securities, so for example i'm being taxed for one line item of $737 from a selling of stock shares. IRS is stating this is undeclared income which I agree wasn't declared on my 2009 return. My online account however was funded by taxable income exclusively. Can I be taxed twice on each instance of a stock sell, for the entire sell amount ? Seems like I'm being taxed twice... I can understand being taxed on the profit (if any) on the sell... but I could be wrong.

Thanks in advance for your help.
 
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#7358
Miami LS (User)
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Re:Cp2000 letter 7 Years, 2 Months ago Karma: 0  
You said: My online account however was funded by taxable income exclusively. Can I be taxed twice on each instance of a stock sell, for the entire sell amount ? Seems like I'm being taxed twice... I can understand being taxed on the profit (if any) on the sell... but I could be wrong.

Did you tax after tax dollars, purchase securities and then trade them? If so, then you will be taxed on the gain, if any from any subsequent transfer. Note that capital gains receive preferential tax treatment and are taxed at 15% rates. Not sure how long this low rate will last given the current administrations desire to increase tax revenue.
 
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#7362
tbm1231 (User)
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Re:Cp2000 letter 7 Years, 2 Months ago Karma: 0  
FYI, if the IRS has notice that you sold a security and you didnt report it then chances are the tax they estimate is based on the assumption that your basis in the stock is zero. Usually you will have a cost basis greater than zero, hence your actual tax liability should be lower.
 
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