Got a new client (DIY on TT) and in reviewing the past several years, I note big number stock sales reported on major firm brokerage statements included in with the return copies for two of those years. Nothing reported on the 1040 for either year (2010 or 2008). No letters from the IRS. Can this happen? Amazing it could slip through the matching cracks.
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Give them time. Just because two years has pasted doesn't mean they won't catch up with it. Have you verified that the SSN is correct on the documents?Believe nothing you have not personally researched and verified. -
What was it for?
You say that they are reported on the statements of the brokerage. Is there a 1099-B? Were they stocks or were they options? Are the statements for a taxable account or perhaps an IRA?I would put a favorite quote in here, but it would get me banned from the board.Comment
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Not IRA. Form 1099-B, fully taxable account, common stock sales. 2008 was 5 years ago. Told him he could still hear about 2010.Comment
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One should think something like this should never happen. However, after my experience when I purchased my tax practice (11 years ago), nothing surprises me any longer. Half of the returns were done wrong, software was overridden, sometimes the math did not even add up. I never got any IRS mail for those clients that returned after the purchase. Of course there could be IRS for the other clients that I would not be aware of.Comment
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Well, I did check and SSN is correct on the brokerage documents. When I looked at the tax returns, I discovered he filed 2011 with an incorrect SSN (his). But not for the years in question. However, it appears he has these every year, so there is more digging to do. And more amended returns to process.Comment
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