FILING REQUIREMENTS

Forum|Forum|6 years ago
March 30, 2020
2 replies
19 views

WHEN LOOKING AT THE DEFINITION OF GROSS INCOME FOR FILING REQUIREMENTS, HAS IT CHANGED SINCE COVERED STOCKS ARE BEING REPORTED? IT USED TO BE GROSS SALES OF STOCK WOULD TRIGGER FILING REQUIREMENT, BUT I HAVE A CLIENT NEW TO ME THAT DIDN'T FILE LAST YEAR ..LARGE GROSS SALES $. BUT A NET LOSS.THEY HAVE RECEIVED NO DEFICIENCY LETTER TO DATE

Lacerte Tax

This topic has been closed for replies.

BobKamman

Level 15

Gross proceeds were never part of the definition. Code Section 61 states:

(3) Gains derived from dealings in property;

IRS would just hassle people with higher proceeds because they hoped to shake some with profits out of the tree. As I recall, they did this with even greater vigor in years the market went down. Now, it's easier for them to spot those with gains, so the number of AUR notices has diminished.

thompsonAuthor

Level 3

Would you suggest going back and filing if no letter has been sent. I'm just surprised, she had a property sale with gross over 700,000. although it was a residence and 1099s was issued.

BobKamman

Level 15

Are you doing this for free? Or will you give the client a letter to sign, acknowledging that there is no requirement to file and that in the unlikely event an IRS notice is received, it can be answered with a letter and not a return?

Just-Lisa-Now-

Intuit Community Champion

Ive seen transcripts that show gross proceeds and "basis reports to IRS", but it doesnt show the basis on the transcript, so IRS would still be looking for the gross proceeds being reported on a return.

If you only filed last year, you may not see the CP2000 until this summer or maybe even fall

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

thompsonAuthor

Level 3

thank you very much, that was my feeling.

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