Today’s Tale of Woe (how I spent my weekend). Accidental Sale of Stock
Is anyone familiar w/ PLRs or if there are Rev-Procs pertaining to accidental/unintentional/inadvertent sale of stock.
TP had purchased shares of NVDA from 2018- 2022
He decided to set a stop loss limit. He inadvertently entered the stoploss at 800 when he intended to enter 500.
Well, NVDA hit 800 and it all got sold on a Friday afternoon (at a hugh profit).
It was not intended, so TP bought it all back when market opened on Monday.
Sadly, the accidental trade came with a 1099B code D.... He’s looking at a CG tax of 200k federal & 60K state.
TP is not a trader. Though he has a decent-size portfolio, it’s mostly blue chips that he has accumulated over the years. The only 1099Bs I usually see are consolidations and mergers.
The IRS has a history of ‘forgiveness’ of unintended mistakes that result in tax and/or penalty; i.e. Rev Proc. 2020-46 “Waiver of the 60-Day Rollover Requirement” or Waiver of the excise tax for the failure to take a RMD on form 5329
My hope is that there may be a Rev-Proc that addresses this or if Private Letter Ruling might be appropriate avenue.
Appreciate any thoughts or is he SOL
