CP2501 letter

Ernie Klein · Joined: 25 Aug 2007 Posts: 176

We received a CP2501 letter saying that the IRS received 7 1099-B
reports that were not included on our 2006 return.

The problem is that all 7 stock/mutual fund sales that they are
questioning _were_ included on our return in exactly the same amounts
that they are questioning.

Some of the entries on our return were a single line entry, some were
mutual funds with reinvested dividends that were split between long and
short term, and some were multiple entries using the FIFO method. In
all cases the total sales amount matches the amount reported on the
1099-B.

There were also many other sales in 2006 that we reported on the same
schedule D that the IRS is not questioning.

We did efile using TurboTax. It is almost like the IRS didn't receive
all of our Schedule D data -- is that possible???

How should I handle this? Attach a copy of our Schedule D and ask them
to look again?

--
-Ernie-

--
>
>
>
>
>
>
>
>
>
>

Archived from group: misc>taxes>moderated

Harlan Lunsford · Joined: 25 Aug 2007 Posts: 790

Ernie Klein wrote:
> We received a CP2501 letter saying that the IRS received 7 1099-B
> reports that were not included on our 2006 return.
>
> The problem is that all 7 stock/mutual fund sales that they are
> questioning _were_ included on our return in exactly the same amounts
> that they are questioning.
>
> Some of the entries on our return were a single line entry, some were
> mutual funds with reinvested dividends that were split between long and
> short term, and some were multiple entries using the FIFO method. In
> all cases the total sales amount matches the amount reported on the
> 1099-B.
>
> There were also many other sales in 2006 that we reported on the same
> schedule D that the IRS is not questioning.
>
> We did efile using TurboTax. It is almost like the IRS didn't receive
> all of our Schedule D data -- is that possible???
>
> How should I handle this? Attach a copy of our Schedule D and ask them
> to look again?
>
That's what to do, yes. Also make copies of mutual fund 1099b and make
notes as to how to reconcile with the schedule D filed.

ChEAr$,
Harlan Lunsford, EA n LA

--
>
>
>
>
>
>
>
>
>
>

Benjamin Yazersky CPA · Joined: 02 Jan 2008 Posts: 41

On Feb 11, 7:39 pm, Ernie Klein wrote:
> We received a CP2501 letter saying that the IRS received 7 1099-B
> reports that were not included on our 2006 return.
>
> The problem is that all 7 stock/mutual fund sales that they are
> questioning _were_ included on our return in exactly the same amounts
> that they are questioning.
>
> Some of the entries on our return were a single line entry, some were
> mutual funds with reinvested dividends that were split between long and
> short term, and some were multiple entries using the FIFO method. In
> all cases the total sales amount matches the amount reported on the
> 1099-B.
>
> There were also many other sales in 2006 that we reported on the same
> schedule D that the IRS is not questioning.
>
> We did efile using TurboTax. It is almost like the IRS didn't receive
> all of our Schedule D data -- is that possible???
>
> How should I handle this? Attach a copy of our Schedule D and ask them
> to look again?
>
> --
> -Ernie-
>
> --

If the items listed on the notice were properly reported as you
stated, perhaps there is something else that just isn't matching up
correctly. Also check the sum of your 1099B's, 1099DIV's &
1099INT's. Compare these numbers to the amounts reported on the IRS
notice.

That seems to me to be one of those computer generated matching
notices.
You have to go through it in detail to be certain what it is really
looking for.
Calling the number on the notice should shed some light on the
situation.

___________________________________
>>
-----> real address on hobokeni or hobokenx <-----

"This written advice was not intended or written to be used, and it
cannot
be used by any taxpayer, for the purpose of avoiding penalties that
may be
imposed on the taxpayer."

(The foregoing legend has been affixed pursuant to U.S. Treasury
Regulations
governing tax practice.)

The information transmitted is intended only for the person or entity
to
which it is addressed and may contain confidential and/or privileged
material. Any review, retransmission, dissemination or other use of,
or
taking of any action in reliance upon, this information by persons or
entities other than the intended recipient is prohibited. If you
received
this in error, please contact the sender and delete the material from
any
computer.

--
>
>
>
>
>
>
>
>
>
>

Ernie Klein · Joined: 25 Aug 2007 Posts: 176

In article
,
Benjamin Yazersky CPA wrote:

> On Feb 11, 7:39 pm, Ernie Klein wrote:
> > We received a CP2501 letter saying that the IRS received 7 1099-B
> > reports that were not included on our 2006 return.
>
>
> That seems to me to be one of those computer generated matching
> notices.

Yes, it seems to be computer generated.

> You have to go through it in detail to be certain what it is really
> looking for.

I have done that, but nothing stands out.

> Calling the number on the notice should shed some light on the
> situation.

I tried that. The "call for assistance" number given (1-800-829-3009)
seems to be nothing more than a canned, (push 3 to hear...) FAQ. I
didn't find any way to actually talk to a human - in other words - a
useless waste of time.

--
-Ernie-

--
>
>
>
>
>
>
>
>
>
>

Strange IRS letter OK, this is the first IRS letter I've got on my wife's mother's trust's employment tax returns, and after talking with the IRS, I'm even more confused. Background: My MIL is unable to take care of herself. I don't know if she's still legally competant,

letter size PDF? I just found out how to change my PDF reader setting to letter size...now if I can only withdraw my last posting. << << The Charter and the Guidelines for submitting >> << messages to this newsgroup a

AMT client letter? What is everyone doing to explain AMT to their clients that owe? Does anyone have a generic letter briefly explaining AMT? Do you include their Congress critters names, addresses and phone numbers? :/ I estimate that about 10-15% of our clients owe AMT

2797 letter Does anyone know the purpose of IRS letter 2797? It basically asks for you assistance in updating their records and you check yes or no to the question of whether the address where you received the letter is in fact your address. Is this associated with F

An interesting IRS letter On Thursday, I got a fat, letter from the local IRS SBSE Compliance office, and opened it with some trepidation, which only increased when I saw the title: Notice of Levy, and a bunch of rows for various years with a fat total at the bottom