I received CP2000 from IRS indicated I owe tax for 2015.

Forum|Forum|7 years ago
June 1, 2019
1 reply
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My parents filed me as dependent in their tax return and I had my own tax return in 2015. My mother purchased the mutual funds a few year ago and opened the account with both of our names. She sold the mutual funds and received Form 1099-B with my SSN as the recipient's ID. My parents filed this transaction in their tax return 2015.

I received the letter of CP2000 from IRS indicated that I owe tax of $2,672 for the total gross amount of $20,784 which including the cost of $16,162.

How do I explain to IRS?

Thanks!

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Critter

Employee

Look at the 1099-B ... who's SS# is on the account ? I bet she opened an account for you but since you were a minor her name had to be on the account as the responsible adult.

If the account is yours then those sales belonged on your return ... they could not go on their return. Check with your parents .. if they reported them incorrectly then they will need to amend their return.

You also need to amend your return in response to the IRS letter to report the basis of the stock sold. You will also need your parents corrected return for the info needed to complete the form 8615.