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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: At_The_Ask who wrote (1373)	4/4/2003 11:27:57 AM
From: m-top	Respond to of 1383

Thats my thinking too so off it goes ...

To: At_The_Ask who wrote (1373)	4/4/2003 11:32:48 AM
From: Gorak Shep	Read Replies (2) \| Respond to of 1383

The issue isn't solely whether you will be ok. If your return does not match your 1099's, that is a big red flag for an audit. Not a guaranteed audit, but really increases your chances. Now if your return is supportable, you won't be in any trouble with the IRS. But even so, you really don't want to go through the audit, do you? It is best, if you can, to resolve the discrepancies before you submit your return. If, for example, you have an open short whose proceeds of sale appear on your 1099, it is best to put it on your schedule D and note it as an open position with 0 capital gain. Then it will contribute to your sales total and match your 1099. Bottom line, it is easier to clear things up on your return than it is in an audit.