The Situation
Cole, an investor and salaried employee, received IRS account information showing $51,300 due, associated with missing cost basis on securities reported to the IRS. Before pursuing a payment arrangement or settlement, the taxpayer needed to determine whether the assessed amount was correct.
The Resolution Strategy
The team obtained account transcripts and organized broker statements, trade confirmations, and basis schedules, then identified the relevant procedure for correcting the assessment, credit, or return information. Each request relied on verifiable records and the taxpayer's applicable review or appeal rights. The remaining tax reflects properly substantiated gain.
The Outcome
The IRS accepted the supported corrections, changing the displayed balance from $51,300 to $16,900. That is a $34,400 adjustment (67.1%), reflecting corrected account treatment rather than negotiated forgiveness. The remaining amount, if any, still requires resolution.
Names have been changed and photos are representative stock images used to protect client privacy. This case describes an individual situation. Eligibility and outcomes depend on each taxpayer's circumstances, are not typical or guaranteed, and past results do not predict future outcomes.
