Guys I need help with IRS related

Mods, if this isn't an appropriate section please move to trading but I figured my fellow IB peers can help me on this.

For the tax year 2009 I did some personal trading, and I just got a revised statement saying my 1040 wasn't correct and based on the revised figures I owe x amount more if the information is correct.

The way they are calculating the revised figure is by adding the total value of the trades even though a few were losses as a whole and saying that is my additional income. There is no way this can logically be correct, if that was the case one someone with $100K could theoretically ring up a total sum in millions.

I printed out every monthly statement from the site showing my initial deposit and final withdrawal and sending them this info.

Please advise on this matter, it is really urgent since they haven't given me a lot of time to respond. This is total bullshit, there's no way they can legally use aggregate total of trades as a figure to tax.

Help.

9 Comments
 

I would think it is a bit too early to go and hire an accountant, being pragmatic one would have to go with the idea this can't be the logical way the IRS calculates additional income, hiring an accountant is paying more money which is what I am trying to save.

 

Yeah this is definitely relating to wash sales. Get an accountant.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.
 

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