Sale of home not reported

I sold my home in 2012 had a gain of 400K. Turbo tax asked me if I had 1099S form which was not issues to us by title company. But seems it was sent by them to IRS, now IRS sent us a letter on this. I guess this is an audit, letter type CP? What do we do? Do we file ammendment or give them all documents of purchase/sale on the house or simply send them a letter explaining transaction.There is no tax liablity as I had house for 15 years as my primary house.

Reply to
Anon
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"Anon" wrote in message news: snipped-for-privacy@googlegroups.com... I sold my home in 2012 had a gain of 400K. Turbo tax asked me if I had 1099S form which was not issues to us by title company. But seems it was sent by them to IRS, now IRS sent us a letter on this. I guess this is an audit, letter type CP? What do we do? Do we file ammendment or give them all documents of purchase/sale on the house or simply send them a letter explaining transaction.There is no tax liablity as I had house for 15 years as my primary house. ========== Just tell them what you said here: You sold your primary home that you lived in for more than 2 years and applied the $500k exemption against the gain to reduce it to zero. You should also mention that the title company did NOT give you a 1099-S, so you assumed that they were aware of your exemption. (That's important because there will be an IRP penalty awaiting for them when this is resolved.) I would NOT give them other paperwork at the first asking but only for an audit.

Reply to
D. Stussy

There may be a difference between the title company "not giving" and the taxpayer "not receiving". All the taxpayer knows is that he did not receive.

Reply to
Pico Rico

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