IRS: Just got a notice that I owed additional taxes. The IRS

Posted on: August 5, 2025 at 08:46:01 CT

made an error transferring my paper return data into their software. I had long term capital gains income (Sch. D, Part 2, line 11 from my Form 4797, Part 1, Line 7). I sold farm equipment I had owned for ten to 30 years. Obviously, the sale qualified as long term capital gains. The idiot tasked with imputing my information into their system put this income on the wrong line of Sch. D. He/she/it put the income on the line for short term capital gain (Sch. D, Part 1, line 7). This error disqualified me from using the Qualified Dividends and Capital Gains Tax Worksheet instead of the Tax Tables to figure my taxes. Their error ended up costing me an additional $4500 in taxes for 2024.

I called the phone number on the notice. On my eighth attempt I got through, but after a one hour wait and an additional 21 minutes on hold, while the gal found my return. She was looking at the erroneous return on her computer screen and explained that I had entered the income as short term capital gains. I assured her that I had not. I told her there was no short term gain, but that I had claimed the sales income as long term gain. She said I would have to prove it. I asked her to look at my original paper return and all I heard was crickets. She said I could file an appeal.

I have requested a transcript of my return from IRS. I intend to file an amended return and hope to get my money back.