Uncle Sam Wants You or Your $24,000

The IRS sent us a correction for our 2006 tax filing. It appears that I didn't include 2 sets of stock options that I had to sell or lose when I retired from Bank of America in 2006. They want over $24K including a penalty and interest for not reporting the $69K in stock option sells. We wish we would have gotten that much!!! I have the 1099-B that they sent me stapled with all of my tax forms behind the 1044, but I didn't include a Schedule D to show the option income. So tonight I went through the Schedule D & instructions. I got out the forms from the transactions and they took our 28% in taxes on the option sells, so they got their money, but I didn't report it. I'm still not sure how to report it, so I'm calling the IRS in the morning to get their guidance. Turbotax was no help with stock options.

I should have had someone prepare our taxes that year. . . . it was filed during the aftermath of cancer treatment and right before surgery. But I can prove it all to them with copies I have. Just not sure how to fill out their form! Looks like we might actually get some of that back from them!