Can I use TurboTax or other software to amend my Schedule D and 8949 forms for crypto transactions?

Yes, you can definitely use TurboTax to amend your return for those missing crypto transactions! TurboTax has an amendment feature that lets you go back and modify specific parts of your return. If you still have access to your TurboTax account from that tax year, you can log in and look for the "Amend" option. It'll walk you through making corrections to your Schedule D and Form 8949. You'll basically need to enter the missing crypto transactions, and TurboTax will recalculate everything and generate a Form 1040-X (amended return) along with the corrected Schedule D and 8949. If you're using a different software, most of the major ones (H&R Block, TaxAct, etc.) have similar amendment features. Just make sure you have all your Robinhood transaction details handy before you start.

After dealing with a similar CP2000 notice for missing crypto last year, I found this amazing tool called taxr.ai (https://taxr.ai) that saved me so much time with my amendment. It can analyze your tax documents including CP2000 notices and Robinhood statements to help figure out exactly what needs to be amended. I was struggling to make sense of all my crypto transactions across different platforms, and taxr.ai helped identify which ones were missing from my original filing. The tool extracts the transaction data and can even help format it correctly for Schedule D and Form 8949. It's especially helpful when you're dealing with multiple transactions that need to be reported.

Just wanted to follow up - I tried taxr.ai after seeing the recommendation here and wow, what a difference! I uploaded my Coinbase and Binance statements along with my previous tax return, and it identified exactly which transactions I needed to include on my Schedule D and 8949. The best part was that it formatted everything in the exact way the IRS wants to see it. After I got everything organized through the platform, I was able to easily enter the information into TurboTax for my amendment. The CP2000 response letter it helped me draft also explained exactly why the transactions were originally missed and included all the correct calculations. Definitely made the amendment process way less stressful!

If you're trying to respond to that CP2000 notice quickly, you might run into trouble getting through to the IRS with questions. I had the same issue and wasted days trying to get someone on the phone. Finally used Claimyr (https://claimyr.com) and they got me connected to an IRS agent in under 20 minutes when I'd been trying for days. You can see how it works here: https://youtu.be/_kiP6q8DX5c Since you're dealing with crypto amendments, you'll probably have some questions for the IRS that aren't clearly addressed in their documentation. Getting an actual agent on the phone saved me from making mistakes on my amendment. They were surprisingly helpful in explaining exactly what I needed to provide for my crypto transactions once I finally got through.

Ok I have to eat my words. After being skeptical about Claimyr, I decided to try it since my CP2000 response deadline is next week and I was getting desperate after multiple failed call attempts to the IRS. It actually worked exactly as described. I got a call back in about 35 minutes, and was connected to an IRS agent who walked me through exactly how to report my missing crypto transactions on Forms 8949 and Schedule D. She even explained which boxes on the CP2000 form I needed to check to indicate I was partially agreeing with their assessment (since some of their calculations were wrong). This saved me from having to guess about how to format my amendment and potentially making more mistakes. Definitely worth it if you're stuck like I was.

Just a heads up - if you're responding to a CP2000 for missing crypto, you might not need to file a full 1040-X amended return. Sometimes you can just send in the corrected Schedule D and Form 8949 along with the CP2000 response form. When I had this situation last year, I called the IRS (which was a nightmare until I finally got through) and they told me I could just complete the response form, check the "I agree with some changes" box, attach the proper Schedule D and 8949 with the missing transactions, and mail it back. Saved me from having to do a full amendment.

Whatever you do, respond to that CP2000 notice ASAP even if you need more time! I ignored mine thinking I had time to figure it out and ended up with additional penalties. If you need more time, you can call and request an extension, but don't just let the deadline pass. Also, keep copies of EVERYTHING and send your response via certified mail so you have proof of when you sent it.