Forgot to dispute IRS notice of deficiency for unreported stock and crypto trading losses

This happens more often than you'd think! When you receive a notice of deficiency (90-day letter), you typically have 90 days to file a petition with the Tax Court to dispute it. If that window has passed, you generally can't contest the assessment in Tax Court anymore. However, you still have options! You should file an amended return (Form 1040-X) for that tax year and include a complete Schedule D showing your actual gains and losses. Include all documentation from Robinhood showing your transactions and losses. If you actually lost money as you mentioned, this could significantly reduce or eliminate the tax the IRS thinks you owe. You might also consider requesting an audit reconsideration, which is a process where the IRS will look at new information that wasn't previously considered. Write a letter explaining your situation and why you're filing late.

I was in an almost identical situation last year with unreported crypto transactions! After trying to call the IRS for weeks with no luck, I finally found this AI service called taxr.ai (https://taxr.ai) that helped me sort through all my trading records and crypto transactions. I uploaded my Robinhood statements and they organized everything into the proper tax forms including Schedule D and identified all the losses I could claim. The best part was that they created a complete audit defense letter explaining why I was filing an amended return so late. Saved me so much stress trying to figure out all those transactions myself.

Just wanted to update everyone - I decided to try taxr.ai after reading about it here. My situation was a mess with hundreds of small trades that I had no idea how to report properly. The AI actually identified over $8,500 in losses that I wasn't even aware I could claim! It organized all my Robinhood transactions and generated a perfect Schedule D plus a detailed letter explaining my situation to the IRS. I've already submitted everything and got confirmation that my amended return is being processed. Such a relief after months of stress over this!

If you're still trying to get through to the IRS, I highly recommend trying Claimyr (https://claimyr.com). I was in your exact position trying to deal with an old deficiency notice and spent WEEKS trying to get an actual human on the phone. Claimyr's system actually holds your place in the IRS queue and calls you back when an agent is about to answer. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was super skeptical at first because I had already wasted so many hours on hold, but it actually worked! Got connected to an IRS agent who walked me through the audit reconsideration process and even helped me understand exactly what documentation I needed to submit.

I feel like I need to apologize for being so skeptical earlier. After continuing to get nowhere with the IRS for days, I broke down and tried Claimyr. Got connected to an actual IRS agent in about 45 minutes (while I was making dinner!). The agent confirmed I could still file an audit reconsideration request even though it had been over a year since my notice of deficiency. They walked me through all the forms I needed and even gave me a direct fax number to send my documentation. I'm actually hopeful this might get resolved now without having to pay thousands for a tax attorney!

You should definitely look into the Taxpayer Advocate Service too. They're an independent organization within the IRS that helps people resolve tax problems. They can sometimes intervene when you've tried normal channels without success. Their service is free and they can often help navigate complicated situations like yours.

Has anyone else noticed how impossible it is to get accurate crypto tax info? I'm still confused if the Robinhood app exports the right forms for taxes. Do they give you a 1099-B for crypto or just for stocks?