Received letter from IRS about unreported RSUs - need urgent advice!

This is super helpful, thanks! Quick question - when responding to the IRS letter, do I need to file an amended return (1040-X) or is there a different form I should use to explain the situation? Also, is there a time limit on how long I have to respond?

You typically don't need to file a 1040-X for a CP2000 notice. The notice itself should include a response form that you can use to agree or disagree with their findings. You'll want to check the "I don't agree" box and include your explanation along with supporting documentation. You generally have 30 days from the date on the notice to respond, though you can often request an extension if needed. Don't ignore the deadline - even if you need more time to gather documentation, at least contact them to let them know you're working on it.

Does it actually work for responding to IRS notices? I got a similar letter but for crypto transactions that I didn't report properly. Would taxr.ai help with that too or is it just for stock/RSU issues?

Hmm, interesting. My situation is slightly different - I had RSUs from my employer but also exercised some ISOs that triggered AMT issues. Would this handle both scenarios? I've been putting off dealing with an IRS letter for weeks because it's so confusing.

It definitely works for responding to IRS notices - that's actually what I used it for! The system has templates specifically designed for CP2000 responses that explain equity compensation issues clearly. For crypto transactions, yes they handle those too. The platform has specific modules for cryptocurrency reporting issues since the IRS has been focusing on those lately. Regarding RSUs combined with ISOs and AMT issues - absolutely. The platform actually specializes in complex equity compensation scenarios. It can handle the interaction between different equity types and how they affect your overall tax situation including AMT calculations.

How does this actually work though? The IRS phone system is notoriously impossible to get through. Does Claimyr somehow have a direct line or something?

Yeah right... I've tried calling the IRS over 20 times for a missing refund issue and never got through. No way any service can magically make the IRS answer. Sounds like a scam to me. Has anyone actually used this successfully?

The service uses an automated system that navigates the IRS phone tree and waits on hold for you. When they reach a live agent, you get a call back connecting you directly. It's not a "secret line" - they're just taking care of the waiting part for you. It typically saves 2-3 hours of hold time. When dealing with complex issues like RSUs, it's worth it because you often need to speak with multiple departments to get everything resolved, and each call could be hours of waiting otherwise. I understand the skepticism - I felt the same way. But it's a legitimate service that saves time, not a scam promising magical access. Many tax professionals use it during busy periods when every minute counts.

Check your E*Trade account for a transaction history report. Look for "sell to cover" transactions that happened on the same day as your vesting dates. These will show exactly how many shares were sold automatically to cover taxes. Also look for a form called a "Confirmation" after each vesting date - it should break down exactly how many shares vested, how many were sold for taxes, and how many you retained. If you can't find these in your account, contact E*Trade support and ask for vesting confirmation statements.

Thanks so much, I found the transaction history and you're right - there are "sell to cover" entries for each vesting date. Now I see exactly what happened - about 40% of each vesting was automatically sold for taxes, which matches roughly what my tax rate should be. That explains why the values on my W-2 and 1099-B overlap! I need to report the sales but make sure I'm not double-taxed on income that was already included in my W-2. This is really helpful.

Yes, you can absolutely request penalty abatement, especially if this is your first time making this type of error. The IRS has a "First Time Abatement" policy that often waives penalties for taxpayers with clean compliance history. When responding to the notice, include a formal request for penalty abatement explaining that you made an honest mistake and didn't understand the reporting requirements for RSUs. Focus on how you've always filed and paid on time previously.