Help, IRS is reporting my 1099 doesn't match with what I report. I figured out its due to a short I put on in Dec 04, but bought back in Jan 05, for a small profit. So what do I tell the IRS? They say I owe the proceeds from the sale. But for 2004, I never closed the short so there was no gain. Also I only gained on small cap gains, not the proceeds of the entire trade!! I did not own any identical shares than this. So should what should I tell the IRS? Would I have to pay the tax for this as a 2004 or 2005 tax item?