Wash sales IRS spot

Discussion in 'Professional Trading' started by alanack, Mar 14, 2008.

  1. alanack


    Has anyone here on ET been stuck with a tax liability on wash sales as a result of not having declared themselves a professional trader? I'm curious about what someone might have experienced upon being told by the IRS that the net sales of a series of day trades are not offset by purchase amounts(i.e., the entire total of the sales is seen as taxable, without regard to profits or losses made). Did the IRS waive the liability after you proved to their satisfaction that you were indeed a professional trader? And did you resolve the issue with or without legal representation? I made about 60 trades in this tax year, all the same stock, and nothing held overnight. Thanks.

  2. i have never heard or read about anybody ever being targeted on wash sale violations.