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Do I have any other options? I'm getting a stomach-ache thinking about all those small amounts of stocks in all those companies (Bell South, Lucent, Avaya, Comcast, and who knows what else) that I have accumulated. Maybe I'll just file my return tomorrow without including this sale of stock, and write to the IRS and ask them to send me a bill for the capital gains on a sale of 200 shares that netted $7309.

Not a tax pro and not telling you what to do, but here's what I would do: Lacking records, I'd put everything I sold in 2007 related to these companies on the long-term gains part of Schedule D with a basis of $0 and the purchase date as "Various" for each company. That way I'd be paying the maximum capital gains tax possible and that would keep the IRS off my back. This is providing that none of the purchases occurred within the year prior to the sell date--that stuff I'd have records for and it goes on the short-term part of Schedule D.

Then I'd spend some of my spare time over the next three years (the time that's allowed to file an amended return) researching the details of the purchases to try to get some of that tax refunded.

Deliberately leaving the sales off your tax return could get you in bigger trouble than coughing up the max dough. The IRS will be notified by your brokerage of the total of everything you sold and it needs to match the total of what you said you sold on Schedule D.

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