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Hi Jason,

I would recommend preparing your tax return using software like Quicken (I use the online/Web version) which will ask you questions along the way to determine everything you owe (such as, did you sell any stock in 2003?) You can also go to a tax preparation service like H&R Block or something similar.

Off the top of my head, I don't think you will need to do anything about the sales from this year right now, but you will need to include them when you complete your 2004 return (in 2005). You should have declared the 2003 sale on your 2003 return as short term capital gains count as extra taxable income. Your best bet might be to file an amended return for 2003. Check the INS site for details on how to do this. Basically, you refile the main document, include copies of any new or changed worksheets (the capital gains worksheet in your case) and include a short explanation of what's changed and why. Your broker should have sent you a tax form for the 2003 sale - you may be able to contact them and get a copy or a new one if you don't have it. Note that they also send a copy of the form to the IRS, which is why it would be a good idea to file an amendment just to make it clear it was an honest mistake on your part.

I'm not a tax expert so do your own research to figure out what applies in your situation - or go the software/service route and have someone else do it for you.
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