Two years ago I switched from Ameriprise to Fidelity. One of the Ameriprise accounts was a "Cash Reserve Certificate" which I funded every month by auto transferring from the checking account my paycheck direct deposited into to that account. It was a way to just stash money away in a separate account and institution so I could save to buy a house and wouldn't be tempted to spend it.
When I changed to Fidelity, I moved over all my IRA's and had a check written for the balance of the cash reserve and deposited it in my in personal checking account, as I was getting closer to needing it for a down payment.
Today I just got a letter from the IRS stating that I under-reported my "taxable income" and listed this as a security and 95% of the total discrepancy they found, resulting in almost $10K tax bill.
I am reaching out to Ameriprise to figure out what's going on but am worried about needing to pay this. Can anyone explain this, and does this situation sound right? It seems very odd to me that I would pay taxes as "taxable income" because this account was funded with post-tax payroll finds to begin with.
Submitted December 26, 2020 at 08:52PM by HitTheNail https://ift.tt/3mOyFPH
