State governments are not necessarily believing the same set of facts that the federal government does. I got caught in a multi-year cycle one time where the state government kept coming after me every year for the same thing, even though I had the federal return and the evidence that it was correct.
Each year I'd send that thing in, in response, and I'd never hear from them...until the next year, when they'd do it again.
Felt to me like each year somebody would receive my response, decide it was too much work to deal with, and then file it away in the "hit them again next year" pile.
I'm sure this will be a nightmare for the next few years. As if selling that house wasn't a bad enough experience.
I shouldn't have to spend $5k or whatever else on a lawyer to deal with this. Insane. I walked away with $13k after paying everyone/mortgage off.
I did these taxes in the height of the pandemic in March after being laid off and living out of airbnbs for 3 months so it very well may have just been missed unfortunately. I'm not even sure what they need or who to talk to, I'm just going to mail them everything I have including the Statute stating I don't need to pay capital gains on a primary residence house sale under $500k.
They probably don't need a copy of the Statute, but eh. :)
What a weight off my back..
Why? They think I sold a house and kept all of the gains. Like I didn't have a mortgage, and like it wasn't my primary residence.
It's ridiculous. I can't explain how stressed out getting a $165k bill when that's practically my yearly income made me. I wonder how many wealthy people get these completely incorrect $165k bills and how often they come after the person with $10k in the bank.