Tax Center: NQSO Tax Returns

I received a notice (CP2000) from the IRS stating that, according to last year's tax return, I owe money for the cashless exercise of my stock options. I thought I paid all the taxes through withholding at exercise. How do I respond? This is premium content

The mistake that triggered the notice is easy to make with a cashless exercise. Because the stock sale upon a cashless exercise does not generate any gains, taxpayers often do not realize that they still need to report the sale on Form 8949 and Schedule D of the Form 1040 tax return...
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