rbynaker
Level 14
06-08-2023
08:48 AM
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The regulations provide for some safe harbors:
https://www.law.cornell.edu/cfr/text/26/1.121-3
Does this one apply to you?: "The cessation of employment as a result of which the qualified individual is eligible for unemployment compensation"
Generally you would just file an amended return excluding the gain. I don't know that "pleading" with the IRS will do much otherwise (although you may find a sympathetic ear to help you work through the 1040X).