Re: Audit for not reporting stock trades

Complete a Schedule D for that year ...

Also make sure there is a line on D (or B) for every line
on a the 1099s. The IRS (and usually faster state tax agencies)
usually do a line-by-line match of the 1099s.
If one is missing you get a tax bill assuming zero basis (100% gain)
for the missing lines. Incomplete 1099 reporting was my most common
letter from the IRS before I got the system right.

.