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In the end, I did a more work than I had to (and filled out the 1040X wrong to boot) but I'll be mailing off a Schedule D to the IRS tomorrow to explain why I don't have $10K more in 2007 income than I reported and why they can't have another $2535 in taxes from it. Which means I can e-file my federal and state returns tomorrow. Of course considering the insane (for DC) amounts of snow we're supposed to get tomorrow night, the IRS and Commonwealth may not get around to actually processing my return until March, but w/e. I've done my part.