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  #1  
Old 12-22-2005, 11:56 PM
sfloriII's Avatar
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Angry Merry X-Mas from the IRS to me

Just for the record:

I pay my taxes.

I pay my taxes.

I pay my taxes.

Enter the IRS:

The IRS is trying to tell me that there is a deficiency in payment from tax year 2003 to the sum of about $16,000. Their letter lists all the clients I worked for and the sums they paid me as if I never paid any tax on that income. F***cking crazy. I paid my taxes and I have the return to prove it. Recently, I also had to prove to them that I paid last year's taxes (which I had) as well. This letter is just the latest in several I've received over the last year or so claiming money I've owed the IRS. In every instance I had to prove myself innocent, which I have. But this is getting ridiculous!!!!!

My question is: what do you do when the IRS is harassing you? I did fax the letter to my tax guy and will talk with him tomorrow.

Right now the IRS owes me about $15,000 in overpayments! Isn't it ironic that they come back and tell me that I really owe them that much and a bit more?
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Current:
2014 VW Tiguan SEL 4Motion 43,000 miles.

2016 Hyundai Santa Fe Sport (wife's).

Past:
2006 Jetta TDI 135,970 miles. Sold Nov. '13.
1995 E-320 Special Edition. 220,200 miles. Sold Sept. '07.
1987 190-E 16 valve. 153,000 miles. Sold Feb. '06.
1980 300-D 225,000 miles. Donated to the National Kidney Foundation.
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  #2  
Old 12-23-2005, 12:01 AM
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Join Date: Oct 2001
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get good help

my CPA is an ex-IRS audtior. She knows how they work and is 2 steps ahead of them. Every time i have a question she whips their butts. Find a good person to advise you.

Chuck
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  #3  
Old 12-23-2005, 12:30 AM
sfloriII's Avatar
Still pedaling...
 
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The strangest twist of irony is that I've directed several training videos for new IRS agents to show them the best and most effective methods of interviewing people who owe taxes. I do these at the IRS headquarters in New Carrollton, MD.

Here's a good one: I worked for IRS director/producer last week at their studios. She's a terrible producer. On top of that, she doesn't direct, I direct the programs.

Here's the thing: she's deaf. While I have no problem with handicapp people working, I do when it comes to cases like this. There are TWO interpreters that follow her around all day long so that she can communicate to people. Each of these people is paid about $80,000 a year. She herself makes about $90,000. Remember, regardless of her handicapp, she's a terrible producer.

So the IRS, at OUR EXPENSE, pays $160,000 a year so that they can employ a terrible television producer who HERSELF makes over $90,000

Barf bag anyone???
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Current:
2014 VW Tiguan SEL 4Motion 43,000 miles.

2016 Hyundai Santa Fe Sport (wife's).

Past:
2006 Jetta TDI 135,970 miles. Sold Nov. '13.
1995 E-320 Special Edition. 220,200 miles. Sold Sept. '07.
1987 190-E 16 valve. 153,000 miles. Sold Feb. '06.
1980 300-D 225,000 miles. Donated to the National Kidney Foundation.
1980 240-D manual, 297,500 miles. Totaled by inattentive driver.
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  #4  
Old 12-23-2005, 12:45 AM
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Yup IRS always trying to F**K you.
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  #5  
Old 12-23-2005, 07:05 AM
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Taxman is always a wet blanket
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  #6  
Old 12-23-2005, 07:26 AM
MedMech
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That's the problem with self employment at some time there is a 1099 out there that you never received and the IRS brings this to light about 5 years later. In my own case a $5000 1099 from 1997 cost me $2900, it's all fine and dandy because taxes are taxes but it I had known about it back then I could have made some moves to offset it.
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  #7  
Old 12-23-2005, 09:41 AM
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It's simple. Any agency that ends with "service" is an indicator that YOU are the one getting "serviced".

I wish you the best and hope you come out ok.
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  #8  
Old 12-23-2005, 10:43 AM
I miss my MBZ
 
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Quote:
Originally Posted by sfloriII
So the IRS, at OUR EXPENSE, pays $160,000 a year so that they can employ a terrible television producer who HERSELF makes over $90,000

Barf bag anyone???

makes those NYC bus driver paychecks look kinda small =)

-John
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  #9  
Old 12-23-2005, 11:42 AM
sfloriII's Avatar
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OK, emergency may be averted.

Here's what happened:

In 2003 I sent the IRS $8,000 with an extension form. I then failed to meet my tax guy and finish up the taxes.

In October of this year, the IRS sent me a letter saying I owed taxes from 2003. I contacted my agent and we finished the paperwork. At that point I learned I'd be getting a nice $4500 refund from the IRS for 2003. Sweet!

Yesterday I received another letter from the IRS stating the same thing as the October letter.

So... the IRS isn't talking to itself. The stupid left-hand doesn't know what the stupid right-hand is doing. It's simply the same letter from a different office in the IRS.

But the result is the same: I the taxpayer am left having to prove once again that I paid my taxes (and more) for 2003. Until this thing plays out, the IRS continues to hold onto approx $15,000 it owes ME. That's money I could use.
__________________

Current:
2014 VW Tiguan SEL 4Motion 43,000 miles.

2016 Hyundai Santa Fe Sport (wife's).

Past:
2006 Jetta TDI 135,970 miles. Sold Nov. '13.
1995 E-320 Special Edition. 220,200 miles. Sold Sept. '07.
1987 190-E 16 valve. 153,000 miles. Sold Feb. '06.
1980 300-D 225,000 miles. Donated to the National Kidney Foundation.
1980 240-D manual, 297,500 miles. Totaled by inattentive driver.
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  #10  
Old 12-23-2005, 11:42 AM
sfloriII's Avatar
Still pedaling...
 
Join Date: Aug 2003
Location: Northern VA
Posts: 1,614
Quote:
Originally Posted by Angel
makes those NYC bus driver paychecks look kinda small =)

-John
BTW, she's only one of several employees of the IRS that has hired hands following them around all day at your expense. I see this firsthand.
__________________

Current:
2014 VW Tiguan SEL 4Motion 43,000 miles.

2016 Hyundai Santa Fe Sport (wife's).

Past:
2006 Jetta TDI 135,970 miles. Sold Nov. '13.
1995 E-320 Special Edition. 220,200 miles. Sold Sept. '07.
1987 190-E 16 valve. 153,000 miles. Sold Feb. '06.
1980 300-D 225,000 miles. Donated to the National Kidney Foundation.
1980 240-D manual, 297,500 miles. Totaled by inattentive driver.
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  #11  
Old 12-23-2005, 11:47 AM
sfloriII's Avatar
Still pedaling...
 
Join Date: Aug 2003
Location: Northern VA
Posts: 1,614
Quote:
Originally Posted by MedMech
That's the problem with self employment at some time there is a 1099 out there that you never received and the IRS brings this to light about 5 years later. In my own case a $5000 1099 from 1997 cost me $2900, it's all fine and dandy because taxes are taxes but it I had known about it back then I could have made some moves to offset it.
I feel your pain. Last year the IRS informed me that I still owed about $2500 in taxes for 2004. What happened is that one of my clients filed the required 1099 for work I had done for him along with a 1099 for work that someone else did for him also under my name. So the IRS had TWO 1099s from the same person for work that I had done for them.

It took several months for this mess to get cleared up. Like every other instance, I had to prove my innocence.

What also stinks is that the person whos 1099 was mistakenly filed under my name is gonna get socked with the tax bill!
__________________

Current:
2014 VW Tiguan SEL 4Motion 43,000 miles.

2016 Hyundai Santa Fe Sport (wife's).

Past:
2006 Jetta TDI 135,970 miles. Sold Nov. '13.
1995 E-320 Special Edition. 220,200 miles. Sold Sept. '07.
1987 190-E 16 valve. 153,000 miles. Sold Feb. '06.
1980 300-D 225,000 miles. Donated to the National Kidney Foundation.
1980 240-D manual, 297,500 miles. Totaled by inattentive driver.
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  #12  
Old 12-23-2005, 12:10 PM
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Quote:
Originally Posted by sfloriII
In October of this year, the IRS sent me a letter saying I owed taxes from 2003. I contacted my agent and we finished the paperwork. At that point I learned I'd be getting a nice $4500 refund from the IRS for 2003. Sweet!
I see you spending that windfall on a trip to ATL for some coffee on Jan. 7th!
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  #13  
Old 12-23-2005, 12:22 PM
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Join Date: Aug 1999
Location: ajax, ontario, canada
Posts: 773
An old one, but quite appropriate here:

-------------------------------------------------------------------------------
A bright, young, fresh-out-of-school auditor just joined the IRS, excited to begin tracking down high-powered offenders-just as the Enron or WorldCom guys. Anxious for his first high-powered audit, he was a bit dismayed when his assignment was to audit a Rabbi. Looking over the books and taxes were pretty straight forward, and the Rabbi clearly very frugal, so he thought he'd make his day interesting by having a little fun with the Rabbi.

"Rabbi," he said, "I noticed that you buy a lot of candles."

"Yes," answered the Rabbi.

"Well, Rabbi, what do you do with the candle drippings?" he asked.

"A good question," noted the Rabbi. "We actually save them up and when we have enough, we send them back to the candle maker. And every now and then, they send us a free box of candles."

"Oh," replied the auditor somewhat disappointed that his unusual question actually had a practical answer. So he thought he'd go on, in his obnoxious way...

"Rabbi, what about all these matzo purchases? What do you do with the crumbs from the matzo?"

"Ah, yes," replied the Rabbi calmly, "we actually collect up all the crumbs from the matzo and when we have enough, we send them in a box back to the manufacturer and every now and then, they send a box of matzo balls."

"Oh," replied the auditor, thinking hard how to fluster the Rabbi. "Well, Rabbi," he went on, "what do you do with all the foreskins from the circumcisions?"

"Yes, here too, we do not waste," answered the Rabbi. "What we do is save up all the foreskins, and when we have enough we actually send them to the I.R.S."

"The I.R.S.?," questioned the auditor in disbelief.

"Ahh, yes," replied the Rabbi, "the I.R.S. .and about once a year, they send us a little prick like you."

-----------------------------------------------------------------
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  #14  
Old 12-23-2005, 12:33 PM
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Join Date: Oct 2005
Location: Olivet MI
Posts: 225
Yep, you must have revenues on your schedule C that meet or exceed your 1099-Misc revenues.

If the schedule C doesn't get filed in a timely manner, they will be sending you a nice letter in a few years.

I didn't file for a couple of years in which my AGI was below the threshold for filing. My broker had sent a 1099-B indicating mucho stock sales. A few years later, I get a couple of nice letters, notifying me that I can pay $130k in taxes (taking the 1099-B as net income with no deductions) or file the returns. I filed the returns, and a month or two later I got a letter agreeing with my requested refund. (yep, they forced me to file returns for which I had a refund coming)
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  #15  
Old 12-23-2005, 03:31 PM
Wes Bender's Avatar
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It sounds as if at least a couple of you are self-employed and are relying on your clients/customers sending you 1099s so that you can make out your schedule C. My question is: Why doesn't your own (or your accountant's)accounting system provide the correct (and maybe the same) information?

I ran a business for twenty years and I never based my tax filing on my clients' 1099s. I based my taxes on what my accounting system indicated was my correct income. Yes, I glanced at the 1099s when they came in and contacted the submitters when there was an obvious error. There were also times when my records and my client's records didn't jibe. I operated on an accrual basis because I had inverntory. Some of my clients operated on a cash basis. In some instances, I would book December business when I billed the client. They wouldn't book the expense until they paid it, sometimes a couple months later. In these instances, I would send a letter of explanation along with my return. I never did have any problems with the IRS.

Just so that you don't think I'm a big fan of theirs, however, let me relate a recent happening. Some of you may be familiar with the vehicle accident on the SF Bay Bridge that sent about 30,000 estimated tax payments into the bay. I read about it in the WSJ. I checked and found we had paid our estimated tax in sufficient time that it wasn't in the accident. The next bank statement verified that the IRS had received it. A month or so later, I got a form letter from the IRS stating that they hadn't received my estimated tax payment and related the story of the bridge accident. They were allowing me to send a replacement payment late without penalty. Instead, I sent a letter relating the payment date, the fact that the check cleared, etc. About a month later I got another form letter acknowledging my response, thanking me and indicating that all my payments that they received would be properly credited to my account.

Now, what do you think this was all about? Did they send form letters to everyone whose payments were being sent to that IRS office? Was this some slight of hand that would allow them the free use of your money for a couple months? I'll probably never know.
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