Funding the Bailout

[fasternyou929]

The IRS must be doing their best to help fund the bailout. Checked the mail today and had a fat envelope from the IRS. Gulp.

Opened it up to find an "amendment" to my 2007 return. They say I owe an additional $12,500 plus an "inacurracy fee" of $2,500. Awesome.

And the reason for this blessed piece of mail? Apparently I forgot to list $45,000 in income from a company that has never employed me or my wife. Perfect. So I get to prove to the IRS that I never received something they believe I did. Should be a piece of cake. :panic:

[tached1000rr]

ouch!

[Gas Man]

Did you have some IRS fraud on ur SSN? Like somebody working under your SSN without paying taxes just for this reason... they make tax free money and you get stuck with the bill.

[shmike]

Should be a piece of cake. :panic:

Thankfully, the IRS of today is not the feared monster it once was. If you get a reasonably personable rep, you should be able to clear it up without too many headaches.

That's not to say it is always a pleasure.

I just sent them a check for $2500 from 2006 because they disagreed with some of my deductions. :zowned:

They were polite, though. :lol:

[rogue]

Did you have some IRS fraud on ur SSN? Like somebody working under your SSN without paying taxes just for this reason... they make tax free money and you get stuck with the bill.

:iagree: My thoughts exactly.

[Apoc]

Well thats fucked up. If their messing with your ssn they could have already fucked with your credit too. You better start doing some digging!

[tommymac]

Saturday is d-day for me, paid over 7k last year so am preparing for that. I think workin gon a construction site may give me more wiggle room for deductions. last 2 years I also got letters from them wanting more money. fortunatley it was only a few hundred dollars.

Tom

[R6Chick]

The IRS must be doing their best to help fund the bailout. Checked the mail today and had a fat envelope from the IRS. Gulp.

Opened it up to find an "amendment" to my 2007 return. They say I owe an additional $12,500 plus an "inacurracy fee" of $2,500. Awesome.

And the reason for this blessed piece of mail? Apparently I forgot to list $45,000 in income from a company that has never employed me or my wife. Perfect. So I get to prove to the IRS that I never received something they believe I did. Should be a piece of cake. :panic:

It's all the Miami drug money you thought you could hide. Money laundering FTW!

[Particle Man]

that is a total bag of bullshit with which you've been stuck man.

[pauldun170]

Both the Fed and the State are going crazy this year. they are challenging everything....
They challenged some of our stuff and we had to send off proof.

If only we could audit our own government....

['73 H1 Triple]

And the reason for this blessed piece of mail? Apparently I forgot to list $45,000 in income from a company that has never employed me or my wife. Perfect. So I get to prove to the IRS that I never received something they believe I did. Should be a piece of cake. :panic:

Back in 1985, I got a letter from the IRS ( they were more like jack booted thugs then instead of the nice people today ) demanded $1800 due 14 days from when the letter was SENT . I "lost" 5 days with mail delivery :panic: They said I made $3800 at a former employer in 1982.

I went over to that company and asked to talk to the CFO. I showed him the letter and explained although I worked there in 1976 & 1977, that was the last time I was employed by them.

I told the CFO there was two ways to handle this situation....
1) Pay me the $3800 the IRS said I made and I would take care of the IRS bill

or

2) Straighten this out immediately and get the IRS off my back.

He copied the letter and said he'd be in touch shortly. Two days later he called and said it was resolved. It seems a clerical error was made in book keeping and my SS# was assigned to a local minister who had worked there part time. The minister has the same first initial and the same last name .

A week later I got a short letter from the IRS stating that it had been resolved. No explanation of how it was resolved but I didn't care since they were off my back.

Good luck, you get to deal with real people now instead of heavy handed thugs like we had to deal with decades ago. :willy:

Jeff

[fasternyou929]

Good to hear the IRS has gotten soft in its older age! :) I found the culprit in my papers, apparently an account I closed when I moved from Miami to Raleigh was reported as income. No idea why, but it's not a tax-deferred account so this should be relatively painless. Unless they're persistent on taxing my liquid assets again... :lol:

[shmike]

Good to hear the IRS has gotten soft in its older age! :) I found the culprit in my papers, apparently an account I closed when I moved from Miami to Raleigh was reported as income. No idea why, but it's not a tax-deferred account so this should be relatively painless. Unless they're persistent on taxing my liquid assets again... :lol:

They probably show the entire holding as a gain (short term) which is taxed the same as income.

You'll have to come up with the basis and dates acquired to get it resolved.

[Particle Man]

If only we could audit our own government....
yeah, imagine....


;)

[fasternyou929]

They probably show the entire holding as a gain (short term) which is taxed the same as income.

You'll have to come up with the basis and dates acquired to get it resolved.

Thanks man. I found a statement that lists it as "certificate withdrawn at par with no capital gain or loss". Sounds like what they're looking for? But I still don't understand how/why they caught this as income.

[Rider]

I don't get how people owe so much to the enlivenment. Do you not have taxes taken out of your checks? I consistently get $4-6K back form the IRS every year. Strange because I also end up owing my state a couple hundred. :idk:

[Particle Man]

I don't get how people owe so much to the enlivenment. Do you not have taxes taken out of your checks? I consistently get $4-6K back form the IRS every year. Strange because I also end up owing my state a couple hundred. :idk:
yes, taxes come out but it depends on the size of each check. If you get a large check at any point like a bonus or something it effs things up (at least it does in my case).

[tommymac]

I don't get how people owe so much to the enlivenment. Do you not have taxes taken out of your checks? I consistently get $4-6K back form the IRS every year. Strange because I also end up owing my state a couple hundred. :idk:


My side job doesnt take taxes out so thats upwards of 30k not being taxed so I nee dto get creative with the deductions.

Tom

[Method]

There have been some reports out of the IRS that they will be doing heavy audits on people from years past due to budget shortcomings. They're doing everything they can to raise more cash.

[Captain Morgan]

I don't get how people owe so much to the enlivenment. Do you not have taxes taken out of your checks? I consistently get $4-6K back form the IRS every year. Strange because I also end up owing my state a couple hundred. :idk:

yes, taxes come out but it depends on the size of each check. If you get a large check at any point like a bonus or something it effs things up (at least it does in my case).

This can be one reason, but also, if you have any capital gains, taxes are not taken from those. Capital gains can come from the sale of property, stocks, or other investments. Taxes on these aren't withheld at the time of sale. You have to report the cost basis to the IRS to determine your actual gain.

Another big reason is if someone is a general contractor. They get paid straight up, with no taxes withheld. It is their personal responsibility to pay estimated taxes. If they don't calculate correctly, they end up owing a large chunk at the end of the year.

There have been some reports out of the IRS that they will be doing heavy audits on people from years past due to budget shortcomings. They're doing everything they can to raise more cash.

Yep. The IRS is hiring revenue officers as we speak. They hired some several months ago and have another job posting that closes in a few days.

[shmike]

I don't get how people owe so much to the enlivenment. Do you not have taxes taken out of your checks? I consistently get $4-6K back form the IRS every year. Strange because I also end up owing my state a couple hundred. :idk:

It depends on your income bracket and your deductions.

The more money you make, the less deductions you get.

I have itemized in the past but as my AGI has gone up, the limitations make it less and less likely to surpass the standard deduction.

As a single filer with no kids or mortgage, I'm lucky if my payroll withhold just barely covers my tax liability. Add in any 1099 income (bonus, dividends, interest, cap gains, 2nd job, etc.) and it pushes you over.

I haven't gotten a refund in 4 years. :idk:

[Homeslice]

There have been some reports out of the IRS that they will be doing heavy audits on people from years past due to budget shortcomings. They're doing everything they can to raise more cash.

That's actually good news IMO, considering all the cheaters and "creative accounting" that goes on in this country. People claiming that their new truck or nice vacation was bought for business purposes when it really wasn't, etc. etc.

[Homeslice]

Good to hear the IRS has gotten soft in its older age! :) I found the culprit in my papers, apparently an account I closed when I moved from Miami to Raleigh was reported as income. No idea why, but it's not a tax-deferred account so this should be relatively painless. Unless they're persistent on taxing my liquid assets again... :lol:

What kind of accout? A bank account?

[fasternyou929]

What kind of accout? A bank account?
Yep, just a plain ol' CD.

[shmike]

That's actually good news IMO, considering all the cheaters and "creative accounting" that goes on in this country. People claiming that their new truck or nice vacation was bought for business purposes when it really wasn't, etc. etc.

People love to brag about how "creative" their accountant is and how much money they got back.

Most fail to realize that all that creativity can bite them in the ass if the ever get asked to prove it.

I'm glad that your tax guy found $65,000 worth if itemizations for your $40,000 salary but I hope you have the receipts if Uncle Sam comes asking...:welcome:

[Homeslice]

Reminds me, I was at a ball game a couple days ago, and I was sitting next to this dude who was bragging about dragging his TV down to the basement after it got flooded so he could claim it and get a new one :rolleyes:

[6doublefive321]

I don't get how people owe so much to the enlivenment. Do you not have taxes taken out of your checks? I consistently get $4-6K back form the IRS every year. Strange because I also end up owing my state a couple hundred. :idk:

You are having waaaaaaaaaayyyyyy too much withheld if you are getting that much back every year, and the government loves you for it. You are letting O'Bama's brigade have the use of $5k of interest free money every year. The best approach is to adjust your withholdings so that you receive a small amount back each year. That way you can put that $5k to good use instead of letting the government use it to fund sheep research in North Dakota.

[Cutty72]

You are having waaaaaaaaaayyyyyy too much withheld if you are getting that much back every year, and the government loves you for it. You are letting O'Bama's brigade have the use of $5k of interest free money every year. The best approach is to adjust your withholdings so that you receive a small amount back each year. That way you can put that $5k to good use instead of letting the government use it to fund sheep research in North Dakota.

What's wrong with sheep research?

[Captain Morgan]

Yep, just a plain ol' CD.

That plain ol CD was bought for a certain price and matured for a certain price, which is why they saw it as a taxable gain. I know you said above that you paid the same it was cashed out for, so it was a wash, but until you put the cost basis in your taxes, the IRS thinks you got it for zero and made 45k on it. Very easy to fix, though.

You are having waaaaaaaaaayyyyyy too much withheld if you are getting that much back every year, and the government loves you for it. You are letting O'Bama's brigade have the use of $5k of interest free money every year. The best approach is to adjust your withholdings so that you receive a small amount back each year. That way you can put that $5k to good use instead of letting the government use it to fund sheep research in North Dakota.

Agreed. I typically get anywhere from 500-1k back. Got a LOT more this year only because of first time homeowner for house I bought at very end of 08. I prefer to get the smallest refund possible each year, that way I'm putting my money to use over the course of the year instead of the government using it.

[nhgunnut]

And the reason for this blessed piece of mail? Apparently I forgot to list $45,000 in income from a company that has never employed me or my wife. Perfect. So I get to prove to the IRS that I never received something they believe I did. Should be a piece of cake. :panic:

Damm !
I guess the only good news is that you are now eligible for a Cabinet Post!

[6doublefive321]

What's wrong with sheep research?

Nothing. But I can think of a lot more useful things for the spendulus funds.

[Particle Man]

What's wrong with sheep research?

it's baaaaaaaaaaaad

[bmblebee]

My side job doesnt take taxes out so thats upwards of 30k not being taxed so I nee dto get creative with the deductions.

Tom


Check the 1099-misc your side job pays you. If the income is listed in Box 3, you can claim it on line 21 of your 1040 as other Income and will only be liable for income taxes. If the Income is listed in Box 7 It will be taxed as Income and will be taxed for self-employment taxes and must be reported on Schedule C. The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).

You can deduct half of your SE tax in figuring your adjusted gross income. This deduction only affects your income tax. It does not affect either your net earnings from self-employment or your SE tax.