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You have to be kidding

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oldsoldier View Drop Down
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    Posted: 01 September 2011 at 12:58pm
I recieved an IRS audit [acket in the Mail. The IRS states we underpaid our 2009 taxes by...now get this $16.58. So between the paperwork, time involved by federal employee, I estimate a loss to the government of somewhere near $1500 for the 'recovery' of $16.58.

We went over and had a tax professional do the taxes for 2009 based on the estate income from my mother passing. I knew a jump of that much income would trigger something in the machine, but a mistake of $16.58, warrents all this attention. Just send a letter, you owe us $16.58, but a full audit, where I need to go to the Federal Building in Omaha, paperwork in hand and spend how many hours with an IRS auditor on a mistake they found, a $16.58 mistake.

I am taking the records and return to a Nebraska based tax service to ensure there are no other errors, but I am comfidant that we are OK and the return was prepared properly. I can send a check for $16.58 to the IRS, but that will not stop the full audit, plus I get to spend $75 on a tax service to again ensure there are no other mistakes, I am betting there are not. My guess is someone had to find something in our return, and yes a 300% increase in income just for that year kicked something, but spending in excess of $1500 to recover $16.58 shows how the machine actually thinks.

And yes I thought there was a threshold number way in excess of $16.58 that triggered an audit, If I owed maybe a few thousand, fine, but this is idiocy from our government.
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stratoaxe View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote stratoaxe Quote  Post ReplyReply Direct Link To This Post Posted: 01 September 2011 at 1:02pm
Bureaucracy at its finest
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Post Options Post Options   Thanks (0) Thanks(0)   Quote deadeye007 Quote  Post ReplyReply Direct Link To This Post Posted: 01 September 2011 at 1:26pm
My wife and I owed $138 for an error in our 2009 taxes. Thankfully they just wanted a check instead of ordering a full audit. I guess they are behind because we didnt get the notice untill mid August.
Face it guys, common sense is a form of wealth and we're surrounded by poverty.-Strato
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Post Options Post Options   Thanks (0) Thanks(0)   Quote The Guy Quote  Post ReplyReply Direct Link To This Post Posted: 01 September 2011 at 1:29pm
I got a notice and a check for $500
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Post Options Post Options   Thanks (0) Thanks(0)   Quote agentwhale007 Quote  Post ReplyReply Direct Link To This Post Posted: 01 September 2011 at 2:42pm
Originally posted by oldsoldier oldsoldier wrote:

 but this is idiocy from our government.

What would you propose as a correct action from the government in this situation? 
"So when Romney wins in a landslide, what will the liberal media do?"
This Ma**edited**hine Kills **edited**as**edited**ists.




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oldsoldier View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote oldsoldier Quote  Post ReplyReply Direct Link To This Post Posted: 01 September 2011 at 3:15pm
Send a simple letter, outline mistake, and I send a check, simple.

If thier preliminary review only found a 'glaring' $16.58 error, do they expect to find more with a full audit? I keep meticulus records for taxes, ran my small bussiness and O/O truck with no errors in the complex tax code fiasco. This mistake was actually on Wilbur Bank on the 1099R reporting, can't check two boxes on reported income, and interest gained, not our error since we went on the numbers supplied by W2's and 1099's.

Edited by oldsoldier - 01 September 2011 at 3:21pm
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impulse418 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote impulse418 Quote  Post ReplyReply Direct Link To This Post Posted: 01 September 2011 at 7:09pm
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Post Options Post Options   Thanks (0) Thanks(0)   Quote GroupB Quote  Post ReplyReply Direct Link To This Post Posted: 01 September 2011 at 8:15pm
That sucks.
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Donald Blake View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Donald Blake Quote  Post ReplyReply Direct Link To This Post Posted: 02 September 2011 at 3:48pm
Originally posted by oldsoldier oldsoldier wrote:

Send a simple letter, outline mistake, and I send a check, simple.


That is what has happened to me in the past.  I have gotten letters w/bills for amounts in that range, but an audit?  That's pretty stupid.
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