A few months back we got a lovely letter in the mail from the IRS. It appeared we were being audited. Which was stressful. Especially considering that the tax year in question was the first year we went to an accountant. Our taxes at the point were beginning to get a little bit more complex and we wanted a competent professional to help out so that we could avoid things like, um, well-audits.
So we shelled out the dough to have our taxes prepared by an actual CPA. No H&R Block for us! We wanted the real deal.
So when the lovely letter from the IRS arrived in the mail I tried to contact our accountant. And he was apparently only works from January 1st to April 15th because he never returned any of my calls or emails. Meaning I completed my audit on my own.
I copied receipts and wrote up explanations and sent it on it's merry way to the tax man.
And then I tried to forget about it. Tried to will the auditor to accept my documentation and my deductions.
Today I heard back from the IRS.
It wasn't pretty.
Apparently my deductions were not valid. Which raised our income just enough that we no longer qualified for the child tax credit or something crazy like that. Plus, did you know the IRS can charge you penalties and interest on taxes you didn't even know you owed? It doesn't matter that there was no malicious intent on my part with the deductions I claimed. I wasn't trying to find a loophole or pull something over on the IRS. Tax evasion was the furthest thing from my mind! I was simply trusting my accountant, because, after all I was paying him good money to know the tax code.
Turns out that the IRS doesn't care. They just want their money. And the interest. And a little extra just for fun. Do not pass go. Do not collect $200. Just pay the tax man! And then find a different accountant!!!!!!
7 comments:
I always thought that the crazy people that refused to pay Income Taxes were, well. . . crazy.
Then I learned about Tom Cryer.
"Tom Cryer has practiced virtually every aspect of the law, both criminal and civil, with clientele consisting of numerous individuals, families and businesses. For years, Tom refused to file tax returns or pay income tax unless the government could show lawful authority to do either one. In 2006, Tom was indicted by the federal government, went to court and was acquitted by 12 jurors in Shreveport, Louisiana. They found that there is no law that makes the average American citizen liable for the income tax."
He doesn't recommend that you just jump into not paying like he did—there's a lot the IRS can do to you, because they essentially act above the law—so there can be some real bad times if you go his route.
The thing about taxes is.....that not only do they tax you unlawfully by our constitution, but they double dip into our pockets, or triple or.....So, I would if it is more than a couple of grand...I would contact another account or an IRS lawyer.
I also learned something else recently......if you attend meeting for your education, if you want to deduct that, you have to call it a conference. We learned that at the Rich Dad "Conference" we went to.
Good luck you guys, that sucks! We have been there. Sometimes with a little help you can widdle that amount down based on their rules.
that totally and utterly sucks. I hope you find that tax man and hit. Hit him good!
That's just terrible!
You'd think an accountant would know what they're doing. I say go with H&R Block again, they have a guarantee.
The past couple of years was the first time we actually got money back every other year they sucked us dry so I feel your pain. Good luck.
Also, did you know that if you do not owe taxes, but rather, the government owes you, you will not be penalized for filing late, even if you do not file an extension? Also, of course, if you file late and you don't get your refund until like 6 months after you normally would have got it, had you filed on time, do they pay you interest on the refund money they held onto? well of course not.
I think you need to contact the BBB about your accountant or somebody. That's ridiculous that he didn't call back. Maybe he's in the Bahamas right now, enjoying the money he made off of doing bad jobs on everyone else's taxes too.
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