January 9, 20179 yr Yup, I had a similar situation as you in 2013 that came from an issue from 2009. It had to do with some money that I inherited that I had 30% taken out of for tax purposes before it was ever deposited into my bank account. For whatever reason I never received a form for it from the union, so it never was filed as income when my taxes were filed that year. Several years later they noticed it (somehow) and sent me paperwork telling me that I owed taxes on that money. After trying to figure it out myself and wasting countless hours of my life on the phone with them and waiting for months on the correct forms to file, they sent the wrong forms and packets about 4 different times, which led to me wasting even more of my life on the phone with them, I was ready to give up. After hiring a tax attorney it turned out that I actually overpaid them and rather than me owing them around $1800 more than what I paid that year, they owed me around $300. Of course that all went to the attorney, plus a little more If I remember correctly. Fast forward to the following tax season and guess what. I received the exact same letter in reference to the 2009 ommision. :lol2: At least the second time it went more smoothly, a couple hour phone conversation and I was able to have it resolved, once they realized that it had been taken care of the year prior. Inherited money is not taxable. The earnings on it are though.
January 9, 20179 yr Inherited money is not taxable. The earnings on it are though. It was a portion of a pension that a check for the lump sum was written for. The union took taxes out on it, I'm positive of that. For whatever reason it was deemed as earned income.
January 10, 20179 yr @Wireman, I'm not financially savvy enough to help you with the audit, but you sincerely have my sympathy. The whole thing sounds absolutely awful and stressful. Take care of yourself! We need you here at BGP!
January 10, 20179 yr Author @Wireman, I'm not financially savvy enough to help you with the audit, but you sincerely have my sympathy. The whole thing sounds absolutely awful and stressful. Take care of yourself! We need you here at BGP! Thanks, I'm trying to get motivated to push through. I have a few avenues to explore in the coming days and I'll have to see how it goes. It's been incredibly stressful and I've had to step away for a minute to regroup. My kids need me around too.
January 10, 20179 yr Thanks, I'm trying to get motivated to push through. I have a few avenues to explore in the coming days and I'll have to see how it goes. It's been incredibly stressful and I've had to step away for a minute to regroup. My kids need me around too. I feel for you brother, this sounds like a complete cluster...... Yet another reason I'm all for the Fair Tax, abolish the IRS!!!!!
January 10, 20179 yr Get a a good cpa, that's the best I can tell you. You may need a tax attorney, but i would try the CPA first. I have been thru this before, it sucks. I still fight with Campbell county every year. They send me a tax bill for " estimated taxes for earnings in Campbell county" every year along with the penalties, and interest. I haven't done any business in Campbell county since 2013. Lol
January 10, 20179 yr Author Well I slept on it. I'm not feeling much better and at this point, I don't even like checking my mailbox. But, I'm going to suck it up and get through this. I'm going to start by finding out more information from the IRS, then I'm going to meet with a CPA to see if this can be easily resolved. I guess last ditch effort will be an attorney. The disheartening thing is that I haven't broken any laws or tried to do anything dirty...yet, I'm still dealing with this stress. They need a better system.
January 10, 20179 yr Seems to me that with everything you are describing there is some sort of disconnect. Disallowing everything is "old school" and would never hold up, especially if there is sufficient documentation available.
January 10, 20179 yr Well I slept on it. I'm not feeling much better and at this point, I don't even like checking my mailbox. But, I'm going to suck it up and get through this. I'm going to start by finding out more information from the IRS, then I'm going to meet with a CPA to see if this can be easily resolved. I guess last ditch effort will be an attorney. The disheartening thing is that I haven't broken any laws or tried to do anything dirty...yet, I'm still dealing with this stress. They need a better system. Contact an attorney that handles tax issues. He or she will be a professional that handles this on a daily basis & will immediately take over the heavy lifting, which will alleviate a lot of the stress you're under. Most will offer a free consultation, and you can discuss cost at the meeting.
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