IRS IncompetenceSubmitted by 1manthinktank on Sat, 03/23/2013 - 13:47
I just got a bill from the IRS for $12,220! They say I significantly under reported my income for the year 2011. I am an Ebay dealer of rare DVD's & video games. Don't get too envious just yet. I earned a whopping $17743 in 2011. That was my profit after expenses, mileage & capital expenditures (buying stuff to resale) etc. The IRS doesn't seem to understand the difference between profit & total gross sales, but that isn't the half of it. They seem to be considering the figure of $37,876 on my 1099-K form from Paypal as my income! This is the total amount of money I took in for 2011. Of course, a substantial amount of this figure is shipping charges paid by buyers & then spent by me to ship the items. I am astounded that the IRS could be this incredibly stupid, but they are saying I owe taxes on this $37876. They aren't even giving me credit for my standard deduction for being a human being! It is as if they completely ignored my tax return, which specifies all my expenses etc. and assumed that strangers just sent me over $37000 through Paypal for doing absolutely nothing. I guess even the most simple modest business manages to confuse the bureaucrats at the IRS. I guess I am going to pay a visit to the IRS on Monday so I can laugh in their face & explain to them how traumatic my sticker shock was when I saw this letter. Any advice from my fellow liberty lovers will be appreciated & considered.