IRS Incompetence
Submitted by 1manthinktank on Sat, 03/23/2013 - 13:47I 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.
don't keep money in bank.
don't keep money in bank. IRS loves to freeze funds..pending
IRS
When I was unemployed and had $45 in my checking account,(all the money I had from selling cans!) the IRS emptied it. The State of Indiana was upset when their check bounced! Then, they wanted $365 from the bank to fix the problems they caused! I had money removed twice. Once, before, it was my full ($2,000) paycheck! It did, eventually, work out for me. God takes care of us sinners, too!
I will not open another checking account, ever!
Did an Accountant do Your Taxes?
Or did you do 'em yourself?
Did you file all of the ancillary schedules necessary to account for your business expenses?
I did them myself online. I
I did them myself online. I hate to admit it but, I'm way too poor for an accountant. I have all the necessary paperwork though. That's what makes this so ridiculous. If I made 37000 in a year, I would be turning backflips down Main Street. I was even turned down for a $6000 loan for a used car in 2010 by my own bank. Reason: Income was too low. Source of this info: 2009 Tax return. Obviously bankers are smarter than IRS. They know what profit is.
You do not have to "prove" anything
The IRS has to prove their case. Ask them to send you their proof that you owe tax on that amount of income.
THEY HAVE TO PROVE THEIR CASE
Check out marcstevens.net call of shame's with IRA agents and lawyers. he asks them for their facts and evidence and they never have any.
definitely worth looking into.
His book is Adventures in Legal Land which is a free audio book on youtube
Yes, that is what I'm going
Yes, that is what I'm going to ask them to do Monday. That should be very funny to listen to. I forgot to mention almost $2000 of that 12000+ bill was a fine for "substantially under reporting my income". Absolutely unbelievable.
Remember if they take you to court.
If its an IRS court it's administrative, keep appealing and make them prove all their "evidence". Take them to a judicial court and also file a title 42 USC § 1983 lawsuit on them say for $1 billion.