SO I settled up with the IRS today.
 

One more audit to go that is not worth getting upset about. But I settled today and signed off on owing them 47k. $800 a month payments for 5 years. I waste more than this a month on shit I buy and never use. It feels SO GOOD to have this shit behind me.

Now it's time for the chicken man to go BIG LEAGUE. 2005 is going to be MY YEAR. I'm am putting together my BIGGEST program ever and hopefully will be released early 2005.

:thumbsup

Glad it worked out for you dude :thumbsup

It's no fun dealing with those people.

DH

I don't know about the IRS but the CCRA are just lovely people to deal with. They call you every day, they constantly make threats of freezing bank accounts and they're just a wonderful presence that make you feel important. I don't know how I would get by life without them anymore.

WG

You must be sleeping much better and feel like you are on top of the world. There is nothing like getting something big like this off your back. Congrats.

I was lucky enough to get a very nice female caseworker. What killed me was the allowable deductions for a home office I took, and what they actually give.

Try...

Department of Rev (WA), Sec of State (WA), IRS AND CCRA :Graucho


Group orgy!

Why weren't you paying taxes?

Just curious, does this mean you didn't pay tax over your income the last few years?

Because I, for example, called a good accountant, and from the first week, he takes care of all kinda taxes...

Does this work different in US/Canada? So many horror stories in this thread

Andre

Ohhh, that sounds even more exciting! Lucky you!
WG

Not that bad :) congrats

Yep the stress release is incredible. I HAVE to change my spending habits though.

1. Everything business related use a dedicated bank card for. NO MORE cash purchases then having to scramble to find recipts.

2. For every $100 I pay myself put $25 away just for taxes. Don't wait until later. Do it RIGHT THEN.

3. Don't try to write off milaege when you go to Best Buy to get a TV and happen to pick up a mouse while you are at it. LOL

4. Don't try to write off your $4000 hot tub as a "medical expense" LOL

gees. congrats.

i thought my little 10 grand thing was tough.

definitely no fun dealing with any of them though.

im happy for you choker.

I was paying taxes. Got audited and they dis-qualified many of my ermm "Deductions"

That's what I figured man. Just busting your balls. :winkwink:

Creative deductions are always going to cause you grief in the event of an audit.

I still think the hot tub is a business/medical expense. It relieves the stress from sitting behind a pc for 14 hours a day. Sometimes I get in it during the day when my icq lights up so I don't have to light up. LOL

What was the red flag? The home office deduction?

Congrats, I wish I could say that.

YEP you got it. Come to find out home deductions throws up a big red flag.

medical expense, ya (if you have chronic back pain & doctor approves). business, nawww lol

When I got mine, I was able to deduct it as a medical expense.

But I've been in and out of the Dr. for my back. Not sure if you're in the same boat there.

I've read time and time again that this deduction is highly abused and the object of scrutiny. I wouldn't take it even if I could.

I'm glad you've got it behind you though. Dealing with the IRS is a total business distraction.

I claim more than I make, because I love to give the goverment money so they can make 500 pound bombs and throw them on civilians in fallujah. Yet, my neighbor'ss son is an idiot because the education system doesn't pay teachers enough to tell him 2+2 is 4 and my mailbox is not a fucking driveway enterance.

Damn, was thinking about adding my home office as a deduction for this year.

Nice, can't wait to see what's coming :thumbsup

There are over 1 Million pages to the US Tax Code. How could anyone keep up with all that.

I hope you asked them to bookend that audit. Then they can't come back on any of the years before the bookend ever again.

Even with medical proof ?

what's the matter?

Congrats man hope that this is the end of it for you because they do like to fuck with you once they have you on their radar...

Only do it if you can clearly produce a "home office"...
like its own room, with nothing non-biz in it.

Also, it seems self-employed get audited a lot more than those who incorporate.

Incorporation is also great to help keep personal finances from getting mixed with business finances.

Frankly, unless it's huge $, the tax savings off home office isn't worth the chance of audit.

i have a separate account that is dedicated to taxes. my accountant does estimates of tax each month, and the money goes there before going anywhere else. i always get paid last ;)

glad its solved :)

Same here. I can't imagine the mess of putting personal and company together. It's complex as it is with investment accounts, savings, checking in each currency!

WG

They already went back as far as they could. LOL

The bookend is something you request -- it turns a single year audit into a 3 year audit, they name the year range they want -- say they were looking at 2000 hahahaha they can then choose any three consecutive years with 2000 in the sequence. Once they've done it, they can never again go back to previous years. If you don't get a bookend, they could do 2000 this year, 99 next year, 02 the year after, etc...

Just simplifies things on your side and let's them know that your tax attorney's no fool ;)

You don't pay your taxes because you don't like your government? :1orglaugh

:thumbsup

Now how much did you really owe??:winkwink: Probably 5 times that amount?

congrats on getting everything resolved, wish i could blow 40k a month without worrying haha

Bravo!:thumbsup An enormous weight off your shoulders.

Are you giving any hints on your new program?

As a result of the audits I owe 47k more than what I already paid.

yea irs is crazy good job handling it with them

mine is under the bridge too luckily that scared the bejesus out of me

congrats