Comments on: I Can’t Take Any More of This Paperwork

By: Chris

Chris — Mon, 23 Apr 2007 21:35:12 +0000

Read the Fairtax and visit fairtax.org. Others agree with you, our federal income tax system is unnecessarily complicated.

I recall reading that the IRS spends 10 billion dollars a year just collecting taxes under our complex system.

By: Fellowes

Fellowes — Mon, 23 Apr 2007 17:47:16 +0000

Tricia, good to be proactive than risk an audit. I went through an audit 4 years ago, and while the IRS ultimately didn’t change anything on any returns, it was a painful and laborious process. Best to fix any errors that you know about ahead of time because years down the line you may find yourself without the necessary paperwork, which would clearly be bad news.

By: Tricia

Tricia — Mon, 23 Apr 2007 15:37:55 +0000

Pro Se – the error is all my fault. I took deductions to reduce income that I couldn’t take. Instead of waiting for an audit, now that I discovered I did something wrong I want to make it right.

By: Donna

Donna — Mon, 23 Apr 2007 15:30:31 +0000

I was thinking the same thing this year while trying to calculate child care credit, especially when it came to if it is greater than line x put the amount from line y but if it less than line x then put in the amount from table z (the prior was a dramatization). ARRGGHH! Do they make this up to keep accountants busy? We owed more this year because we no longer own a house and our itemized deductions were less than the standard deductions

By: Pro Se

Pro Se — Mon, 23 Apr 2007 15:28:38 +0000

The IRS paid you in error, and now they are penalizing you for their error in interest and penalties? Did I read that right? Why don’t they just ask you for the original amount back?

By: Tricia

Tricia — Mon, 23 Apr 2007 14:15:02 +0000

Sam – thank you

Danielle – We claimed the child tax credit. The problem is that in 2005 we received a wonderful refund. It turns out it was due to a mistake and now we owe them back the money they gave us as a refund (plus interest and any penalties they assess). I won’t know the exact IRS interest and penalty until they receive my amended return and calculate it.

By: danielle

danielle — Mon, 23 Apr 2007 14:00:05 +0000

Did you claim the child tax credit?

I am just wondering because my husband and I make about the same as you do, and even without the tax credit this year (baby’s due in June), we still got a refund of $1347. My husband changed his witholding, and made it so that not so much is taken out, and we just figure that with the tax credit next year, we still won’t have to pay.

Usually, people with mediocre incomes and children don’t pay…
Did you owe the IRS from before?

By: sam

sam — Mon, 23 Apr 2007 07:14:22 +0000

hang in there – hope it gets better for you.