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Posted: 8/30/2005 6:48:39 AM EDT
The IRS sent me a letter saying I owe them another $3500 for 2003. They are saying I miscalculated some income from on equities by about $10,000. I believe they are wrong. I lost money on stock sales in 2003.

Are those IRS fighters worth anything. They say they can settle tax bills for pennies on the dollar?

Is that a scam? Is my amount to little for them to worry about?

The only one I have looked at so far is

www.txmstr.com

Any advice?

Any ideas?

Thanks

TXL
Link Posted: 8/30/2005 6:51:53 AM EDT
I would take all the records you have and consult with a CPA. It seems to me that there should be such a paper trail that proving it one way or the other is fairly easy.
Link Posted: 8/30/2005 7:10:20 AM EDT

Originally Posted By rebel_rifle:
I would take all the records you have and consult with a CPA. It seems to me that there should be such a paper trail that proving it one way or the other is fairly easy.



Trying that, but, due to divorce, some papers might have gone missing. Just ordered copies of my 10-99's from my broker.

Anyone know if fighting the IRS will result in a ding on credit?

TXL
Link Posted: 8/30/2005 7:23:21 AM EDT
I had the IRS tell me the same thing. I owed them money. I requested everything the IRS had on me in the way of income for that year. When it was all send and done the IRS had me down twice on my military reserve pay. Of course they said I did not pay taxes on it. I owed them nothing. You should have received a contact number for them. Contact them and ask for a copy of everthing they have on you to verify that they are indeed correct. If they are right you should see a CPA. Good luck.
Link Posted: 8/30/2005 8:20:08 AM EDT
I went through the same thing the year I took a bath in the stock market. They only get informed of the sale of your stocks, not the amount...so if you sold 100,000 bucks worth of stock, they want their cut. If you have the documentation that shows your sale price was lower than your buy price, you're golden.

I turned all my shit over to an accountant and he took care of it. Stock losses are tax deductible, up to $3000 a year. So, I have a yearly $3000 deduction until I'm 109....pretty cool, huh?

If you only have one broker, this shouldn't be hard to deal with at all..any competent CPA could take care of it for you. I had about 4 or 5 brokers, many of whom were out of business by the time the IRS came knocking a couple of years later. Thank God I'd saved everything.
Link Posted: 8/30/2005 8:22:01 AM EDT
I guess a CPA doesn't do your taxes?

If not, why not??
Link Posted: 8/30/2005 10:21:15 AM EDT

Originally Posted By Breycor:
I guess a CPA doesn't do your taxes?

If not, why not??



Cause there was nothing too complicated. I used turbo tax.

It seems that not all the information is included when it is filed electronically.

I did speak with one of their genius auditors. After she explained what happened, (the exact same thing that Fenian said), I asked her if this was common. She said it was.

Since they do not know what I paid for the stocks, they must assume I got them free, and the money from the sale was pure profit. I need to get my purchase numbers from my broker, and that will probably fix most of the issues.

BTW, since I am getting divorced this year, I will be using a cpa. It's gonna be a mess.

TXL
Link Posted: 8/30/2005 10:32:32 AM EDT
Stock up
Link Posted: 8/30/2005 11:01:11 AM EDT

Originally Posted By dpmmn:
www.blushingbuyer.com/acatalog/ky-liquid.gif Stock up





thanks man


i think

Link Posted: 8/30/2005 11:14:19 AM EDT
and hide your dog
Link Posted: 8/30/2005 11:24:30 AM EDT

Originally Posted By TxLewis:

Originally Posted By Breycor:
I guess a CPA doesn't do your taxes?

If not, why not??



Cause there was nothing too complicated. I used turbo tax.

It seems that not all the information is included when it is filed electronically.

I did speak with one of their genius auditors. After she explained what happened, (the exact same thing that Fenian said), I asked her if this was common. She said it was.

Since they do not know what I paid for the stocks, they must assume I got them free, and the money from the sale was pure profit. I need to get my purchase numbers from my broker, and that will probably fix most of the issues.

BTW, since I am getting divorced this year, I will be using a cpa. It's gonna be a mess.

TXL



Yes, by all means use a CPA (and not just a tax preparer, but a CPA that's aggressive), even if your return "doesn't seem complicated".

I'm sorry but I don't have any other advice for you on this matter except don't get too stessed about it (it apprears you aren't).

Good luck to ya Lewis....
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