Woohoo!!! I'm exonerated!

[dreamshark]

About 6 months ago the IRS started sending me notices that I had underreported my 2003 income by a vast amount (comparatively speaking) and that I now owed them thousands of dollars. My taxes that year were sort of complicated due to cashing in a chunk of stock options when I was laid off from Cisco. I had also taken the opportunity to sell a bunch of loser stock funds, so there were a lot of entries on my Schedule D form. Suffice it to say, it was not evident at a glance where the discrepancy was between me and the IRS.

As is my wont, I put it off until the communiques from the IRS turned menacing, then spent an entire weekend poring over my old tax return and comparing it to the pile of paper they sent me. I finally concluded that they were counting the stock option income twice, once as ordinary income (correct) and again as capital gains (incorrect). I sent them this explanation, and then tried not to worry as a new notice arrived each month with an ever-increasing Amount Due (penalties, y'know). Another envelope arrived last week and I was afraid to open it. Let it marinate on the front porch for about a week before I worked up the nerve to look inside.

Guess what! They agreed that my explanation was correct, and I now owe them $0!!! I honestly did not expect that to work out so well. *whew*

Comments

[lakeboy-55.livejournal.com]

Congrats!! I went through that in the early '90's, as a result of bad accounting on the part of my employer. It didn't work out as well as your situation. We ended up having to pay the IRS a couple thou, plus another thou in late fees and penalties.

[nuttynugget.livejournal.com]

I double your *whew*!
That's gotta be a HUGE relief. I'm so happy it all worked out for you.

[wombat-socho.livejournal.com]

For all their evil reputation, I've found them fairly reasonable when it comes to sorting out these things. Still, you're right - it is kinda scary to be getting those notices from them.

Llama

[minnehaha.livejournal.com]

Llama llama cheesecake llama.

B

[skylarker.livejournal.com]

Whew! Congratulations. I'm glad that worked out. Sounds scary.

Aside: I saw your new rainbow lawn furniture! Far Freakin' Out! They are great!

Re: Llama

[dreamshark.livejournal.com]

um.... what?

Re: Llama

[skylarker.livejournal.com]

Here's a llama, there's a llama,
and another little llama:
fuzzy llama, funny llama,
llama, llama duck.

Llama, llama, cheesecake llama,
tablet, brick, potato llama,
llama, llama mushroom llama,
llama, llama duck.

I was once a treehouse,
I lived in a cake,
but I never saw the way the orange slayed the rake.

I was only three years dead
But it told a tale,
and now listen little child
to the safety rail.

Did you ever see a llama,
kiss a llama, on the llama,
Llama's llama tastes of llama
llama, llama, duck.

half a llama, twice the llama,
not a llama, farmer llama,
llama in a car alarm a
llama, llama duck.

Is that how it's told now?
is it all so old?
Is it made of lemon juice?
Doorknob, ankle, cold.
Now my song is getting thin,
I've run out of luck
time for me to retire now
and become a duck.

[huladavid.livejournal.com]

Congrats to you!

Re: Llama

[jolest.livejournal.com]

It was a funny/silly song that was a two-week sensation on the web a few months ago.

A copy of the flash-music-cartoon version is here:
http://www.albinoblacksheep.com/flash/llama.php

(It loops forever at the end, but it's fun until the 3rd time it repeats the last half ofthe song...)

Re: Llama

[minnehaha.livejournal.com]

Llama llama duck.

B

[pyffe.livejournal.com]

Oh, the memories... I had NJ State tax people come after me for "underpayment". Turns out one of their schlubs had entered my marital status wrong. As married, I owed a small amount. As a single, I would have owed them lots more money. Once I got them to admit that married was the correct answer (and the one I'd actually entered on the form - note the 2 SSNs!) they insisted that I still needed to send in the small amount. Um... I did. With the original paperwork! NO! Prove it! Ok. Here's the cancelled check, a$$holes! Um. Ok. You're good. *sigh* Took about 6 months to straighten out one person fat-fingering a key. I'm so glad I now have electronic options for filing so I don't have to worry about someone else re-entering my information and getting it wrong.

Re: Llama

[mplsvala.livejournal.com]

Thanks for the great explanation of the oddness.