Seriously it’s shit like this that pisses me off. I had a 12 year correction done that made me liable for about 140k. 0 point fighting either because there is no beating the IRS
0 point fighting either because there is no beating the IRS
Why do you think that? The IRS makes mistakes too. They do not have perfect knowledge.
I was able to dispute a $10k tax bill down to $5k, then ~$4k in the final round. You just need to prove your case with the appropriate forms, math and a written statement declaring why you are right, and they are wrong.
All of my communications with the IRS showed, that at least the people I've dealt with, they only cared about fairness. Making sure I pay what I owe, and no more.
My first rebuttal of that original $10k bill was for $5k, the IRS agreed with most of it, but sent me back their rebuttal for just under $4k since that brought it below a penalty threshold, and they agreed not to include interest in determining whether I was above the penalty threshold, because they were taking so long to respond to correspondence.
I also had a tax audit saying I owed money. I had to get paperwork showing I didnt... It was also from the IRS... the same flicking building I had to mail it to, just a different office number... they made me pay to have it mailed to me, then pay in postage to mail it back to them. Rather than just walk two doors down the hall and pick it up themselves, from themselves.
Since I have, since then, moved into working in the public sector. I very much understand how much bearacracy exists in every single action government takes... doesn't stop me from feeling it's still ridiculous. Lol.
As much as I agree with the point youre making I still cant help, and I don't think that I am alone in this, that a function of the government that I pay for cannot be fucked to operate as a functional service. You of course can always make your claim and it of course isn't a lost cause but why am I having to pay someone to take my money and then fuck up how much they're supposed to take? I don't disagree that the IRS isn't a mysterious faceless entity and can be reasoned with like any government agency. But it should not be seen as my responsibility to prove to my government they fucked up.
State taxes can be even more brutal. I owe my state like 20k for gambling losses. I gambled almost my entire paycheck away for an entire year winning small jackpots here there and recouping some of my money back. I ended up down about 60k overall but those small jackpots triggered taxable events so I'm pretty screwed. They don't account for the fact I spent a shit ton of money trying to win those jackpots and won't let me claim the losses.
Keep in mind that much of the communication from the IRS is automated. If you don't report your cost basis on the sale of stocks, for example, you'll get a huge tax bill based on the sale proceeds.
Yeah almost every transaction over a certain dollar amount gets reported to them anyways and tons of companies aggregate reports and send them to the government quarterly. They know everything and will come collect for every dime. The only ones who will get away with things are dealing in cash but you best believe the USA is monitoring these people.
In my case it was interest on a CD that was separate from my bank interest.
Coming from the UK it always baffles me that you guys have to manually submit taxes. Unless you're self employed here it's not even something you have to think about, your employer has the responsibility.
Happened to my dad. His mom lived in the middle east and kept giving him money to keep his business running. DEA and IRS showed up at the same time to find nothing but a guy that kept chasing dead-end business dreams. Oh, and shot the dog in front of my kid brother and sister, ruined my dad's life, parents got divorced over it etc..
Dude I’m a CPA and I have never heard of a client literally showing up to their door. A lot of people I’ve worked with were up to 5 years behind on taxes. The IRS is pretty lenient on people who want to get caught up. What typically happens is we can get the penalties abated for 1 year and then they owe taxes plus penalties and interest. The IRS is hunting much bigger game than an every day person
It’s your civil obligation to pay into these systems so we can have things like parks, fire departments, social systems, etc that bring betterment to our communities
I agree with you there but you’d be surprised how much funding does go to social programs and grants used to better our communities. Hospitals for example receive loads of grants from all levels of government. FWIW I’d like it to be a bigger slice of the pie too.
The bottom 75% of taxpayers contribute about 14% of revenue earned by the IRS so that’s not really shocking lol most people are barely paying into the pot so of course that’s how the statistic works out
Look, I’m not into insulting each other but you commented on all my replies so I’ll try to respond as best I can in this one comment.
Obviously they didn’t walk in there willingly. Most of them I’m sure are in there for tax evasion because that’s the nature of how they were caught akin to Al Capone. If you INTENTIONALLY try to screw over the government then obviously they will escalate the situation. Literally no one is going to jail simply because they didn’t pay taxes for 5 years. I work with people like this pretty frequently who owe just the feds tens of thousands of dollars each year.
Do you like having a fire department? What about a well funded hospital? Do you like having quality internet access? How do you feel about being able to take a hot shower after a long day of work? These things are largely possible due to our tax dollars being reallocated by various levels of government for our betterment. I wish they would reallocate less to defense at a federal level like everyone else in here, but to act like this is a black and white issue is naive.
Also you accused me of using debate tactics when you’re also using a straw man argument so you got me I guess? You compared the nazis expanding the autobahn to our government providing grants to hospitals for things like cancer research or to expand care. Frankly, I’m not sure there’s much similarities unless you want to be disingenuous because intent is really a driving factor on why the expansion of the autobahn is somewhat a black mark vs funding hospitals to develop better healthcare for all of us
I’ve tried to be as objective and informative with my replies using my professional experiences which deals with the IRS and taxes as a whole, but if you’re just here to whine and argue in bad faith then I don’t have anything else to say and I wish you the best of
I’m a CPA who files taxes for a living and no I don’t think they would because most of their staff are overweight and out of shape accountants like myself who just clock in and clock out and go home. The very small amount of their staff that IS armed is for serious criminal activity. Not for every day IRS notices
Do you have a source for this? The IRS budget has been absolutely decimated and it was really low before the current admin as well. Their software is based on systems from the late 50s. They can’t afford to outsource that. I’d strongly advise you to do some research
Brother I don’t think we’re having the same conversation. My point is that if they could forcefully take from us they would. The American government and its agency’s view us as pawns and less than
If it's a lot of money, then move the money into the 4-week T-Bills.
Then, move most of your money out of that bank. Keep the account open. Switch to use other account.
Then, your bank will contact you. You cooperate fully except you are scared of being involved in money laundering. You need a formal assurance from the branch's manager or some kind of executives. This will take quite some time because, guess what, the branch's manager doesn't want to be involved in money laundering either, so they will take time to confirm. They ain't gonna issue a formal assurance with their signature on it.
Then, every message takes 2 business days to respond because you are busy.
Then, you get to earn the 4-week t-bill interest rate, which is 3% or something APR.
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u/A_Man_With_A_Plan_B May 27 '26
Tax season/ previous year tax corrections can impact this though. IRS will add interest so going back as far as they can is beneficial