Friday, March 17, 2006

Another reason to hate taxes

This is my first year having freelance as my sole source of income. Even though my 'business skills' are nothing to brag about, I feel as though I've prepared my small business the best I can. Besides the usual problem of finding customers, advertising, supplies, etc, all small business owners know the aggravations of taxes.

I recently finished my 2005 taxes. I didn't feel confident enought to do them myself so I went to H&R Block and had no problems. It turns out I DID do a decent job of handling my biz and expect to receive a small amount back.

Well, my parents (my address two years ago) call yesterday and it turns out that there IS a problem.....with my 2004 taxes!!! (2004???!!??). Yep, it seems like the IRS expects me to pay (after penalties, etc) 45,000 dollars!!!! because they said I made $96,000 from one of my customers. Anyone who is close to me knows I didn't make 96k....and if I did, it never reached me!! Actually I made $960 from that particular customer and after an IRS screwup (obviously someone whose '0' key was stuck and added TWO extra '0's), the govt is after me. Why this is the FIRST time I've received ANY paperwork from the IRS questioning or asking ANYTHING is beyond me. This is a perfect example that a person can have everything together with your paperwork prepared and still get screwed.

I hate incompetent people. And even worse, I HATE incompetent people who have the power to send letters and expect me to pay money after THEIR screwup. I'm calling the accountant who did my 2004 taxes and contacted the customer who will need to send the 1099 tax form in question. Hopefully after I jump through the many hoops that's sure to come, I can get this resolved.

And if not, does anyone know of a good place I can go into hiding....'cause I WON'T (and when I say 'won't', I mean CAN'T) pay $45,000!!!!

Thank you, IRS. Really....thanks. (and when I say 'thank you', you know what I really mean)




Site Meter

4 Comments:

Blogger jstarley05 said...

I'll send ya some money but I'm guessing that several hundred dollars won't help. This is why we need either a simple flat tax that could be done with a simple 3x5 index card form and we wouldn't have such screw-ups from those nuts at the IRS. Here's wishing you luck.

3:11 PM  
Blogger lizcjones said...

Fair tax, fair tax... That sucks, Jason. Hopefully it will be resolved soon!

8:45 PM  
Blogger Steven said...

Definitely FAIR TAX! See you have a bunch of government employees who have no such things as deadlines. They are still on 2004, but the public has to have 2005 filed by April. Nice. I want me one of those government jobs so I can have no deadlines.

8:37 AM  
Blogger shliknik said...

Not only do they NOT have deadlines like you say, they don't even have to be CORRECT!!! Just fill some stuff out then send Jason the bill. Even if we're wrong, the burden will be on him to prove it!!!

MUhahahahahaha (evil Darth Vader music theme plays in background)

I was already pro-tax change. I'm not tax expert, but KNOW there has to be a better way than the burdensome system we have now.

HHHAAAATTTTTEEEE IT!

10:33 AM  

Post a Comment

<< Home