Foster and I got married back in 2009. We also bought a house that same year. In terms of taxes and the government, we had a lot of changes.
Foster LOVES tackling the taxes on his own, because he considers it like a puzzle. He loves math and percentages, calculations, etc. Despite all the changes, he decided to file our taxes as opposed to going to an accountant. He did his research on the new home buyer tax credit, marriage breaks, etc. and successfully filed our taxes. We got a VERY nice return that year.
Well, the IRS decided early on it didn't want to give us our return. I don't blame them. It was a pretty hefty one, and the amount of debt our nation is in, I would be checking every hefty tax return as well. We were immediately audited before receiving our check. All they asked for the first time was copies of our W2s. No problem. We sent them in and a few weeks later we had our money. Well, about a month ago we received ANOTHER letter from our beloved IRS. This time accusing us of not claiming an ABSORBENT amount of income. Close to 6 figures. Now, if we had that much income coming in that we didn't report, I can tell you we would be aware of it. Plus, Foster is one of the most honest men I know, and would never keep that much money a secret from the government. Pretty much they were saying that some of our investments should have been claimed as income. Last time I checked, you didn't claim your investments as income until AFTER you cashed them in. Of course you have to claim gains and losses, which we did, but they wanted us to claim it as INCOME! IF we claimed this amount in income, then not only would we owe the IRS a TON in taxes on that "income", but it would have put us over the maximum income to be eligible for that $8,000 new home owners tax credit. In other words, we would have to pay that back as well. With the $8,000, taxes on our unclaimed "income" and fees, according to them, we owed over $30,000!!!
You can imagine the heart attack Foster and I both had when we got this lovely letter in the mail. We just about freaked. It was at this moment that Foster decided it was time to break down and hire an accountant. Fight fire with fire.
Well, after a few weeks, we just got done with all the processing and paperwork, and guess what.....now the IRS owes US money!!! HAHAHAHAHAHAHA!!! That's right, if they had just left us alone...but NOOOOOO. They really wanted that $8,000 back, and kept pushing and kept pushing, and now it blew up in their face.
This is one of those situations where i would LOVE to walk into the IRS building and do the happy dance and laugh directly in their faces. Oh well, that would probably jsut instigate them to audit us every year, and God knows we don't want to have to deal with this every year!
Well Here's a Huge Update
2 months ago