About 6 weeks ago, we received an official letter from the IRS saying that we didn’t disclose all of our Paypal income for 2013. We did disclose everything, officially sent back ALL of the documentation showing the money we received AND sent for our business that they were referring to, and waited for them to confirm.
Our IRS Reply
Well, the IRS confirmed the receipt of our documentation, but seemed to ignore it ALL since we just received another letter about owing $67,000 more than we paid for 2013!!! They completely ignored the fact that we pay out 75% of what we receive in Paypal to our clients. It’s like they just threw away what we sent them including the Paypal records.
That $67,000 plus the $32,000 that we paid would equal almost what we actually brought in!!! And another sucky thing, they don’t give you any contact info to talk to anyone. The IRS just tells you to pay, make a payment plan with them, or submit the same crap all over again if we still disagree. GRRRRR. Bullies.
So, we have a meeting with a tax lawyer later today.
Because having my property appraisal protests still waiting for replies wasn’t enough to deal with, now we have to get legal help to keep the government from taxing us nearly 100%…
Ever wish you could just cover your head with the sheets and sleep off times like this?
UPDATE 4/22/15 late afternoon: The tax lawyer thinks this is a black and white situation that can be handled if we just call in and get in contact with a real person. He said we had more clear documentation of our business than nearly anybody he’s ever helped, and we probably won’t need him. We’re probably being bullied by their automated letter process, not by real people who looked at what we already sent. But it’s nice to know he’s there if it gets worse.