A Hard Lesson About Taxes And Getting It Right

E

eagle488

I dont know where I should put this, but the following picture illustrates the problem I had earlier on in the year. The reason why I post this is so you wont have to go through this same problem.

I opened up a letter and this is what greeted me...
 

Attachments

It was a bill from the IRS. After that, it took several meetings and an attorney to get me out of the mess. The problem was itemizing the trades correctly on my 2004 tax return. Although I thought it was done right, it wasnt. There were glaring errors. This was a huge mess and, luckily, it was just resolved.

This year I am going to get a computer program to do the work next time of itemizing the trades. This was such a hassle and it wasnt worth all the time defending myself against the IRS. They had more questions and needed more information. It was a horrible experience.
 
Thats a worthy idea. However, the CPA can be called to testify against you. A better idea would be a tax attorney.

The difference between the CPA and attorney is that the government cant call the attorney as a witness against you.
 
Get blank schedule D's and fill them out at the end of each trading day. At the end of the year white out the old date and fill in the new date. Copy and send the IRS the copy. Works for me. Also check it twice.
 
Quote from eagle488:

Thats a worthy idea. However, the CPA can be called to testify against you. A better idea would be a tax attorney.

The difference between the CPA and attorney is that the government cant call the attorney as a witness against you.
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did you get to experience their kangoroo court?
 
Quote from eagle488:

It was a bill from the IRS. After that, it took several meetings and an attorney to get me out of the mess. The problem was itemizing the trades correctly on my 2004 tax return. Although I thought it was done right, it wasnt. There were glaring errors. This was a huge mess and, luckily, it was just resolved.

This year I am going to get a computer program to do the work next time of itemizing the trades. This was such a hassle and it wasnt worth all the time defending myself against the IRS. They had more questions and needed more information. It was a horrible experience.
More...

Basically your saying you had been doing your own taxes and doing them without the help of any software et cetera.

Quote from eagle488:

I dont know where I should put this, but the following picture illustrates the problem I had earlier on in the year. The reason why I post this is so you wont have to go through this same problem.

http://www.elitetrader.com/vb/attachment.php?s=&postid=1277348

I opened up a letter and this is what greeted me...
More...

What exactly did you do wrong on your taxes to prompt an error that big on your part???

Simply, you post your message and state you don't want to see someone else go through this without saying what exactly you did wrong.

No lesson is learned other than if someone does something wrong and if its big enough...

The IRS will eventually find out.

Mark
 
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