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RE: Oct 15 final 2017 tax deadline: Share your tax horror story with BlockTrades

in #blocktrades6 years ago

Hello @blocktrades. After reading all of these horror stories about taxes and the IRS, I realize that my story falls somewhere in the middle. At the time that it occurred however, I was a basket case.

I have always used someone else to file my taxes and after 5 years with a CPA, I got audited. I was advised by two friends who had been audited not to go to the meeting with the IRS since I did not prepare the paperwork. I was told to let the professional handle it. Well, I have a cousin who worked for the IRS and she told me not to let anyone know more about my business than me. She told me “You’d better go to defend yourself.”

Well, I went against my better judgement and waited for 20 minutes for my CPA who pulled a No Show! I was left to answer questions about my tax forms by myself.

There is an old saying, “You can put all that I know about taxes in a thimble and still have room to sew.” After the auditor asked me the fifth question and I was still saying “I don’t know.”, I burst out crying. Not silent tears, but the boo boo hoo loud ugly cry.

The auditor was a man and he felt sorry for the little lady. He gave me a bill of $43,000.00 and told me that my accountant made a mistake in taking a deduction. The auditor also questioned whether or not I was able to run two different businesses. I was an educational consultant as well as a landlord for rental property.

To make a long story shorter, I ended up seeking out the help of my cousin who worked for IRS. She was able to help me get the tax bill cut in half so that I only owed $23,000. I still had to write out that check with money that was earmarked for something else that I desperately needed at that time.

It is a shame that the American tax system is so difficult and complex. Even the auditor made a mistake and if it had not been for another IRS professional, (my cousin) I would have had to pay $20,000 more.

I for one am in favor of a flat rate tax for every one. I would love to fill out one page and pay what I owe.

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