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2 Bumps

I just about had a heart atack! Then I laughed, sort of ...

My boyfriend and I were going through the mail, and he opened a letter from the IRS that said I owed $22,987! I swear, I just about fainted. I'm self-employed, and t turns out that one of my clients left out a decimal point when my income was reported, so instead of $6579.30, they told Uncle Sam I was paid $67,930. It's an easy error to fix, but I'll tell you what, it shocked the socks off me.

 
Ballad

Asked by Ballad at 12:12 AM on Jan. 25, 2013 in Money & Work

Level 45 (193,996 Credits)
This question is closed.
Answers (4)
  • One more point be ready for blow two. IRS and state tax do not communicate. Keep all records for a long time. IRS said I owed taxes then 2 years later the state claims the same, just be prepared. Took awhile to clear it up, but I did not owe either one. I needed records from federal to prove to the state. I save anything record wise , invoices, W2, whatever is needed.
    sunshine196

    Answer by sunshine196 at 5:37 PM on Jan. 25, 2013

  • Keep all documents on this. I am not sure if it is the same thing when you own a business but my husband's employer reported that he made $20,000 more than he did. They had to give us an amended W-2, we filed the corrected one and the next year we got a lovely letter saying that we owed money. We had to fax in all of our paperwork to prove that was not the correct wages earned.

    JeremysMom

    Answer by JeremysMom at 12:16 AM on Jan. 25, 2013

  • Heart attack hell, I would have filled my pants!
    Michigan-Mom74

    Answer by Michigan-Mom74 at 12:32 AM on Jan. 25, 2013

  • Heart attack hell, I would have filled my pants!

    You aren't kidding! About $18,000 in taxes, plus $4,000 in penalties, interest, and money they say I owed because if I made that much, I'd lose the earned income credidt, the child tax credit, the self-employment tax credit--in other words, I better never make that tmuch money or I'll be screwed. Not that I have anything to worry about, I'm not even close. But if that income had been correct, between the taxes and penalties, I would have given the IRS a third of what I made. I'll have to write them a letter and send it with the form I got from my client lst year. Pain in the ass.
    Ballad

    Comment by Ballad (original poster) at 2:28 AM on Jan. 25, 2013

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