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- Posted on
- OT: I almost soiled myself :-)
- Red E. Kilowatt
March 21, 2012, 8:42 pm
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business that I had been operating for the previous five years. I
deducted those expenses from my income on my tax return as I am entitled
to do, but because the expenses were so high I've been worried that it
might trigger an audit.
Today a letter came from the IRS. With trembling hands I opened the
letter and found it contained a notice that the IRS had found a mistake
on my tax form that underreported advance tax payments I had made and
they increased my refund an additional $325.
Now you'll excuse me while I change my shorts....
Re: OT: I almost soiled myself :-)
Hehe. I had a similar experience with HMRC (the UK tax authority).
To begin with, I should point out that HMRC have a policy that if an
adjustment payment due (either tax you owe, or a refund owed to you) is
small then they will simply roll it over to the next tax year rather than
require or make an actual payment. That simplifies administration, both for
them and you.
I got a letter saying I owed them back tax as I'd been underpaying due to
not notifying them that my circumstances had changed. Fair enough, although
I thought they knew anyway (which is why I hadn't told them) as they'd
taken account of it in other calculations. But anyway, I paid.
Shortly afterwards, I got another letter saying I owed them tax, for the
same reason. Suspecting an error, I phoned the help line and discovered
that they'd sent out two separate demands for two separate tax years rather
than putting it all in one demand. With something of a reluctant sigh, I
A little later, I got another letter. I was a little worried before opening
it, for obvious reasons.
I opened it, and it was a cheque. They were refunding me for tax that my
employer had overpaid on my behalf because they hadn't correctly calculated
my healthcare benefits the last tax year.
A couple of weeks later, I got another letter. I opened it, and it was a
cheque. They were refunding me for tax that my employer had overpaid on my
behalf because they hadn't correctly calculated my healthcare benefits the
tax year before last.
Four letters, four payments. Overall, I was slightly out of pocket, but not
much. And the total amount I ended up paying was within the threshold for
holding it over to next year...