5 ms·

At the very least, I'm going to contend that it's not a DIY thing. It's something that you should hire a tax pro for, so they can properly assess your situation

by junar 3y ago

At the very least, I'm going to contend that it's not a DIY thing. It's something that you should hire a tax pro for, so they can properly assess your situation and present your case. > In a number of recent Tax Court cases, taxpayers have raised the argument that they relied on Turbo Tax software as a defense to the imposition of the accuracy-related penalty. With one notable exception, the so-called “Turbo Tax defense” has been rejected by the Tax Court. https://scholarlycommons.law.wlu.edu/cgi/viewcontent.cgi?article=1368&context=wlufac https://scholarlycommons.law.wlu.edu/cgi/viewcontent.cgi?art...

dpifke 3y ago
Many years ago, I screwed up my AMT calculations pretty badly, arguably because the instructions for Form 6251 suck. I was off by several thousand dollars, the difference between a big refund and a big amount due. I didn't have to hire anyone to get the penalties waived; I just submitted a letter explaining my original rationale, along with an amended return fixing the problem and a check for the correct tax. The IRS was completely reasonable about it. Edit to add: But then again, I do my own plumbing repairs. Heinlein didn't list taxes in one of my favorite quotes from him, but he should have: "A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects."
- convolvatron 3y ago
  same thing has happened to me several times - including a total failure to file AMT when I really needed to. I screw up, IRS sends me a letter saying 'you screwed up, if you just send in X we're good'. Sometime they even send me a letter saying 'you screwed up, here's a bigger return than you asked for'.
creer 3y ago
It depends. For me so far the problems have been easily sorted out except once. The once was a lot of extra and unnecessary calculations but essentially no penalty. Just the cost of my time, which is bad enough. My main complaint (which is still fairly minor) is that they still too often presume that "it" (the reason why they want more money) is the fault of the individual taxpayer. No need for them to consider other possibilities. Once, a client provided poor numbers on their 1099 and I used my version. Both versions based on my invoices. IRS doesn't bother to ask for a clarification. Just sent me a bill and fine. And I suspect in the end after my response letter, they audited the client. Not the best result but only a little stressful on my side.

by junar 3y ago

dpifke 3y ago

Many years ago, I screwed up my AMT calculations pretty badly, arguably because the instructions for Form 6251 suck. I was off by several thousand dollars, the difference between a big refund and a big amount due. I didn't have to hire anyone to get the penalties waived; I just submitted a letter explaining my original rationale, along with an amended return fixing the problem and a check for the correct tax. The IRS was completely reasonable about it. Edit to add: But then again, I do my own plumbing repairs. Heinlein didn't list taxes in one of my favorite quotes from him, but he should have: "A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects."

convolvatron 3y ago
same thing has happened to me several times - including a total failure to file AMT when I really needed to. I screw up, IRS sends me a letter saying 'you screwed up, if you just send in X we're good'. Sometime they even send me a letter saying 'you screwed up, here's a bigger return than you asked for'.

creer 3y ago

It depends. For me so far the problems have been easily sorted out except once. The once was a lot of extra and unnecessary calculations but essentially no penalty. Just the cost of my time, which is bad enough. My main complaint (which is still fairly minor) is that they still too often presume that "it" (the reason why they want more money) is the fault of the individual taxpayer. No need for them to consider other possibilities. Once, a client provided poor numbers on their 1099 and I used my version. Both versions based on my invoices. IRS doesn't bother to ask for a clarification. Just sent me a bill and fine. And I suspect in the end after my response letter, they audited the client. Not the best result but only a little stressful on my side.