Wednesday, June 18, 2008

Death and taxes

We got a notice a few weeks ago that they'd found issues with our 2006 tax return and we owe the government money. Since I generally do the taxes I was of course freaked out. I was also amazed that we had gotten a BIG FAT ENVELOPE FROM THE IRS and my dear husband didn't open it! I can let a lot of things lay around but a BIG FAT ENVELOPE FROM THE IRS can't possibly be good. Thus began the search for all of our 2006 tax information--yes, the year we sold a house, bought a house and carried three mortgages for a period of time--paperwork hell.

Given that our deadline to respond is Monday I finally sucked it up and re-did the 2006 taxes this evening. According to my estimates we owe but we don't owe as much as the IRS says we owe. So now, do I send a check for the whole amount or just what I think I owe plus the interest? How do I figure the interest on a lower amount? Its not that much difference but I really don't want to give them any more money than I have to, I also don't want to have to pay additional interest on money they've loaned me for the last year. Ugh.

I've got to say that the whole you owe us interest thing really ticks me off. I made a mistake, fine. But you are going to make me not only pay back the money but interest for my mistake that it took you over a year to find? Gheesh, that seems unfair somehow. Oh well. Gman's turn now, I will never, ever send in another tax form until he has gone over it with a fine tooth comb!

3 comments:

g-man said...

As I explained before, that is because we were on our way out (probably to soccer practice) when I got the mail, so I left it on the table for you to see. Sheesh. I'm glad it wasn't me who did the taxes, I can only imagine what you would have said then! :/

I think that it would be easier, faster if we did taxes together, instead of me following behind you.

Esmerelda said...

I'm so sorry that this happened to you. Lucky you have gman to look things over for you!

I think I might ask my personal lawyer to do mine now. :-D

Tree said...

Oh no!!! Having been through the hell of a business IRS audit, I truly feel some resentment toward the IRS. However, I think if you even wrote a letter stating the figure you computed and how you did it, versus the figure they provided you (and did they not show you how they derived that?), then I would sent in that amount with the letter. I think the website shows how to calculate interest, but I would also include a plea to disregard interest as it was truly a mistake on your part. Heck, do they pay us interest on money due when they provide a refund? No. No way in hell.