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View Diary: Why did the IRS demand protest info from pro-life groups? (69 comments)

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  •  That's encouraging...you didn't (0+ / 0-)

    sound as if you had a lot of confidence in your attorney with this post:

    I am involved in a dispute with IRS over
    capital gains vs ordinary income over some stocks I cashed out to pay medical bills.  My attorney has told me to expect them to carry this to the federal courts because of the number of people who had to cash out stocks and bonds 2007-2009.

    When someone is impatient and says, "I haven't got all day," I always wonder, How can that be? How can you not have all day? George Carlin

    by msmacgyver on Tue May 21, 2013 at 01:53:46 PM PDT

    [ Parent ]

    •  it is a lack of confidence in the IRS to admit (1+ / 0-)
      Recommended by:
      msmacgyver

      their audit was wrong and they misidentified the funds in question as ordinary income instead of capital gains.  We have submitted a library of paperwork refuting their position but I understand about 20 other local farmers are having similar problems with the IRS over what constitutes capital gains vs ordinary income (caveat: this involves land law and what disposal of fixtures to the farm qualifies as capital gains and which qualifies as ordinary income)

      We have already whittled their estimate of amount due by $20,000.

      •  Yes, getting the IRS to admit to error (0+ / 0-)

        is what happened in my case, too.  And, it was what eventually got my accountant/tax preparer in over her head.  She simply could not deal and a more senior person was assigned to my case.

        In the meantime, I continued to receive very scary notices from the IRS despite my being assured by the accounting firm that "everything is being taken care of" and other emails to that effect.

        I think there is a certain kind of "civilian" who can deal with the IRS culture and for those who simply cannot, like my original tax preparer, it can only go from bad to worse.

        When someone is impatient and says, "I haven't got all day," I always wonder, How can that be? How can you not have all day? George Carlin

        by msmacgyver on Tue May 21, 2013 at 02:58:29 PM PDT

        [ Parent ]

        •  I am getting the scary notices and they are (1+ / 0-)
          Recommended by:
          msmacgyver

          garnishing a part of my SSDI payments.

          •  I am so sorry this is happening to you (0+ / 0-)

            From what I could gather, the local IRS people my accountants were talking to were simply pushing paper and not trying to solve the problem.  Some of the gibberish I was told was just that...gibberish.

            Can you offer to make a settlement with the IRS?

            When someone is impatient and says, "I haven't got all day," I always wonder, How can that be? How can you not have all day? George Carlin

            by msmacgyver on Tue May 21, 2013 at 07:37:45 PM PDT

            [ Parent ]

            •  it is my position that there is no need for a (1+ / 0-)
              Recommended by:
              msmacgyver

              compromise as the legislation behind the termination of the No Net Cost Program and Tobacco Stabilization Program was explicit how the buy out would be treated tax wise.  The IRS has changed the rules without any sort of legislative change as far as our research indicates

              •  I wish you success with this (0+ / 0-)

                My penalty would have been in excess of $6,000 and like you, I would never have conceded.  

                When someone is impatient and says, "I haven't got all day," I always wonder, How can that be? How can you not have all day? George Carlin

                by msmacgyver on Tue May 21, 2013 at 10:11:23 PM PDT

                [ Parent ]

      •  I'm confused (0+ / 0-)

        Your earlier post says your dispute involves the dispostion of stock.

        "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

        by Old Left Good Left on Tue May 21, 2013 at 03:38:23 PM PDT

        [ Parent ]

        •  it is a picky point governing the Tobacco Buyout (0+ / 0-)

          Program where tobacco companies bought out growers' allotments and retired the Tobacco Stabilization program.  Allotments were in units of pounds and payment was a certain amount to growers and a certain amount to landowners.  For those of us who were in both categories, we received both types of payments but a proportion of each payment was allocated to capital gains since the allotments could be bought and sold the same as stocks or land while the amount allocated to growers was purely ordinary income.  In 2009, the IRS stopped treating these blended payments in accordance to the legislation that governed this program and instead treated all payments as ordinary income (including a 20,000 lb allotment that I purchased from a farm that was being converted to a development.  They refused to recognize that I had any basis in the pounds at all)

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