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Anyone not in a business ever get audited by the IRS? with income well under 100k
Grasshopper
Member Posts: 17,046 ✭✭✭✭
And what did they want? Illinois evidently passed a law that 1099K s will be sent with Paypal transactions over 1k. ! I sold a LOT of parts and about 8 firearms that I did paypal. Yea, I know about the lecture.😙
Comments
paypal is a credit prosseser the finace law of 2011 transactions at 200 or over 20,000 they narc you out the the IRS ebay the same i always stopped at 189
Illinois is FOUR transactions or 1k now and they let no one know the "law" passed. One of six states. God I despise this state.
You could always file an amended return if you forgot to list the 1099 income, I wouldn't just wait around to see if they catch it, the penalties and interest along with the lost sleep wouldn't be worth it. Under a 100K total income you can't be in a top tier tax bracket so I would say suck it up, file amended and pay the tax on the income. My .02
It may not trigger a physical audit, but it definitely should trigger a computerized letter from them stating that there is an under-reporting of income that was reported to them. It used to take about 18 months to get that letter, but over last couple of years, it has shrank down to closer to a year. There will be a proposed assessment of increased taxes based on the gross income without taking into account any cost of goods or expenses since they do not know what that may be and you would have to then respond or pony up the money.
It is better to get in front of it and file an amended return if you have already filed the original return.
Ohh yes, I am reporting it but I didn't keep records on the amount of money I paid in the parts. I mean this is years worth that I liquidated. I am "guessing" and not planning on not reporting. I am still working on it just really bothers me that this "law" passed with nary a word ever mentioned. And I will show profit to try to keep the magic puter from kicking it out. Just reaLLY nerve wracking as I have seen what the IRS can do to your personal finances.
cash or postal mo that is all i have to say
Yup Postal mo cash them and forget forget about them 😁
You Illinoian's have to pay for MANY democratic politicians incomes. IE-The 2 day Madigan replacement got $5,788 for his services. Ill. pays a full month's salary to any who work just 1 day! Additionally ousted Madigan will get 50% more in his retirement than his base salary was. What a mess of a state.
I got SCREWED BLUED AND TATTOOED by the Fed IRS, cheated and robbed of a rightful, LAWFUL deduction. They stole $4,900 from me.
I had the records, I answered every question honestly.
It did not matter, every inquiry they made was a new reason for denial of the deduction.
It took two years and five letters with documents PROVING my deduction was legit.
Last November I got a final determination, I was livid beyond understanding.
Instead of the stress of fighting the miserable slime dwelling moron low life's any more I just paid them.
A lawyer was 10 grand to get started, IRS knows that and has the ultimate power over you mortal life., they are STUPID, incompetent, quota hire's with the power of the gun, they wield it and laugh at what they do to the US Citizen.
I now file short form, the Federal Government can KMA.
Do I sound a bit jaded, you are dam right I am.
Pay the darn money Grasshopper. How in the world is the government going to pay for the benefits for all these new undocumented (or what ever they are called this month) folks? 😣
I've been audited twice but I was in the roofing business at the time. The firs time I was all yes sir, no sir, yes I have that sir. The second time I went in I told the man I wasn't answering any questions until he had what he wanted to talk about on the table and under the light. We took care of it in about 10 minutes.
Every year since 1990, the number of IRS auditors has been reduced. Now, most returns selected for audit are electronically identified by computer; e.g., anyone donating 10% of their income (or more) will likely be audited.
I pay a CPA to prepare my tax returns, even though I think that I can do it myself. But, I've never been called in by the fellas with the pocket protectors in their shirts.
Neal