bustedpivot
Member
14524095:eheath said:imagine defending the IRS, those are all things that give the citizen more money back so of course they want to make that more difficult, you could literally send them a short questionnaire and they could take care of 90% of peoples taxes.
when it comes to reported tax income, they know it all, you're suppose to determine your adjusted income that dictates your final tax bracket, it's all a racket.
The IRS doesn't know anything other than what people tell them.
In most audits like the one OP is now involved in, he told the IRS he had X income, but someone who paid him money told the IRS about it (because they deducted their cost for his labor), and now the math does not add up. The IRS has no clue who is correct. Tons of employers make mistakes in issuing 1099's or make mistakes in reporting their labor costs. In these cases, OP can ask the employer to issue a correction. If he purposely omitted the income or has no reasonable explanation as to why the other party reported having paid him the income, the IRS will assume he received it. AT THAT POINT the IRS will tell OP what amount of tax he owes on the unreported income. OP has multiple redundant levels of due process where he can now dispute it if he believes for some reason someone other than him is mistaken.
