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Video instructions and help with filling out and completing Are Form 843 Deductions

Instructions and Help about Are Form 843 Deductions

Last month the IRS sent me and my wife because we're following jointly a notice of deficiency here it is summary of proposed changes for tax year 2022 an increase in tax by seventy nine thousand dollars than nine hundred fifty to whatever and the substantial tax under a statement penalty for almost sixteen thousand dollars totaling over ninety five thousand dollars they would like from me in addition to what I already paid for 2022 now the good thing to note about this is it says you may be able to resolve your dispute with the IRS because I accurately paid my taxes I paid tax on all the income I received I do not agree with the IRS assessment in this letter now this isn't the final permanent assessment of the IRS this is something to be paid attention to though these little letters the IRS sends especially if they're certified definitely need to be taken seriously I just sent in another response today and I'm hoping to avoid petitioning the tax court because I paid all my tax here's what happened there was a double reporting of the income and my responsibility now is to do my part to help the IRS become aware of this double reporting of income and help them to get their records adjusted I have sent a fax to the number listed on the screen today and I also a month ago sent a reply which I have not gotten any reply to yet I sent a letter in the mail immediately to the PIO Box listed on this form I will also plan to call the IRS in a week or two I haven't called yet on that maybe I should have called earlier instead of sending a letter and waiting a month because if you see it says that you needed to contact us a media there has a deadline of October 15 2022 now even though I accurately paid my tax and there's a double reporting error if I don't do anything about this the IRS will be wanting that money from me even though by anyone looking at all the facts they shouldn't have any right to that fortunately I want to thank you to me because while you to me is responsible for this you to me also gave me a beautiful letter which is nice because I'm a band udemy instructor udemy support did an absolutely outstanding job at giving me a letter to explain this to the IRS here's what happened is you always want to know you to me paid me on a 1099 miscellaneous form when they also sent the payments via PayPal PayPal then reported that income on a 1099 K meaning the income you to me reported on 1099 miscellaneous was also reported to the IRS by PayPal and all of the income I made on you to me in 2022 therefore was reported to the IRS twice in 2022 I meanwhile didn't simply subtracted the extra reporting on my taxes now yes that was not the ideal approach to take with it and had I looked at it and said wait a minute I didn't realize the 1099 K was getting reported to the IRS either I guess unum II didn't realize that the 1099 K form from PayPal was new the IRS put that out so online sellers would be able to better report income coming through them to the IRS so this new form caught you me and me and I would imagine some others unaware I simply accurately and honestly reported my income I took the income you to me gave me I put that on his income and then when PayPal said I got a whole bunch more I just subtracted the udemy income I said well I already reported that once I'm not going to report the same amount come again now that was a mistake udemy made a mistake and then I made another mistake on top of that never subtract income off the top when you report your income the IRS another strategy I could have taken the ideal strategy would have been to immediately get with you to me and say wait a minute why am I getting this income reported twice the ideal thing would have been to ask for a corrected 1099 miscellaneous from you to me two years ago instead of waiting for the letter from the IRS handling it myself when I submitted my taxes and then the IRS being like hey it looks like you got over six hundred thousand an income why'd you only report four hundred thousand we think there's a two hundred thousand dollar difference here actually close to three hundred thousand and you owe now ninety five thousand more in taxes we'll take that as soon as you've got it for us thankfully you to me gave me this beautiful letter here and you to me it was very nice on it they said you to me Inc issued an incorrect 1099 miscellaneous to mister Banfield that was very generous they owned up and said look we screwed this up that was the original sin so to speak if you'd me hadn't done that 1099 miscellaneous they stopped doing them the next year but then I got it I got it good for 2022 you to me owned up and said look we are now we issued a corrected 1099 miscellaneous rich records a zero amount and it has been filed with the IRS I obviously blanked out the tracking number for the purpose of this video now I'm very grateful you me sent this me this letter they didn't have to take the time to make this easier for me unfortunately we've got this far in where now I have this a notice of deficiency here that if this is not responded to I may need to hire an attorney to.

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