There goes the IRS angering people again...

[MissJacksonCA]

I'm going to go out on a limb and assume that more than a few people here either have or known someone who has received a phone call about "a personal business matter" and been asked to verify certain personal information including your social security number and the like. Turns out... the IRS is outsourcing collection of delinquent taxes and to add insult to injury the debt collectors instructed to say only that they are inquiring about 'a personal business matter' and only after you verify personal info can the rason for the call be revealed. WTF?

I have a problem calling my credit card company and verifying my information when I call them with a problem! I can't imagine someone actually giving up their info to someone over the phone but apparently they've collected over $19 million dollars this way and of course the debt collection agencies are enjoying their 25% cut of that.

That's riddick IMHO... granted I have little to no respect for people who owe the IRS and even less respect for the IRS for personal reasons but is anyone else incensed by their method of contacting people? I mean this could leave the door open for scammers to call you and do the whole "personal business" crap just to get your personal and private info...

[coma]

That's riddick IMHO... granted I have little to no respect for people who owe the IRS .
If you file a 1099 sometimes you can be caught by the ass and end up owing a ton of money and it cant take a while to get caught up. You cant escape the IRS and they end up murdering you with penalties anyway So the gov ends up ahead in those cases.
Things are not cut and dried in life. Some people dont bother and others have unexpected tax rates.

[MissJacksonCA]

Whats a 1099 form?

I think the IRS is a group of idiots... they slammed my mom with taxes for income she never received and now she owes them over $60k in taxes ... when she tried to fight it by saying she never received child support or alimony that my dad that doctor told them he paid they refused to believe her and didn't ask him for proof that he paid. She even went so far as to show them her bank account summaries showing no deposits and tons of overdraft charges and they're still suggesting she's got all that money.

[coma]

Whats a 1099 form?

I think the IRS is a group of idiots... they slammed my mom with taxes for income she never received and now she owes them over $60k in taxes ... when she tried to fight it by saying she never received child support or alimony that my dad that doctor told them he paid they refused to believe her and didn't ask him for proof that he paid. She even went so far as to show them her bank account summaries showing no deposits and tons of overdraft charges and they're still suggesting she's got all that money.
a 1099 is what you have instead of a W2 when you are self employed. You have to pay Social Security etc because nothing is withheld. If youre not careful you can get in a serious tight situation like thinking you will owe 3 grand but you owe 8 or something. And its PAY NOW and that can be...well, impossible. It happens alot when people first start filing that way. The updis is that you can deduct a lot of work expenses like DVD rentals as "research" if you want. Though if you get audited you have to be able to back it up.

I had a friend whose Mom (beyotch) claimed HER 2 kids as a deduction and for some reason they believed the Mom (thief) over my friend. They penalized her for claiming her kids as a deduction and then she owed like 12 G's plus penalties. She lived with her Mom for a bit and let her Mom claim the deuctions but she didnt know her mom did it for another 5 years or so,.

[MissJacksonCA]

Well thanks for the tip about the 1099... I just started my own business with a BL and all so I guess i'll have to hire someone to manage my taxes for me come next year... I'm already piling up this huge list of business expenses so i'm kinda hopeful my taxes to be paid wont be too large.

[coma]

Well thanks for the tip about the 1099... I just started my own business with a BL and all so I guess i'll have to hire someone to manage my taxes for me come next year... I'm already piling up this huge list of business expenses so i'm kinda hopeful my taxes to be paid wont be too large.
You can operate at a loss for a couple years and that is helpful early in a business to minimze a tax burden when your capital is neglible. But the loss option is only available a couple times. I am not exactly sure but its like 2 times every 10 years or something.
You are supposed to file quarterly to avoid the problem that I and others had, namely a punishing surprise tax burden. But even quarterly you can still get shocked.
Save all receipts like
Restaurants (my friend brought porn from Delis and got a non itemized receipt and claimed that as business expense:D)
Cabs and transportation
Office supplies no matter how small
Research Material (like I mentioned) Including books and Magazines. Depending on your biz even a SPider man Comic can be research
ISP internet bills.
If you have a workspace you can claim part of the rent as an expense.
This stuff is NOT shady, its how the big boys do it too. But dont get topo crazy . Claiming ignorance in a audit only gos so far.

I htought you mentioned you started a biz. I was going to post more then I saw your response. Be careful. You can be rally bummed when you find all your profits sucked into the tax vortex.

I do all mu own taxes, btw, which I figure you could guess from all this:)