IRS Bites

[waverunner234]

Originally Posted by Jackie S

We had to deal with the IRS around 10 years ago.
One of the things you realize when dealing with them is everything is opposite from the regular Justice System. In that, the law states that you are innocent untill proven guilty.

When dealing with the IRS, you are, (in their eyes), guilty untill you can prove yourself innocent. They can seize property, put holds on bank accounts. And they are relentless. They will literally camp out, seemingly disrupting your business as they please. After nearly 5 weeks, our Tax Attorney finally had to tell them either find something, or get out. They got out.

We have not been bothered since. But I will admitt that the entire episode left a sour taste that has instilled a mistrust for the way the Government can treat you, simply because they have the power.

One item of note, in the operation of our Business, we have always taken great pains to make sure everything was on the up and up. If the IRS can come in and cause someone like us that much grief, think what they can do to someone, or a business, that is a little shady in their operations.

Years ago, I had a friend, (he is deceased), who was in a familly business, a large Truck Salvage Yard. (Junk Yard). Quite a bit of their business was cash, someone came in, wanted something, they found it, and cash changed hands.

This bunch lived pretty high, as in those times, the used truck part business was pretty lucrative. However, they claimed only about a 4th 0f what they actually made on their yearly taxes.

When the IRS came, all they asked was, how do you do it. You have houses that cost this much, luxury cars that cost this much, expensive jewlery, expensive everything. But, you say you only make this much.

The IRS had been watching for some time, and knew every penny they spent.

The Father, who was the priciple owner, went to prison for two years, but the entire familly lost everything. Literally.

The reason my friend is deceased. He put a 38 to his head.

Thank you for telling me this, since I think you are warning me, I appreciate it. I really do.

My situation is a little bit different.
1. In the first place, COG ASSUMED that I have a lot to hide.
In fact, I don't. I don't have secret accounts because I simply don't need them.
2. I do have an overseas broker but that's only because the "Dodd-Frank Act" is trying to limit my work in a completely ridiculous way, but regarding IRS rules there is nothing wrong as long as I open the books when they want me to. The "Dodd-Frank" rule that I constantly break is that in the USA you can't trade gold on leverage/on paper anymore. (They say to protect the customer, but that is bull-shit). And it is too lucrative to just let go of that.
3. I have a pretty good name with the IRS, I am an EA (Enrolled Agent), fully licensed by the IRS themselves to prepare Tax Returns in and outside the entire USA for people and businesses, and to "practice before the IRS" which is representing anyone who wants me to do so and to take care of their business with the IRS

Sorry I'll finish this later, I just got a call and I have to go and help someone.
Damned in the middle of the night it's 6 am here.

[Jackie S]

Wave, I am sure you do know exactly what you are doing.

But it is like I said. From past experience, I have a major distrust for the Government and the way they can treat you, and put your entire life on hold simply because they have the authority to do it.

Granted, things may be different now. The episode with the familly I mentioned happend back in the mid '80's, that is a long time ago. Our audit was 10 years ago, that is more recent.

Perhaps the IRS can't simply come in and push people around the way they used too. I, for one, do not want to find out.

[CuteOldGuy]

The IRS is the most evil agency in government.

[nwarounder]

Originally Posted by Jackie S

Wave, I am sure you do know exactly what you are doing.

But it is like I said. From past experience, I have a major distrust for the Government and the way they can treat you, and put your entire life on hold simply because they have the authority to do it.

Granted, things may be different now. The episode with the familly I mentioned happend back in the mid '80's, that is a long time ago. Our audit was 10 years ago, that is more recent.

Perhaps the IRS can't simply come in and push people around the way they used too. I, for one, do not want to find out.

If you have a tax attorney on retainer, and you are not breaking the law you have nothing to fear. Best money, besides the hobby, I have ever spent. For the past 20 years, I have been audited every 2 or 3 years and I have never once seen an IRS agent or even spoken to one.

[Af-Freakin]

Originally Posted by CuteOldGuy

The IRS is the most evil agency in government.

u only say that CreepyOldLoser because they caught u cheatin & dropped the hammer on ur head. @ some point ur gonna do enough stupid things 2 wonder how smart u really r. go ahead, tell me about the strawman, but the only straw im aware of is the straw stuffed in ur head 2 keep ur eyeballs from rollin in2 ur skull. LOL!

is it time 2 call me marshal again? LOL! when u figure out who is who on this board let me know. LOL!

[CuteOldGuy]

Ah, our comic relief arrived early.

[waverunner234]

Originally Posted by nwarounder

If you have a tax attorney on retainer, and you are not breaking the law you have nothing to fear. Best money, besides the hobby, I have ever spent. For the past 20 years, I have been audited every 2 or 3 years and I have never once seen an IRS agent or even spoken to one.

I seriously wonder what you are doing for a living because it is pretty rare to get audited every 2 or 3 years. The average person gets audited zero to once in a lifetime.
I can imagine though if you are a very good looking hooker, that the auditor comes as often as possible just to get a good look at your legs and your cleavage. But that's about it.
The IRS also really doesn't care HOW you get your income, hence the provision that you have to state all your income from illegal sources as "other income".

There are 3 entire counties here in CA where practically all income from most of the people is derived from the growth and sale of mariuana.
I'm sure those people file tax returns too. Not sure how they word that income though.

[nwarounder]

Originally Posted by waverunner234

I seriously wonder what you are doing for a living because it is pretty rare to get audited every 2 or 3 years. The average person gets audited zero to once in a lifetime.
I can imagine though if you are a very good looking hooker, that the auditor comes as often as possible just to get a good look at your legs and your cleavage. But that's about it.
The IRS also really doesn't care HOW you get your income, hence the provision that you have to state all your income from illegal sources as "other income".

There are 3 entire counties here in CA where practically all income from most of the people is derived from the growth and sale of mariuana.
I'm sure those people file tax returns too. Not sure how they word that income though.

Retired, and my income is rarely, if ever, in question. Deductions however, are a different story.

[waverunner234]

Originally Posted by nwarounder

Retired, and my income is rarely, if ever, in question. Deductions however, are a different story.

Then next time don't try to deduct the ladies of pleasure under "entertainment" because that doesn't fit with retirement.
Try to deduct them on Schedule A, line 1: Medical Expenses.
If possible, try to get a prescription from your primary healthcare provider and you might be able to not only deduct the costs, but also medical mileage deduction to get to her incall.

[nwarounder]

Originally Posted by waverunner234

Then next time don't try to deduct the ladies of pleasure under "entertainment" because that doesn't fit with retirement.
Try to deduct them on Schedule A, line 1: Medical Expenses.
If possible, try to get a prescription from your primary healthcare provider and you might be able to not only deduct the costs, but also medical mileage deduction to get to her incall.

LOL, that sounds like something my lawyer would suggest after a few cocktails and of course, in jest.

[Guest102513-1]

As a former CPA, working for one of the biggest CPA firms in the world (not talking HR Block)....I have dealt with IRS numerous times
representing both wealthy individuals and large national corporations.

If you are not hiding anything...they are not an organization to fear

Sure I was very aggressive, within the law in tax preparation & tax planning...my clients both liked and respected that.

Sure I would occasionally have a disagreement with IRS, on behalf of one of my clients. Lost a few of those, but typically won or found a compromise w/ IRS most of the other times.But it was always handled professionally...on both ends.

IRS only comes barrelling thru for repossessions only when it is appropriate....and it is after plenty of discussions with a client

The ones to worry about are the clowns in Congress.

BTW, I have found time and time again...when encountering someone who openly talks about how "their tax planning is not only legal but hardly costs them anything in terms of income taxes". Well let's just say, the first bullshitter does not have a chance, lol

[Jackie S]

Well, sometimes I feel like I am going to die if I don't get some pussy.

Sounds medical to me.

[Jackie S]

VKMaster, there is an old saying, "don't take advice on how to handle Lobsters from a guy that is missing fingers"

I suppose in the finacial world it would be, "don't take advice on how to avoid taxes from a guy who wrote the book in Prison".

[Fast Gunn]

On the surface, the advice seems solid enough.

However, I remember seeing a program on snake handlers and most of them had been bitten numerous times. Can you really learn otherwise?

. . . Experience is a cruel task master, but the lessons learned are not soon forgotten when the tuition is so high!

Originally Posted by Jackie S

VKMaster, there is an old saying, "don't take advice on how to handle Lobsters from a guy that is missing fingers"

I suppose in the finacial world it would be, "don't take advice on how to avoid taxes from a guy who wrote the book in Prison".

[Guest102513-1]

True Jackie S

Another saying...if it sounds to good to be true, typically it isn't true