BoatBanter.com - View Single Post - FWIW...Schedule K-1's ...

J Herring

On Fri, 22 Mar 2013 01:45:59 -0400, wrote:

On Thu, 21 Mar 2013 21:30:18 -0400, J Herring
wrote:

That is ridiculous for me. I have one real estate partnership and the
numbers on the K-1 are a few bucks here and there. I end up paying
regular income on the distributions and the IRS has never said a word
to me. I am sure if they audit me and actually run the K-1, they would
owe me money. That is what happened the two times I was audited. Both
times they wrote me a check. I always give them the money if I am in
doubt. I don't want them in my ass. It is still not enough to pay a
CPA.
When I had my business I used Turbotax but I have a pretty simple form
these days.

Whenever I've had serious doubt, I kept the money. I figured I could explain my doubt well enough to
a judge that I'd never get convicted of fraud. That didn't happen often, but I've never been
audited, so don't know what the result would have been.

The real problem is, the IRS charges you a lot of money for that
"loan". If they decide you owe them money they start tacking on
interest at a rate worthy of a loan shark ... or a payday lender.
I try not to pay a whole lot more than I owe but if is a few bucks I
let them have it. Call it civic pride and helping our government
balance the budget.

Civic pride and helping our government is what prompts me to pay my taxes period!

The case in question had to do with the sale of two rental properties in the same year, one of which
had been my residence. I don't remember the particulars now, but I went to a lawyer and discussed it
with him. He thought my logic sounded very reasonable, even though the IRS booklet wasn't very clear
on that particular issue. We talked for about a half hour, then he called in a couple more
attorneys. We all talked for another half hour. I'm thinking this would cost a fortune. At the end
he charged me nothing, saying we all learned something. Kinda fun, actually.

For the last fifteen or so years in the Army I was a Volunteer Income Tax Assistant. Attended a
three or four day course put on by the IRS, and then helped soldiers with their income tax. Learned
a lot.

My younger daughter thanks me every year for making her do her own income taxes from the moment she
started making money.

Salmonbait

--
'Name-calling'...the liberals' last resort.