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David Leeper: Tax law too complicated for standardized software

David Leeper: Tax law too complicated for standardized software
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David Leeper: Don't panic if IRS accuses you of 'unreported income'


A common example of the hardship this creates is the Forms 1099 that are sent out every year. Businesses have the responsibility of issuing a Form 1099 to the IRS and to each of us for any taxable income we receive.
The IRS computer will take its copy of that Form 1099 and compare it to your tax return. If they don’t match, then the IRS will send you a notice that you owe additional taxes for this “unreported income.”
Recently, I have had a number of new clients come in complaining that the IRS had set up additional tax liability against them for “unreported income” claimed on an erroneous Form 1099 they received. Invariably, these clients claim they did not receive that income or that amount of income and that this proposed assessment is unfair. ....

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David Leeper: Tax answers on receipts, representation before IRS

David Leeper: Tax answers on receipts, representation before IRS
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