still waiting for irs decision on 2005 return

[mj2]

i appealed a bill i received from the irs several months ago asking me for self-employment taxes from 2005. a few months ago, after they received my explanation why i disagree, they sent me a letter saying they would review my case and let me know by 4/14. ummm......gee thanks. well, now its 4/11 and i still have no response. obviously, i need to do my 2006 return so do i........

a) do my taxes the same way i did them in 2005 and then file an amended return if they reject my argument from 2005.

or

b) file for an extension and wait for their ruling on 2005.

if i file for an extension, do i also need to file for an extension for my state taxes separately or is it automatic if you file for an extension for your federal taxes?

[RoundGuy]

Those would be great questions to ask your friendly local CPA.

[Poker CPA]

A few months, YOU WON BROTHER. Congrats

[mj2]

[ QUOTE ]
A few months, YOU WON BROTHER. Congrats

[/ QUOTE ]

sorry, but i don't get it?

[Poker CPA]

a. Get the statute of limitation running because you won the appeal.

[mj2]

[ QUOTE ]
Those would be great questions to ask your friendly local CPA.

[/ QUOTE ]

i really don't get the point of these types of responses. every time i see a tax question, someone feels the need to say "go ask a cpa". i'm pretty sure there are several people on this site that probably know the answer to these questions.

you do realize that even if you have your taxes done by a professional that most likely the person actually preparing your tax return is not a cpa, right?

[Poker CPA]

The answer is A. What more do you want? Your welcome!

[mj2]

[ QUOTE ]
The answer is A. What more do you want? Your welcome!

[/ QUOTE ]

lol. thanks.

[RoundGuy]

[ QUOTE ]
[ QUOTE ]
Those would be great questions to ask your friendly local CPA.

[/ QUOTE ]

i really don't get the point of these types of responses.

[/ QUOTE ]
The point is that, while some responses may be worthwhile, many are bull [censored]. This is an anonymous internet message board. Get it? This is where you think you should go for tax advice?

[Poker CPA]

Could you give an example "RoundGuy". It might be helpful to "mj2".

[RoundGuy]

[ QUOTE ]
Could you give an example "RoundGuy". It might be helpful to "mj2".

[/ QUOTE ]
Of course.

"You failed to report $200 in poker winnings?! ZOMG!!! You're going to pound-me-in-the-ass prison!!! Fursurz!!!!!" (paraphrase)

[mj2]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Those would be great questions to ask your friendly local CPA.

[/ QUOTE ]

i really don't get the point of these types of responses.

[/ QUOTE ]
The point is that, while some responses may be worthwhile, many are bull [censored]. This is an anonymous internet message board. Get it? This is where you think you should go for tax advice?

[/ QUOTE ]

not if it is something very complicated. but these are very basic questions for anyone with tax experience. i would like to think i could tell the difference between a legitimate response and some bull [censored].

personally, i think i would be okay if i did either option. i just wanted to know the "best" option. i would prefer to not have to file an amended return but it is not the end of the world if i do.

also, i was somewhat venting that the irs was so kind to tell me they will give me an answer by april 14th.

[Poker CPA]

Of course.

"You failed to report $200 in poker winnings?! ZOMG!!! You're going to pound-me-in-the-ass prison!!! Fursurz!!!!!" (paraphrase)

Gee thanks. And I thought this was a joke, not tax advice. Thanks for the protection from evil tax advisors, I'll be careful from here on. PROMISE

[Zele]

Can you post a sanitized version of your letter?

[RoundGuy]

[ QUOTE ]
Gee thanks. And I thought this was a joke, not tax advice. Thanks for the protection from evil tax advisors, I'll be careful from here on. PROMISE

[/ QUOTE ]
Of course my paraphrase was a joke. Unfortunately, the "pay your taxes or go to prison" contingent intentionally induce more panic than warranted (I'm guilty of this in the past).

Pay your taxes or possibly suffer fines and penalties as the result of an audit -- good advice. Pay your taxes or get an ass-pounding in prison -- stupid.

If I may say so, CPA, your advice is usually spot-on. Probably because you nearly always advise: See your local CPA. Go figure.

[Poker CPA]

Fick the local guy; SEE ME!

[tribefan9]

[ QUOTE ]


a) do my taxes the same way i did them in 2005 and then file an amended return if they reject my argument from 2005.



[/ QUOTE ]

It seems to me that this is the option you must choose since filing as a pro this year would basically admit that you filed incorrectly as a recreational gambler in 2005. Keep filing as a recreational player for as long as they will let you or until it is no longer advantageous to do so.

[plasphemy]

IMO...

Estimate your taxes recreationally and send a check in for the amount. Then file for an extension on the return. This avoids penalties for late payment and also allows you time to see about your 2005 return so you won't have to amend your 2006 return later.

[Poker CPA]

Option A baby, no penalities whatsoever. Filing ameneded return is interest only, especially in this case. Option B could have underpayment penalities and October 15th filing date goes away. NO penalites, more time to plan and you start that statute running. Good Luck