Tuesday, January 15, 2008

The IRS Will Get You Every Time

Last year, I wrote about a tax credit that you could claim for the telephone excise tax that has been collected on phone bills for years. If you took the credit, the IRS also paid you interest on the amount you claimed. No good deed goes unpunished and this year, I received a form 1099 from the IRS reporting that interest ($34 in my case) as income which must be claimed on this year income tax. *sigh*

There's an article about this here.


Steve said...

it sad/comical that the IRS will come after you for even a few $$$'s, but Congress has no problem spending (or should that be, wasting) thousand or even millions of $$$'s on pork projects every year that often benefits no one (or only a miniscule group).

Anonymous said...

I've already filed my taxes and I'm assuming the amount of interest on that $30 was $10 or less and if so, I won't have to amend my return since the amount of my income would not go into the next table (e.g $25,251-$25,500 - single filer pays $3400. $25,501 - $26,000 single filer pays $3430)(these numbers in my example are made up). As long as adding that "income" didn't make me go into the next table I should be good to go. I would hope the IRS wouldn't want me to refile(amend) my return if it didn't even change how much I paid them.

Joe W

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