sMoRTy71.comsMoRTy71 - the personal website of Shawn Morton
sMoRTy71.com
sMoRTy71.comThe personal website of Shawn Morton
Wednesday, February 28, 2007
The IRS and auto repair
I haven't been blogging over the past few days because I am currently getting hit with a double whammy of crappy situations.

First, I took my car to get an oil change at Valvoline last week. In addition to jacking up their price by $10 ($10!!!) for certain models (including Volkswagen), the technician claimed that my car was leaking transmission fluid *and* my main seal *might* be leaking. Sweet! I get screwed on the oil change price *and* have to take my car to the dealer for service to see if my car is actually screwed up or not.

Because my car has a 10-year powertrain warranty, I have no choice but to take it to the dealer to check out Valvoline's claim. If there is a problem, there is a good chance of it being covered under warranty. However, if there is not a problem, I am forced to shell out $88 *per hour* for VW to look my car over. I almost find myself wishing for a problem that is covered by warranty.

I dropped my car off this morning and it will be in the shop for 2 days while they inject dye into the system and see if anything leaks out. Now I have to sit and wait for the potentially expensive news.

In addition to the car drama, on Friday night (the same day we received our Federal tax refund), we received a notice from the IRS that we owed them over $20K in back taxes from 2005. Nice, right?

Of course, after nearly sh!tting ourselves (twice), we determined that there was some mix up with paperwork for stock options that I sold a couple of year ago.

Did I mention that we were going out to celebrate my wife's birthday that same night? Well, as you can imagine, the whole IRS thing weighed on us all weekend until I was able to dig out all of our paperwork and find the issue (which doesn't appear to be our fault).

I gathered the supporting paperwork together and wrote a letter to the IRS stating that we disagree with their claim. Now, we just have to sit and wait for them to respond.

So, in case you were wondering why I haven't been blogging, you're all caught up :)
Comments:
Man that really sucks, hopfully it'll all get sorted out, why is it that one day you can be going along minding your own business and then a big pain in the arse situation rears it's ugly head ?
 
If it's any consolation, I once had an IRS issue, that WAS my fault (forgot to report that I rolled over an IRA distribution, back when they actually distributed IRA's for rollover, as opposed to now, when it has to be rolled directly from one to another...)

Anyhow, I claimed ignorance, sent the appropriate paperwork proving that I had indeed rolled it over, and received a letter back from them, saying "All clear!"...

Let's hope your experience is similar...
 
Well I don't want to depress you further but if you sold stock options you could be in trouble. There are some funky rules with stock options and how they are taxed. You could owe that 20k even if it seems crazy.
I had a similar problem and after consulting with multiple tax people got the same answer every time.
Wish mine had been 20K :-o

Best of luck. I hope it is a mistake.
 

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