IRS Declares me one of the top Day Traders in History
Just in case you question the value of my advice, you should be aware that the IRS has declared my one of the top Day Traders in history. You might question my veracity, but how can you question the veracity of the IRS?
OK, so maybe the IRS didn't say it in those exact words...
It all started a few weeks back when I received an official letter from the IRS. There was a discrepancy in tax year 2006 between what I had reported to the IRS and what the IRS says my stockbroker reported (regarding my Day Trading account). I don't recall exactly what I reported, but it was a small loss. But the IRS claims that my broker reported that I made a profit of over $2,500,000. Yes, over 2.5 million dollars. Please realize that my trading account was less than $30,000. So I must be one of the top Day Traders in history. Do the math: that's an 8333% return!
OK, so I'm not one of the top Day Traders in history. Obviously the IRS has made a mistake.
I notice on the letter there's a telephone number to call the IRS if you have any questions. So I figure I'll call the number and see if I can get them to straighten this out. I dial the number and an extremely friendly person answers immediately. I can't believe the IRS picks up their phone so quickly! Unfortunately I soon realize I'm talking to a trucking company - evidently I've dialed the wrong number. I dial again, and after about an hour of pressing keys and holding, I'm actually speaking to a human being. I explain the situation to her, saying it's an obvious mistake, and can she please correct it. About five minutes into the conversation I realize I've entered a strange world of unreality. It makes absolutely no difference how absurd it sounds, their information states that I made $2,500,000 and they refuse to correct it. If my file said I made three times the Gross National Product of of the United States, they would still refuse to correct it. It is up to me to provide acceptable documentation proving that I did NOT make $2,500,000, or else pay the taxes on it.
I hang up. and then it occurs to me I would have gotten more satisfaction talking to the trucking company.
Gotta go now, need to call my accountant.
Wanna know how this turns out? Check back soon, I'll post as the story unfolds. Does anyone know if you can blog from prison?
OK, so maybe the IRS didn't say it in those exact words...
It all started a few weeks back when I received an official letter from the IRS. There was a discrepancy in tax year 2006 between what I had reported to the IRS and what the IRS says my stockbroker reported (regarding my Day Trading account). I don't recall exactly what I reported, but it was a small loss. But the IRS claims that my broker reported that I made a profit of over $2,500,000. Yes, over 2.5 million dollars. Please realize that my trading account was less than $30,000. So I must be one of the top Day Traders in history. Do the math: that's an 8333% return!
OK, so I'm not one of the top Day Traders in history. Obviously the IRS has made a mistake.
I notice on the letter there's a telephone number to call the IRS if you have any questions. So I figure I'll call the number and see if I can get them to straighten this out. I dial the number and an extremely friendly person answers immediately. I can't believe the IRS picks up their phone so quickly! Unfortunately I soon realize I'm talking to a trucking company - evidently I've dialed the wrong number. I dial again, and after about an hour of pressing keys and holding, I'm actually speaking to a human being. I explain the situation to her, saying it's an obvious mistake, and can she please correct it. About five minutes into the conversation I realize I've entered a strange world of unreality. It makes absolutely no difference how absurd it sounds, their information states that I made $2,500,000 and they refuse to correct it. If my file said I made three times the Gross National Product of of the United States, they would still refuse to correct it. It is up to me to provide acceptable documentation proving that I did NOT make $2,500,000, or else pay the taxes on it.
I hang up. and then it occurs to me I would have gotten more satisfaction talking to the trucking company.
Gotta go now, need to call my accountant.
Wanna know how this turns out? Check back soon, I'll post as the story unfolds. Does anyone know if you can blog from prison?
Trackbacks
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5/11/2008 8:30 PM
Invest for Financial Freedom wrote:
Trackback for Carnival of Equity Trading #5- May 11, 2008
OUCH! Yea, that sounds about right. Good God though that's a tough road to haul for sure (notice the trucker reference).
It IS an interesting story to follow though. I can imagine the person you talked to talks to dozens of people a day with stranger stories though; so maybe dismissed it on the account that it wasn't extravagant enough...
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I love the IRS. Every audit I've gone to was like a hot wax enema buck naked in Times Square. One time, the agent wanted me to address him as Mr. Jones. I wasn't sure if I wanted to that. "Dude" felt much better.
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