Don’t you just love the feeling of opening the PO Box and finding it full of #10 envelopes! Checks! This time of year, however, the envelopes are usually a tad larger and need to be saved for the tax man.
1099s are flooding into my PO Box the past few weeks. Be sure to check them carefully and SAVE them! I had the IRS come back to me on my 2007 taxes saying that I owed them some ungodly amount close to 10 grand.
They thought that one of my 1009s was for 58 thousand dollars. Huh? Wow, that would have been a great client! After my heart stopped pounding, I realized that it was probably a typo and contacted my client who was able to quickly send me a replacement 1009 to show the IRS that the total was 58 hundred dollars, not 58K.
I’m not a fan of this side of the business, but it is an important part of what we do.