I just received my audit taxes for 2010. I am being taxed triple than what I made in 2010. Is this reasonable? I think I would make more money by being unemployed. According to IRS I am currently owing them $224,758.00 for 2010 taxes; when my income did not exceed $100,000.00
I think it's safe to say that an error has been made. I suppose that there are ways that this could be correct but it seems unlikely to me.
Did you sell a house that shows a profit? It would have to have been one big profit. I once was billed $$$ after the sale of my home. Fortunately I was able to meet the test and the IRS backed down. Sale of Residence - Real Estate Tax Tips Gain If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases). If you can exclude all of the gain, you do not need to report the sale on your tax return If you have gain that cannot be excluded, it is taxable. Report it on Schedule D (Form 1040) Ownership and Use Tests To claim the exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have: Owned the home for at least two years (the ownership test) Lived in the home as your main home for at least two years (the use test) or hopefully it is just a mistake.
From the first sentence, it appears that whoever issued you your W-2s or 1099s reported figures for you that were very, very different from what you reported on your 1040. Have you been the victim of identity theft?
What General Snus said. Looks like a paperwork problem. This has zip zero nada to do with socialism, more to do with data entry errors. Pick up the phone and get it sorted before you go to jail for no reason.
No, there is no problem in the form. In my 2010 tax return form has no six figures number. I have not done 2011 tax return yet because I am awaiting to resolve this problem first.
The problem probably wasn't in your paperwork, but in the electronically submitted income information provided about you by one of your employers, or by someone else - as General Snus pointed out, someone could have provided your SSN to someone who paid them on a 1099, and it would have caused the sort of discrepancy that's causing your current headaches. This should be something that can be sorted out by gathering all your paperwork and going to your local IRS office. They're not going to just sit there and tell you that you owe them $200K+ without explaining to you the reasoning behind it. When they do, you will be able to say, "that isn't me!", and put this mess behind you. I've had issues with the IRS before, and besides the stupidly long lines, it wasn't that painful - but I had to be proactive about it.
