[greymule]

In late June, I found in my post office box a letter from the IRS demanding almost $20,000, including penalties and interest. The notice said I had to pay up by August 15 or call to work out a payment schedule. I didn't have my glasses with me, so I had to wait until I got home to read the details. Needless to say, the 15-minute ride back was not a relaxing one.

Had I forgotten to declare my cash pay from that tournament in Pennsylvania?

This document was about 12 double-sided pages long, and it took a while to sift through it. I discovered that they had mistaken $40,000 worth of 1099 forms from 2004 as unreported income for 2005.

So I made copies and attached a letter pointing out their mistake (with big red circles around the "2004" on the 1099s) and a month later received a notice informing me that they had received my paperwork.

Last week, a letter arrived saying, "We have reviewed your case and determined that you do not owe any money at this time."