Wednesday, January 9, 2008

Taxes

In today's mail was a little surprise. It was a tax bill from an audit that was done on my 2004 New York State tax return.

I can start by saying how ridiculous the whole tax structure is. I work in New York but live in New Jersey. This requires me to file 3 different sets of tax returns; one for the feds and then for the 2 states which lay claim to me. The tax software I use never seems to get it right and often doubles my income on one of the returns requiring a bit of manual intervention. When I looked at what New York was complaining about it appeared that an incorrect check box was highlighted on the return. Instead of checking Federal Income Tax Paid it checked General Sales Tax Paid. Apparently, not an allowable deduction in New York.

Now, of course, they could have figured this out if they bothered to look at the Federal return (or I daresay at the W4?) which they claim to have done and recognized which tax I indeed had paid. To add even a greater insult they are charging me interest of $120. Now I know why people are so excited about taxes. To think that tax dollars actually go to pay someone to harass people like me.

I'll, of course, file an appeal which I'll probably lose and have to pay even more interest. Now, I'll be on the "watch" list.

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