Woman proves she's not a slave by refusing to correct SFR

[Quixote]

The IRS filed a substitute for return for Michele Seven, aka missliberty7, for 2006 based on Forms 1099-B reporting $1.2 million in stock sales. As the IRS employee with whom Ms. Seven spoke explained, all she has to do is file a tax return to let the IRS know what her basis was and IRS will correct the assessment. She however, won't do that because she "is not a slave". She seems to think that her actions will somehow cause her to lose her children, but is ignoring the more likely result, a levy on the brokerage account that provided her $60,000 in income in 2006. She'll get to keep her children, just nothing to feed them with.

http://www.youtube.com/watch?v=fRJozKGUGiQ

[Quixote]

"What would have happened if you had filled out that paper mommy?"

"I would have paid some money...."

And quite possibly very little money. I don't recall mention of a husband, so I'll assume she would file as head of household. She mentioned kids (plural) so we'll give her two kids. If she netted $60,000 (and it's all long term capital gains), her tax before credits, using the standard deduction, would be $2,202.50. Her child tax credit would be $2,000.00, leaving her with a tax bill of $202.50. The late filing and late payment penalties could be waived under the circumstances she described. The interest, calculated through today, would be $32.43, for a total bill of $234.93.

[The Observer]

She however, won't do that because she "is not a slave". She seems to think that her actions will somehow cause her to lose her children,...

IRS revenue officers have an unwritten rule: Never seize any asset of the taxpayer's that requires feeding.

[gottago]

The IRS filed a substitute for return for Michele Seven, aka missliberty7, for 2006 based on Forms 1099-B reporting $1.2 million in stock sales. As the IRS employee with whom Ms. Seven spoke explained, all she has to do is file a tax return to let the IRS know what her basis was and IRS will correct the assessment.

http://www.youtube.com/watch?v=fRJozKGUGiQ

Or, in my case, you file the corrected tax return (after giving yourself "mouse elbow" spending hours entering transactions) and 3 years later you finally meet with a field auditor and supply him with all the relevant documentation he requests to support why you did not have income of over $7 million for the 2 years in question and he agrees with you and gives you documentation (even signed by his supervisor) that you owe -0- for one year and about $4600 for the other year. You think you are making some headway...

UNTIL you receive a letter from the IRS a month later that states the $4600 has been ADDED to the original SFR liability (2.9 million) for the year in question along with another $940,000 in accrued interest. Of course, they will take checks

We have faxed the letter to the field auditor and are awaiting his response...

[Quixote]

We have faxed the letter to the field auditor and are awaiting his response...

I predict the field auditor will tell you that he has no idea how to fix that problem, that his report was correct, and that you need to contact the Taxpayer Advocate.

[Number Six]

The solution is so obvious. Flee the country, change your name and start over in Argentina, selling kebabs and other neat meat treats from a push cart in Buenas Aires.

I was privy to a conversation in a coffee shop in Kent where a wealthy fellow was setting his eyes on Uruguay as a feasible destination: He had a large quantity of gold stashed away, he was contemplating a getaway with his ship, getting outside of U.S. jurisdiction and hoping to live well-off in S.A.--he didn't indicate if he was one of the unlucky ones facing a D.O.J. investigation due to off-shore accounts.

As for more rational responses, the various CPA here will have those.

There are lots of effective strategies. This "sovereign" lady is going to have to come to terms with the reality that there is no moral or ethical issue in using an SS number or in working through a good CPA company to get her the best deal. Even "Sui Juris" was providing numerous phone numbers for the I.R.S. on a state by state basis, last I checked. No one with substantial experience on this sort of tax issue buys the ethical complicity arguments anymore. I hope she doesn't end up NINJA.

[gottago]

The solution is so obvious. Flee the country, change your name and start over in Argentina, selling kebabs and other neat meat treats from a push cart in Buenas Aires

Actually, I am leaning more toward Barbados and learning a trade like hair braiding. All that meat would make me hungry..

Gottago

[Doktor Avalanche]

Ah Carmelita.........the carnitas and meat lady........the memories........so hot and juicy, tender and spicy..........

And her carnitas are pretty good, too.