Bob Choate won 315 coupons from Shipley's Do-Nuts at an Astros game.
Posted on 04/18/2011 12:54:13 PM PDT by afraidfortherepublic
Astros faithful Bob Choate's tale of doughnuts, taxes and baseball seems to have reached a relatively happy ending as the deadline strikes to file income taxes.
On last year's Astros' fan appreciation day, the 56-year-old won 315 coupons from Shipley's Do-Nuts, each worth a cup of coffee and either a free doughnut or a dozen doughnut holes. However, he later received an IRS Form 1099 stating that he owed taxes on his prize, which was valued at $927.61.
Choate protested to the Astros and to Shipley's, claiming that the actual value of his prize fell below the $600 threshold that triggers donors to issue a Form 1099 stating the value of the gift or prize.
After an unsuccessful round of talks with the Astros, Choate said Lawrence Shipley, owner of the Houston-based chain, agreed to write him a check to make up for the difference in taxes created by the $927.61 in income from his prize.
"I have to say that (Shipley) is a gentleman and a scholar - not because I got my way, but he considered my position, wanted to do the right thing for the customer and accepted a suggestion to help his business," Choate said.
Before adding in the 1099 he received from the Astros, Choate said he would have received a tax refund of $302. With the doughnuts and coffee coupons added in as income, he said, his refund dropped to $65, a loss of $237.
Choate said he's made the exchange with the Astros and Shipley a lesson for his kids.
"I told them that if you think something isn't the way it should be, speak up and be professional and reasonable and diplomatic," he said. "And, if you're on the other side of the table, you should listen."
(Excerpt) Read more at chron.com ...
Bob Choate won 315 coupons from Shipley's Do-Nuts at an Astros game.
“Choate said he’s made the exchange with the Astros and Shipley a lesson for his kids. “
Yeah, the government is out to steal all that you have.
Lots of holes in this story...
Shipley’s = Doughnut Holes
IRS = A$$ Holes
I am from a family of Astro’s fans. But I think the Astro’s owe Choate even more for the plain and suffering of actually watching them play last year. They were really awful last season.
Maybe a lifetime discount on Cardio drugs is in order after all those donuts??
How many police officers became his buddy?
Just like all other criminals.
It is in fact a good situation when one can provoke a ten thousand dollar expenditure by the government to recover $927.
Unpleasant to the target, but necessary to the Republic.
It is possible that some have nothing better to do, and the resources to do it with.
I don’t see how you can consider a coupon for coffee and donuts as income. You haven’t actually gotten anything until you actually use the coupon. Does the coupon have an expiration date? If not, you might not use some of those coupons for a year or more.
If you hold on to the coupon for ten years and present it for a fraction of the original doughnuts you will be able to claim a capital loss
This season isn’t starting off much better!
You’re supposed to report all income, not just those that come on a 1099-R.
I'm no accountant, but I will bet the IRS will see that as "income" and will expect to see the value declared next year.
You are correct. I cringed when I sent my tax info to my tax guy. I had a sizable profit from a sale that I needed to claim that was not 1099-ed to me. If the other party had gotten audited by the IRS they would have found it and came to me for the taxes, plus penalties, which usually are far worse than the original tax bill.
Glad to hear that Shipley is such a fair minded person, I think I feel a Shipley’s break coming on!
Yes, and then there are the additional tickets they awarded him this year to “smooth things over”. The IRS are such spoil sports. We have a raffle every year at church to support our school. There are little old ladies who are afraid to buy a $5 ticket because they don’t want to be taxed in case they win. Can’t say that I blame them.
The IRS hasn’t got much to do when they go after a guy because he won Coffee and Doughnuts.
Wait until Obamacare comes along and they have another 1600 agents to screw with the taxpaying public.
$3.00 doughnuts?
So his point was that if Shipley didn’t 1099 him, he could have conveniently not reported the prize and got a bigger refund? The thing is, tax WAS due on the prize and rather than make a statement about how this sort of windfall taxation may be bad, he’s upset he got caught. Who’s gonna tell him that the check to make good the tax difference is taxable?
The IRS will come after you for free donuts and coffee but I’m still not convinved that 3/4s of Obama’s Cabinet have paid all their back taxes.
I want to see Geithner’s payment receipt (probably sitting next to Obama’s Birf Cert.
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