I’ve fought the IRS 4 times, and won every single time. Fought the State of Wahington, too, and won there. Sure, it wasn’t cheap OR easy, and I had to live with the stress of having every asset of my company and my personal assets being lien’d against for quite an extent of time, but I won (stubborn Irish in me)...
But I’m tired of the fight, fed up with paying tens of thousands to defend myself, and have pulled out as much as possible from the whole situation.
You know, the most incredible thing that ever happened during this time? I’m sitting in my office going through an “interview” with an IRS revenue officer, and he wants to talk about the first few years of my business. Specifically one year where I lost money.
He asked “well where did the funds come to cover your losses that year?” I responded “my pocket - I sold some assets to finance my company”. He looked at me stunned, and stated - I kid you not - “Why would anyone actually use their own money to finance their company...”
At that point, I knew that the vast majority of the cogs working in government haven’t a clue about fundamental economic principles, nor do they understand that if it weren’t for business and investors willing to risk their own assets there wouldn’t BE any economy - and no taxes for them to be paid.
Government workers don’t realize that they do not pay taxes; they merely pass them through. Their income is 100% based on taxation. It would be akin to me giving you $10,000 and then saying “oh, I need $1,000 of that back”. You haven’t actually put anything into the equation - you’re still up $9,000 of my own money.
Anyway, compared to how I’ve been treated by the revenue offices in Chile and China, the US IRS is, well, I don’t want to say in case it triggers yet ANOTHER audit (trust me, beat them once and they do NOT forget...) But there’s a reason why most of my company is off-shore. And it’s not because I’m a traitor or anti-American.
Never do your own audit. Fishing expeditions like this one would not take place if a professional is doing it.
He asked “well where did the funds come to cover your losses that year?” I responded “my pocket - I sold some assets to finance my company”. He looked at me stunned, and stated - I kid you not - “Why would anyone actually use their own money to finance their company...”
You have no idea how many tangential issues you raised by your answer. DIY's are there own worst enemy.