Thread: tax question
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Old 11-13-2005, 09:11 PM
Joe Taylor Joe Taylor is offline
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Join Date: Oct 2004
Posts: 18
Default Re: tax question

I have to agree with Iceman on this one - I *religiously* pay my taxes (quarterly, etc.), and I'm fairly sure if I was in this situation (which I hope never to be), that I would just "ignore" this income while this situation was up in the air. If the amount was significantly smaller ($1k or less?), I would just pay the taxes and deal with it as a loss if it turned out that way later on... but at 50k, that is a fairly significant amount of money to be paying taxes on that may or may not be yours to keep, and no guarantee as to when the investigation would end.

I think there is the "black and white" answer, and the reasonable answer. Obviously if the IRS audits you, you would be forced to explain the situation, and they would probably force you to pay the taxes at that point, but I think the argument is reasonable.

Needless to say, this isn't actual tax advice, and each person would have to deal with this individually and within their own comfort zone.
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