Tom's Tax Tip

[yesthattom]

If you receive a letter from the IRS that says you messed up and you have to pay $A plus a fine of $B for making the mistake, just send them a check for $A. They won't come after you for the $B.

Why?

Because many years ago someone did that and took it to tax court. He said, "Do I owe you $A now?" the IRS said, "No" and he replied, "Well then I certainly don't owe you a fine, do I?"

The judge upheld it. It's been true ever since.

(Obviously, ask you tax advisor before doing this.)

(And, no, I didn't receive any such letter.)

Comments

[barking-iguana.livejournal.com]

This sounds like an urban legend. Are you sure?

[yesthattom.livejournal.com]

I believe it was this book that made the claim.