[Dixielandjazz] Save your 1099s

[Stephen G Barbone]

Wow, I got a note, or mail audit from the IRS today. They claim I owe  
them $26,000 in additional taxes because I under reported taxable  
income by about $91,000 in 2008. SCARY. Especially for a retired guy.

The under reported income was derived from a supposed unreported  
$64,350 band income from one client of ours. After quieting my beating  
heart, I checked their 1099 list against my copies and found that a  
1099 for $650.00 for a trio gig, was listed by the IRS as $65,000.00.

This, of course, changed my taxable portion of Social Security  
benefits from about $3000 to an additional $27,000 or so, ergo my  
"unreported" taxable income of  $91,000.

I just sent them a copy of the $650.00 1099 and a nice note that  
someone misread the decimal point. Thus all of the calculations they  
made are wrong.

Moral: Save your 1099s. <grin>

Cheers,
Steve (who wishes he had a client paying $65,000 for a gig) Barbone

www.myspace.com/barbonestreetjazzband