[geeks] Tax Weirdness

[Jonathan C. Patschke]

> Something similar happened to a family member....they got back an extra
> $800 on top of the original $400 refund.  But then the IRS said "oops, we
> didn't fuck up...you fucked up.  We want the $800 back, plus interest,
> plus late penalty fees".  That all came up to $1750 or so.

Eeek!

> So instead of getting $400 back, he had to pay $1750.  He had already
> spent the $800 on something.  And they wanted it back NOW or they were
> going to file wage garnishments (i.e., you get $50/paycheck and Uncle Sam
> gets the rest until its paid off).

That's... quite evil.  Mine's going in the bank and getting forgotten
about, though.  I'm nervous about having spent all my "oh shit" money in a
fit of voluntary unemployment.

I'm still not really sure about all this, but I think it'll be sort-of
hard for the IRS to file wage garnishments against a self-employed
contractor. :)

--Jonathan