re: What tax preparation software is the best choice annual thread

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I have a friend who I don't think has filed in 2 years. He filed for extension last year and then didn't do it during his extension period. He's service industry, but won't they catch this?! I'd be terrified.

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Years ago, I worked as a computer consultant. One of the guys on the project had not paid taxes for 5 years.

The IRS called him in. He took all his records in to their office. He had the large grocery store paper bags, one bag for each tax year. He kept his records in the respective year's bag in no particular order.

The IRS agent said that based on their records, he owed x amount of money. My coworker grabbed a bag and emptied it on the agents desk. He insisted he had lots of deductions and did not owe that much money.

The agent said he did not have the time to go thru every piece of paper for the five years.

They negotiated and when the agent agreed to accept one half of his original estimated amount, my coworker accepted the new figure and agreed to pay it.