I just returned from celebrating my son Kainalu’s 10-month “birthday” at Disneyland.
Walking down Main Street USA, watching families make memories at the happiness place on earth. I couldn’t help but think about a client who own happiness was shattered by an IRS letter.
A Tale of Two Numbers
Her 2019 tax return showed a modest $7,000 tax bill. Normal enough.
Then on September 9, 2022, the IRS dropped a bomb: an additional assessment of $222,380.
Let that sink in. That’s not a typo. $222,380.
How Does This Happen?
The story begins like many others — with an ignored IRS letter. On August 28, 2022, the IRS started reviewing her 2019 return for underreported income, specifically from a home sale.
The response? Silence.
And in the world of IRS correspondence, silence is never golden.
The IRS’s Default Position
When you don’t respond to IRS inquiries, they make assumptions. Usually, the worst possible assumptions for your wallet.
In this case:
• They assumed the entire home sale was taxable
• No deductions were applied
• No exclusions were considered
• Maximum tax rates were used
The Reality
After reviewing her situation, we discovered:
• The home sale qualified for the homeowner exclusion
• Only minor expenses were missing from the original return
• The actual tax impact should have been minimal
The $222,380 Lesson
This massive assessment could have been avoided with:
- Proper documentation of the home sale
- Timely response to IRS notices
- Understanding available tax exclusions
- Professional guidance from the start
Warning Signs You Might Be Next:
• You’ve sold a home recently
• You have unfiled tax returns
• You’ve ignored IRS letters
• You’ve moved and might have missed notices
• You filed returns without professional help
Don’t Wait Until It’s Too Late
Is there an IRS letter sitting unopened on your desk? Have you moved and worried about missed notices? Are you behind on filing returns?
Let’s prevent your $222,380 nightmare before it happens.
[Schedule Your Confidential Strategy Session Here]
During our call, we’ll:
• Review your tax situation
• Identify potential IRS triggers
• Create an action plan
• Discuss protection strategies
Remember: The IRS is more likely to work with you when you take the first step.
Until Next Time,
Andrew “Disney Adult” Samaniego, EA, CTRC
Andrew Samaniego Tax Planning & Resolution
(619) 268–1084 | AndrewSamaniego.com
P.S. — That client with the $222,380 assessment? We’re working to reduce it to nearly nothing. But imagine the stress she could have avoided by addressing it sooner.
P.P.S. — Like a day at Disneyland, tax problems are more enjoyable when you have a guide who knows the territory. Let me be your guide through the IRS maze.
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