Save Yourself from Tax Hassles & Keep Your Tax Return Information
As I was doing my federal income tax, I figured all my deductions that I can take, knowing that it was more than previous years, and probably would be flagged for an audit or questioning on some of my deductions, but I had prove for everything that I deducted on my schedule A (itemized sheet) for that year so I knew I was safe and nothing should go wrong and I would get my tax refund in a few weeks since I had paid too much taxes.
Finally, my tax refund $1507 had arrived so I made the deposit into my checking account so everything seem to be just fine with my taxes, but it wasn’t, a few days later I received a letter from IRS saying that I owed the government $1567 from the previous year 2008 plus interest and I need to agreed , mail my check for this amount or dispute it and get this matter solved quickly before any further action would occur.
I was so grateful to have my tax return for year of 2008 to fall back on, so after checking the forms, I found an error that was made on my part,not claiming a penalty for taking money out of a retirement fund, so IRS was correct, so I paid up, gave them back the return for the year plus some, so its very wise to always double check your return before you file and keep tax returns for at least 5 years or longer in case an audit or a dispute comes with the big IRS.