Answer From The IRS

By: Pete
Date posted: 03.23.2012 (2:34 am) | Write a Comment  (0 Comments)

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Wow, the last time I wrote a blog post, I was getting ready to call the IRS after not getting any answer. Not that I felt it was shocking (these things tend to take a while) but I just wanted to follow up.

On the day I had planned to call I did actually receive a letter from the IRS. I was insanely busy and while I was happy to get the letter, I feared whatever would be inside. Thus, I waited a couple of days before opening while being fearful of the result.

I Wish Those Feelings Would Have Been Wrong

When I opened the letter, I very quickly got to the part where the result was and was shocked to see that the IRS was reporting that I owe 9K $USD or so!!! They had found one issue on my report that added up 5K or so. Add up interests and so on and it increases oh so quickly. You can imagine that I did not feel so great.

Cooling Off

I then headed to work trying to avoid thiking about that letter but of course that did not go so well. I was trying to figure out what I could have forgotten or messed up. Then it hit me! I had contributed 25K or so in RRSP’s in 2010.

RRSP Deductions For The IRS

I started doing some research about how RRSP’s could be deducted for US tax purposes and found out the existance of form 8880 that exists exactly for that reason. Clearly, I should have found out about this and filed it on my first request. Arghhhh

Should Be Ok

I am hoping that all will have a good ending. My first reflex will be to contact the IRS to explain what happened. According to the letter, I have 60 days to make changes to my letter thus I should be ok. I can’t say that I’m feeling great but I do feel like there should be a good way out of this.

Learning Experience

I did not expect to get it right the first time but i certainly would have preferred not getting such a huge bill. I expected small issues but nothing that would come with a bill for almost $10K… oh well! I will give the IRS a call and report back.

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