My best grades in law school were in tax. I got the highest grade in the class both semesters of federal tax. I also enjoyed tax as an undergrad accounting major. I just didn't think I would love doing other people's taxes as a living.
So, it's with some joy that I report that I've just received word from the IRS that they are accepting my position on an audit of my 2006 return. The issues are complex, and some of them are governed by a confidential agreement, so I can't expound, but I had thousands of dollars at risk, so I'm very happy to report that the final result will be I will pay $25 to the IRS and we'll be done with it. Due to the IRS' slow response time, it's been months in the resolution.
What will I do with the money? Nothing. I've been keeping earmarked funds in CDs and other liquid accounts for a couple of years because I knew there was some ambiguity in the tax law that could possibly lead to an audit, which is always a crap shoot. Luckily, I also prevailed in my argument, so I really don't have to pay anything. So, the money will just stay in my emergency fund. With the economic environment we're in, it's not really a time to be out shopping for bling. Maybe I'll add a few hundred pounds of grains to my food storage in case we really hit TEOTWAWKI.
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Congratulations. I didn't give you good odds for getting a favorable ruling, but then I had forgotten about your most excellent grades in tax law. Maybe I'll ask for some free advice regarding tax issues on fixing up a rental unit.
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