Answer: The Shadow Knows ...

Answer:  The Shadow Knows.

We, MoSup and me, have seemingly won a five-year old tax battle with the state.  I say this with bated breath because we've felt this way before. The long and short of it is this. The Federal gummint charged us an additional $40,000 tax, plus penalties and interest,  for a 2006 return.  It was my error.   I neglected to include the cost basis  for stock sales I did report,  causing the feds to assume the transaction $number  represented profit, and not the actual $1.8B loss.  As soon as the error was discovered I amended the return  The IRS in time struck the additional tax, but not  the interest and penalty (interest on zero, and penalty for not paying zero).  It took a long time, but finally they removed the interest.  It took more time,but after a face-to-face they are now removing that charge.  But Wait, there's more! The Shadow Knows ... The Feds obligingly notify the state about any negative finding in a federal return.  They do not, evidently, do the same when they reverse themselves.  So, despite hours and hours of phone conversations, explanations and filings, the state got plain nasty about wanting their cut, which had by now trebled ! Debtor's prison I knew with 100% certainty that we did not own them a nickel, but - one of the things the state uses as leverage is denial of renewing all state licenses.  Period.  Their version of debtor's prison.  So, if you're a nurse, for instance, you will not be able to renew your license, and will thus be terminated.  .  That prospect, and expired tags caused me to gather papers and trudge over to comptroller's office last week.  After sitting in line for a few hours I saw a "counselor."  I had the required IRS tax transcript, so he said "okay, I'll send this to the main office.  It will take a few weeks."   Relief!!  But Wait, there's more. This week another letter from the comptroller's office.  Aha!  A check for all the money the state owes us for withheld returns?  Nope.  It was notice of pending action for not paying a $55 claim.  I'm steaming, Mo Sup is crying.  I pick up the phone and dial the provided number.  I'm told the waiting time is estimated at "one-hour and seven-minutes.  It's at this point I see that the claim is being made by the state university that Junior attended.  Twenty-years ago!  Then it hit us both.  The state had obviously searched their files on us, looking for a get-even!  What else could it be?  Twenty years back?   What made me want to tell you this is THIS,  We're talking blood-sucking ruthless, and if you live in one of the most liberal democrat controlled states in the nation, even more so.  Your money is their mother's milk.  They will get it. I want to add this.  In all the conversations I've had with the IRS, both on the phone or in person, agents have been courteous and willing to listen.  The state is a different matter.  With few exceptions they are confrontational, setting  a distinctly  adversarial tone. Ahem.