I would like to share my experience with the Saving To Suitors Club. The IRS said they'd get back to me about my lawful money tax return within 60 days, but they have not even allowing time for mailing. No response.
Made about $40k at job (W2) and about $28k at side business (1099) for the year. I put a minus $15k on Line 21 of the 1040 return (paychecks redeemed in Lawful Money). None of the side business income was entered on the return as it was all redeemed lawful money.
Tax return filed:
http://www.ctcwarrior.com/1040manny1.jpg
http://www.ctcwarrior.com/1040manny2.jpg
It is likely the IRS computer finally detected the reported 1099 business income was NOT included on my 1040 return, and they sent this CP2000 proposal of $10k due:
http://www.ctcwarrior.com/CP2000_1.jpg
http://www.ctcwarrior.com/CP2000_2.jpg
My letter back to them essentially said, no I don't agree with your proposal, the reported 1099 amounts were all redeemed lawful money and here attached are copies of the LM checks, front and back.
IRS response:
http://www.ctcwarrior.com/LTR4.jpg
Since then: [crickets]
To be sure, I also requested and just received this Account Transcript showing a zero balance due on the account:
http://www.ctcwarrior.com/Transcript724.jpg
This confirms David Merrill is correct. Lawful money is not neccesarily taxable income. Thank you.
Originally Posted by lorne
I would like to share my experience with the Saving To Suitors Club. The IRS said they'd get back to me about my lawful money tax return within 60 days, but they have not even allowing time for mailing. No response.
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