I have been having a bit of a pity party for the last week, ever since I came home to a big fat package from the IRS saying that they were looking at my 2008 tax return. This is highly annoying because the reason they say they are looking at my return is absolutely ridiculous and totally does not apply to my situation (they think I have been paid by a foreign embassy). But, in the process I am now going to have to defend my deductions (it's really just one big one) and there is the chance that I could lose. In which case I could have to pay interest in addition to the tax owed, and who knows maybe even penalties for good measure. Not to mention the annoyance of having to gather all of the paperwork required for this. And consulting an accountant who is VERY expensive. This whole ordeal could cost me $5k or god forbid more. Which on top of the 15K or so I have lost in the market eats up a lot of my savings for I guess the last two quarters or so.
I feel so wronged by the financial gods. I save, I invest, I plan and then the market dives, the banks don't pay any interest and now the IRS is harping on me.
Well, if I do end up paying a big tax bill, I will simply have to scale back. I was contemplating another trip in November, so I'll kill that idea. I was also thinking about having a cosmetic procedure done (judge away, I don't mind -- it's non-invasive and totally unneccesary but I want it). You know -- that whole stimulating the economy thing. But if the IRS wants to claw back my $, then the US government will have to find another consumer to do some shopping.