So today I came home to another fat package from the IRS (why so many papers always from them?). This one I was eagerly anticipating. It was their response to my response to their totally ridiculous audit. The main point of their audit was totally unfounded, which was validated by the fact that in their response to me they did not even MENTION the initial reason why they supposedly audited me and just focused on my business expense deduction which they did not allow. They also assessed a penalty of 20% and charged back interest. Overall, it was about 2K additional tax. At this point I am so over it and am just going to pay the stupid 2K and move on. One would hope they would be over it at this point too, but they also included a handy little form asking me to extend the statue of limitations on the tax year in question which should expire April 1 until June 30th. I don't plan on signing this, but I'm consulting my accountant on the question.
The only redeeming factor to this whole nightmare was that I uncovered a mistake in my favor, which lessened the amount of additional tax that I have to pay.