I think the IRS has some marching orders: Look for money!

[Ilsa]

We sold some stock in an exercise of a company stock option. It was accounted for on our W-2 in box V, so it was already included in box 1 with wages, tips, other comp. Our take on the stock option wasn't that much after the same day transaction netted most out for the company. But the IRS has tried to assign the total value of the transaction ot us as unreported income.

People make mistakes, and I'm not paranoid about this, but this was on the W-2 already, as were the taxes. It's just another mess I have to take care of ASAP. Meanwhile, I wonder how many people simply pay up for something they don't owe because they feel threatened?

[napi21]

1. You might want to check with your Co.'s accounting dept.

If they report it wrong, the records sent by them and you to the IRS won't match. That automatically triggers an investigation.

There was at least one instance that I know of where a Company had a financial interest in a foreign business and everyone on their PR had their tax refund held up because the IRS thought there might be some "terrorist" connection! The problem was resolved in just a few weeks, but that didn't make the employees very happy!

Seems our Gov't is pretty paranoid now, huh?

[Ilsa]

2. Good idea. I wonder if others exercised the option during

the same time period, and if so, how they treated it and whether they are getting audited. I'll call uman resources tomorrow first.

Oh yeah. We do business with a number of foreign companies, including some in the Middle East. I wonder if that put employees on a watch list.

[napi21]

3. Let us know what you find out.

I have no power anymore, but as a group, DU sure does.