Bill Gates Has IRS Problems Too!

Bill Gates, Microsoft Founder and his IRS Problems........

And you think you have problems. Just when common folks thought they had it rough, we find out that Microsoft founder Bill Gates, the world's richest man, has tax problems too. But probably not the kind of tax problems you're thinking.

Gates said the tax office in the US has to store his financial data on a special computer because his fortune is so vast. Say what?

"My tax return in the United States has to be kept on a special computer because their normal computers can't deal with the numbers," he said at a Microsoft conference held in Lisbon.

Maybe so, maybe not. Maybe its just his big head that needs its own special computer. But Gates goes on to state a problem which is all too common among the common folk as well.

"... I am constantly getting these notices telling me I haven't paid something when really it is just on the wrong computer," he added in comments broadcast on television.

The shame of it is that the IRS regularly sends out incorrect notices, even to folks like Bill Gates. Government research has repeatedly shown, year after year, that the IRS can't seem to correct this problem of sending out a large volume of incorrect notices.

But I thought the IRS was perfect and didn't make any mistakes. In your dreams.

If you receive a notice from the IRS you should not assume the notice is correct just because the IRS sent it. The IRS's own internal accounting system is far from perfect. The Government Accounting Office (GAO) has reported for years in a row that the IRS's financial statements are not complete. The IRS doesn't even know where all the money is that it supposedly has, much less know where they’ve spent all their own money.

Let's make sure we're understanding this. The IRS expects taxpayers to keep perfect records while their records are stink.

This is a case of the IRS saying “Do as I say”, not “Do as I do”.

But back to Mr. Gates, who goes on to say, "Then they will send me another notice telling me how bad they feel they that they sent me a notice that was a mistake," he said.

How nice of the IRS to send those follow-up letters to Gates. The problem is that most taxpayers may not get an IRS follow-up letter admitting that the initial letter was incorrect. The hard reality is that common folks have to take their time and effort and fight to prove the IRS’s notice is incorrect.

Where’s the justice in that? This is not Bill Gates’ fault. It is the IRS’s fault for not catching their own erroneous letters and correcting the bad notices themselves.

Under this environment where the IRS fails to correct their own incorrect notices, the answer lies in having experienced tax professionals to defend you. Mr. Gates can afford to hire tax professionals to assist him. After all, Gates's fortune is put at 47 billion dollars, according to the latest list of the world's rich published by Forbes magazine.

The hard truth is that if you have a problem with the IRS you’ll probably need to hire a tax professional to help you. The IRS is not easy to deal with.

The good news is that hiring an experienced tax professional is more affordable than you think. A few tax professionals, allow you to make payments on the legal fees as the case proceeds.

Despite the fact that “Service” is in their name (Internal Revenue “Service”), they offer terrible “customer” service. In regard to the IRS, the old saying is true, “If You want something, you’ve got to be willing to fight for it.”

If you want to solve your tax problem let someone experienced fight for you.

S. Raines, Sr. Financial Advisor/Tax Preparer

www.effectur.com