Bill from the IRS for $10k re: my 2003 taxes

[HiTechWorker]

What is the name of your state? ARIZONA

I got a letter from the IRS Friday stating that I under-reported my income on my 2003 taxes....and they say I owe just a little under $10k. I have until 4/27 to respond or they start adding on interest and penalties. I'm trying to find a good CPA locally that can help but this time of year isn't exactly the easiest time to find a good one that has time to help. H&R Block can get me an appt. on Wednesday but from what I hear those guys are just trained to use a Turbo-tax-esque program.

The difference is from stock options. I exercised some options form the company I worked for. The gross was ~ $14k, but my net was only about $9k. I thought the difference was taxes so I'm wondering why should I have to pay taxes 2x? They are saying I didn't report $27k...which is, I believe, the full value of the stock that I sold.

[Dandy Don]

Look in your yellow pages to try to find a tax preparer/accountant who is also an enrolled agent, which means they formerly worked for the IRS (but no longer do now). The enrolled agent has the advantage of knowing the IRS rules and regulations and can best advise you on what they will be looking for, what documentation you need, and the best strategy for paying the least amount of tax.

[tdavidl]

also, those arequite common and many times incorrect. i suggest you review the ltr & the information provided very carefully & see if you can't determine is in fact you did report the proper amount, maybe just on an incorrect line.

i bet 60%+ of those ltrs we see are incorrect, they're generally computer generated & not reviewed by a human at the irs before going out.

[Snipes5]

To further add:

Every H&R Block office has an Enrolled Agent (or more) available, and that will cost you quite a bit less than an EA in private practice.

Maybe you have Block confused with Jackson Hewitt.

Snipes