Tax Time Is Here!

I am not quite sure why I wrote the title of this post in a way that indicates excitement. In reality, tax time is my least favorite time of the year and I dread it with every ounce of my soul. In fact, the only thing that I can think of that I dread more is going to the dentist. And now I don't even mind that too much because I found an awesome place to go (Advance Family Dentistry - http://advanceddentist.e-siteworks.com/home/). They have a sign up in their office that states "The best compliment that we can receive from you is a referral." So, AFD, consider yourself complimented.

The problem with tax time is that not only do I find it extremely complicated, but I also seem to always end up paying more than I expected or doing something wrong along the way. I actually have a great tax guy who has helped me a ton - but even he can't save me from my inevitable goof ups that I seem to pull off without even realizing that I am doing anything wrong at all.

Let me give you examples from the past and the present.

I moved to Ohio from Virginia in March of 2005. When it came time to pay 2005 taxes in April of 2006 (see - even that confuses me), I got a statement in the mail from Virginia explaining that one of the many taxes that I owed them was the tax that they impose on their citizens for owning a vehicle. Yes, every year in Virginia you are taxed on the car you drive. I think the amount you pay is based on where you live in Virginia and the type of car it is, but I could be wrong about that (actually, the chances are pretty good that I am wrong about that). Anyway, since I lived in Virginia for 2 1/2 months at the beginning of 2005, I owed them.

What was shocking to me was that I owed them for 12 months - the full year! I asked them why. After all, my car was only in that state for less than 3 months. They explained that it didn't matter. Actually, they told me that while some counties in Virginia are able to process payments for the exact amount of time you lived in that county, the county that I owed the tax to did not yet have that option available. So, I would therefore be charged for the entire year. Whether or not that is true, I have no idea. But, like a good citizen, I paid the stupid tax.

Well, this is what is happening in the present. Today, I received in the mail a "Notice Of Assessment" from - Guess Where? - the Commonwealth of Virginia. This document informed me that I owed Virginia money from the tax year 2004. "2004," you ask? That's right! Not only was that 4 years ago - but I personally have not lived in Virginia since 2005!

So curious was I about this most recent development in my life as a tax payer that I gave Virginia a call. They explained to me that their computers had recently discovered that I was given too large a refund in 2004. Therefore, I have to pay them back - with interest!

Oh, that seems fair.

You might think I am joking. But the sad reality is that I am not. I was also informed of some other fun facts.

Fact #1 - It was also explained to me that there is no statute of limitations on past bills. If fact, they have past due bills that go all the way back to the 1970's.

Fact #2 - In the amount of time that it takes me to get together the paperwork and proof to appeal this charge, interest will continue to accrue.

Fact #3 - Every state operates 4 years behind when comparing the state returns with the federal returns for individuals. And, in reality, it is not actually operating "4 years behind" but it is "normal."

Fact #4 - The south will rise again.

Because of my intense dislike of tax season, I usually prefer to make it as short of a season as possible. I'll devote a week or less to actually hitting it hard and "doing my taxes." But, thanks to the Commonwealth, tax season for Jake has now been extended to many weeks of suffering and anxiety.

I'm not going down without a fight, though. I know I am supposed to give to Caesar what is Caesar's. But, I don't think this chunk of change is Caesar's. And, my Caesar isn't Virginia. Ok, now I am just confusing myself again. What does that even mean?

Did I mention I dread tax time?