a letter from the IRS

Good morning.

It's currently 18 out, with a forecast high of a whopping 32. :-\

We're in for a bitter cold, but sunny weekend. From the long range forecast, it appears this will be winter's last breath. I surely hope so.

The salon has been a bit slow this week. I'm done early today, but have a full day tomorrow.

Craig was in a bit of a tissy yesterday. One of our stylists called to

say she got a letter from the IRS stating the amount she claimed in 2009, did not match the amount Craig sent in.

Craig has to give each stylist a 1099 form stating what we paid them. And we also mail a copy to the IRS. Since they're all independent contractors, the only thing we pay them is when they have a customer that pays with a charge card. All the charges go into the Salon's account and we reimburse the stylists, minus a small fee for processing. Did you know, when ever you use a charge card, the business has to pay a company a fee to process them?

So anyway, at the end of the year, Craig gives them a 1099 stating what we paid them that year. For this particular stylist, it was $2301.75. The IRS is claiming Craig sent in a form stating we paid her $8301.75. Obviously, she's upset. If you look at the part of the form I copied, you can see Craig made a very loopy 2. So it's most likely a clerical error. So when Craig got home, he went and found the copies, and called our accountant to find out what we needed to do. He was very surprised the IRS didn't catch the obvious mistake, so he told Craig to write a short statement, and attach another copy, and give it to the stylist to mail in with her response that it must be an error on their part.

I then told Craig he needed to work on his 2's to make them look less loopy. He was not amused.