Does anyone know what the IRS limitations are on collecting federal debt? If I get a $3,000 tax return and owe Army & Air Force Exchange Service that much, can the IRS legally take my entire return?
Also, I got a 1099 from Wachovia. I bought $5,000 in stocks last year. One of my stocks was doing better than the other, so I transfered the value to a different stock. Anyway, I ended up selling them all, as I needed the money. I made about $800 over my original investment, but my 1099 shows $8,000 from each sale of stocks. How do I deduct my investment amount on my tax return? Is the IRS able to tell that about $2,000 was selling a stock (trading) to put the value against a different stock plan?
I don't want to do my tax return until I am sure I am not going to get screwed by the IRS. I definately don't want to claim an extra $8,000 in income (from 1099) because I won't get my needed tax breaks. There must be a way to deduct my original invesment amount or only claim the ACTUAL profit I made.
Any suggestions are highly appreciated.
Thanks in advance.