Free Windows Vista Business & Office Professional 2007 ?

[Ryland]

That actually does make sense and I am getting a refund so attempting to receive an IRS ruling probably isn't a bad idea. The worst they can do is audit me

 

[krunt]

Originally posted by: Ryland
That actually does make sense and I am getting a refund so attempting to receive an IRS ruling probably isn't a bad idea. The worst they can do is audit me

You may have been joking, but audits are not usually viewed lightly. Figured i would mention this here in case the thought of an audit scared anyone

First, even if it makes sense, go see a professional, this is not tax or legal advice.

If you seek a revenue ruling I wouldn't worry about an audit. Basically there are four times you will be audited.

1) You or a family member has been audtied in the past. Sometimes they audit those they have felt the need to audit before and their family. Usually this is done when they have been successful in the previous audit. They usually examine those returns a bit more carefully and if anything looks odd they audit again. I know one family who has been audited every year for over ten years. Its kind of a game to them and they are getting quite good at it too.

2) Your return is randomly selected. Keeping honest people honest.

3) Your deductions seem excessive. If they see allot of deductions/your total tax is low for your stated income. They will examine your return, perhaps request further documentation. If it still looks off they audit.

4) Your numbers don't match the direct party documents they received, or there is a lack of direct party documents. I.E. you pencil in your own W2 instead of forwarding the one you get form your employer.

The Microsoft tax issue in this thread will only pop up in a type 4 situation, if you submit a 1099 (or whatever the document will be) with different figures on it then the one submitted by Microsoft then there is a chance that someone will notice the disparity and look closely at the return, possibly auditing. Situations 1-3 will or will not happen regardless of this Microsoft tax issue.

If you do seek a revenue ruling you would site it in your return supporting documents. When they examine your return, and they find the RR, it would solve the problem and that will be that, no audit. Bascially you can use the RR numbers even when they disagree with Microsofts numbers.

Therefore, getting an RR won't increase your chances of having an audit, it may even decrease them.

 

[Ryland]

Originally posted by: krunt

Originally posted by: Ryland
That actually does make sense and I am getting a refund so attempting to receive an IRS ruling probably isn't a bad idea. The worst they can do is audit me

You may have been joking, but audits are not usually viewed lightly. Figured i would mention this here in case the thought of an audit scared anyone

I was kidding about the audit. I was just translating my mothers advice of "The worst they can do is say no" to fit the IRS, that was all

My taxes are simple and I keep all paperwork including charitable contributions when I can.

 

[krunt]

Now that i have thought about this issue at some length (see told you the above wasn't advice, just thoughts) there are a few difficulties here with obtaining a private letter ruling. First is the fee, normally private letter rulings run about $275 for a filing fee. Second, we have no idea how much microsoft is claiming the software is worth. Third, timing is a problem as many of you want to get your taxes done and behind you.

Now the easiest way to deal with all of this would be to call Microsoft and just find out what value they are setting it at (or just have someone here report the value on the tax document sent to them if it has been received). Ill happily speak to Microsoft and see if this information can be obtained. This may just render the whole problem moot.

If Microsoft is placing a large value on the item (~$1000) then it may be worth contacting the IRS to see about a fee waiver. Absent such a waiver it may behoove interested individuals to seek a class letter ruling, basically splitting the filing cost between them. This only seems reasonable if there are enough people here that would be interested in doing so, and it would require a bit of organization on our behalf.

I think that it is too much effort for the majority of this board to individually seek rulings, whether or not they cost, and instead they will just pay at whatever rate Microsoft sets or ignore Microsoft's numbers and run the risk of an audit, interest and penalties.
If there is actual interest on this board (and you let it be known) I will peruse the matter otherwise I won't keep bumping this post when no one cares.

 

[ccbadd]

I recieved the 1099-MISC today and the value they are stating is $798.00. I think this is double what it should be.

 

[Ryland]

Originally posted by: ccbadd
I recieved the 1099-MISC today and the value they are stating is $798.00. I think this is double what it should be.

From newegg for Retail versions:

Vista Business is $250
Office Professional 2007 is $430

Which is only $680. They are quoting over $100 MORE for something that isn't even retail?

Edit: Now that you told me what your 1099 said I was able to find many postings from 2006 saying the 1099MISC amount. If I had known how badly they were going to get us on this I wouldn't have bothered.

Edit2: It looks like they are stating that the non-retail software is worth full retail prices. Utter BS.

Edit3: Well it looks like this "Free" software is going to cost me around $225 due to MS's mis-claiming the worth of the software.

 

[Ryland]

I really wish that the IRS website still had an email address to ask them questions like they used to have.

 

[sunlihwa]

:confused They have mail adress before, wow, that is fne. i also wish thet have it now

 

[Ryland]

Microsoft's response to why they reported the full retail price

"I apologize, however all give aways must be reported at retail value according to the IRS. The amount on your 1099 is correct as all that is needed to receive the product was the Key Code and download location. ".

 

[neocor]

I also received the 1099 with value stated as $798.

I am yet to install any of the two softwares. The Vista CD is there but the Office was to be downloaded. Is the download link still available or is it gone.
Let me atleast download the software and burn the DVD.

neo

 

[BoomerD]

Wow...MSRP for Office Professional is listed at $499!

 

[krunt]

So at $798 you are looking at between $80 and $280 in taxes, depending on your situation. Is it worth fighting especially when there is little chance of paying nothing, perhaps you can save $100 in taxes if you fight it but it would cost more than that to put up the fight in the first place.

No such thing as a free lunch....

 

[Ryland]

Originally posted by: krunt
So at $798 you are looking at between $80 and $280 in taxes, depending on your situation. Is it worth fighting especially when there is little chance of paying nothing, perhaps you can save $100 in taxes if you fight it but it would cost more than that to put up the fight in the first place.

No such thing as a free lunch....

I agree that it doesn't make sense to pay $270 to the IRS to hope to save less than that if there was some way to reduce the tax amount. Maybe the IRS does force MS to report the value if it was the full retail product, I have no idea.

 

[Cattlegod]

so this doesn't apply if you only got one or the other?

 

[bugsysiegel]

Originally posted by: krunt
So at $798 you are looking at between $80 and $280 in taxes, depending on your situation. Is it worth fighting especially when there is little chance of paying nothing, perhaps you can save $100 in taxes if you fight it but it would cost more than that to put up the fight in the first place.

No such thing as a free lunch....

Tax would be $64 at 8%, where are you getting your figures from?

Even so, for an $800 product to have any effect on your tax bracket, you would have to be making less than the poverty level and this product would put you over (in which case you shouldn't be spending your money on internet access anyway).

 

[commOdog]

I also received the 1099 with value stated as $798.

 

[krunt]

Originally posted by: bugsysiegel

Originally posted by: krunt
So at $798 you are looking at between $80 and $280 in taxes, depending on your situation.

Tax would be $64 at 8%, where are you getting your figures from?

IRS tax tables

The 1099 misc requires an addition to income on the 1040 on the "other income" line, line 21 on a 1040, other forms have other line numbers but the same idea.

Simply stated, the impact of the 1099 on your situation will be as if the $800 is charged at the highest bracket you fit into based on your adjusted gross income, so between 10% and 35%. This includes the above the line credits/deductions, but not the below the line credits/deductions. You can consider line 37 "the line". You may have enough in deductions to negate the $800. Furthermore, your deductions may just take the $800 addition down to a lower bracket. Obviously this analysis is simplified and crude, my point was only that it is probably not enough money to bother investing the time or funds required to argue it.

Furthermore, this only addresses Federal tax issues, your local/state taxes may also be impacted depending on the laws of the state/county/city in which you reside.

Originally posted by: Cattlegod
so this doesn't apply if you only got one or the other?

While I am unsure about what "this" means i will assume the tax liability.
There is an expresion, "don't ask questions you don't want the answer too." Intentionally misreporting income is tax fraud and it is a federal crime. Making a mistake on your tax returns may subject you to penalties and interest (or you over report and pay too much in tax but these "mistakes" are surprisingly few and far between.)

I am going to couch my answer, it is not a complete answer.

If the amount of the income is over $600 then Microsoft is required to complete and deliver a 1099. If the amount were below $600, they are not required to provide you, or the IRS, with paperwork on the transaction. The IRS may never know about the income if it even is income.

Whether or not you need to include anything on line 21 is entirely dependent on your tax situation.

Originally posted by: Ryland

I agree that it doesn't make sense to pay $270 to the IRS to hope to save less than that if there was some way to reduce the tax amount. Maybe the IRS does force MS to report the value if it was the full retail product, I have no idea.

I have two things to add.

One, as noted above, microsoft is required to report any amount of income paid over $600. Microsoft basically has carte blanche to value their product. I do not know, but I would be bet that microsoft is taking a deduction on the amount paid. They are also likely reporting it as income to the SEC so their quarterly profits look good, but thats another issue....

Two, there are options to seek out a class ruling or seek a waiver of fees. Also, one can seek an information only ruling which is given for free. The problem is that these options are not as useful or require more coordination then is likely to occur.


****** nothing in this post, or any other post made by me on this forum should be considered legal or tax advice. These are just random thoughts and I give no guarantees as to their validity. It may even be the case that I have made incomplete/incorrect statements of law. These posts should not be relied upon. Go see a professional, "some guy named krunt who says he knows this stuff told me that this is how it works" will not keep you out of trouble. *****

 

[Dulanic]

I did my taxes with TurboTax and it asked me what the fair market value was and it put the difference as -XXX on Line 17 of the Other Income Statement form and put PRIZE FMV ADJUSTMENT in the open space.

 

[kranky]

See this link for more information about how to dispute the value of a prize.

 

[thecoolnessrune]

If you're a college student, dont forget Microsoft's Ultimate Steal Deal is still going till April. There's no disc provided, so make a copy of your serial and files you download. But $60 for Office Ultimate 2007 is a steal in anyone's book! I'm certainly loving it.

 

[raystorm]

I still haven't gotten my 1099. <sigh> I want to get my taxes over with already.

 

[Ryland]

Originally posted by: raystorm
I still haven't gotten my 1099. <sigh> I want to get my taxes over with already.

You will only receive a 1099 if you asked for both Office and Vista.

 

[raystorm]

Originally posted by: Ryland

Originally posted by: raystorm
I still haven't gotten my 1099. <sigh> I want to get my taxes over with already.

You will only receive a 1099 if you asked for both Office and Vista.

I did get both which is why I'm whining. I want that form already so I can be done with my tax return. I like doing things early so its whining time until then.

 

[Ryland]

Originally posted by: raystorm

Originally posted by: Ryland

Originally posted by: raystorm
I still haven't gotten my 1099. <sigh> I want to get my taxes over with already.

You will only receive a 1099 if you asked for both Office and Vista.

I did get both which is why I'm whining. I want that form already so I can be done with my tax return. I like doing things early so its whining time until then.

Just checking
I received the form at the beginning of the month so I suspect something is going on. You can try contacting prohelp@microsoft.com and seeing if they will give you a status on your form.

 

[Peetoeng]

I have not received my 1099, either .

I sent emails to:
winvistaofficekitW9admin@microsoft.catalysis.com (BOUNCED)
winvistaofficekitW9admin@response.microsoft.com (NO REPLY)

I just found the email below from the thread, hope it'd help.
prohelp@microsoft.com