Steve I would file an appeal against unfair taxing and there should be some way maybe it will have to be done through higher ups, that while the appeal is being heard, the present bill is suspended pending that appeal. Typically this is the case with you being responsible for any interest if the tax is ruled on in their favor. Usually if the right person gets involved while they are reviewing it, the tax owed is suspended. I just had a review with the IRS of all people about using IRA money for schooling. They tried to say that I owed tax on all the monies withdrawn, plus 10% penalty. BUt when I furnished them with all the records showing school attendance and tuition costs, they agreed it was okay. While they were reviewing it, I didn't have to pay the back tax, and then wait for a refund. THat is kinda like saying you are guilty until proven innocent. I would keep climbing the ladder until you get to the State Tax Commisioner if that is what it takes to get relief until it is reviewed.
Colin & Bev Rainey KR2(td) N96TA Sanford, FL crain...@cfl.rr.com http://kr-builder.org/Colin/index.html