[LorenPechtel]

My experience with the IRS has been that they always assume the worst over trivial errors--you report earning $4312 when their records say $4321 and they're after you for the whole $4321 rather than just the $9 of the error.

They also seem to be unable to accept zebras. I had a run-in with them in the 90s because they lost record of having gotten some money. Took me 6 months to convince them that they really did get that money. In the 80s my mother had a run in with them because of "unreported income"--in hindsight, probably an illegal using her SS#. I went off to college before it was resolved and never did find out what happened.

On the other hand, I know someone who was substantially dinged on the hobby loss rules. Overall, I'm sure the IRS was right, he was engaging in wishful thinking that it was a viable business but I know he feels wronged by the IRS. (To me, he's wronged by Congress, the hobby rules are very unfair. I'd allow income-producing hobbies to file on C but losses are carried and can't be claimed.)