Just like everyone else in the United States, regardless of your income bracket, I hate the I.R.S. with a passion.

It’s not enough that we have taxes on everything we buy, but we also get taxed on income, so before we even spend our money it’s taxed.

Beyond the every day reaching into our pockets the I.R.S. does, it apparently is now into legalized robbery.

Since it’s law and their is nothing I can do about it I will pay my taxes on income.  But, you are only supposed to pay taxes on income, right?  Not losses, those are supposed to be write offs?  Otherwise you would basically be getting taxed for losing money……well that is exactly what is happening to one of my relatives and anyone who bought stock in Indian Motorcycles.

Apparently you have now have to pay taxes on things that never made money and even lost you money.

Recently a relative of mine was contacted by the I.R.S an informed that he owed them money for some stocks he bought. 

What he bought was stock in Indian Motorcycles when they first came out.   He is a bike enthusiast and like a lot people thought Indian Motorcycles may very well have been the next Harley Davidson.

So, he bought several thousand dollars in stock.  Later Indian tanked, declared bankrupcy and he lost all his money that was in the stock.  What he ended up with was a loss of all the money he invested with nothing to show for it but a certificate.  So, he lost his investment and made 0 profit.

Get this though, the I.R.S. contacts him years later telling him that he owes taxes on the full value of the amount he invested and lost.  So, the stock certificate he has is valued at exactly 0, yet the I.R.S. wants to tax him on the value of the stock the day he bought it.

Can you believe the balls on the I.R.S.    They know full and well that people who bought this stock not only made 0 profit, but in fact lost any money they put into the stock.   Yet, they want to make the absurd claim that the paper certificate is somehow worth it’s initial price.  The stock is absolutely worthless.  It has no chance of every going up in value as the original Indian Motorcycles declared bankruptcy.  The new Indian Motorcycle company is technically not even the same company, so their isn’t even a slim hope the stock will go up.

The reason the I.R.S. is getting away with this is because some, either crooked or extremely stupid,  judge ruled in their favor.

I guess this taxation is happening to a lot of people who bought stock in Indian Motorcycles.    If I were them I’d band together and file a class action lawsuit against the I.R.S. 

This just isn’t right that the I.R.S. can go around stealing money from people in this way and get away with it just because everyone is afraid of having to go through an audit.