My state is Seattle and I do massage services. I have exchanged massage services with construction services at my home. I bought all the material for construction services. Massage services and Construction services were worth $25,000 value. So, I added $25,000 as my income on return. But IRS sent me a letter that construction services I received were worth $40,000 and labor rates should be calculated at highest rate of Seattle. So, I have to include $15,000 more as gross income. Is it valid? As far as I know labor rates are calculated based on the rates on the day we get services. Pls advise.