The information posted on PayrollTalk is for informational purposes only and is not intended to substitute for obtaining accounting, payroll, tax, or financial advice from a professional accountant.

IRS

Why is the IRS so incompetent? If I had $1 for every letter I got "in error" or because of some crazy mistake that the IRS made I coud probably retire now.

I fixed an issue for one of our companies and the IRS sent me a letter on 8/20/12 showing our balance due was "NONE." Then today I received a notice of Intent to Levy, for the same tax period and tax type for roughly $600. So apparently what they meant by "none" was $600. It's all because they made a mistake too. SO ANNOYED!

Comments

  • edited September 2012
    Government agencies are more alike then different. Some years ago I was getting notices from some state government agency about a past due balance. Right. According to the notice they owed us something like seventy cents. The dollars were too small to justify contacting them, or so I thought. After a year of notices, I got a collection notice (one short of a court order) that they were taking us to court to recover the balance. And they added a $75 late payment charge for failure to pay balance due in a timely manner, so that the balance was now something like $74.30. Right. I called them back and spent the next few hours in telephone hold purgatory. I eventually got to talk to someone, got them to actually look at their file and got a "that does not look right" comment. No kidding. They said that they would take care of it. Which they did. Sort of. The erased the negative balance but kept the $75 late payment penalty. Sigh. So I had to go through the whole process one more time. They got rid of the $75 late payment penalty but put the credit back on which was fine. But they also starting sending scary late payment notices about the money we owed them again. Sigh. One more set of calls. Per their policy the credit was too small to refund (fine by me) but per their policy it was still a past due balance subject to collection. I finally had send them a formal letter signed by a corporate officer via FedEx. Which of course they failed to follow up on. One more set of calls. Something like 2.5 years later, they finally removed the credit. I suspect that they waited until I left that job and put the credit back on the notices.
  • I just spent an hour of hell on the phone with them regarding a penalty notice for late 941 payments. Even though EFTPS and our bank show timely payments, that is not good enough for them. Somehow I have to prove that they were turned over by EFTPS to the IRS in a timely manner. If I have to enlist our accounting firm to help with this, it will probably cost as much as the penalty. :evil:
  • Melissa, have you tried calling and talking to someone else? I usually have better luck with the Utah office than with Memphis. Sometimes it is worth the time to call and talk to a different person. I have found there are actually a few nice, competent people who work for the IRS (but finding them is quite tricky).
  • Good idea. I will try that.

Leave a Comment

BoldItalicStrikethroughOrdered listUnordered list
Image
Align leftAlign centerAlign rightToggle HTML viewToggle full pageToggle lights
Drop image/file