posted on September 1, 2000 08:15:50 PM new
You might remember there was a thread about taxes a couple of weeks ago. I mentioned that I was being audited. My accountant couldn't make the appointment and told me to call the IRS and reschedule. You are allowed to do this one time. A new appointment was made for Sept. 13th.
Today I got a letter saying they are disallowing the deductions that were being audited. They want over $3000 including $500 in penalties because I didn't submit the paperwork for the claim. No mention of the appointment that we didn't make. But, I'm sure the person that made the appointment somehow didn't get it to the auditor.
So of course I call the name on the letter get a recored message that his office hours are Mon thru Thrus. Well today is Fri and Mon is a holiday!
posted on September 1, 2000 08:28:25 PM new
Hoo boy! You are in for some fun! A few years ago my husband was notified that he was being penalized and charged interest for a capital gain he incurred when he sold a house. The IRS claimed the return was filed late. It was filed on time, and I had a stamped dated receipt to prove it because we had taken it downtown to file it to make sure it was on time! We literally were run in circles from the IRS office downtown, to the regional office in Salt Lake City, and Denver as well. Each person we talked to said in effect, "well, if it says you owe it, you owe it". The accountant said not to pay it, and we kept getting notices with EXTRA interest tacked on. The last person my husband talked to was in the Denver office and they told him to quit calling, that they weren't going to take any more of his calls. The weird thing was the very next day, he got a REFUND on in the mail from the IRS which said he OVERPAID on the deferred capital gain. We ran to the bank and cashed the check. I still have the refund letter in our files, and I will keep it til the day I die, just in case. With the IRS, the left hand doesn't have a clue what the right hand is doing. The whole thing took about 1 1/2 years to resolve. It was very stressful, and my sympathies go out to you. Hang in there!
posted on September 1, 2000 08:59:38 PM new
KatyD Now that is scarey! Sure hope I don't have to go though what you did. We have all the paper work we need. But, like you say most of the time it doesn't matter to them. They do everything they can to intimidate and make you sweat.
posted on September 1, 2000 09:05:03 PM new
Some useful background information for those that are considering suing an agency of the federal government:
posted on September 1, 2000 09:10:47 PM newDid you see if you could sue them for the hardship and stress they ran you through for their professional incompetance?
EGADS!! Are you kidding? We don't ever want to hear from them again! Besides being masochistic, that would be nuts!
posted on September 1, 2000 09:51:52 PM new
Get in touch with your Congress person and Senators. (This is why we send them to Washington). If you are lucky s/he may be on one of the IRS oversight Committees.
The Congress person and Senators can't ask for special treatment or "interfere" with the IRS. But they can send a letter on your behalf to the IRS IG and ask for a status, and an explanation of what action was taken, and the reasons. It may not change the outcome but it(sometimes) makes the IRS try to make sure they get it right and follow the law if they have to report back to a Congress person and Senators. And you have to make an itch of yourself with the Congressional and Senate offices (but not too much of an itch)and write and ask if they have a reply every 3 weeks or a month, and keep them updated on whatever you receive from the IRS. Make sure you have the CC to your Congress person and Senators noted on every piece of correspondence to the IRS.
There is nothing a bureaucrat hates more than getting an inquiry letter from a Congress person or Senator or both.
I lived in DC for a long time and there is no reason not to get these people involved. They work for us and this is their job.
A few years ago my husband was notified that he was being penalized and charged interest for a capital gain he incurred when he sold a house. The IRS claimed the return was filed late. It was filed on time, and I had a stamped dated receipt to prove it because we had taken it downtown to file it to make sure it was on time! We literally were run in circles from the IRS office downtown, to the regional office in Salt Lake City, and Denver as well. Each person we talked to said in effect, "well, if it says you owe it, you owe it". The accountant said not to pay it, and we kept getting notices with EXTRA interest tacked on. The last person my husband talked to was in the Denver office and they told him to quit calling, that they weren't going to take any more of his calls. The weird thing was the very next day, he got a REFUND on in the mail from the IRS which said he OVERPAID on the deferred capital gain. We ran to the bank and cashed the check. I still have the refund letter in our files, and I will keep it til the day I die, just in case. 
With the IRS, the left hand doesn't have a clue what the right hand is doing. The whole thing took about 1 1/2 years to resolve. It was very stressful, and my sympathies go out to you. Hang in there!