Ok - My Dad died in 2001. 2002 is the first year my mom had to file taxes for herself. I made the HUGE mistake of letting my Dad's accountant handle it. Long story short, taxes incorrect. Have accountant (which I had not yet realized wasn't doing a good job) file a 1040 Amendend. So I get a tax bill for her for ~$800 due in March. I send in a check for her. For her 2003 taxes, she should get an $800 refund, yipee! She needs the money as she's a hairstylist and lives on her tips. Then I get a notice from IRS that
a. they're applying her refund to ANOTHER $800 she owes from 2002
b. she still owes $203 more.
WTF? I have a close friend who is a CPA review her stuff and call IRS. Yes, he says, she does owe it, that's the final amount, send them a check. Ok, done. IRS cashed the check on JUNE 13, 2004.
In a letter spit out by the IRS computer system, dated JUNE 27, 2004, it indicates that they have not recieved the $203 and now there is an ADDITIONAL penalty and interest owed. WTF? WTF? Come on now, this is just getting comical.
I call the IRS this morning. I make the mistake of identifying myself as her daughter and not lying and saying that I am her. IRS dude says he can't talk to me unless I send a power of attorney. I say that fine, I'll have her call him back specifically and he can talk to her himself, but be ready because it's going to take all day because
a. her English isn't very good
b. taxes are very upsetting to her
so can I have his direct line?
Shockingly, he agreed that he could discuss matters with me without a power of attorney.
Ok...moving right along...I ask why I have a bill for the original amount plus penalty and interest if they've already cashed the check?
He says there's no balance. I say - I just got this letter, it's dated 2 days ago..what's going on?
He says - they must've crossed in the mail. I say that's not possible - they cashed the check TWO F-ING WEEKS AGO and this letter is dated / postmarked 2 days ago. He repeats himself.
I hang up.
I think the IRS is onto the same thing lots of illegitmate businesses are into...sending invoices to people that fit a profile of paying simply because they're scared. If I had let my Mom deal w/the letter, she'd have just paid it because she'd be afraid of the IRS. There is NO WAY those letters crossed in the f-ing mail.
I'm glad I'm paying for their salaries with my hard earned money...NOT.