My rant about dealing with the IRS
 

/begin rant

This has been an ongoing issue I've had at work and to this day it still has not been resolved. Back in January I recieved a notice that the payement for payroll taxes for our corporation had not been submitted for the month of December 2003. I looked at the bank account and sure enough, the two checks cleared on the 15th of January (the date the taxes are due for the month of December) for both the 940 and 941 deposit. I call the IRS, ask them what the notice is about and they say that they do not have on record a payment from us. I tell them this is impossible since I have the bank statement and cleared checks in front of me. They say there isn't anything they can do about it and that I must pay to avoid having interest tacked on. I hang up on them and call the bank, they fax me a copy of the checks and the coupons for each one. Well, what do you know, the IRS sent me a coupon booklet with the right name and everything on it, but the EIN (employer ID number) is somehow completely wrong. I call the IRS back and explain the situation, they say that's fine, they'll debit the incorrect account and credit the right one and everything will "adjust out". I then ask them to close out the account with the wrong number and to never send me anything with that EIN. They oblige and I feel like all is well. A month later I get another notice, interest has been compounded on the outstanding balance that I took care of a month ago, WTF:mad:. I call the IRS and ask them what's going on, they say there was no adjustment made to the account, I ask them to do it again and the lady asks "do you have power of attorney?" I tell her it isn't necessary since I'm only attempting to make them aware of a mistake they made. She tells me "Sir, I cannot disclose any more information to you." I respond with "There is no information for you to disclose, I'm disclosing all the information, you just need to listen to what I say and click the appropriate buttons on the computer to fix this problem that I already took care of a month ago." She responds with "Sir, I cannot disclose any information." So now we're half way through 2004 and this balance is still oustanding, I recieved a notice yesterday that they are going to "cease all assets" if we do not pay, so I've decided to draft up a letter with the chronological sequence of events and show them how many times they've f***ed up.

/end rant

You need to do the power of attorney or they will never listen to you. You can get the form off of their website.

I've played that game with the IRS, too. But don't get me started on another superstar player, the INS. Rejects that fail to meet IRS's towering standards of excellence would appear to get second-string at INS. I could entertain you (bore you to tears actually) for hours of their muddling and incompetence.

Amir --
With the IRS or any gov'tal agency, document EVERYTHING. Get the names and ID numbers of everyone with whom you speak, and if you believe something is resolved (as it was during your call identifying the problem) ask for a fax number and draft a letter memorializing what you've agreed to. Fax it to them, requesting they initial/countersign agreement and acknowledgement and fax it back. They will likely not return the document, but you'll have a contemporaneous record of the agreement and evidence of delivery, which is far better than nothing.

I've had similar frustrations with IRS; they don't obey the ordinary rules because they don't have to. period.

JP

This is what tax attorneys are for. You can't deal with government employees. They have no incentive, why should they? They went to work for the government; that says it all.

Your attorney fees are deductable, might as well spend it there instead of trying to prove meal expenses at 50% deduction.

Hehe, Zeke, I'm 19 and work for my dad. I don't have any money to even afford the phone call to an attorney, thanks anyway. I'll keep that in mind for the future :)

Well Amir...even if it seems "out of reach" to use an attorney or at least a competent tax accountant for these kind of matters, think about the potential alternative of having the business shut-down and (if it is a small-business, at least) having your family's home and other assets seized.

Yes, they will do that.

BTW it is in the IRS's interest to drag these things on and on and on as long as possible, as they are charging you penalties and interest the entire time!

You dont need a power of attorney. Just have the owner of the company with you when you call. He/she can verbaly authorize you to act on behalf of the company in this particular matter. As far as the mixup goes write a letter to where the notice came from (top right corner). Do call again and ask for an additional 45 days to resolve/research the matter (standard amount of time allowed). I think you can call 1800 tax 1040 as a generic switchboard (and yes get a name and IRS Employee #). Copy the front and back of the checks as well as the erroneous 8109 coupons. Be sure to reference the correct EIN in the letter. Send certified mail. Shoudl be a pretty cut and dry deal.

This is something you can sort out but you will need to be persistent. I refer a lot of clients to a former IRS guy in Woodland Hills who is outstanding with this kind of stuff. If you are interested, PM me.