Jump to content
Washington Football Team Logo
Extremeskins

Come on IRS, give me a break, I mean wtf ?


Mickalino

Recommended Posts

I get a notice in the mail from the IRS, saying that my tax return was incorrect, and that I owe them $788 in taxes, plus $23 in interest, equaling $811.

First, I get this on December 10th. They say the money is due on January 6th.

They want me to come up with the $811 in less than a month, and then factor in the holidays. Are they always this ridiculous in deadlines, when they send out the notice ?

Then there's the 2nd issue

They give no clear explanation as to why I owe the money. They say that my calculated tax was correct and matches their correction by the IRS. But there is an additional correction of $788 in the box labeled "Tax on qualified plans, including IRA's, and other tax-favored accounts."

(another box labels it as "2008 Tax increase)

I did take money out of my retirement when I lost my job, so I could make ends meet while I was unemployed. But when I did my tax return for 2008, I included ALL of that amount, and included it in calculating my taxes. And I actually did not contribute any money at all from my paycheck to my retirement - it was all my company making the contributions for me. So it's not like I was getting tax-free income deducted from my paycheck. But I deducted it when I did my tax return. So why am I being charged an additional tax for this ??

Does anyone know, or should I seek a Tax Attorney ?

Link to comment
Share on other sites

Good luck Mick, I had a similar situation. Long story short, but I had to end a qtr of college early due to a medical reason, and therefore had to pay back part of my GI Bill, roughly $1500. About the same time of year I had filed my taxes, and instead of giving me my refund, they sent the money to pay off the GI Bill $ I owed. I got a letter from the IRS telling me this, as well as from the Dept of Veteran Affairs telling me I not longer owed them money. (I still have both letters). Then a year later, the VA sends me a letter telling me I owed them another $400. I faxed them my "payoff" letters and said I wasn't sending them another dime. Haven't heard a back, so I hope they don't jack my tax return money again or I'll be pissed.

Link to comment
Share on other sites

I'm pretty sure the penalty was (and usually is) deducted when I withdrew my account.

Also, the IRS is not calling it a penalty on the form. It's calling it a "Tax"

The tax from the IRS is the penalty. I would think the fund would report to the IRA simply that a withdrawal was made and the amount. Whether that is taxable and whether there is a penalty would depend on what you do with the funds. For example, if it was rolled over to another qualifying account there would be no tax and no penalty, so the fund would not be deducting any tax or penalty from the amount they give you.

Link to comment
Share on other sites

You not only have to pay income tax on the plan money, but a penalty also. My guess is it's the penalty.

There is a box for "Penalties" and it says Zero.

Then there is a box for "2008 Tax Increase" where it has the $788.

Is that what Thiebear is talking about ?

The Unemployment act of April 2009 specifically states if you used your IRA/401k while unemployed there is an 11$ per day tax for not being on the dole.

So, I"m getting an additional tax for being unemployed ?

That's when I need my retirement money the most.

Unemployment is the best reason to withdraw from retirement.

They let you withdraw it for medical and educational reasons, but not unemployment ? That's so backwards.

And what does it mean, "not being on the dole" ?

Link to comment
Share on other sites

They got me recently too. I had been notified by my acct that he messed up and that my 2008 return should have been about 1200 more. So we file the paperwork with the IRS.

less than a month later, we get a letter from the IRS, I'm thinking its my money.

Nope, its a bill saying they made an error on my 2007 returns and I now owe them...get this...

$1200.00

interesting huh?

Last update, They called me for their money. I told them they will get it when I get mine.

Link to comment
Share on other sites

we had a similar issue last year. the IRS said we owed them money. i was like "honey, just pay em," but my wife really wanted to know WHY we owed them this money. the notice from the IRS was unclear and didn't seem to make sense. so she called them up and and they couldn't tell her. she worked her way up through a few managers until the person on the other end said "yes, mrs greenspandan, i can't find any reason you would owe us this money. we made a mistake. don't pay it, i'll fix it in our system." hey, great work wifey!! yay!

so of course 6 months later we get a notice that says we owe the same amount, plus six months interest, plus a penalty charge on top for good measure. my wife, god bless her, called them up again trying to rationalize with them, but finally realized she was basically attacking an insane asylum with a banana, so we bit the bullet and paid the damn thing like we shoulda done in the first place.

Link to comment
Share on other sites

we had a similar issue last year. the IRS said we owed them money. i was like "honey, just pay em," but my wife really wanted to know WHY we owed them this money. the notice from the IRS was unclear and didn't seem to make sense. so she called them up and and they couldn't tell her. she worked her way up through a few managers until the person on the other end said "yes, mrs greenspandan, i can't find any reason you would owe us this money. we made a mistake. don't pay it, i'll fix it in our system." hey, great work wifey!! yay!

so of course 6 months later we get a notice that says we owe the same amount, plus six months interest, plus a penalty charge on top for good measure. my wife, god bless her, called them up again trying to rationalize with them, but finally realized she was basically attacking an insane asylum with a banana, so we bit the bullet and paid the damn thing like we shoulda done in the first place.

Holy crap that is awesome :hysterical::hysterical:

And extremely disturbing at the same time. Gotta love trying to work with a bureaucracy (government, corporate, whatever). Sorry to hear you had to do that G -- but appreciate you sharing.

Link to comment
Share on other sites

so of course 6 months later we get a notice that says we owe the same amount, plus six months interest, plus a penalty charge on top for good measure. my wife, god bless her, called them up again trying to rationalize with them, but finally realized she was basically attacking an insane asylum with a banana, so we bit the bullet and paid the damn thing like we shoulda done in the first place.

I feel medical insurance claims are like that. One of our family goes for an op or some specialist treatment, makes the co-pay, and we get three separate bills in the mail saying we thousands of $. We call them and ask WTF and they respond, "Don't worry, your insurance will pay it, we just send the bill to you too".

One day a collection agency will come calling for a bill we haven't paid.:doh:

Link to comment
Share on other sites

I feel medical insurance claims are like that. One of our family goes for an op or some specialist treatment, makes the co-pay, and we get three separate bills in the mail saying we thousands of $. We call them and ask WTF and they respond, "Don't worry, your insurance will pay it, we just send the bill to you too".

One day a collection agency will come calling for a bill we haven't paid.:doh:

This is meant as a stand-alone comment ( I don't want to de-rail the thread) -- but that's my biggest hope for increased federal involvement in health care: standardized, streamlined health insurance claims. Good grief there is a lot of confusion in the way health care is currently billed. It's absolute lunacy.

Link to comment
Share on other sites

Welcome to the land where we have given nameless, faceless bureaucrats the power to take your money from you for no other reason other than they can.

At least with the current House, Senate and White house this will increase...

Pretty soon we won't need "tax reform" as the government will get everything and they will just take care of everyone in our nice little utopia.

To echo what others have said, pay the IRS blackmail now. You cannot fight them successfully (without spending way more than what they are asking for on good lawyers)

Link to comment
Share on other sites

we had a similar issue last year. the IRS said we owed them money. i was like "honey, just pay em," but my wife really wanted to know WHY we owed them this money. the notice from the IRS was unclear and didn't seem to make sense. so she called them up and and they couldn't tell her. she worked her way up through a few managers until the person on the other end said "yes, mrs greenspandan, i can't find any reason you would owe us this money. we made a mistake. don't pay it, i'll fix it in our system." hey, great work wifey!! yay!

so of course 6 months later we get a notice that says we owe the same amount, plus six months interest, plus a penalty charge on top for good measure. my wife, god bless her, called them up again trying to rationalize with them, but finally realized she was basically attacking an insane asylum with a banana, so we bit the bullet and paid the damn thing like we shoulda done in the first place.

damn bureaucrats, that really sucks

Link to comment
Share on other sites

A lot of times it is how you approach people. People who work in customer service can do a lot for you if you are nice and treat them like a human being.

I had to call the IRS one time. I was really nice and made some small talk with the person. I owed money and could not pay it by the deadline. They were nice, gave me all sorts of extensions and helped explain what I had done wrong.

The people you call 99% of the time have nothing to do with the problem - they are just answering your call and getting paid. If you start the conversation with "why the **** are you government pieces of **** stealing my money" they are going to do as little as possible. If you approach them as people who are just trying to work their jobs like anyone else - they will help you out.

When I was 18 I worked in an electronic store in Customer Service (god, what a horrible job). If some ******* came in with a broken TV and it was 1 minute past our return policy I would turn them away and tell them "sorry, but I can't do anything." If people came in nice and respectful I would bend the policy all the time and return things MONTHS and MONTH old.

Not saying the IRS are good people. No one likes to deal with them. But when you are calling with a problem, a little bit of respect for the person answering the phone will get you a long way.

Link to comment
Share on other sites

They say I owe them a lot, so what I had to do was call the Tax Advocate to work with what they say I owe them. I'm not paying them what I owe them, but I know that they will get some type of money off of me. It sucks, but that is the IRS. Mick, call the Tax Payers Advocate.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...