Detroit lawyer wrestles IRS...over nine cents
Filed under: Tax
Many of us know that deep sinking feeling which can occur when we receive an unexpected letter from the Internal Revenue Service. Before we even open that envelope, the ugly questions begin to rise. Did I forget to sign my tax return? Do I owe more than I expected? Am I going to be exposed to a lengthy and expensive audit? One unexpected letter from the IRS can surely change your life -- or at least temporarily dampen your enjoyment of it.A Detroit lawyer recently received just such an unexpected letter from our friendly national tax collection bureau. In fact, his story, as reported by Detroit Free Press, via Freep.com, includes two such letters. The amazing thing is that the total amount of a monetary discrepancy which is facing Detroit criminal defense lawyer James Howarth, amounts to a total of nine stinking cents.
First, Attorney Howarth was notified by mail in November of 2008, that he owed the IRS a nickel. He was sternly warned that he must pay that amount or possibly face additional charges. Subsequent to that letter, Howarth received a second letter which indicated that the IRS owes him four cents. However, to recover that refund he must explicitly request it, because it's less than a dollar. At this point, the patient attorney doesn't know for sure exactly how many additional pennies he may owe the IRS, or how many pennies it might owe him.
For now, Attorney Howarth has maintained his sense of humor about the mystery, although he has tried unsuccessfully to ascertain the truth of the matter, utilizing the wonderful IRS toll free call-in system. The only thing which seems to bother the lawyer right now is the foolish waste of time, money, and energy which this snafu shall ultimately end up costing both himself and the taxpayers at large. In examining his options for mitigating the absolute stupidity of this situation, Howarth told Detriot Free Press: "I just don't know. But I do know that if I were to walk into the IRS office with pennies taped to a piece of cardboard, they wouldn't accept it."
Reader Comments (Page 1 of 6)
1-06-2009 @ 12:07AM
Rheta Stone said...
I overpaid $2.00 about 3 years ago and it took many months to find out that I could deduct it from my current years taxes.
Reply
1-07-2009 @ 6:56AM
Mark said...
Well, we have to start coming up with the money to cover that billion dollar bailout, don't we?
Reply
1-06-2009 @ 1:45PM
laurie said...
:)
1-06-2009 @ 6:46AM
ann said...
This does not sound plausible. Did this attorney show anyone the letters? The IRS generally would disregard a balance this low. Also, if you read your return when you file it you would know that any overpayment can be applied to the following years tax liability.
Reply
1-06-2009 @ 8:07AM
DK said...
Ann - I can tell you've never dealt with the IRS...they will come after you for a penny... I know it's happened.
1-06-2009 @ 11:55AM
Kathy said...
Ann,
First of all, evidently you haven't dealt with the IRS. I received a letter several years back (and yes, I still have a copy of that letter) which states that I owed 1 cent in back taxes on my business, and now, due to the length of time, I owed $1,514.00 in penalty and interest on that 1 cent. I was floored. I was so mad, that I sent them $1,550.00 and told them to keep the change. We have three calculators in our offices (all the same brand) but different models, and they will calculate sales tax within pennies of one another. That particular year, I paid thousands of dollars in taxes. Do you think for one minute that I would have tried to get to the IRS for 1 lousy cent! The IRS needs someone to regulate them and make them accountable for harrassment.
1-06-2009 @ 7:13AM
Donna said...
I owed them 2 cents and my Husband and I had to write a check for that amount. This was many years ago.
Reply
1-06-2009 @ 11:46AM
Riogal said...
Last year we received our real estate tax bill with an amount due of two cents! I taped two pennies to the bill and mailed it in. I figured it wasn't worth having the city repossess the house for non payment, which could have happened.
1-06-2009 @ 7:24AM
Moongrim said...
Never underestimate the power of a peevish bureaucrat in a government organisation, with no way of being culpable.
Remember, this is the same government that has no problem with dreadfully overpriced toilets seats, or overlooking several hundred billion dollars worth of Civilian contracts in Iraq.
Yet the hoi polloi is given the hot seat whensoever something like this happens.
Reply
1-06-2009 @ 7:35AM
Brian said...
The IRS forgives nothing. Years ago, my step-son,who is AADD had been working and recieving 1099's. He didn't know whay to do with them so he threw them away When he got W2's he filed his taxes. Over a ten year period this happened. the IRS filed for him and he owed ton's of money. When I contacted the IRS and refiled all of his past years correctly, the IRS owed him $16,000.00 and for one year he owed them $2,200.00. Well the $16,000.00 was too old to give him, but they still want the $2,200.00 plus interest and penalties. The IRS caused him to give up and quit working for three years, so now the bill is even higher. The IRS forgives nothing
Reply
1-06-2009 @ 7:53AM
jake said...
This is not a bougs story, I know for a fact, I got a such type letter stating my company owed the IRS around .79 cents on a corporate return and they threatened to freeze my account if it was not paid. Now how long did it take someone to research this, the paper it took to print it on and then the amount to bulk mail it and on top of that the Post Office that had to pay someone to deliver it, on top of that the check I had to write the postage, the letter and the carrier that had to deliver it to the IRS, so I figured all in all to recover the .79 cents it cost about 58.00. Go figure
Reply
1-06-2009 @ 8:03AM
Diane said...
We over paid by a dollar. They said that we underpaid by a dollar. Even though it showed overpayment on the letter. There was supposed to be some sort of code indicating the problem. But no code. Typical stupid TAX system. Was supposed to be thrown out if under $50, the cost of initiating the letter. NO!! the system is broken, lets face it. We paid the $1 plus the 2 dollar fine and never heard another thing. Probably in a few years they will come after us for overpaying the fine.
Reply
1-06-2009 @ 9:06AM
Jack said...
Sounds like more typical aol B.S. to me. Didn't any of you folks ever hear of "rounding up" (or down) to the nearest dollar?
That's been a policy of the IRS for years and years, and I should know as I've been paying taxes since 1959. They don't quibble over pennies unless you have some other problem or they think you've been dishonest in some way.
Reply
1-06-2009 @ 8:07AM
ms.r said...
it happens all the time i heard about a ol woman so distraught over a few cents they claimed the were takinging her house. she died from the stress of it
Reply
1-06-2009 @ 8:22AM
BUB said...
REVOLUTION IS THE SOLUTION
Reply
1-07-2009 @ 10:05AM
Flying Fred said...
As executor of my deceased aunt's estate I encountered a problem with the IRS. She left her entire estate of $300,000.00 to a trust fund for her dog. Her heirs would split the money after the dog died. Somehow the geniuses at the IRS thought they money was left to me and sent me a tax bill for almost $30,000.00. I had to get an attorney and a CPA to straighten the mess out. What a great country-taxing dead people.
1-06-2009 @ 11:42AM
Joe said...
BUB...I BELIEVE YOU ARE RIGHT ON!
1-06-2009 @ 8:23AM
chrissy said...
we need the fair tax! that way everybody, including those who get paid under the table- drug dealers, prostitutes, illegals, etc,- will be paying in to help get rid of the deficit! oh, and it will save a lot of money, because there won't be an expensive IRS anymore.
Reply
1-06-2009 @ 10:16AM
lckraut said...
Amen to that Chrissy. I am tired of paying other peoples ways. It is about time that everyone stands up and pays their fair share.
1-06-2009 @ 8:36AM
Regina said...
Watch your pennies and your dollars will take care of themselves.
Use on-line banking....it's great
Reply