IRS tries to collect 4-cents in back taxes at car wash
Filed under: Tax
We all know that times are tough. As a result, the IRS has made collections -- and audits -- a priority in an effort to put more revenue in the Treasury. How much of a priority? So much so that the IRS sent a couple of agents to Harv's Metro Carwash in Sacramento, California, to collect back taxes ... of 4 cents.
According to the owner, Aaron Zeff, the IRS agents showed up last week demanding payment. When Zeff took a look at the letter, he noted the amount: "I looked at the letter and I couldn't believe what I saw. The number was astonishing. Four cents."
Of course, that was the original amount owed. Over time, together with failure to file penalties and interest, the amount at issue had grown to $202.35. And the IRS wanted to be paid.
According to Zeff's attorney, Ashley West, Zeff knew nothing about the back taxes. West claims that they only learned about the delinquent debt this week.
Zeff claims that he had notice that he owed nothing as of last year. He says, "I have a letter from the IRS just from October of (last) year, stating that my returns have been filed and my tax balance is zero."
Of course, Zeff's experience is far from normal. In the large majority of cases, the IRS doesn't show up on your doorstep. In most cases, if you owe money to the IRS, you'll receive a notice advising you of the amount and your right to appeal. If you ignore the notice, the IRS may take further steps to collect, including placing a lien on your real property or garnishing your wages.
What exactly inspired the IRS to stop by Harv's hasn't been made public. The IRS doesn't comment on private collection matters. But Zeff has his own idea: "The good men and women of the IRS said, 'Let's go down to Harv's car wash and get our car washed.' "
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Reader Comments (Page 1 of 1)
3-20-2010 @ 5:17PM
joe tanner said...
Put it where the sun don't shine government.
Reply
3-21-2010 @ 2:12PM
Ginny said...
What do you bet it cost the IRS more than what was collected to send two (why two agents per job?) agents to get man to "pony up." Lets see: transportation cost, two salaries, maybe even lodging for the tax repo men. Way to go IRS!
Reply
3-21-2010 @ 6:27PM
Mark said...
A 4 cent debt grows to $202 with late fees, penalties and interest? I guess we do need a new government agency dedicated to protecting consumers from predatory practices by institutions such as this.
Reply
3-21-2010 @ 10:01PM
Pete said...
B.S. story. The guy says he was never notified that he was delinquent? Right.
Currently the govt. estimates that $290 billion of taxes go unpaid each year by tax cheats. That means we pay more in taxes so the cheaters don't have to pay. I have no sympathy for leaches who don't pay their fair share.
Reply
3-28-2010 @ 8:25PM
Ernie said...
Something wrong with this story. The IRS does not come after taxpayers for very small amounts like 4 cents. It wouldn't have grown to $202 unless there was more involved. The journalist who wrote this story should have done more research... like actually talking to the IRS about procedures for small amounts. (Not specific to Mr. Zeff's case.) Must have been a slow news day.
Reply
4-14-2010 @ 5:10PM
Lorikny said...
Four cents? Our deficit in the trillions by now, and they spend money on going after four cents? That's our goverment for you! By the way, it costs more than a penny to make a penny so we're dealing with some really brilliant people here. I have jars of pennies, hell, they can have all of them!
Reply