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Old 03-15-2010, 12:33 AM  
petegz28 petegz28 is offline
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Obama slams the Credit Card Co's but the IRS shows who really screws who..

It was every businessperson's nightmare.

Arriving at Harv's Metro Car Wash in midtown Wednesday afternoon were two dark-suited IRS agents demanding payment of delinquent taxes. "They were deadly serious, very aggressive, very condescending," says Harv's owner, Aaron Zeff.

The really odd part of this: The letter that was hand-delivered to Zeff's on-site manager showed the amount of money owed to the feds was ... 4 cents.

Inexplicably, penalties and taxes accruing on the debt – stemming from the 2006 tax year – were listed as $202.31, leaving Harv's with an obligation of $202.35.


Zeff, who also owns local parking lots and is the president of the Midtown Business Association, finds the situation a bit comical.

"It's hilarious," he says, "that two people hopped in a car and came down here for just 4 cents. I think (the IRS) may have a problem with priorities."

Now he's trying to figure out how penalties and interest could climb so high on such a small debt. He says he's never been told he owes any taxes or that he's ever incurred any late-payment penalties in the four years he's owned Harv's.

In fact, he provided us with an Oct. 22, 2009, letter from the IRS that states Harv's "has filed all required returns and addressed any balances due."

IRS spokesman Jesse Weller isn't commenting "due to privacy and disclosure laws."

Zeff says he's as offended as much as anything else by what he considers rude behavior by the IRS guys. While at Harv's, he sniffs, "they didn't even get a car wash."

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Old 03-15-2010, 12:34 AM   #2
petegz28 petegz28 is offline
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So the credit card companies raising your interest rates is bad, says Barry Obama. But the IRS can turn a .04 bill into $202 and that's the law???

If my math is correct, that is about a 5,000% penalty. WOW! And you thought Bank of America was ****ing you!!!
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Old 03-15-2010, 01:59 AM   #3
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Let's take a stab a this.

In 2005 Harv's runs up a tax bill of, say, $996.04, due in 2006.

He doesn't pay. Penalties and interest accrue in the amount of $202.31.

He decides he'll try to get out from under by paying the original bill, so he sends a check for $996.00.

During the sale, Harv never told Zeff about this.

The IRS is not impressed and insists on the penalties and interest, too.

Now, we only have Zeff's version (remember, Zeff doesn't know the whole story, either). And that's all we'll ever have, because the IRS actually is bound by privacy and disclosure laws.

Unless the reporter were to actually follow up on it - but since he just wants to poke the IRS, what are the chances of that?

"It's hilarious," he says, "that two people hopped in a car and came down here for just 4 cents. I think (the IRS) may have a problem with priorities." No, actually they came down for $202.35.

Last edited by orange; 03-15-2010 at 02:08 AM..
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Old 03-15-2010, 07:05 AM   #4
patteeu patteeu is offline
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Quote:
Originally Posted by orange View Post
Let's take a stab a this.

In 2005 Harv's runs up a tax bill of, say, $996.04, due in 2006.

He doesn't pay. Penalties and interest accrue in the amount of $202.31.

He decides he'll try to get out from under by paying the original bill, so he sends a check for $996.00.

During the sale, Harv never told Zeff about this.

The IRS is not impressed and insists on the penalties and interest, too.

Now, we only have Zeff's version (remember, Zeff doesn't know the whole story, either). And that's all we'll ever have, because the IRS actually is bound by privacy and disclosure laws.

Unless the reporter were to actually follow up on it - but since he just wants to poke the IRS, what are the chances of that?

"It's hilarious," he says, "that two people hopped in a car and came down here for just 4 cents. I think (the IRS) may have a problem with priorities." No, actually they came down for $202.35.
Isn't that almost as absurd?
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Old 03-15-2010, 07:08 AM   #5
oldandslow oldandslow is offline
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I have no love for the IRS, but Credit Card companies are worse. They used to throw people in jail for sharking.
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Old 03-15-2010, 08:03 AM   #6
Brock Brock is offline
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Originally Posted by oldandslow View Post
I have no love for the IRS, but Credit Card companies are worse. They used to throw people in jail for sharking.
The IRS throws people in jail all the time.
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Old 03-15-2010, 08:16 AM   #7
Garcia Bronco Garcia Bronco is offline
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Quote:
Originally Posted by orange View Post
Let's take a stab a this.

In 2005 Harv's runs up a tax bill of, say, $996.04, due in 2006.

He doesn't pay. Penalties and interest accrue in the amount of $202.31.

He decides he'll try to get out from under by paying the original bill, so he sends a check for $996.00.

During the sale, Harv never told Zeff about this.

The IRS is not impressed and insists on the penalties and interest, too.

Now, we only have Zeff's version (remember, Zeff doesn't know the whole story, either). And that's all we'll ever have, because the IRS actually is bound by privacy and disclosure laws.

Unless the reporter were to actually follow up on it - but since he just wants to poke the IRS, what are the chances of that?

"It's hilarious," he says, "that two people hopped in a car and came down here for just 4 cents. I think (the IRS) may have a problem with priorities." No, actually they came down for $202.35.
The IRS does trash like this. I have seen happen over and over again.
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Old 03-15-2010, 08:25 AM   #8
BucEyedPea BucEyedPea is offline
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Quote:
Originally Posted by petegz28 View Post
So the credit card companies raising your interest rates is bad, says Barry Obama. But the IRS can turn a .04 bill into $202 and that's the law???

If my math is correct, that is about a 5,000% penalty. WOW! And you thought Bank of America was ****ing you!!!
That's because it's okay for the govt to rake you over the coals but not a private firm. Really though, on balance, the govt rakes us over the coals far more. I mean at least we get some service or some good when it's a private firm and the transaction is voluntary. As one of the biggest insurers in the nation the govt is the biggest deniers of health-care benefits to those they're supposed to cover even. Not to mention all those the govt excludes but who pay for it via taxes.

Talk about projection here.
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Old 03-15-2010, 08:53 AM   #9
donkhater donkhater is offline
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I got a bill for taxes I neglected to pay in 2007 the other day. They said I owed $2500. Turnd out I did neglect (honest mistake) to claim some capital gains. Of course, they assumed the basis was $0 and adjusted the fine accordingly. After re-figuring my taxes for that year, I found out I owed an additional $37. Sent a check for $37. Got a reply saying my calculations were correct and I still owed $2 in interest. Sent a check for $2.

So all that effort and time, not only by me, but IRS accountants which surely make decent wages, and the federal government got an additonal $39. That HAS to be a net loss for our government. What a tax code we have.
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Old 03-15-2010, 09:00 AM   #10
BucEyedPea BucEyedPea is offline
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Quote:
Originally Posted by donkhater View Post
I got a bill for taxes I neglected to pay in 2007 the other day. They said I owed $2500. Turnd out I did neglect (honest mistake) to claim some capital gains. Of course, they assumed the basis was $0 and adjusted the fine accordingly. After re-figuring my taxes for that year, I found out I owed an additional $37. Sent a check for $37. Got a reply saying my calculations were correct and I still owed $2 in interest. Sent a check for $2.

So all that effort and time, not only by me, but IRS accountants which surely make decent wages, and the federal government got an additonal $39. That HAS to be a net loss for our government. What a tax code we have.
I got audited once. And since I don't take every deduction and I knew it. I got a refund after the doing the audit. Heh! Heh! Scoundrels!
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