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We, MoSup and me, have
seemingly won a five-year old tax battle with the state. I say
this with bated breath because we've felt this way before. The long and
short of it is this.
The Federal gummint charged us an additional $40,000 tax, plus penalties and interest,
for a 2006 return. It was my error. I neglected to
include the cost basis for stock sales I did report,
causing the feds to assume the transaction $number represented
profit, and not the actual $1.8B loss. As soon as the error was
discovered I amended the return The IRS in time struck the
additional tax, but not the interest and penalty (interest on
zero, and penalty for not paying zero). It took a long time, but
finally they removed the interest. It took more time,but after a
face-to-face they are now removing that charge. But Wait, there's
more!
The Feds obligingly notify the state about any negative finding in a
federal return. They do not, evidently, do the same when they
reverse themselves. So, despite hours and hours of phone
conversations, explanations and filings, the state got plain nasty
about wanting their cut, which had by now trebled !
Debtor's prison
I knew with 100% certainty that we did not own them a nickel, but - one
of the things the state uses as leverage is denial of renewing all
state licenses. Period. Their version of debtor's
prison. So, if you're a nurse, for instance, you will not be able
to renew your license, and will thus be terminated. . That
prospect, and expired tags caused me to gather papers and trudge over
to comptroller's office last week. After sitting in line for a
few hours I saw a "counselor." I had the required IRS tax
transcript, so he said "okay, I'll send this to the main office.
It will take a few weeks." Relief!! But Wait, there's more.
This week another letter from the comptroller's office.
Aha! A check for all the money the state owes us for withheld
returns? Nope. It was notice of pending action for not
paying a $55 claim. I'm steaming, Mo Sup is crying. I pick
up the phone and dial the provided number. I'm told the waiting
time is estimated at "one-hour and seven-minutes. It's at this
point I see that the claim is being made by the state university that Junior
attended. Twenty-years ago!
Then it hit us both. The state had obviously searched their files
on us, looking for a get-even!
What else could it be? Twenty years back? What made me
want to tell you this is THIS,
We're talking blood-sucking ruthless, and if you live in one of the
most liberal democrat controlled states in the nation, even more
so. Your money is their mother's milk. They will get it.
I want to add
this. In all the conversations I've had with the IRS, both on the
phone or in person, agents have been courteous and willing to
listen. The state is a different matter. With few
exceptions they are confrontational, setting a distinctly
adversarial tone. Ahem.
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Who knows what EVIL...LURKS in the heart of Taxman?
ReplyDeleteWell if you have the time. State and local rule Nazis are lazy and careless. They quite often violate the heck out of their own rules and don't bother to hide the fact. If you have the time and the skills you can find out if the have and then make them an offer that if they'll leave you alone you won't notify the press and a zealous district attorney about the poo on their front porch.
ReplyDeleteAnother classic was a gentleman went to a meeting with a state official. He had another man with him who was wearing a three piece expensive suit and carrying a brief case. This suited man said nothing during the meeting when the state official asked who he was he was told that he was a lawyer who was connected with the dominate political party and he was interested in how the voters were being served. He was served very well after that.
Take names... make a list. I have one of judges and lawyers.
ReplyDeleteCasca
Rodger, that sounds like my BIL's experiences in Maryland. Most of the drones he has had to deal with over similar issues have been dumb, lazy, arrogant, racist and vindictive. He has paid thousands of dollars in legal fees saving himself from charges resulting from State paperwork and people errors and then been charged late fees and penalties after not paying what he proved he either paid fully on time or did not owe in the first place. Like you, he has friends and family of a lifetime there in Marxyland, so he won't leave.
ReplyDeleteBetter half and I go there periodically to visit him and other family, and we always can't wait to leave. The liberal asswipes we encounter and the decaying city and infrastructure depress the hell out of us.
Lt. Col. Gen. Tailgunner dick
It's the same way dealing with state and local agencies in Texas, too. No place is safe from bureaucrats. Even a phone call to them works to their advantage--more phone calls=more bureaucrats to deal with the public=job security=bigger budget. And on and on.
ReplyDeletemary
Kansas allows renewal of car tags by mail. In 2008, I screwed up and sent in a check for more money than required for the renewal fees, which the MFCS-ing county treasurer (spit) promptly returned without processing. Fast forward a few days and I go to digging around on the desk for the renewal stickers and found the returned crap, and went down to stand in line to visit with one of the courthouse bitches (apologies if you're a courthouse bitch, but, hey, if the shoe pinch, fix it). I was dinged one dollar late fee for each of three cars. Bullshit, they had funds in their hands on time, not my fault they didn't cash the check, but they don't give a shit, these people, and that led to an intense little conversation with the MFCS-ing county treasurer (spit) about bullshit bureaucratic proceedures and customers and costs and stuff like when is the next election and did his mother know what he did for a living and such as that. I was pissed, if you couldn't tell that already.
ReplyDeleteAnyway. Three bucks is nothing but the principle of those assholes being alleged public servants and me being a taxpayer did mean something to me at least. And evidently it did to somebody else, because when I went down to piss away my vote on McCain later that fall, I was shown as deceased on the voter registration roles. It took 45-minutes and the direct intervention of the registrar to straighten it out. Some MFCS-ing sumbitch got even.
H the (resurrected) Comet
Oh, and I didn't really mean any of that, any other way than just exactly how I said it.
ReplyDeleteH the (self correcting) Comet
Warn your family. A friend of mine beat a tax rap, and the next year they hit his parents, brothers, and sisters with audits. Tell them to hire a good accountant, to tell the accountant about this, and if he poo-poos this to get a reference for an accountant that will take them seriously. Might even be good for everyone in the family to use the same accountant.
ReplyDeleteMay never happen, but getting all the ducks in a row now might save some grief.
Restating what Anon above me said. When I read that first line, I read the rest waiting for the ending. It's a known fact that with them, if you win, you lose. They get rewarded for the extra cash they bring in, not their honesty and accuracy.
ReplyDeleteRodger: Twenty year-old bills are not collectible. Statute-of-limitations and all that rot, you know.
ReplyDeleteAttacking the relevance of "nexus" is attacking the "Commerce Clause" and Obamacare needs that clause very badly right now.
gadfly: This is an actual from-memory transcript of a phone conversation I had with a state "Compliance Officer."
ReplyDeleteCO: I just finished a case from 2002;
ME: Jesus - what's the statute of limitations with you guys?
CO: There isn't one.
ME: WHAT?
I stopped myself there, but that was his attitude with me. And yes, I have his name.