Friday, April 24, 2009

Your Tax Dollars at Work


Last year I didn't do my taxes. I have never *not* done my taxes. What that means is I have always been a responsible tax payer (or towed the line). My friend David introduced me to some tax nut who does taxes (the year right after Greg died. Prior to death, Greg did our taxes which just goes to show...). I have visited the tax nut every year since Greg's death to have my taxes done. And it costs a chunk of change to have my taxes done by a nut. And The Nut has a creepy lazy eye and makes bad jokes about the government, taxes, repossessions, real estate, and other customers.

But I don't do well with money, taxes, math, numbers, an abacus etc.
I leave numbers to the experts. I can spell the word "numbers."

Last year with chemo and cancer, my fantasy death looming large, I didn't have the strength to do my taxes. I made an appointment with The Nut to have them done. Then I spoke with David who said, "Tell [The Nut] to file an extension." I called The Nut and asked him to file an extension, explaining my cancery circumstances. The Nut said he was sorry for my situation and expressed sadness about the cancer, and never filed an extension to my knowledge. So I just let everything go. I wasn't in a very practical state of mind. I figured the worst that could happen is that I'd have to pay a fine -- that I'd pay the fine and everything would go back to some sense of normalcy. My friend Kathy also said, "Just do your taxes later." She has had two different kinds of cancer so she ought to know.

This year I visited The Nut in at the end of March. I paid him double to do my taxes for 2007 & 2008, enduring his nutty chatter and his lazy eye. An eye so incredibly lazy, I could have stayed home and he would have still seen me. The Nut sent in my 2008 return electronically that day, 2007 had to be done by paper which I mailed the following day. By this date I had already received one notification letter from the Franchise Tax Board asking for my 2007 return.

Since March 2009 when I filed my taxes for 2007 & 2008, I have received numerous letters from both agencies telling me that they have not received my return for 2007. Yet by now they have received both returns. The notices they send out also state that once they receive my return, they will process the return and this could take "6 to 12 weeks." 

I received a letter from the IRS saying that they are holding my tax refund for 2008 and they will decide what I owe tax-wise, if any for 2007 (when I send in my return which I already have) and when they figure out how much I owe, they will deduct what I owe out of the 2008 tax money that they are holding. Each notice says I am to call them immediately to resolve the issue. I am afraid to call them immediately or at all because I am afraid to get anymore than the 20 employees already hard at work on on my case, involved. With the amount of letters I have received both from the IRS and the Franchise Tax Board, there must be at least 20 people dedicated to getting me to file my 2007 tax return (which I filed at the end of March 2009). 

Part of me feels I'm doing my part keeping people employed but part of me feels sad that our tax money goes for this nonsense. I wish I'd filed my taxes last year. I wonder how many people would be out of a job? Maybe more people need to be out of a job at these agencies. They obviously don't talk to each other. One section is writing and sending me my refund while the other is sending out a letter saying they've not received my return yet. But if not, why are they sending me money?

Since I filed and sent my taxes for both years, I've received two checks from the Franchise Tax Board -- one for my refund for 2007 and one for the refund for 2008. This means that they have received both of my returns for both years. Yesterday along with my refund for 2007, I received a letter from the state (again) saying they estimate my taxes for 2007 at $971.27 and that I should be prepared to pay this amount or send them a protest letter by June 20th 2009. Even though the state has already sent me back both tax refunds, they have guesstimated that I owe taxes (which have already been paid) and since one hand doesn't know what the other is doing, if I don't want to pay $971.27, I must send in a protest letter by June 20th, 2009 or be brought up in against a tribunal I guess. *shrug* I'm trying to decide what I should protest? Government waste? Postage rates going up? The price of good quality chocolate? The fact that I need one more cup of coffee? Should I add more fiber to my diet?



11 comments:

Melissa said...

I would call them. I've talked to the IRS numerous times, and they are always nice. They have your stuff up on a computer, and somebody will put notes in and/or tell you to ignore things you need to ignore.

I do my own taxes. I REFUSE on principle NOT to do them--we shouldn't have to PAY to pay taxes. (I use TurboTax.)

annielaural said...

I agree with Melissa - call em - names if you wish, but call em!

Oh, and all you have to do is click on the title of that post from American... to get to iherb. I put the link into the title. Guess I ought to tell folks that.

love you..

the Bag Lady said...

Sure, call them. They have computers. And they are supposed to know how to use them.
This sounds just like Bell Canada (who I have been engaged in war with for 5 months now), except I don't think the telephone company can put me in jail or sell my house like the IRS can if they want to get snotty.

Rob said...

Tribunal??? Maybe they'll vote you off the island!

Natalia said...

Don't even get me started!

Crabby McSlacker said...

Sounds so frustrating!

But yeah, I agree, probably makes sense to call them. They'll probably be relieved to talk to a tax payer who's actually trying hard to do the right thing.

Marste said...

Wow. What a PITA. I agree, though; call them. And be ready to fax them a copy of your 07 return. (You didn't send the 07 via certified mail, did you? If so, you could just fax or email them a copy of the signature page.)

I just realized that I missed a 1099 on this year's taxes. Crap. I gotta file a 1040X now. :P

Boomer said...

Had a similar problem with the FTB. Did my own taxes one year on TurboTax, and some of the income was interest from a savings bond which was cashed. You don't pay state income tax on savings bond interest. Unfortunately TurboTax didn't do a good job of making this clear, and I had the FTB in my mailbox a year later with the same, "pay by this date or you owe us" routine.

Fortunately I did have all the paperwork, and I sent it all off in a packet. A couple of weeks before the deadline. A few days after the deadline I promptly got the "WE DIDN'T HEAR FROM YOU, SO YOU OWE US" letter. But I'd registered the letter, so I wasn't worried. I have the receipt. Two weeks later I got the "okay, we did get your appeal in time, and we'll get around to it eventually" letter. That was three months ago. Haven't heard a thing.

Go ahead and call, but the point with the FTB is to get physical proof that you contacted them before the "you owe us" date.

Tom Rooney said...

POD,
The best place to start is the IRS Advocate Service. You can find the link for your state here: http://www.irs.gov/advocate/content/0,,id=150972,00.html
They don't report to the IRS directly so your infomation to them helps fix the issues you have. Everyone I know has made some error with this agency and needed a little help to get things fixed. I used this when they made an error and it was corrected almost right away.

Dr. J said...

I have had my share of challenges with the IRS!

If the amount of money owed is not to large, even if they are wrong, I would pay them :-(

If the money is large, and you get an attorney, or accountant, they will straighten out the problem with the IRS, then charge you the same amount that the IRS wanted in the first place :-(

That's been my experience :-(

POD said...

In case anyone reads this, I received all my refunds to date. I rec'd from the IRS, both checks yesterday.
I wonder if I'll still be thrown off the island? Or if I deposit the checks, will they garnish (with parsley) my wages?