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IRS Goof

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May 9, 2006 12:40 am

Every once in a while, you read about an IRS goof, where someone got a notice that they owe $10 billion in back taxes but only earn minimum wage. Well, my incident wasn't that extreme or laughable.

It was late afternoon when my wife calls and says I have a letter from the IRS. I tell her to open it and read it to me. My stomach sank. It said I owed a substantial amount of back taxes from 2004.

So, I run home, read over the notice, pull out my 2004 returns and get to work. In 2 minutes, I found the error. The IRS mistakenly counted my 2004 business expenses as additional income. Someone at the IRS goofed. As a result, I've aged 5 additional years and have a fresh batch of gray hairs.


May 9, 2006 2:30 pm

Has it been straightened out yet?

May 9, 2006 11:49 pm

Not yet. They should have received my reply, to their notice, today.

I've dealt with the IRS several times before, both by mail and in person. They have always been very professional and courteous, but very thorough.

Given that their error is pretty straightforward, I don't expect there to be any problems. (Fingers crossed)

May 10, 2006 5:34 pm

Good luck.  Let us know how it goes.