Posted on 02/06/2021 9:47:13 AM PST by george76
Accountants along Colorado’s Front Range are telling CBS4 that dozens of clients who paid their 2019 taxes are nonetheless getting menacing letters from the IRS. Those letters are threatening late fees, penalties and in some cases, property seizure.
“Well they’re frightened,” said Denver CPA William Fraser, “They don’t understand why the government, the IRS, would be chasing after them when they’ve paid their taxes.”
Fraser said he has about 30 clients who paid their 2019 taxes but are still getting the intimidating letters from the feds. He says his clients are “frightened, angry, stressed, worried because the letters say they’re going to come take their assets.”
Tom Conradt, a Denver tax attorney, estimates “easily 50 of our clients made payments but were not credited. They’re freaked out and very scared.”
The problem appears to partly be a consequence of the COVID-19 pandemic but also partly due to ongoing issues with the IRS like archaic computer systems, slashed budgets and understaffing that are now causing consequences for taxpayers.
When the pandemic took hold in 2020, the IRS sent nearly 60,000 employees home to work and more than 500 IRS offices were shut down. The remote workforce meant lots of mail that didn’t get opened in a timely manner and a gap in customer service as phone calls from the public were not answered.
As of late last year, there were approximately one million unprocessed tax returns from 2019 and three million pieces of unopened mail. Paper tax returns and letters from taxpayers sat unopened in trucks in post office parking lots for months while IRS offices were closed down.
“It’s a giant backlog,” said Conradt, “Systemic exacerbated by COVID. They are so incredibly backlogged,” observed the Denver tax attorney.
He said there is a “giant disconnect” with payments sent in and being cashed by the IRS, but not being processed and automated delinquent notices are being sent out.
“This is a massive, massive problem that’s going to take some time to fix,” said Conradt.
Another Colorado CPA said he, too, has dozens of clients who paid their taxes but are receiving delinquency notices.
“When IRS received checks they got cashed immediately, however they have not posted the payments to taxpayers accounts. Therefore, the computers do not have the credits and automatically begin sending out delinquency notices.”
Raphael Tulino, an IRS spokesperson, told CBS4 the pandemic “put us behind the 8 ball.” He said the agency is asking for patience.
“IRS is committed to working with taxpayers as we navigate tax administration in and through a COVID environment,” said Tulino. “Although there are still some limited service delays and timing issues, if you get a letter or notice from IRS please respond to it and consider IRS is flexible and will work with you based on your complete set of facts and circumstances.”
Fraser said he is telling clients to relax..
“They will get around to this, they will get it fixed,” he said. “They will get your account straightened out, they will remove the interest and penalties.”
But he cautioned it may take the IRS six months or more to get things worked out.
Colorado Ping ( Let me know if you wish to be added or removed from the list.)
Pay up comrades, the state doesn’t make mistakes.
Try telling the IRS that YOU need several months to “straighten it out.”
It’s not just Colorado. This happened to me—the IRS cashed a check in December but didn’t credit it until the beginning of this month.
I had a tax matter that needed resolution by X date. The CPA compiled all the documents. The IRS doesn’t accept electronic submissions, so the CPA had to fax the documents. Fax wouldn’t go through. Finally got the revenue agent on the phone who told him “oh, there is nobody at the office, the fax machine has run out of paper”. Had to hire a courier to deliver the documents to the agents home.
The revenuemen have guns and the power of government to use deadly force if you don’t comply.
Of course the people are scared.
But they’ll get running the entire medical care system right.... Did the accountants ask the party affiliation?
I got a letter too saying I still owed money. $200. No one said why or how and if I want to challenge it go ahead. They know it will cost way more in time and effort so I just mailed a check, A den of vipers and tyrants.
We showed them the SSN of the recipient and it still took 6 months and repeated demands from us for them to resolve.
It is clear this was an insider scam, because there was no other way for them to make this mistake.
The FBI - DOJ used Photo shopped hoax picture as evidence in a criminal charge..
Keep copies of cancelled checks / both sides and other bank records.. the liars will rip you off if they can — like Time Magazine explained how the left stole this election.
I live in Texas and my last 3 payments to the IRS have not been posted. Now it says I face penalties and interest. They can GF themselves.
I dare the MF’ers to darken my doorstep.
I’ve been to the IRS office in the last 5 years . Months AFTER tax season, you’d think there would be people there to help you in person.
The ENTIRE room / floor that can easily hold 50 employees easy..only had the receptionist, I kid you not. It was empty while the rest of us were in line 20 people deep. This is the gubmint’ working “for” you (spit)
With the irs you have no rights. It is this way so as to keep the sheep in a constant state of fear. More easily controlled that way.
Exactly. A bud of mine who owns a fabric co. religiously COLLECTS every damn scrap of receipt and throw it into a box. He hires a kid to collect and SCAN the receipts in categories before January 1. The irs accepts pdf scans. Normally people would chuck out a receipt once they go to MCD’s or any grocery. NOT him. He got audited years previously and he learned that every damn evidence is useful.
Did they have an amount due on these letters? Seems like that is missing.
Not only incompetents - evil criminals
Exactly the same thing happened to me. I got it straightened out. Then months later, they billed me for a late payment fee because they didn’t credit me for when it was submitted and cashed. Instead they used the later date when they corrected their error as the submission date.
Well, yeah. But since my check (with my SSN) is always sent in with the payment slip (with my SSN) how do they manage to screw this up?
Didn't scare me, because I couldn't have paid them anyway, but it sure peeved me to no end.
Easy - they play stupid. Threaten you and demand that you prove it - that they lost it.
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