I own (owned) a small business that hit hard times in 2001. Along with a serious illness I contracted at the same time the business was not run the same as the previous twenty years.
I always wanted to be a businessman; ever since the Air Force said no way to being a fighter pilot because of my imperfect vision.
But these are a few things that the Bush IRS did, described by the Republicans as a "kinder gentler IRS." Remember that?
Follow me beyond the fold to see why I no longer wanted to run a business.
edit: There is no reason to take the lives of innocents and I in no way condone the act. I feel he must have been insane and hoped to provide some insight in to what might have pushed him over the edge. Thanks to those who prompted me to correct this error of omission. end edit
edit2: I do not believe it is the agents fault. 99% were helpful and smart and imprisoned within the IRS rules. Some were numbed, some were hating their jobs and except for one they all did everything they could to help but were stopped by the IRS rules put in place to increase revenue. None of them did anything wrong. end edit2
The economy was bad and the business was shrinking. Months of my absence due to illness had left many areas of the business unfocused..and a mess.
Out of the blue a check came in from the IRS, we had overpaid a 941! Thousands of dollars! I was stunned. Our payroll was automated and it never made a mistake of more than a penny. But the IRS, in my 20+ years of experience, was ALWAYS correct. I put the check aside to investigate later but a cash crunch came and I decided to trust the IRS and deposit it. I promptly forgot about it.
The following year, about nine months later, I received a stack of letters from the IRS about two inches thick. I owed thousands and thousands of dollars in taxes, penalties and interest. From the same 941.
I will not go into the time spent on the phone or researching. This is what happened. The 941 report was applied to a different quarter and year. Since no report was found for that quarter no money was owed. They moved the deposits made to that 941 into many different other reports but a few thousand remained and was returned as a refund for overpayment. Then the IRS filed an estimated report on the "missing" 941 for about 40% more than what the taxes had ever been before. Then charged penalties and interest.
They applied the money deposited to that report to many different other reports including various 1020s, 941s and 940s. They refused to undo this and I sent money so I would not get more penalties and interest.
I began receiving refund checks for various small amounts.
And a constant stream of letters with them owing me money and me owing them money, moneys moved from one report to another..I had no idea how to correct it.
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Though every six months or so I would have this wonderful conversation with an agent telling me everything was now correct. There would be no more letters since I paid all these extra penalties and interest..it was over.
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Then I would start receiving more letters from the IRS.
Nearly two years later from the first large refund I received another large refund. At this point the company was having serious problems. I was laying off personnel that had become my friends for years. The IRS was finally getting it right and I needed the money so I deposited it. About six months later I received the stack of letters with penalties and interest. Not as impossible to repair as the first scam but similar.
A few years after the second large refund I received another. I laughed then called the IRS. I told them I had been through this scam and would not fall for it this time and would not deposit it. I said I knew in six months or so they would say I owed that money on the same report and charge me penalties and interest. Did they apologise or act offended? No..it was obviously nothing new. I was requested to send the check back if I thought it was in error. I said no I wanted to keep the original and asked them just not to do this scam to me again. About seven months later I received the stack of IRS letters with penalties and interest. How did they do this since I did not deposit it? They cancelled the check and redeposited the money on the current report of the same type..not to the original report which now showed no deposits ever having been made to it. Huge penalties and huge interest.
At this point the company was nearly shut down. Many very good people had been thrown out on the street when there were few jobs to be had. A terribly difficult time was made a perpetual nightmare. Motivation, money and time to possibly save the company and jobs were spent in a counter-productive nightmare. I did not want to do it any more.
It is still not resolved.
Employees did not get credit for paying in to Social Security for one year. Even though I have sent in copies of the report over and over. Including several confirmations that it was corrected. One of my ex-employees did not believe me so I had him mail a copy of the missing year in a certified letter. He believes me now.
During this time I had unequivocal support from my girlfriend who is still with me today. If not for her...
For over twenty years I believed the IRS was just doing their job, a good job. Heartless sometimes but not malevolent. I do not any more.