IRS visits Sacramento carwash in pursuit of 4 cents

[Zywiec]

Published: Saturday, Mar. 13, 2010 - 12:00 am | Page 1B

It was every businessperson's nightmare.

Arriving at Harv's Metro Car Wash in midtown Wednesday afternoon were two dark-suited IRS agents demanding payment of delinquent taxes. "They were deadly serious, very aggressive, very condescending," says Harv's owner, Aaron Zeff.

The really odd part of this: The letter that was hand-delivered to Zeff's on-site manager showed the amount of money owed to the feds was ... 4 cents.

Inexplicably, penalties and taxes accruing on the debt – stemming from the 2006 tax year – were listed as $202.31, leaving Harv's with an obligation of $202.35.

Zeff, who also owns local parking lots and is the president of the Midtown Business Association, finds the situation a bit comical.

"It's hilarious," he says, "that two people hopped in a car and came down here for just 4 cents. I think (the IRS) may have a problem with priorities."

<snip>

IRS spokesman Jesse Weller isn't commenting "due to privacy and disclosure laws."

http://www.sacbee.com/2010/03/13/2604016/irs-suits-pay-visit-to-car-wash.html

[sandnsea]

1. They're supposed to round to the nearest dollar

Legally, nobody can owe 4 cents of taxes. Would love to hear the back story on this screw-up.

[jobycom]

2. He's lying about something.

You can't owe the IRS four cents. I fill out tax forms all the time. Any amount under a dollar they just ignore. Most forms you round off to the dollar anyway.

Bubba's slanting that story if he's not making it up outright.

[napi21]

3. That story can't be true. All tax software rouds to the nearest dollar!

I a;so suspect that unless the amount due is over a specific amount, you won't be seeing any agents in person at all!

[Zomby Woof]

4. Definitely something fishy

The IRS automatically writes off delinquencies under $5.00, and even larger ones when they would cost more to collect than they would bring in as revenue, and as others said, they round up or down to the nearest dollar. They would NEVER intentionally send field agents to collect 4 cents. Ever.

I wouldn't be surprised if this was an ACORN-type scam, or at the very worst, the field agents were given a delinquency amount in error, such as $4,000.

[havocmom]

8. ACORN-busting scam variation was my thought too. Keep TeaBagger Rage goin

The IRS going after 4 cents + penalties? Um, no. Guy made up story to cover his ass or somebody is going for headlines to raise the rage.

[roamer65]

5. While I have my doubts, I have seen similar stupidity before.

A cell phone carrier that kept sending me a bill for 11 cents after cancelling their service. Go figure.

[HiFructosePronSyrup]

6. My guess...

IRS showed up because they had serious issues with the guys taxes. Something wrong with the math, maybe he didn't have receipts, etc. When they went through everything, re-did the math, found all the receipts, etc. the original work was correct but off by 4 cents. That's my guess.

[intheozone]

7. This story cannot be true,

the maximum penalty for failure to pay tax is 25% of the unpaid tax, so the penalty could only be .01 and do you realize how long it would take to accrue any significant amount of interest on 5 cents, even at 7% or 8% per year. And yes, the IRS automatically writes off balances under at 1.00, sometime even under $5.00. So my guess is, this is a made up story or some recent adjustment or payment had made on the account to bring the tax balance down but it did not eliminate or pay the penalty and interest that had accrue on previously higher tax liability.
Otherwise, one really has to say :wtf: !!

[Skink]

9. Arnold is getting desperate.

[Odin2005]

10. I smell anti-tax propaganda.