The IRS is insane!

It started out as my fault, because I lost the 1099 from the unemployment office for 2008, so I had to estimate how much I got. I was wrong. I ended up owing the IRS $311.00 in taxes. Said amount to be paid by June 9 of this year. I immediately mailed them a check (ironically, using unemployment money). Assuming this took care of it, I forgot about it.

Fast forward to today. I get the mail, and there is a check for $313.09 from the IRS, alone in an envelope. There is no further information in the envelope, nor is there a check stub. Just a check. So I call them.

Apparently, their "under-reporting department" hasn't gotten around to noting a balance on my account (even though I was told if I didn't pay by June 9 I would accrue penalties and interest). So they refunded my money, plus interest. I can either deposit it and mail the $311.00 back, or I can void this check and mail it back with an explanation.

Here's the best part...now that I have not paid my balance due by June 9, I owe additional penalties and interest! :banghead :banghead :banghead So screw them, I'm depositing the check and taking their $2.09 in interest!

But wait, it gets better! Until the under-reporting department notes my account as having a balance due, this will continue to happen! No one can tell me when they'll get around to doing that. Which means I'll just keep accruing interest and penalties owed while we mail each other checks, even though I originally paid the amount due promptly. I ended the phone conversation with a sigh, and said, "You know, it's no wonder our economy is so screwed."

Seriously. You can't make this up.

 

I'm dealing with the IRS right now. I withdrew from my 401k so that we could still keep our house, and now they are sticking it to me.

 

Fair Tax; time to put the IRS to IRe(s)t.