After
writing the blog about the trouble we are having with my father and the IRS (read it here), I have been overwhelmed by the
response. People have offered encouragement and tips, expressed outrage, and
have even shared their own IRS horror stories. I am so grateful to all of you
who have commented, shared my blog on Facebook and Twitter, and sent me private
messages of support.
What
I didn't talk about in the last blog is our attempts to resolve this issue with
the IRS. When my dad moved in with us after finding out about his terminal
neurological disorder, I helped him apply for disability. Not
long after he started receiving benefits, the IRS put a levy on his social
security benefits and started taking $300.00 a month. We didn't know about his
tax problem at the time, so my brother and I sat down and talked to him about
it. He said the original tax bill was somewhere around $50,000. We found out
that he sent them a check for $25,000, but could not afford to pay the entire
amount. Due to his medical condition, he had started to make bad business
decisions and had trouble keeping track of his finances including things as
simple as balancing his check book.
I
told him that the tax bill needed to be taken care of, so if the IRS was taking
$300.00 a month, that would help pay it off. After that first year, the IRS
increased the amount they were taking to 70% of what my dad was getting,
causing some financial problems for him, and also for my husband and myself
since we were having to pay more of his care costs.
In
the meantime, my brother called the IRS to find out what was going on with
dad's case. They asked him fill out a power of attorney which was standard and
then fax it to them while he was talking to them the next time. We got the
necessary paperwork and filled it out putting my brother and myself on the
power of attorney to be able to act on dad's behalf. This was in 2007.
My
brother called the IRS back and faxed the paperwork while he was talking to
them on the phone as they requested. They only gave us minimal information even
with the power of attorney and said it would take several months to process it,
so we needed to call back. We told them we needed all the paperwork concerning
our father's case, so we could get the matter resolved. They said we would have
to wait until the power of attorney was processed. We waited several months and
called back. They had no record of our power of attorney, so my brother faxed
it again and sent them certified copies by mail, but we got the same story
every time we called. This nightmarish circle continued for over a year. No
matter how many times we mailed or faxed powers of attorney, they were never
recorded or approved.
We
decided to get a certified tax specialist involved who is actually an Enrolled
Agent -- a CPA who has to take a special test administered by the IRS. These
people can act on your behalf with the IRS. She was very experienced and
accepted my father's case. When she contacted the IRS to get his paperwork, she
ran up against the same problem. No matter how many times she sent in a power
of attorney, it kept disappearing. They never registered her power of attorney.
She eventually dropped our case.
We
have continued in that same circle with them saying they want us to fill out a
power of attorney and expense/earnings report, but they never get approved or
processed, and you can NEVER speak to the same person twice. This last year, my
brother lost his mind on the IRS person he talked to, threatening a lawsuit,
and they started sending the paperwork. It still took a year and numerous phone
calls to get all of the paper work we needed to take to the new CPA.
On
the last report we received, we were relieved to see that my brother was finally
listed as having power of attorney. When they pulled this last trick and
started taking 100% of my dad's funds, leaving him with no money to live on and
no money for us to move him into the facility he needs for his care, my brother
called to try to talk to them about this issue. The person he talked to told my
brother that he didn't have power of attorney. My brother told him that he did,
and that he was listed on the paperwork we received from the IRS as having
power of attorney. They IRS employee said that he didn't and hung up on him.
I
tried to call since dad was here. I could have him talk to them and tell them
they could talk to me. When the IRS employee got dad on the phone, she started
grilling him for information until he got so upset and confused he turned red
and couldn't talk. I took the phone from him and tried to explain to the woman
that they were taking 100% of his benefits and that he needed care. I told her
I had a letter from UC Davis explaining his medical condition and his need to
be placed in a care facility. She said she didn't want to see it because it
wasn't important. She directed me to fill out a power of attorney, and
threatened to hang up on me for being upset and raising my voice.
It
has finally dawned on us that they don't want to resolve the issue as long as
they can keep taking his money. The people you talk to at the IRS are not
authorized to resolve anything. They are there to gather information and try to
get more money. Their offer to resolve tax problems is just a bunch of smoke
and mirrors to keep you running around in circles filling out forms they never
process while they continue to take your money. You have to hire professionals
to actually fight them, but they don't leave you any money to pay for it. We
were told to contact the tax advocate who helps when the IRS is not
cooperating. They told us to fill out a power of attorney.
What
started out as a $50,000.00 tax bill that my father paid $25,000.00 towards has
ballooned out of control. With interest and penalties assessed by the IRS, they
now say he owes almost $250,000.00. When we figured out the money they have
taken from his disability benefits and the $25,000.00 check he sent them, he
has paid close to $100,000.00. The $250,000.00 is what they say he still owes
for a grand total of about $350,000.00 for that initial balance of $25,000.
The
IRS has a list of tax payers rights including this one -- it is your right not
to pay more than you owe. I figure that keep that list in the garbage can along
with all the powers of attorney.
