1990 State Tax Woes

Wednesday, September 3, 2008

I have a business name (a DBA) that is doing no business, but New York still wants me to file a sales tax report every year. All it says is that I made no sales and I collected no sales tax. It has said that for about five years now. Well, Angel, the CPA, didn't send the forms in on time this year, so NYS has billed me for $50 in sales tax, "based on the average previous taxes paid". Um, the average of 0 + 0 + 0 + 0 + 0 is 50?

I complained to Piper and Angel, it was supposed to happen automatically, and the Angel made some calls, and he says it's all taken care of, NYS has agreed to forgive the $50.

Unfortunately, NYS doesn't seem to be aware of that, and is continuing to bill me, and the latest letter is threatening legal action.

I talked with Piper about it this morning. I told him that I have no doubt that the Angel made the call. But it seems like the state tax people will say just about anything, but if they don't feel like making the note in the file, or following up, they don't.

The year after Jay died, my extimated NYS income tax payments were creditied to Jay's account, even though the forms and checks I sent had my SS# and name, which was different from Jay's. There was absolutely nothing to connect my payments to Jay, except for the fact that we had previously filed jointly. So at the end of the year, when I got the statement saying that I had made no estimated tax payments, I freaked. They had all been credited to Jay. Who was dead. And whose name and number were on nothing I had sent.

It took eight or so calls to figure out where the money was, and to get it transferred to my SS#. At first, they tried to refuse to move the money from Jay's account to mine, because he hadn't given them permission to do so. I calmly pointed out that I hadn't given permission to have my payments credited to his account, and besides, HE'S DEAD!!!!!

Believe it or not, the same thing happened the next year. My name and SS# on the form and on the checks. They again arbitrarily credited my payments to Jay.

I was telling Piper about this, and he told me a worse story.

He owed an additional $800 on his 2007 NYS income tax. Since his 1040 had been electronically filed, he sent a check separately. He received a bill from the state for $500 owed on the 2007 taxes. He called and told them he'd paid $800, and where did they get the $500 number, anyway? The clerk said she'd check and put him on hold. When she came back, she said no, he owed $500, and there was no evidence that he'd sent any $800 payment.

He pointed out that the check had been cashed by NYS. She asked that he send a copy of the front and back of the $800 check.

He did so.

And the state used the info on the copy of the check which he had sent to prove he'd paid, to electronically debit his bank account for $500. He's fighting it. He's into his fifth or so call now.

These people scare me.
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