Recent mistakes by both the IRS and FTB have caused my clients some recent problems. I thought I would mention them for any others who have experienced these same problems.
- For taxpayers who were paying their tax debts to the IRS through direct debit from their bank account: in February, due to an IRS computer error, payments were not made in roughly 250,000 accounts. The IRS immediately sent out default letters to these taxpayers and charged interest and penalties for failure to pay. The IRS has since discovered the error and says that letters were mailed to each affected taxpayer and corrections have been made to their accounts. If you are having difficulty with this or any other collection problem with the IRS, we can help.
- The FTB had a computer problem matching state withholding from employees wages and as a result, many California taxpayers did not get their complete CA refund. FTB sent out Form 4743D requesting additional information from these taxpayers. There is a phone number you can call on that notice. If you were affected by this and have any questions on how to proceed, give us a call and we can help.