Thought I would post an excerpt of a correspondence I received from the fine people at the IRS.
Scenario: in 2008, I sold some stock and apparently did not turn in the sale or send in paperwork of the purchases. (why it happened is another story). This stuff is always reported, so the IRS was on top of things and immediately sent me a letter on the matter 1 month ago, along with a bill, which had grew to 14k because of how they compute interest.
So, my CPA sent them updated tax forms, including both the sell and purchase.. My tax liability was 1100.00, so I sent the check too. Case closed. I didn't owe such a figure.
This is the excerpt:
Thank you for your correspondence received dec 28, 2011.
WE WILL CONTACT YOU AGAIN WITHIN 60 DAYS TO LET YOU KNOW WHAT ACTION WE ARE TAKING. If you owe any additional tax, you should consider paying it now, because the law requires us to charge interest on unpaid tax from the due date of the return to the date you pay the tax in full.
So I filed the amended return, send in the money and this is the type of intimidating response I receive. At least I found it to be used as intimidation. You'd think mistake corrected, all are happy. The IRS and govt in general have grown to the point they show no fear or respect to the people.