Posted on Thu, Oct. 8, 2009
Dear Harry: I have an ongoing problem with our friends at the IRS. This organization erroneously reduced my August pension check and applied the amount to an old outstanding balance. I was told that they had no reason for taking the money since I have an installment agreement to pay my old balance, and I have never missed or been late on a payment. I have several times, at different IRS levels, requested a refund, but have been denied. They are claiming that even though IRS was in error, there is no way they can refund the money they took. I find this to be absurd. If that is the case, IRS can attack my check at will, and I would have no recourse. Such practices should be absolutely prohibited. What can I do to prevent them from making such errors in the future? I have to do this in order to keep my own finances in some sort of order.
What Harry says: A number of years ago, I was a member of the IRS commissioner's advisory group. This exact situation came up for discussion, and the commissioner assured us that it would be addressed and corrections would be made. There was at least one subsequent situation in which corrections were made. I agree that it is totally wrong for IRS to do this and fail to correct it even by reducing your current payments until the amount of the error is absorbed. Contact the Taxpayer Advocate's office at 888-777-4778. They should be able to work things out favorably.
Write Harry Gross c/o the Daily News, 400 N. Broad St., Philadelphia, PA 19130. Harry urges all his readers to give blood - contact the American Red Cross at 800-GIVE LIFE.