Great Moments from the IRS

Everyone's favorite bureaucracy really stepped in it recently, when they harassed a car wash owner for an upaid tax bill of (drumroll please) four cents. But since we're talking about the Internal Revenue Service, the bureaucrats also tacked on an extra $200 to the bill - even though the owner had never been notified of any unpaid balance and even had a letter from the IRS stating that he was completely up to date with his obligations. The Sacramento Bee reports:

It was every businessperson's nightmare. Arriving at Harv's Metro Car Wash in midtown Wednesday afternoon were two dark-suited IRS agents demanding payment of delinquent taxes. "They were deadly serious, very aggressive, very condescending," says Harv's owner, Aaron Zeff. The really odd part of this: The letter that was hand-delivered to Zeff's on-site manager showed the amount of money owed to the feds was ... 4 cents. Inexplicably, penalties and taxes accruing on the debt – stemming from the 2006 tax year – were listed as $202.31, leaving Harv's with an obligation of $202.35. Zeff...finds the situation a bit comical. "It's hilarious," he says, "that two people hopped in a car and came down here for just 4 cents. I think (the IRS) may have a problem with priorities." Now he's trying to figure out how penalties and interest could climb so high on such a small debt. He says he's never been told he owes any taxes or that he's ever incurred any late-payment penalties in the four years he's owned Harv's. In fact, he provided us with an Oct. 22, 2009, letter from the IRS that states Harv's "has filed all required returns and addressed any balances due."