Screwed by the state and now a new plan of action. (Update!!)

[cudadave72]

Not only have I been super busy keeping up with my baby twins (and loving every minute of it) I now have another wrench thrown at me that has put me further behind on my plans with the Cuda. As some member know here that I own a general auto repair shop and here recently I discovered that my billing system at work was not putting sales tax on certain items over the last two years. Since I didn't want this to haunt me down the road I went to the state sales tax office and told them what I had found. No problem the agent told me. She said to just go back and amend those returns and I could make a payment plan to catch that up along with my current monthy returns. After figuring it up and the penilties added I owed a total of $5800.00 (keep in mind I pay an average of 1500 to 2000 a month in sales and use tax) over the past two years. No big deal she told me and a payment plan was devised and I was on my way. Well I get a credit report alert email the other day and low and behold the state put a lean on my property and to top that killed my near perfect credit score by almost a 100 points!!!!!!!!!!!!!!!! I called the agent and asked what the hell was going on and was informed that anytime a tax payer owes over 5k they automatically place a lean on property and since I am a sole proprietor that meant my personal property in the form of my house!!!

[Katfish]

Sometimes you can't win even when trying to do the right thing.  Your credit score will come back quickly though.

[brads70]

Wow that's just pathetic!

[CHL2T]

Dept of revenue is hardcore like that, even worse than the irs. I currently have a lien against my house from the irs, and they even told me there would be NO lien if I set up a payment plan.... all lies and of course they are not responsible for the erronious information. 

[Moparal]

That really sucks.  I was a few months past due in 1997 and 2 months in 98. penalties kick my but. I paid them off in 2006. about 3800 bucks. Im glad I didnt get the 5k screwin you did.  I hope your hurdle gets behind you asap. Best to you

[ChallengerHK]

I would consider contacting a tax attorney, if nor no other reason than to try to salvage your credit score.

[the_engineers]

I agree. They will hose you every step of the way.

[cudadave72]

I got cut short on finishing my post earlier but long story short I have decided that since my babies are only 6 months old and are the focus of most of my time and the fact I want this crap off my record as soon as possible I have decided to sell the 416 stroker out of the Cuda. This way I can pay off the tax dept and start the restoration process on my car as money permits. This will allow me to fix a few rust issues and faulty prior body work that has been nagging me since day one. Besides I have been planning to build a new stroker motor using a resto block and Indy heads to help plant my car deep in the tens (quarter mile). Maybe there is a pot of gold at the end of this mess. Anyone interested I have posted it for sale in the for sale section.

[cj]

Dave,  try writing a letter explaining how the error occured and explain the steps you've take to correct the error so it never happens again, say how sorry you are and ask to have the penalty waived.  You owe what you owe but the penalty and interest on it can be waived.  I've done it twice, 2 different clients, and both times the penalty was waived.  Saved about $1000 each time.   Write a letter, beg for mercy, it's worth a try.

[Topcat]

IRS just looks at us all like were numbers. No logic, insight, sympathy, or understanding.

Hope you can sort this out and come out shining again. Good luck.

[lemming303]

What a load of crap! You try to be honest and you get screwed. That really sucks Dave. Hopefully it works out!

[The Cuda Guy]

Dave,  try writing a letter explaining how the error occured and explain the steps you've take to correct the error so it never happens again, say how sorry you are and ask to have the penalty waived.  You owe what you owe but the penalty and interest on it can be waived.  I've done it twice, 2 different clients, and both times the penalty was waived.  Saved about $1000 each time.   Write a letter, beg for mercy, it's worth a try.

I completely agree with this, if there is one thing I have learned being a govt. employee, there is always an appeals process or a waiver or something to correct a mistake, but its subjective at times so you have to be convinving.  Make sure you put in there that you found a mistake and wanted to make it right and you got pentalized for doing the right thing when you could have just kept your mouth shut and let the govt figure out, which they may or may not have.  I have never been in this position, but speaking from a govt employee point of view I think you can appeal to the higher authority.  Good luck bro, sorry you have to sell you engine. 

Don

[Super Blue 72]

Sorry to hear of your troubles, Dave.    Would have been nice if the lady told you about the lien in the first place!    Hope it all gets sorted out!

[torredcuda]

Well I do feel for you but really you can`t blame the state for you not paying taxes properly.Although it would have been nice of them to tell you about the lien it is your responsibility to know the laws,not thiers to tell you.

[whitesatinmopar]

Sorry to hear the crappy news Dave, and I agree a nice letter asking that the penality fee be removed under the circumstances makes logic, it sure can't really hurt.

Jeff, it appears his billing sofware at his business was the cause of the mistake, not ignorance of the payment laws, otherwise Dave would not have caught the mistake himself.