The end of just one chapter in the saga of my legal problems is drawing near. I’ve been given a date for my collection due process hearing concerning the 750k I don’t owe the IRS though for bureaucratic reasons too mind-boggling to comprehend for my brain, nobody at the agency can see the obvious (that I do not owe that money).
In the communication I was given a number and name I’m free to call anytime up until the cdp hearing date. Of course, I did just that to see if I could finally once and for all rid myself of this migraine. And this is how it went:
Within a few seconds of me identifying myself, Ms. Smith (not her real name) had my paperwork in front of her (or actually some of it) and stated that I didn’t owe the 750 k the agency had initially requested but was responsible for over a year in interest payments and penalties due because I had not submitted the agreed upon monies in a timely fashion. But here’s the rub:
As part of my plea deal, I paid a huge criminal fine (which was what the Daily News reported) and was assessed additional civil taxes of 750 k. The paperwork cited that as of 5/31/15, no additional interest or penalties would be assessed pursuant to the case and plea deal – something I had insisted my lawyers negotiate (had I not they wouldn’t have).
The problem the IRS has is that pursuant to that agreement, that money (which was apparently being held by the Eastern District though it was actually IRS agents who came to my door) was not forwarded in a timely fashion by yours truly and thus, I owe about 50k in further interest and penalties. But they were in fact, holding the money themselves and had been for four years!
Upon hearing this explanation and assessment by Ms. Smith, I was rendered virtually apoplectic! Slowly, I explained to her that in conjunction with her own agency, the Eastern District and IRS had seized 92% of my life savings over 4 years before…had not paid me one cent interest on the portion that was to be returned to me…and then after agreeing to a plea deal in September of 2016, finally forwarded the 750k to the IRS (which bear in mind they’d been working with all along) in late April 2017. The reason the IRS hadn’t been paid in a timely manner fell squarely with the Eastern District and the IRS themselves who were part of the initiative. The Fed simply hadn’t made an intramural transfer of the money! How was I to be held responsible for their own tardiness? Un-be-fucking-lievable! In essence…they hold my money…make interest on it…and then blame me for not paying them in a timely fashion when they had the money all along. Waaay too rich for my blood.
As preposterous and obvious as all this is, I’ve decided to roll out the big guns for the cdp hearing (which means pay the $500/hour to one of my lawyers) and have instructed him to ask for an interest payment on the 4 years my money was being held – and to make sure a small portion of the huge tax bill I paid rightfully goes into my social security account! Given the circumstances, I have no confidence that that will happen unless he pushes the agency to do the right and lawful thing. Will the criminal fine count? No way. This entire process has taught me that. But the 750 k civil forfeiture? That’s a tax payment that by law should count toward my social security.
Despite, there does seem to be a light at the end of the tunnel. The Federal government certainly got its pound of flesh (65% of the seized money). I would think they’d be satisfied with their take. I busted 80 to 100 hours per week for 15 years. And they ended up with 10 years of the money. Pretty good deal for the taxpayer all in all.