IRS garnishment error

[FlaRiptide]

I had just amended my wife's 2004 tax return a couple of months ago. The amended return, if accepted by the IRS, would have discharged all tax due.
We were married in 2007 and thus I had no personal liability for this tax return. We have not received any correspondence from the IRS since the amended return was sent.

Two weeks ago my employer received a garnishment notice for my wife's 2004 tax return!! My employer simply replied to the IRS that my wife was not employed with them and has never been employed with them.

I am wondering how and why in the world did the IRS make such a stupid error. This was not only embarrassing to me but could have been potentially damaging to my career since I hold a financial management position.

My wife called the IRS and the representative offered no explanation and said that no one had yet been assigned to her case regarding the amended return.

I realize you can't seriously fight the IRS, yet I feel this is GROSS negligence on their part. Is this type of behavior common? Should I consider any action of some sort? Comments?

 

[army judge]

She must gave had a lingering six year tax obligation. I'm glad you fixed it. However, the lien is for the unpaid taxes you eliminated. I'd let it alone, if you want your amended return to be accepted as filed. Otherwise, you rile those creeps, it's no telling what other problems they'll find. Your wife is careless, if I were you, I'd do her taxes to keep her out of trouble.


Sent from my iPhone using Tapatalk

 

[Patricia_Young]

If you're letting this embarrass you, IMHO, you have too thin a skin. You have no legal cause of action.

Relative to "how they could make such a mistake?" manure occureth.

 

[FlaRiptide]

Army,

The 2004 tax debt is due to an early distribution penalty on a withdrawal made fraudulantly without her knowledge. (I believe I've mentioned previously to you details eluding to all that).

Patricia,

I've never had a garnishment, lien, or anything like that in my life. Thus, yes it is embarrassing and I'v got as thick skin as it comes!! Luckily my employer and I have an excellent relationship. Though I can easily imagine that this could cause concern in an employer's viewpoint. If a CFO employee can't manage their own finances, how can they manage a corporation's?

Anyhow, I was more or less just curious if this type of sloppy IRS work is common. I've never been faced with anything as obviously very gross negligence. The IRS has ALL records of who works where due to the W2s, 940s, 941s, etc.. How in the world they would send a garnishment notice to MY employer for my WIFE's taxes is beyond comprehension. I compare it to prescribing a patient medication based upon the wrong patient's medical chart. My comparison example would obviously lead to a medical malpractice suit.

Not that I would pursue anything, I was more interested in hearing what a tax professional thinks about this. Has anyone had this happen before? I doubt this is a simple computer mishap. I imagine it took a truly stupid individual to put through something of this sort.

I'm not perfect, yet I don't make errors of this magnitude.

 

[Patricia_Young]

Honestly, I've had very good luck with the IRS. And when they do screw up, I've always had very helpful representatives to help fix it. Much more than most other agencies.

Very simple with the company President. It was a mistake. Your president probably knows you weren't married then and you could not legally be responsible for her tax debt for that period. Or tell him. If you have that good of a relationship, he'll believe you.