SkyHog
Touchdown! Greaser!
- Joined
- Feb 23, 2005
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- Castle Rock, CO
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Everything Offends Me
This was actually more fun than it should have been. In 2007, I neglected to file a tax return for the state of New Mexico because I had determined that year that I would get a refund for like $5. It was not worth my time to even bother.
Well, last year, the New Mexico Taxation and Revenue Department told me I was going to be audited for failure to file. I spoke on the phone with the gentleman and explained why I did not file, and he told me he would drop it.
A few months ago, I received notice that the state had performed an audit and had completed their investigation and determined that I owed them $469 in taxes, plus a late payment fee and interest for the last 4 years. Oh, and on top of that, there was an amnesty program running last year for 2007, and had I admitted fault, they would have waived any penalties and let it go. But - remember, last year, I was told that there was no problem and I was good to go. They had no record of that.
Well, unfortunately, I don't have records from 2007. 2007 was a wacky year, I moved to Lake Havasu City on 1/1/2007, and moved back to Albuquerque on 7/31/2007. I was also 24 years old at that time, so I certainly lacked the good knowledge to keep records. So I had the pleasure of trying to find as much information as I could to prove my innocence.
Step 1 - Call NM TRD and explain that most of my income was not made in New Mexico that year. Their response: "You had 30 days to comply from the date in the letter. No exceptions." I think that first lady called me a deadbeat too. Awesome.
Step 2 - Find my W2 from Arizona. I thought this was going to be the hard part, but it turns out my old employer (whom many of you know) was VERY helpful in getting this information to be quickly. Yeehaw.
Step 3 - Get information from the IRS to show total income.
Step 4 - Get my W2 from employer for the remainder of the year. This was the longest part of the process.
Ok - so I got that information, called NM TRD and explained that I was getting the information as quickly as I could, and would they please allow me the time to build a defense? "No. And, you must get your official response to us in the next 3 days or you will have admitted guilt." WHAT??
Ok - so I had to take the first step - officially fighting their ruling. At this point, I had a lot of information, but not enough to fax to their call center to prove my innocence. I should note - they repeatedly told me that they showed that I had paid $0 in taxes to the state of New Mexico.
I drafted the following letter:
I then received a phone call that said my letter and the accompanying proof was not enough to establish that I did not owe them the money that they claimed I owed. I was also told, on this call, that they would be placing a lean against anything they could within a month, and my time had expired to continue fighting the matter, since I had not provided proof that countered their evidence that I had not paid any tax to the state in 2007.
Today, I received my W2 from T-Mobile. Guess how much tax I paid to the state of NM in 2007... $474. Those sneaky bastards - they had to know that, because it was already paid to them. They're trying to extort more money from me, and guessing from the income level at the time, I presume they thought I was stupid enough to roll over.
So I drafted another letter and mailed it today:
Sigh.
Well, last year, the New Mexico Taxation and Revenue Department told me I was going to be audited for failure to file. I spoke on the phone with the gentleman and explained why I did not file, and he told me he would drop it.
A few months ago, I received notice that the state had performed an audit and had completed their investigation and determined that I owed them $469 in taxes, plus a late payment fee and interest for the last 4 years. Oh, and on top of that, there was an amnesty program running last year for 2007, and had I admitted fault, they would have waived any penalties and let it go. But - remember, last year, I was told that there was no problem and I was good to go. They had no record of that.
Well, unfortunately, I don't have records from 2007. 2007 was a wacky year, I moved to Lake Havasu City on 1/1/2007, and moved back to Albuquerque on 7/31/2007. I was also 24 years old at that time, so I certainly lacked the good knowledge to keep records. So I had the pleasure of trying to find as much information as I could to prove my innocence.
Step 1 - Call NM TRD and explain that most of my income was not made in New Mexico that year. Their response: "You had 30 days to comply from the date in the letter. No exceptions." I think that first lady called me a deadbeat too. Awesome.
Step 2 - Find my W2 from Arizona. I thought this was going to be the hard part, but it turns out my old employer (whom many of you know) was VERY helpful in getting this information to be quickly. Yeehaw.
Step 3 - Get information from the IRS to show total income.
Step 4 - Get my W2 from employer for the remainder of the year. This was the longest part of the process.
Ok - so I got that information, called NM TRD and explained that I was getting the information as quickly as I could, and would they please allow me the time to build a defense? "No. And, you must get your official response to us in the next 3 days or you will have admitted guilt." WHAT??
Ok - so I had to take the first step - officially fighting their ruling. At this point, I had a lot of information, but not enough to fax to their call center to prove my innocence. I should note - they repeatedly told me that they showed that I had paid $0 in taxes to the state of New Mexico.
I drafted the following letter:
Dear Ms. Padilla:
I received a letter and subsequent phone calls about a failure to file a New Mexico State Tax Return for 2007. I am in the middle of collecting more information about this matter, but I wanted to present what information I currently have to show good faith in trying to comply.
Unfortunately, since I no longer live in New Mexico, it is difficult to gather the required information as quickly as you are asking. I have, however, collected the following information:
My total income for 2007 was $29,335.00. I lived in Lake Havasu City, AZ from January 1st through July 20th. During this time, I earned a total of $16,857.81 in Arizona income. I have attached my W2 from this timeframe to show this total. I do not yet have the W2 from the remaining 4 months of income, earned in New Mexico, but using deductive reasoning, it stands to assume that I earned a total of $12,477.19 in New Mexico between August and December. This works out to 57% of my income being earned in Arizona and 43% of my income being earned in New Mexico for 2007.
According to my 2007 1040, I had an Adjusted Gross Income of $25,623.00. I have attached two statements from the IRS showing this total amount. Again, using deductive reasoning above, my taxable income for New Mexico in 2007 would have been $11,017.89 ($25,623 * 43%).
According to the income tax rate for 2007 in New Mexico, this would be a total taxable liability of $270.34 ($269.50 + ($17.89 * 4.7%)).
The question comes down to the W2 I am awaiting from my employer, T-Mobile, for the remaining time period I worked in New Mexico. I know that I had state tax withheld from my paycheck, but I do not know how much. I hope that you may have this information, but I will follow up when I get this information as soon as possible. It is my suspicion that New Mexico actually owes me a refund (which is why I did not submit my taxes that year to begin with), but I do not intend to collect it.
I have been asked to provide a copy of my Arizona State tax return, but I cannot supply this as I am not sure if I filed one in 2007. This is, in fact, an oversight, but not one that falls within the jurisdiction of New Mexico Taxation and Revenue Department. I hope that the evidence I am providing now, along with the additional information I am awaiting from T-Mobile will show that the taxable liability for 2007 is much less than your records are showing.
Please contact me to let me know if there is anything I can do to further assist in this matter.
I then received a phone call that said my letter and the accompanying proof was not enough to establish that I did not owe them the money that they claimed I owed. I was also told, on this call, that they would be placing a lean against anything they could within a month, and my time had expired to continue fighting the matter, since I had not provided proof that countered their evidence that I had not paid any tax to the state in 2007.
Today, I received my W2 from T-Mobile. Guess how much tax I paid to the state of NM in 2007... $474. Those sneaky bastards - they had to know that, because it was already paid to them. They're trying to extort more money from me, and guessing from the income level at the time, I presume they thought I was stupid enough to roll over.
So I drafted another letter and mailed it today:
I believe we are at check mate. I don't know what their next move will be, but I hope at this point that they will realize they can't bully me into paying more money.Dear Ms. Padilla:
This is a follow up to a previous letter I have sent along to New Mexico TRD.
Please see attached, my W2 from T-Mobile – the sole source of income from New Mexico for the year 2007. This is a follow up to the previous letter I sent last week. I used deductive reasoning to assume I earned a total of $12,477.19. It turns out I actually earned a total of $12,477.40. This means my previous estimate of $270.34 of taxes due to the state of New Mexico, based upon my Adjusted Gross Income, is correct, and is the amount that would be due to New Mexico Taxation and Revenue Department.
But – as you can see on the W2 I am attaching, I have paid $473.57. That means I have overpaid taxes and am actually due a refund. For the record, you claim I owe $469, which happens to be less than the money you have already been paid.
I presume this means at this point that the State of New Mexico will be dropping this frivolous, meritless harassment immediately. The State of New Mexico should keep better records, as you had already been paid more than you were asking me to pay to begin with. It is unacceptable to claim that you have “completed an investigation” into a matter in which had you even taken a look at the information you already had in your possession; you could have seen that you had already been overpaid.
Your extortion attempt is predictable and very telling. Please let me know what the next step is to avoid continued harassment.
Sigh.