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The envelope had the words “Internal Revenue Service” printed on the
outside. Oh no, Vaughn thought, this could be bad news. It was bad news. IRS had
determined that Vaughn owed $963, plus $88 interest, from two years ago. They
had disallowed a deduction for two reasons. One, his adjusted gross income that
year was more than $40,000, and two, he was covered by an employer retirement
plan. Therefore, said IRS, he was not allowed the deduction he had taken for his
individual retirement account.
IRS sent him six pages of explanations and instructions. IRS included a
returnable form with an "Agree" box and a "Disagree" box. If he checked Agree,
he must pay the full amount. If he checked Disagree, he must send documentation
supporting the reasons for his disagreement. If his documentation was correct,
he would owe nothing.
He called the IRS 800 number just to make sure he had read the instructions
correctly. An agent told him to simply send a check with the full amount whether
he agreed or disagreed. If he disagreed but his documentation was correct, IRS
would return the full amount of his check within eight weeks.
“Don’t believe that agent. For now, just send them the documentation,”
advised Vaughn's brother later that day. “Make IRS wait for the money. It’s your
money, not theirs.” |
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