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Jun. 9th, 2009 07:27 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
miko2So I owed the IRS money on my 2007 tax form. I cashed five government bonds that year and forgot to report them. The problem was that my Credit Union reported the interest to the IRS, and then Bank of America (who I don't have an account with, but back then my Credit Union still worked with) also reported the interest to the IRS.
I was confused at first because the reported amounts were $944.00 interest each. But I cashed the bonds for nearly $1500.00, and they were purchased at $100.00 each. I didn't owe any tax on the initial price of the bonds, so instead pf paying taxed on the $1444.00 that I cashed them for, I owed tax on the interest. $944.00.
Anyway. I called my Credit Union. They said this had happened once before with BoA, and it's one of the resons they no longer did business with them. They contacted BoA and eventually were told that it was being investigated and could take up to 10 days for a resolution.
After 10 days I recieved a piece of paper in the mail from BoA saying I owed taxes on $944.00 interest. Yeah, that solved nothing.
I called my Credit Union. They called BoA. Over the next several days the contact at BoA reported that they had "escalated the problem" since it was supposed to be resolved in 10 days. They "escalated" the problem again. Then they escalated it to managerial level. After that they escalated it 2-3 more times, by which point I figured the President of the bank was working on my problem personally, probably a bad thing given their performance in the last year.
I was supposed to pay by June 10th. Finally last Friday I was told that BoA was FedEXing the corrected 1099-INT form to my Credit Union. So yesterday I got the call that they had it. Did they want me to mail it to them? No, I wanted to go get it myself as soon as possible.
Except that, after work, I forgot. I went for a nice long hour walk, then drove home. As I entered my apartment, I mentally went over the things I needed to do -- call the Apt Manager about the waste disposal, pay my back taxes by Wednesday... oh wait...
It was 4:30 PM. I made it up to my bank in Renton/Kent before 5:00 PM. ^_^
So... I'm not really clear on how much money I actually owe. Probably not exactly half, but since I didn't have the forms handy to redo my tax form, I just cut the taxes due in half and paid the full 26.00 interest, figuring that's probably slightly more than I owe or within a couple of dollars. I filled out the forms, made copies, included the corrected BoA 1099-INT and a note of explanation, and it's all sealed and ready to mail.
I was confused at first because the reported amounts were $944.00 interest each. But I cashed the bonds for nearly $1500.00, and they were purchased at $100.00 each. I didn't owe any tax on the initial price of the bonds, so instead pf paying taxed on the $1444.00 that I cashed them for, I owed tax on the interest. $944.00.
Anyway. I called my Credit Union. They said this had happened once before with BoA, and it's one of the resons they no longer did business with them. They contacted BoA and eventually were told that it was being investigated and could take up to 10 days for a resolution.
After 10 days I recieved a piece of paper in the mail from BoA saying I owed taxes on $944.00 interest. Yeah, that solved nothing.
I called my Credit Union. They called BoA. Over the next several days the contact at BoA reported that they had "escalated the problem" since it was supposed to be resolved in 10 days. They "escalated" the problem again. Then they escalated it to managerial level. After that they escalated it 2-3 more times, by which point I figured the President of the bank was working on my problem personally, probably a bad thing given their performance in the last year.
I was supposed to pay by June 10th. Finally last Friday I was told that BoA was FedEXing the corrected 1099-INT form to my Credit Union. So yesterday I got the call that they had it. Did they want me to mail it to them? No, I wanted to go get it myself as soon as possible.
Except that, after work, I forgot. I went for a nice long hour walk, then drove home. As I entered my apartment, I mentally went over the things I needed to do -- call the Apt Manager about the waste disposal, pay my back taxes by Wednesday... oh wait...
It was 4:30 PM. I made it up to my bank in Renton/Kent before 5:00 PM. ^_^
So... I'm not really clear on how much money I actually owe. Probably not exactly half, but since I didn't have the forms handy to redo my tax form, I just cut the taxes due in half and paid the full 26.00 interest, figuring that's probably slightly more than I owe or within a couple of dollars. I filled out the forms, made copies, included the corrected BoA 1099-INT and a note of explanation, and it's all sealed and ready to mail.
