Want to save this page for later?


The Daily

Woman Sues IRS Over $3.48

Chris Gaetano
Published Date:
Apr 4, 2016
Photo taken by Chris GaetanoA taxpayer from Texas took the IRS to court over $3.48 in interest she said the service owes her for overpayment, according to Roth and Company's Tax Roundup.

The plaintiff requested a filing extension from the IRS in April 2008 and included a $16,000 check. When she completed her filing in October, she found she only owed $10,110, and claimed a $6,789 overpayment attributed to the $16,000 check she sent, plus $900 in refundable credits. She elected to credit $5,889 to her 2008 estimated taxes, and requested the $900 be refunded to her. 

Then, in November 2008, she was assessed $36.53 in interest, plus a $50.55 failure to pay penalty against her 2007 tax year because the $16,000 check was dated May 7, 2008. The IRS, when notified of the mistake, credited her the $87.08 a year later. 

She took the IRS to court saying she was owed a year's interest on that $87.08, amounting to $3.48. 

"One might find a dispute of such a small amount trivial, but petitioner is very earnest," said the decision. The court denied her claim, saying that the IRS already gave her the money, crediting it against the following year's tax liability. 

"[N]o interest on that amount is included in the IRS computation. Finally, the petitioner was not disadvantaged by the treatment of the $87.08 ultimately provided," said the decision.