Has this ever happened to you? I recently received a letter from the Idaho State Tax Commission. It is said one can’t fight the IRS, and this agency is the state-level equivalent, but in this case, it’s a matter of principle.
Earlier this year, I diligently filled out my income tax forms and on April 15 wrote checks, numbers 2180 and 2181, respectively (I have the duplicates) to both the State of Idaho and Uncle Sam. I carefully put everything in the appropriate envelopes, and sent them off through the U.S. Mail.
The recent Tax Commission letter claims I owe the State of Idaho $102 plus 71 cents worth of interest. It appears my tax forms made it there but my check was lost somewhere during processing.
Okay. Mistakes sometimes happen. Although I cannot say that I am eager, I am willing to again pay my remaining $102 tax obligation to the State. What I am not willing to do is pay them interest for an error that occurred on their end.
If the Idaho State Tax Commission wants to come after me for the 71 cents interest that is due only because they lost my check, I say, “Let ‘em.” If enough people take similar action, refusing to pay the interest penalty under similar circumstances, perhaps the number of such problems will be reduced.