The IRS is facing backlash after erroneously penalizing taxpayer Renee Kaspar for allegedly paying her tax bill late. Despite having a carbon copy of a check dated April 18, 2023, which was the filing deadline for the 2022 tax year, the IRS insisted that the check was cashed a full month later, resulting in nearly $200 in penalties and interest. Kaspar argues that it is unfair for her to be penalized for the IRS’s mistake and believes that the government is holding her responsible for their own error. She expressed anger at the response from the IRS and highlighted the discrepancy between how the government treats hardworking citizens versus wealthy individuals who evade taxes.
Kaspar’s case is complicated by the fact that the IRS converted her check into an electronic transaction, meaning she does not have a canceled check as evidence. When taxpayers pay by check, the IRS authorizes a one-time electronic fund transfer or processes the payment as a check transaction. However, the physical documents and payment checks are sent to a bank lockbox managed by a contractor for the IRS. It is the contractor that completes the deposit and sends the paperwork to the IRS. In Kaspar’s case, the bank that processes the checks uses the ACH system to convert them into electronic transactions, leaving her with no physical or digital proof of when the check was cashed. She only has her bank statement and the carbon copy of the check to support her claim that she paid on time.
Despite paying the penalties and fees to avoid further charges, Kaspar has not given up. She reached out to her congressman, Rep. Josh Gottheimer, in the hope of getting the IRS’s attention. Gottheimer’s office contacted the IRS but was told that proof of when Kaspar’s payment was mailed was required. Unfortunately, Kaspar cannot provide this proof as she did not send the check via certified mail. The lack of evidence due to the check being processed as an ACH payment raises concerns about the accountability of the IRS and the burden placed on taxpayers to prove their innocence. Kaspar believes it is crucial to fight back against the IRS’s unfair practices and not acquiesce to their demands.
