IrReSponsible

17 April:  I mail six income tax returns (federal and state for: me, her, and our LLC).

29 June:  My refund arrives.

11 July:  Her refund arrives.

2 August:  We receive a letter from the IRS explaining that our LLC return was not mailed on time and, consequently, we owe $195.00 per person/per late month/plus interest (which, the letter alleges, equals $1,695.00).

3 August:  I surmise our LLC's tax return got delayed in the mail and try to do the math but nomatterwhat I fail to reverse-compute the numbers.  Our LLC's total income for 2011 was $3,950.00.  I can't figure out how we could owe more than half the money we made.  No...the comma isn't in the wrong place; we grossed slightly less than four thousand dollars last year.

6 August:  I learn that LLC late penalty fines are legally this exorbitant.  Because of the intrinsic workings of partnership LLC's (normally they report no income because profits are divided by the partners who report the income on their individual tax returns) the IRS can't penalize LLC's like other companies and individuals (levy late penalties based on amount owed plus interest).

7 August:  Long phone call with IRS.
          "Our documentation shows your LLC did not file its tax return on time."
          "The tax return was mailed at the same time as our personal ones, was the LLC tax return due prior to April 17th?"
          "It was due on April 15th.  Our records show it wasn't posted by that date."
          "I was given to understand by the IRS website as well as most major news outlets that the due date was actually April 17th this year, bec..."
          "All tax returns are due on April 15th.  We show yours wasn't posted on that date."
          "Because that was a Sunday.  I mailed it on April 17th.  Which I believe was the due date."
          "Our records show it wasn't posted on time."
          "OK.  Wow.  I guess I need to come at this from a different perspective.  What's the postmarked date on the envelope?"
          (pause)
          "On my LLC's tax... er... which contained my LLC's tax return?"
          (pause)
          "Hello?  Ma'am?"
          "If you desire to refute the amount you owe, late fees, and/or interest due, the IRS has sixty days to locate any and all pertinent documents.  However, interest and penalty months will continue to accrue during this period.  If you pay the amount due, by credit card, at this time, and it's later determined any or all of the amount wasn't due, it'll be refunded."
          "You don't have the envelope in front of you?"
          (pause)
          "At this time?"
          (pause)
          "the IRS has sixty days to.."
          "I feel like I'm talking to a computer.  Are you a computer?"
          "No sir.  I'm explaining how to stop the aforementioned penalties from continuing to accrue."
          "If you're a computer and I ask if you are a computer, you're legally required to say yes."
          "That's very funny, sir.  You can mail a check.  Upon receipt, the penalties would..."   
          "I don't believe I owe penalties, fines, or interest.  I mailed the tax return on time."
          "In that case, you are refuting the..."
          "Yes.  Please.  I'm refuting."
          "And you're not interested in paying the..."
          "No.  Thank you.  Not interested in that."
          "And you understand about the interest and penalties continuing during the..."
          "Yup.  Completely understand."
          "Very good.  Thank you, sir.  You will hear from the IRS by US mail no later than sixty days from today's date after a full examina..."
          "Which is what?"
          "Excuse me, sir?"
          "Today's date.  What is it?"
          (pause)
          "You said From Today's Date and I was wondering what today's date was."
          (pause)
          "So I could compute when the sixty days would be up."
          "The seventh of August is today's date."
          "Thank you."
          "Is there anything else I can help you with today?"
          "Are those sixty days, calendar days or business days?"
          "Ummm.  Days.  Calendar days."
          "Thanks."

          I'm still not sure if I spoke with a person or a computer at the IRS call center.  She said ummm there at the end, which could have been programmed faux-humanity, but I think she was just a lackey reading from a script who was already mentally hanging up and forgot to hit the mute button when I asked one more parting question.

          We got a letter in the US mail today from the Internal Revenue Service.

          ...After a review of your LLC's tax documents and related paperwork it was determined your tax return was posted on time.  All previously levied fines, penalties, and interest amounts have been rescinded...

          I should feel relieved.  I don't.  I am confused...about the whole thing.  Was it a scam?  A IRS-run old-school come-along?  Hummm.