Most Shared

TroubleShooter

TroubleShooter

 
text size

Tax Man Comes A Dozen Years Later

Updated: Friday, September 13 2013, 01:55 PM EDT
LOVELAND, Oh: (Howard Ain) How long do you have to keep your tax records? 
    
The Internal Revenue Service recommends about seven years for federal taxes. But a local woman was surprised to find it's a lot longer for your state taxes.

Local 12 TroubleShooter Howard Ain shows us what happened when a bill collector told her she owed thousands of dollars in penalties. 

Jeanine Schmidt, of Loveland, was contacted by a bill collector one day telling her she owed four thousand dollars, from a business she owned years ago.

Jeanine Schmidt: "It was a home-based transcription business.  Basically, that's what it was, transcribed medical records for doctors, patients."

Schmidt's company, JMS Medical Services, operated for 10 years, until 2003.  The bill collector told her...

"I owe 4-thousand dollars for a delinquent franchise fee from the tax year 2001. He said this was a franchise fee of 50 dollars that was delinquent from 2001. This was fees, late filing fees and interest and other filling fees that had accrued since 2001."

Schmidt disagreed and contacted her accountant to get tax records going back that far to show she didn't owe any taxes.

Howard Ain: "After several phone calls, the bill collector finally sent Schmidt this letter in which they proposed a settlement, not of 4-thousand dollars, but of just 819 dollars."

But Schmidt says she owes no money at all.  She wants to know why the tax department is able to go after her 12 years later.

Schmidt: "I have no idea how many years now. I thought it was 7. He told me its forever."

State workers say they sent Schmidt a letter in 2002, but she doesn't recall receiving it. So, I contacted the Ohio Department of Taxation.  A supervisor reviewed her prompt tax filing over the years and decided to drop all fees and penalties.

The big thing to remember here is, with state income tax, there is no statute of limitations. They can bill you as far back as they want.  So, you should save your state tax and payment records forever.
                  

Tax Man Comes A Dozen Years Later


Advertise with us!

Related Stories

Scam Alert

  • E-greeting Card Scam

    The e-greeting card scam is not a new one, but the FBI says it's returned with a vengeance.

    It's Internet Crime Complaint Center is receiving an increasing number of complaints.

    The fraud e-cards contain malware as an attachment, or it contains a link which sends the recipient to a web page where they can pick up viruses, keystroke loggers or other so-called trojan horse programs.

    The e-cards sometimes even appear to be from legitimate e-card greeting web sites-- but the actual address of the links point to a numeric address, rather than one containing the name of the postcard company.

    If you get one of these e-mails you can file a complaint on the FBI's web site, http://www.ic3.gov/.
  • Jury Duty Scam

    Officials all across the Tri-State are warning about a jury duty scam that may put you at risk for identity theft.

    Police say someone has been calling residents and saying they face arrest for failing to report for jury duty.

    The caller asks people for personal information including their Social Security numbers to clear up the situation.

    Authorities say the calls are part of a nationwide scam. If you think you have been a victim call your local police or sheriff's department.
 

More TroubleShooter Links

TroubleShooter Feedback

Do you have a problem that needs Howard's attention? Fill out the form below and let him know!
Please re-enter the code shown in the image below.
Advertise with us!