Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
So calling the I.R.S. IS like calling JC Penny? Yikes!

I echo the sentiments of Hutch: Why shouldn't you be a little demanding when it comes to getting them to clarify the tax law? Just think of the swiftness and efficiency they will employ when issuing you a Notice of Underpayment, Penalties and Interest. I think that writing them back instead of calling might be better, though.

The guy from I.R.S. who told me to go check the proper publication signed his name and also his title: Employee Plan Specialist. I will write him again and use quotes from the publication.

I also went back and checked the I.R.S. rules which refer to what Phil was talking about. Yes, it does state that it is incumbent upon the district's plan administrator to know what is allowable as an employee deduction and contribution to a tax shelter.

It would also seem that the company accepting the tax shelter money should also know the law. I will check with them for precedents - I am sure that there have been others in the same boat who have come before.

Ultimately though, wouldn't it be the employee who would get popped with the penalties if the I.R.S. discovered an error? As the old song goes, It's No One Else But You they have in mind when they warn: "Excess contributions can result in income tax, additional taxes and penalties".

Cheers.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.