07/08/2026
Here's an amusing true story about the IRS with regard to my AZ AMC Restorations business. Sometime in April after my tax return was processed, I received a notice from the IRS stating that I had overpaid withheld employer and employee income taxes bu around $10.5K which I knew to be untrue. What actually caused the notice was from switching payroll companies resulting in both companies reporting the same tax payments.
The issue was that when one company takes over payroll taxes during the tax year, they also require getting printouts of the prior company's tax documents that they can take over tax reporting for the full year. In addition, the reason I left the prior payroll company was because the FAILED to submit the withheld payroll taxes on a timely basis in the first place ,resulting in fines that they finally paid due to the fines being because of their error, not mine. As soon as I received the paid iine notice from the IRS, I dropped them like a hot potato!
Fast forward to the end of 2025 and instead of handing off year end payroll tax payments to the new comany like they should have, the same damn fools at the old company reported the payments in addition to the current company reporting the same total annual payments amounts. I've had some interesting dealings with IRS erroneous charges or credits in the past so thankfully did not request a refund check due to being pretty certain the IRS would eventually get it sorted out. Low and behold, this past Friday I received another ominous looking IRS letter in the mail telling me that I in fact owe the $10.5K after all so it all washed out in the end.
The kicker here is if I had requested and cashed a refund check, the most recent IRS letter would have told me that I not only owed the erroneous amount credited but would also have owed Lord only knows how penalty fees they would have assigned for lack of payroll tax payments. So I dodged a bullet on that one! It's a jungle out there for employers!