I received a letter from my State informing me that I owed $2540.62 in State tax because there was no evidence of 2 withholdings taken out of 2 IRA distributions which I claimed on my State tax filing. After speaking to a State tax rep I was told that if I mailed the 1099R forms to them they would re-evaluate my account and send me a refund. After 2 months (after mailing the forms to them) they claimed they never received them. I contacted a local State tax office and they finally awarded me a refund for $2365.00 ; they stated that the difference between the amount of the check I sent them at the end of June and the amount refunded now is the interest assessment for the estimated underpayment in the amount of $175.62. Why should I pay interest when I filed on time and the withholding amounts were sent to the State on time? Doesn't the State credit accounts when they receive withholding amounts such as these? My name and SS# were on the 1099s. Why was I told I should have sent the 1099Rs in when I filed? I thought all the tax form required was to staple W2's to it when filing, not 1099's.
- posted
16 years ago