The
battles with government tax agencies are always LONG and HARD. The key
to winning is to be persistent and find the right people to help.
Long
story short, this is about Michelle's 2016 IL state tax return.
Michelle only started working as a medical resident in 7/2016 after she
completed med school in 6/2016. For her minimal wage earned from BMC in
Boston, she paid her state taxes on time to MA.
7
years later, in 12/2023, IL sent her a letter saying she owed IL state
tax for 2016. After 5 months of us struggling with the IL Dept of Rev
(IDOR), I finally realized we'd never win against the bureaucratic
government agency. So, I reached out to another government agency - IL
state District Office - asking for help.
Kim, our hero, originally rejected my request - based on the usual bureaucratic rules. I didn't give up. In stead, I wrote a long letter to her (under the yellow line) to explain why I needed her help.
After nearly 3 months of going back and forth - nagging, begging, and pushing,
the issue has finally been resolved (email under the blue line). The
final outcome didn't meet my expectation, but much better than the
alternative...
I
told Dr. Michelle during this process, I'm not fighting for money (as
the time I spent on this is far more expensive than the payment), I'm
fighting for principle.
----- Forwarded Message -----
From: Pei Tang <tang_pei@yahoo.com>
To: District Office <office@repstavamurray.com>
Sent: Monday, July 22, 2024 at 09:31:44 AM CDT
Subject: Re: Form Submission - Contact Form
Good morning, Kim!
We
received a letter from IDOR with the final bill of $330.28. In fact,
after adjusting for the taxes Michelle had paid to MA, she only owed IL
$32. However, the penalty was over $298 -- all because IDOR didn't raise
the 2016 tax question until 7 years later in 12/2023.
As much as we disagree with IDOR's approach to this matter, Michelle has sent out the payment to IDOR.
As
we finally reached a closure to this unfortunate saga, I couldn't help
to feel sorry for thousands of powerless tax payers who were/are in my
position but didn't get the help from people like you. I want you to
know how grateful we are for your support and understanding. THANK YOU!!
Pei
On Wednesday, May 15, 2024 at 10:45:04 PM CDT, Pei Tang <tang_pei@yahoo.com> wrote:
Hello Kim,
Thanks
for forwarding their notes. I understand this is not an easy process. I
would not have reached out to you had this been easy.
Please
refer to the two letters Michelle sent to them over the past few months
(below in purple, with dates). Even though I didn't email you her 2016
MA tax return, I can if needed.
IDOR
said in their response that we only provided 2023 documents. That is
not true. Please refer to the yellow lines below in Michelle's letters.
The first yellow line was from 12/2023 and the other yellow lines were
from 3/2024. Michelle provided them with her 2016 MA tax returns and
other documents they requested, including her drivers license from
2017-2020 (MA) and 2020-2023 (CA).
As
indicated in the last yellow line below, Michelle didn't drive in
Boston from 8/2008 through 6/2016. So, she kept her IL driver's license
because she didn't have a permanent address in Boston as a student.
All this has been clearly communicated to IDOR. As mentioned to you earlier today, Michelle's 2016 total MA state taxable income was $20,259 - ALL from MA,
$0 from IL. So, 1) She has PAID all her taxes on time to MA; and 2) It's really a minimal amount of income she earned as
a medical resident.
More importantly, the first inquiry Michelle received from IDOR
about her 2016 state tax return was a letter dated 12/18/2023 (as
referenced in her first letter below). Because of the holidays and
vacations, we didn't get the letter until the end of 12/2023. That's
MANY years after 2016. It's very unreasonable to take so long to request
documents. I recently contacted our CPA and asked for Michelle's 2016
W-2. He told me that didn't save all the documents after 7 years.
A few minor things I hope you can help us with -
1. The interest and penalty needs to stop until we reach a resolution.
Per IDOR's 4/22/24 invoice:
Tax payment = $918.
Late filing penalty + all interests and fees = $757.56
Total Assessment = $1675.56
2.
Because my CPA doesn't keep all documents after 7 years, if IDOR needs
Michelle's 2016 W-2, they can go to Boston Medical Center to request a
copy. On the W-2, Michelle's Boston address recorded.
3.
If IDOR still needs Michelle to pay IL tax, they need to recover the
tax $$ Michelle has paid to MA. Once Michelle gets the refund from MA,
she can pay IL.
4. Again, the interest and penalty must stop while we're working out the solution.
Michelle
is now an ICU doctor in CA. She is very busy saving people's lives. She
has spent a lot of time responding to all IDOR's inquiries and
providing all relevant documents, including her 2016 state tax filings and payments. She has also provided clear explanations of her history of moving out of IL since 8/2008.
Kim, the reason I reached out to you
is because, with everything Michelle has provided and explained, there's got
to be a reasonable solution to this unique situation than her being penalized by
a place/process where a law-abiding tax payer becomes completely
helpless and hopeless. I believe that with your help, we can reach a
reasonable solution that's fair to the tax payer.
Thank you again for all your attention and help. I am forever grateful for it and looking forward to a meaningful solution.
***********
December 29, 2023
Account ID = Pxxxxxx
To Whom It May Concern:
I am writing to respond to your letter dated on 12/18/2023 regarding my 2016 state tax return.
Attachment 1 is a copy of your letter from 12/18/2023.
Attachment 2 is my full 2016 state tax return for Massachusetts.
I
have not lived in IL since August 2008 when I started college at age
18. I spent 11 years in Boston (2008 to 2019), when I filed all my tax
returns with MA on time and with the accurate payments.
In July
2019, I moved to CA. I am currently a CA resident, and I pay taxes in
CA. I only lived in IL with my parents before I went to college at age
18 (before 8/2008). In my 2016 MA tax returns, I used my parents’ IL
address because I was moving frequently as a student at the time.
Please
make sure you correct ALL your records, including 2016 through 2023. I
received similar inquires about my 2017, 2018 state tax returns, to
which I have provided my 2017, 2018 MA tax return records.
Michelle Zhang
Taxpayer
********************
March 9, 2024
To Whom It May Concern:
I am writing to respond to your letter dated on 2/2/2024 regarding my 2016 state tax return.
Attachment 1 is a copy of your letter from 2/2/2024.
Attachment 2 is a letter I sent to you on 12/29/23 regarding my 2016 state tax return with Massachusetts.
Please
review my 12/29/23 letter carefully. With that letter, I also provided
the full documentation for my 2016 tax return (including tax forms for
Federal and Massachusetts). With this letter, I am once again attaching
my 2016 MA State tax return form. As explained before, I used my
parent’s IL address on my 2016 tax form because, at the time, I was a
student and did not have a permanent address.
In regards to your requested information from your 2/2/2024 letter, I am providing the following –
• My current driver’s license indicating my CA residence.
•
My 2017-2020 driver’s license indicating my MA residence. I didn’t
drive in Boston/MA as a college student from 2008 to 2012 or as a
medical school student from 2012-2016.
• My current car registration indicating my CA residence.
• My 2023 Bank 1099 form indicating my CA residence.
• My 2023 Employer 1099 form indicating my CA residence.
Please clean up your records. I am NOT an IL resident, as clearly stated in my previous letters to you.
Michelle Zhang
Taxpayer
On Wednesday, May 15, 2024 at 01:29:37 PM CDT, District Office <office@repstavamurray.com> wrote:
Pei -
Unfortunately, the outcome is not what you were hoping for. Here is the reply I received from our department liaison:
The
constituent is still considered domicile in Illinois for 2016. The
items they provided your office, and the Department are from 2023, which
doesn’t support proof of residency in the state they were physically
residing in during 2016. They also never established a permanent
residence outside of Illinois in 2016. They chose to use the Illinois
address, which they acknowledge in the emails below. There’s nothing we
can do to change the outcome here, and the longer the liability goes
unaddressed, the more interest and penalty fees will accrue.
Thank
you again for contacting the office of State Representative Anne
Stava-Murray. Please do not hesitate to do so again in the future.
Kind regards,
Kim Brondyke, Chief of StaffState Representative Anne Stava-Murray
