Call Rafael: Postmark forces IRS to charge Zionsville woman $20,000

ZIONSVILLE, Ind. — Judy Birt has been stressed for months after learning her parents’ trusts owed the Internal Revenue Service nearly $500,000.

The family did not challenge the amount or ask for an extension. They wrote out checks and paid Uncle Sam the bill. They never thought the lack of a postmark on April 9 would cost them tens of thousands of dollars.

“I’m responsible for three sets of taxes. It’s frustrating. I know I mailed that before the deadline,” said Birt.

Her parents, Harold and Lois Moorma, made memories raising their family in Ohio. They were married for 53 years.

When they passed away, their children had the paperwork to handle their finances and farm.

Judy Birt and her brother oversee their parents’ trust.

There was one return for their mom’s taxes. Because they were close to the tax return deadline, they paid extra and sent her documents via certified mail. It was stamped April 12 and had no problem. Their dad‘s return was ready to be mailed by April 9, so it went regular mail.

It included a check totaling $431,627 paid to the IRS and another check totaling $62,637 paid to the state of Ohio.

“Put them in envelopes, took them to the post office, this April 9 and had it weighed to make sure the postage is right,” Birt said.

The Ohio and Federal returns mailed before the taxing deadline each generated a late penalty. As of July, Uncle Sam wants $20,412.42. Ohio wanted an extra $96.04 because the return was late.

IRS paperwork shows that the payment was received on April 22.  The Ohio Department of Taxation sent a letter saying “the payment was received after the due date.”  

“I tried to call the IRS number on the bill. I was on hold for possibly four to six hours getting transferred around,” added Birt.

The Postal Service confirms to FOX59/CBS4 that “Mail is postmarked at a processing and distribution center, not a local post office.”

Judy presumed her dad’s tax forms were postmarked for April 9, never thinking she would end up with this financial fiasco.

”I feel like I’m paying the penalty for a government entity’s mistake to another government entity. It’s frustrating,” said Birt. “Don’t take it for granted that post office will postmark your document that day.”

Birt appealed the $96.04 penalty from Ohio and won. The state ended up receiving the mail on Ohio received the mail on April 22.

Since then, she also received a letter from the Postal Service admitting a delay in delivery, and hoping its letter would help reverse the late fees.

Currently, she’s been assigned a Taxpayer Advocate to get the IRS to drop the $20,412.42 and rising penalty. She’s expecting the decision by the end of October.

As for you, you can get a postmark at your branch if you request it. On important mail, I usually take a picture of the postmark just in case.