How I saved $2349.07 and a huge hit on my credit report by not ignoring the tiny details

A while back I received a letter in the mail from a state’s Department of Revenue. I had worked in this state in 2015 on a military financial counseling assignment. They said I had not filed a 2015 state income tax return and after penalties and interest, I owed $2,349.07. I had 60 days to respond to this letter. If I ignored it, the assessment would be final and additional collection actions will occur which may include the filing of a tax warrant.

Wow, this got my attention. I dug out my 2015 tax return file (yes, I still had it – I always keep the last 7 years of tax data). Not only had I filed, but I received a refund of $99. I even found our old check register which showed I deposited the refund check in mid April of 2016. I called the bank to get a copy of the check and they mailed the copy to me within a week. I then looked in my 2016 tax return file and found the 1099-G form issued by this state for my 2015 refund.

I was feeling pretty smug and was thinking about the letter I was going to write to this state proving my case. How dare they accuse me of not filing!

Then I noticed something. The last 4 digits of my SSN number were listed on refund check and the 1099-G form. One number was off. I suspect that's where the problem lies. It was correct on my return but somehow was inputted wrong somewhere in the system.

I felt like Hercule Poirot who just solved a big murder case.

Suffice it to say the tone of my letter to this state changed and I pointed out the error. Could they please correct my SSN in their records and remove this assessment from my record?

I have counseled clients who have received similar letters like these who just ignored them. Perhaps they felt intimidated by the letterhead. Or they just didn’t think they had to deal with it. If I had ignored this letter, I would have been penalized for something that was not my fault. My credit score would have taken a huge hit.

All this because two numbers got switched.

Never ignore the tiny details.