I have an 11 year old daughter. In 2007, a broker managing her college fund sold $30,000 worth of stock. I had no knowledge (the broker has complete control). The broker never tipped me off that this sale means she would need to file a return.

In January 2009, I get a letter from the IRS stating she needs to file a return. I call them asking "why?". After 30 minutes, I speak to an agent who tells me to DISREGARD the notice, it was sent in ERROR. OK by me. I kept the agents name.

In Novenber, I get the same letter from the IRS. I almost threw it away, but the IRS scares me. I call them up. They HAVE A RECORD of my January inquiry. The agent takes my number and says he will look into it. Later that day he calls back asking about the stock sale. I am clueless. He says that is the problem, and I need to file a return for her.

OK, so I go to the accountant. He puts the return together. I owe about $650. No problem, my fault. I know ignorance is no excuse. My bad.

I pay.

Then I get a letter saying I now owe $300 in interest and penalties, including the 9 month period between the first notice, which THEY told me to disregard, and the second. I call them. Yes, they tell me, we know we told you to disregard the notice. Put it all in writing and we will see what we can do.

I got the answer today......direct from the IRS in writing:

"The law does not permit us (the IRS) to remove interest charges, even for reasonable cause. We charge interest on any unpaid tax, regardless of whether you had reasonable cause".

So even though we screwed it up, Mr. Canzoneri, ship the $$$ to DC anyway.

I called my congressman. His office verified that that is indeed the law.

That just burns my a$$.