IRS Visits Car Wash Over Debt of Four Cents

(CANVAS STAFF REPORTS) - Last week, two Internal Revenue Service agents demanded Aaron Zeff pay the outstanding balance from 2006. Zeff, who owns Harv's Car Wash, told the Sacramento Bee the agents were "deadly serious."

Zeff had a balance of four cents with the IRS. But penalties and interest were listed as $202.31, leaving a balance of $202.35. Zeff said the whole situation was "hilarious" and claimed he was never notified about any back taxes. He showed the Sacramento Bee a 2009 letter from the IRS that stated Harv's Car Wash "addressed any balances due."

Zeff said the two agents who hand-delivered the letter were "rude" and didn't even get their car washed. An IRS spokesman would not comment, citing privacy laws.

The IRS may "have a problem with its priorities," Zeff said.

Zeff's case stands out not only for the disputed tax but the IRS visiting his business. Government computers and letters tend to be the usual standard operating procedure. In 2008 , only one in 450 individual tax returns were audited in person.

By the way, more than 1.4 million Americans were audited last year.

The California car wash case isn't the first time the taxman has been on the "cent" of a debt. In 2008, a Detroit, Mich., lawyer received a tax bill for 5 cents. Then James Howarth got a second letter stating he was entitled to a refund of 4 cents. The kicker is that he would have to write to the IRS if he wanted the money – because the refund was less than $1.

This may not be any consolation to Zeff and Howarth, but the IRS said it is auditing more wealthy Americans.