IRS Weaponizes Agency Mistake

ABUSE OF THE WEEK

ABUSE OF THE WEEK

ABUSE OF THE WEEK ABUSE OF THE WEEK

Wilson Kirby’s story speaks volumes. The IRS made the mistake, yet a hardworking farmer who repeatedly tried to make it right is the one being punished, with his livelihood at risk. An accountable IRS is a taxpayer right, not a privilege.

A Tennessean, Wilson Perry Kirby, had his life turned upside down when the IRS mistakenly sent him a $20,000 refund. Kirby, an honest, hardworking American, tried to do the right thing and return the money that was never his. He was thanked with threats to seize his $930,000 family farm if he failed to pay $2,575 in interest stemming from the agency’s own mistake. 

Kirby did everything right: he tried to return the erroneous refund and hired an accountant to alert the agency of its error. Yet despite his repeated attempts to right this wrong, the problem never quite resolved. Then, the IRS doubled down.

Instead of acknowledging and correcting its mistake, the agency withheld Kirby’s most recent $1,800 tax refund and applied it toward the $4,300 in interest it claims he owes on that “refund.” When Kirby continued fighting the charges, an IRS agent threatened to seize his farm if he didn’t pay—an escalation that reportedly brought him to tears.

Even after taking his case to the Taxpayer Advocate Service for help, his case failed to advance and help never came. He was alone in a fight against an agency with endless resources and a relentless pursuit of money he should never have owed in the first place.

Kirby’s story is a textbook David versus Goliath battle. The agency made the mistake. Kirby tried relentlessly to fix it. Yet instead of taking responsibility, the IRS deliberately chose to double down on aggressive enforcement tactics that threatened an innocent taxpayer’s livelihood. 

Hardworking Americans who make an honest effort to correct an IRS error deserve respect, fairness, and accountability. AIA is fighting for an IRS that doesn’t punish taxpayers with penalties, finger-pointing, or threats for mistakes made by the agency itself. 

Read the full story here.

If you, or someone you know, have experienced a specific IRS abuse and wish to flag the instance for potential inclusion in our Abuse of the Week series, call our dedicated Abuse Hotline, located in the Resources section of our homepage, or contact us with the details at info@irsaccountability.org