FIRST AMENDED COMPLANT

XXX

Plaintiffs, pro se

 

 

IN THE SUPERIOR COURT OF THE STATE OF XXX IN AND FOR THE COUNTY OF XXX TAX DEPARTMENT
XXX, LLC, XXX, Plaintiffs, vs.   XXX Defendant	Case No. :XXX FIRST AMENDED COMPLANT

 

Plaintiffs, XXX  pro se, for this First Amended Complaint against Defendant XXX, hereby allege and state as follows:

INTRODUCTION

1. Plaintiffs brings this action against Defendant for constant grabbing of funds from Plaintiffs’ account(s) since 2013 to date. Defendant continues to add on fees they are not entitled to. Further, the penalties they are asking for are usurious with excessive rates that are illegal and baseless. Plaintiffs are therefore seeking from the court.

 

 

THE PARTIES

2. Plaintiff XXX is an XXX licensed Corporation. Its address is XXX
3. Plaintiff XXX is a resident of XXX. His address is XXX
4. Plaintiff XXX is a resident of DXXX
5. Defendant XXX is a state agency established by XXX.

JURISDICTION AND VENUE

6. Plaintiffs is a resident of Maricopa County, Arizona. This action is based on the negligence and malpractice of the Defendant. Therefore, this Court has territorial jurisdiction, and Maricopa County is a proper venue, pursuant to A.R.S. §12-401(11).
7. The Superior Court has subject matter jurisdiction, pursuant to Art. 6, §14, Arizona Constitution, A.R.S. §12-123, A.R.S. § 12-1801 et seq, and A.R.S. § 12-1831 et seq.

FACTS

8. For the last couple decades, Plaintiffs always had professional accountant(s) handle their tax returns and have always believed they were all correct and still believe they were all correct.
9. The facts that form the substance of this case started when the driver in Plaintiffs’ business was stopped at a red light. A driver came up behind him and plowed into his stopped car. It was a no-fault accident on Plaintiffs’ part. However, the insurance company refused to compensate Plaintiffs. They offered about one third of what the claim was worth. Plaintiffs had to file a lawsuit against them and about two years later, Plaintiffs were paid the correct amount of their vehicle.
10. Plaintiff Dale Ground then started preparing all of Plaintiffs’ TPT payments that they had not managed to file. Plaintiff attempted to notify Defendant that they were about to pay, by filing many of the months that were due.  There were quite a few payments of over a years’ worth and more. Plaintiffs therefore got prepared to pay.
11. Plaintiffs received a letter in the month of April. The letter stated that Plaintiffs owed $20,000 and Plaintiffs’ impression was they needed it within 60 days. This may be just have been Plaintiffs’ thought, so they started paying immediately.  Between the Months of 4-29-19 to 6-6-2019, Plaintiffs managed to pay back what was due. With the vehicle payment and Plaintiffs’ proceeds from the business, Plaintiffs were able to catch up and pay $ 24,288.47 in ACH payments and an additional $2429.00.00 in Credit Card Payments for a total of $ 26,717.47 which brought Plaintiffs current.

Bank Attachment 1

12. On July 8, 2019, after Plaintiffs catching up on their payments and paying all payments current and in full up to July 31^st, 2019, there was a levy attempted on 4 separate bank accounts for $20,219.76. Plaintiffs received $6969.60 out of one account and an additional $57.09 out of another bank account not including the two accounts at an additional bank for $25.00 in each account for a total of an additional $50.00.  This brought the total to $ 7,076.69.  Plaintiffs were also charged an additional $125.00 on each bank account for $500.00.
13. It is Plaintiffs assertion that Defendant never checked to find out if it was paid before filing the levy. If they had checked, they would have noticed the levy was unnecessary and all payments had been paid up to date.

No Response from the IRS

14. Plaintiffs continued to try to reach IRS with emails and phone calls. No matter how much Plaintiffs tried, nobody would give them information regarding the lein and where their money went.  Plaintiffs informed them that they paid every TPT payment showing along with every interest and other payments that were shown as needed.
15. Plaintiffs also drafted letter dated August 17^th and August 18^th, 2020. All other letters sent were removed from the messages board.
16. Plaintiffs have never received an accounting for the money and no one would ever send Plaintiffs anything in writing to let Plaintiffs know where the money went to. The IRS kept it without it showing up in Plaintiffs’ account and never showing any payments from the Levy. This went on for over three years. Nobody would ever respond or contact Plaintiffs.

Bank Attachment 2

17. On XXX, another attachment to Plaintiffs’ bank account happened for $2946.61 without notice and without justification.
18. Plaintiffs never received and have never had a chance to resolve the Levy before it was presented to Plaintiffs’ bank. The Majority of fees listed on their levy seem to be charges Plaintiffs do not owe. The following is a list of the charges and the reasons why Plaintiffs do not owe for these charges.

2020

19. The XXX Tax payment was filed properly and also had an extension. The fee was paid on XXX.  On Time and the correct amount.  There was should be no other fees incurred because of the timely payment.  There should have never been a listing of taxes owed for XXX.
20. They attempted to charge Plaintiffs for fees and interest which was not earned.

 

$ 438.30          Late File Penalty                     Filed on time.

$   48.75          Late Payment Penalty             Filed on time

$   25.10          for interest                               No interest owed

$ 512.10          Total

 

2019

21. There was an extension for 2019 taxes and there should be no late filing fee.

$ 94.68                        Late File Penalty

$ 28.93                       Extension Underpayment penalty

$ 14.67                        Interest

2018

22. Extension Form was in Taxes – $514.00 was owed and mailed on 9-12-2019, due on XXX. Extension filed and 0 Owed. There should be no extra payments owed.

$ 15.42                        Extension Underpayment Penalty

$ 13.40                        Interest. Usury Payment fee is as much as the

penalty

XXX

23. Extension filed electronically Amount Due was $714.00

$ 14.28 Extension Underpayment

$ 10.68 Interest

2017   

24. Both Accountants BV Tax and Accounting had zero owed and an extension filed. Plaintiffs found the Zero owed in Seely Mullins paperwork for 2017.  Plaintiffs have amended the tax return for 2017. There should be zero due.

$ 1115.00 Tax Amount

$ 278.75 Extension Underpayment Penalty

$ 239.13 Interest

$ 1632.88 Total

25. 2013
26. Taxes Plaintiffs owed $79.00. Extension was in Taxes – The late filing 82 F Filing under extension was also marked.  Not says Paid March 30^th

$ 15.42 Extension Underpayment Penalty.

$ 13.40 Interest

2015

27. 7-31-2015 TPT payment – All TPTs and past due payments included costs incurred were paid and brought up to date by 6-31-2019. There were no TPT payments due. There was also over $1000.00 in overpayments and credit on the account.

$175.45 Tax Amount

$ 43.86 Late File Penalty

$ 59.75. Interest

$ 279.06 Total

28. It is notable that Plaintiffs paid all amounts upon receiving any letters.
29. XXX stated many of the tax issues have to do with not filing an extension before Plaintiffs paid. Plaintiffs asked her if she could send the years that were missing because Plaintiffs have an accountant and they filed every year for the extension electronically, which meant Plaintiffs would be able to get a copy of them.

Bank Attachment 3

30. On 1-12-23, another legal order attachment to Plaintiffs’ bank account happened for an additional $2910.17. It was another attachment without notice and without justification. Plaintiffs were told first this was additional fees for 2017. When the Plaintiffs informed the agent that they were told that 2017 fees were already taken out on 11-15-2022, and that the fees were double the fees for the same year, the agent hesitated and discontinued the call. The next day, the agent stated that the levy was for 2020. Since Plaintiffs knew they owed nothing for 2020, it was clear that this was another letter with costs that Defendant had not earned.
31. On the same day between 1-12 and 1-15, Plaintiffs called the Phoenix Office and informed them that the IRS were stealing from them. The agent at the office Ttped everything in her computer system and was eager to help. Plaintiffs were hopeful and believed a supervisor would be able to look into this and help Plaintiffs out.
32. On February 7^th, 2023 Plaintiffs set up the personal ACH tax payment for the year 2021 of $2290.40. Upon receiving the attempt at the bank instead of running $2290.04, Defendants attempted to run $22,290.40. The Bank was contacted and they disallowed the payment because it was not the correct amount to pay the taxes for 2021. This was to be removed on 2-8-2023.
33. On Feb 8^th 2023, upon finding out and clearing it up with the bank, Plaintiffs immediately wrote an email “Payment Emergency” to accountsreceivable@azdor.gov, explaining the situation. Plaintiffs requested help to resolve this.  Plaintiffs also set up the correct payment amount for the personal tax payment and added extra for fees or interest.
34. Plaintiffs immediately set up the payment for 2021 and paid extra to cover any costs incurred of $2290.10.
35. Plaintiffs received a refund from tax levy’s that were not justified. Plaintiffs believed they received a refund based upon the call they made stating that they believed Defendant were stealing from Plaintiffs. Plaintiffs explained about the letter they received and the tax levy taken for TPT taxes of $7,526.00. Plaintiffs also discussed the $2940.00 in November and $2910 in February. When Plaintiffs received the check based on the math, it seemed to line up with the amounts they took without notice and without cause.  Plaintiffs believe the difference was probably the extra amounts charged for lateness.
36. On or about 2-18 Plaintiffs did receive a refund check of $17,110.35 with the accounting as Refund Amount

17,392.71        Refund Amount

• Refund Interest Accrued

Monies Offset

282.36             Monies Offset

37. Plaintiffs also received the letter stating “Arizona law requires we use amount overpaid for tax, penalty, or interest and apply it to any tax, penalty, interest or other amounts, owed by the taxpayer to the department.” The amount applied turned out to be the $282.36.
38. The second letter that appeared explaining the same situation stated the offset amount was for TPT dated 7-31-2015 $282.36. Therefore, the check Plaintiffs received was actually for $17,110.35. Plaintiffs were thankful for somebody finally doing something about the theft of Plaintiffs’ money and the unfair system that allowed Defendant to take funds at will without cause. The letter showed Defendant were paid in full on all taxes for ADOR as of the date 2-10-2023.
39. Plaintiffs also were aware there was no payment due on Plaintiffs’ TPT’s. The letter was dated “account period 1-1-2020 – 12-31-2020 which Defendant knew was inaccurate because Plaintiffs owed no taxes for 2020.

Fraudulent letter from Steve Carrow

40. Plaintiffs also received a fraudulent letter from Steve Carrow at the AZ DOR Dated 02-12—2023. The letter stated Plaintiffs owed $ 25,279.09. One of the charges was exactly $17,392.71 for tax amount for 2020 and a generous 22.5 % Late filing fee of $3913.36. He then added $434.82 as a late payment fee. He continued with adding additional interest charge of $1327.40.  This was a total of $ 5,675.58 in made up revenue. This was a total of 33% in fees not earned.  This amount is highly usurious for a tax debt never owed. The only tax debt owed in 2020 was $1993.78.  This was paid upon filing of that tax debt.  2020 Taxes $ 1993.78 Paid 10-15-2021 at 12:56 p.m. for AZ 140V with receipt of payment. There was a zero balance on the year of 2020.  It even stated there was a zero balance on taxes for 2020 on the levy letter dated 11-19-2022.
41. The letter is frivolous for several reasons. There was the statement in the letter that said they mailed Plaintiffs a demand letter dated 10-17-2021.  This was 2 years prior to receiving the refund check of $17,392.71.  This amount is the exact amount stated as owed in Steve’s letter for 2020 dated 2-12-2023.  This check amount was created with the refund check amount sent out in February 2023. Plaintiffs owe zero taxes for 2020 so Defendant knew Plaintiffs did not owe for 2020. Plaintiffs also notified Steve on 2/26/2023 to let him know this amount was a refund and not a past due payment owed.  Plaintiffs never heard from him in email or on the phone. This ability to make up any letters they wish and charge any amount they wish is for a tax debt that was never owed seems to be Vindictive.
42. Further, Plaintiffs believed the check had to be a refund check as Plaintiffs discussed with the Phoenix DOR office directly prior to receiving the check. The date of this letter 2-12-2023 also shows they had knowledge the 2021 $22,000 plus ach did not go through the bank. Sun, Feb 26, 2023 A letter was written to Steve Carrow requesting information regarding the levys.  Plaintiffs also informed him the amount in his letter was a refund payment Plaintiffs received of $17,392.71 not a payment Plaintiffs owed. Plaintiffs paused on cashing the refund check.  Plaintiffs were not 100% sure if this was a refund or was it something else. So, Plaintiffs waited another couple weeks to make sure they had time to stop the payment on the 2021 tax payment that they were warned about on 2-7-2023.
43. Plaintiffs wanted to make sure there was no slip up and no mistake by accident. The letter that was attached seemed very convincing this was Plaintiffs’ refund.  Plaintiffs waited 3 weeks just in case. It turns out when depositing the check in March of 2023, the check went through fine and Plaintiffs were still led to believe it was a refund.
44. Plaintiffs never received any information from Steve Carrow regarding the levy.

2^nd Fraudulent Letter Dated 5-20-2023     

45. Plaintiffs received an additional fraudulent letter that made up the tax amount, penalties and interest. The letter was dated 5-20-2023. The letter stated that Plaintiffs owed $13,680.03 with a late filing penalty of $3078.48, late payment penalty of $342.06 and interest at $1,276.08. Plaintiffs owe zero tax for 2020.  It even says so on the levy dated 11-19-2022.
46. This letter appears what the filing of a tax lein and the Motor Vehicle Stop Leins on all Plaintiffs’ vehicles. They requested $18,270.46.
47. Plaintiffs assert that based on their paperwork, they do not owe Defendant a penny.

The refund cheque

48. A return check for $17,392.71 was returned to Plaintiffs as the refund amount. It also stated. $ 282.36 was minus any and all taxes due. This amount was for a TPT Payment from 7-31-2015, which should be incorrect. First, Plaintiffs cleaned up and handled every TPT payment that was due and made sure there were no other payments due for TPT Payments. Plaintiffs were caught up on all TPT payments. They also had over $1000.00 in over payments for TPT Payments still on file.
49. The refund check total was $ 17, 110.35 that statesd it was a refund for 2020 taxes. Not a refund from 2021 overpayment of 2021 personal taxes. The actual check had to be a refund check and not an over payment check for the following reasons:

 

1. Plaintiffs immediately notified AZDOR the wrong amount was coming through the bank account for 2021 taxes.
2. Plaintiffs owed no back taxes or payments for 2021. The payment was immediately set up after they attempted to charge 10 times the amount of the tax due. There was a payment of the exact amount of taxes due set up within a few days to be cashed.

• All of Plaintiffs’ TPT Payments were paid in full and there was an overage on the account of over $1000.00.

2023. Two Levy’s had already went through Plaintiffs’ bank account for anything they thought was due. One in November and an additional Levy in January 12, 2023. Neither of which Plaintiffs received notice for and which they believed were not owed and the second Levy is a duplicate levy that they charged twice.
2024. Plaintiffs received this check in Late February and cashed it in early March. After all Levy’s had taken place several weeks prior as well as all taxes paid in full.

 

50. If the check was written and it stated no other back taxes were due it is not clear where the $4897.69 extra money from the $22,290.40 went. There was no accounting for the extra money.
51. The Letter stated specifically that any and all taxes due must be taken from this refund and what was listed was everything that was owed. There was no mention of the levy or additional money being applied to any other taxes owed including 2021 tax. The only thing listed was the $279.00 back taxes from a TPT payment in 2015.
52. The evidence shows the check had to be a refund of all back taxes that were taken from Plaintiffs. If that is not the case this would only prove an attempt at taking an additional $4897.69 and pretend the extra money does not exist.

CAUSES OF ACTION

FIRST CLAIM FOR RELIEF

Declaratory and Injunctive Relief (A.R.S. §§ 12-1801, et seq.; 12-1831, et seq.)

53. Plaintiffs incorporates and realleges herein all the foregoing paragraphs, as though set forth in full herein.
54. An actual and substantial controversy exists between Plaintiffs and Defendant as to their respective legal rights and duties. Plaintiffs contend that Defendant has been levying charges against Plaintiff unjustly. Plaintiffs do not owe any amount to Defendant.
55. Plaintiffs are informed and believe, and on that basis allege, that Defendants contend otherwise. Accordingly, declaratory relief is appropriate
56. Defendant may keep on levying additional charges if this Court does not issue an injunction enjoining Defendant from claiming and/or levying any other charge(s) on Plaintiffs’ account(s). Plaintiffs have no plain, speedy, or adequate remedy at law for such injuries. Accordingly, injunctive relief is appropriate.
57. As a direct and proximate result of Defendant’s blameworthy conduct, Plaintiffs have suffered compensatory damages in an amount to be proven at trial, and emotional suffering.

SECOND CLAIM FOR RELIEF

Intentional Infliction of Emotional Distress

58. Plaintiffs incorporates and realleges herein all the foregoing paragraphs, as though set forth in full herein.
59. The Restatement (Second) of Torts § 46 provides that: “(1) One who by extreme and outrageous conduct intentionally or recklessly causes severe emotional distress to another is subject to liability for such emotional distress, and if bodily harm to the other results from it, such bodily harm.”
60. Intentional infliction of emotional distress has four elements: outrageous conduct by defendant; the intention of causing, or reckless disregard of the probability of causing, emotional distress; actual suffering of severe or extreme emotional distress; and actual and proximate causation of the emotional distress by the defendant’s outrageous conduct.
61. In this Complaint, Plaintiffs have demonstrated the outrageous manner in which the Defendant intentionally, and/or negligently, charged extra levies on Plaintiffs account(s). The Defendant’s actions and/or inactions were committed without due regard to their effects on Plaintiffs.
62. Defendant further knew that their failure to honor their professional obligations contributed to the harm on Plaintiffs to wit, subjection of their account(s) to unjustifiable charges.
63. Defendant’ actions and/or inactions have caused untold mental anguish and emotional distress upon Plaintiffs.

JURY TRIAL DEMANDED

64. Plaintiffs demands a jury trial for all issues triable herein.

 

PRAYER FOR RELIEF

WHEREFORE, Plaintiffs prays that this Court enter Judgment against Defendant, and each of them, as follows:

 

1. An Order for Restitution as follows:

 

Excessive and Predatory:

$1115.39           12-16-2022 Paid tpt for 9-30-2022 plus interest 1656.79

$303.52             12-16-2022 Paid tpt late payment, late file penalty for 8-31-$2022

$500.00             12-24-2022 Paid / letter 12-22-2022 /Payment set up 12-29-2022

Also letter 12-08-22 for 12/31/23 Taxes under other penalty.

TPT Levy Refund:

$7,026.69        plus return of funds for the bank levy that was and not due. Plus interest.

$500.00           Bank Levy Fees for tpt Levy.

 

Personal Tax

2020 refunds due From the Levy Jan 2023 –Extension in file

$1656.79         For the 2017 taxes Not due and unnecessary from the levy on 10-2022

$438.30           2020 Extension Was Filed and Taxes were on time.  Late file penalty $438.30

$ 48.70            Late payment Penalty $ 48.70 = $ 512.10

$2910.00         for the 1/23-2023 Levin that was a double levy already paid in November

$14,549.39

(Not including all the Credit for all levies that included Late file penalty and late Payment Penalty where Plaintiffs had extensions filed Electronically).

$1028.91         TPT Overpayment of and a reduction in interest since they have had these funds here for years.

$94.68             Late File Penalty 2019 – Plaintiffs do have extension.

$250.00           XXX  Esq  2-28-23 Sorrell Law Firm, P.L.

 

Also, the State of Arizona DOR placed a Motor Vehicle Stop Lien on all of Plaintiffs’ vehicles.  Plaintiffs never had a car picked up from the IRS Lein.  have been renting cars so they do not get them taken. Plaintiffs would therefore like to be reimbursed for car rentals for this egregious act. Plaintiffs never received a demand for payment which was correct or made any sense. The agents would never give Plaintiffs anything in writing that showed Plaintiffs owed them money. They also did not explain any of it properly for Plaintiffs to understand it.

 

1. For compensatory damages for the acts complained of herein, in an amount to be proven at trial;

• For special damages as permitted by law;

1. For such pre- and post-judgment interest as permitted by law;
2. For an Order directing the parties to subject to arbitration;
3. For an injunction enjoining Defendant from imposing any other levy on Plaintiffs’ account(s);

• For an Order voiding all bank account levies and auto leans imposed on Plaintiffs;
• For an Order granting Plaintiffs access to 2013 to May 2016 History and evidence of payments for All TPT account payments and filings;

1. For declaratory relief; and
2. For such other and further relief as the Court deems necessary or proper.

DATED:

Respectfully submitted,

 

___________________

XXX

__________________

XXX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CERTIFICATE OF SERVICE

I hereby certify that on [ENTER DATE], copies of the foregoing First Amended Complaint have been sent to the Defendant in the following addresses:

 

XXX

DATED:

___________________

Dale Ground

 

__________________

XXX

At Legal writing experts, we would be happy to assist in preparing any legal document you need. We are international lawyers and attorneys with significant experience in legal drafting, Commercial-Corporate practice and consulting. In the last few years, we have successfully undertaken similar assignments for clients from different jurisdictions. If given this opportunity, The LegalPen will be able to prepare the legal document within the shortest time possible. You can send us your quick enquiry ( here )