They bought a house from two people from another country. Then the buyers got a letter from the IRS, fining them because a fee wasn't paid by the seller's attorney. Weird? Perhaps. Here's Help me Howard with Patrick Fraser
Bryan and Ingrid stepped inside, and in their minds, the deal was done.
Ingrid Zappulla: "This is a perfect house. This is the perfect house for my son."
Bryan Zappulla: "She fell in love with it, and we made a full-price offer that day, and that's how we ended up with this house."
The house was owned by two Russians who had built it well, including painting a mural of a street they loved in Paris.
Ingrid Zappulla: "That's beautiful. It's art."
The house is still nice, but buying it has become a big headache.
Bryan Zappulla: "I received my first notice from the IRS that there was an issue of taxation and I'm like, 'What the heck is this?'"
Bryan was told when foreign nationals, like the Russians, sell their property in the US, they have to fill out this form and pay 10 percent of the sale price to the IRS. In this case $79,000.
Bryan Zappulla: "The issue is you only have like 45 days to file this form. The problem is he didn't make that payment to the IRS until Jan. 2021."
Patrick Fraser: "Nine months later."
Bryan Zappulla: "Exactly. That's the issue."
The sale took place as COVID hit. The Russians had hired a lawyer to handle the money transfer.
Bryan Zappulla: "He just sat on it. Maybe it was ignorance. Maybe it was COVID. Not really my issue."
The attorney told Bryan he closed his office when COVID hit, and he reopened nine months later. He then sent the IRS the $79,000.
Bryan Zappulla: "And this is the crazy part of this whole story."
Crazy because the IRS frowns on late payments and issued a fine to, believe it or not, Bryan and Ingrid.
Bryan Zappulla: "The bill currently, as of Sept. 30, I believe, it is $30,000. A little over."
Bryan couldn't understand why the U.S. government would fine him when it was the Russians or their attorney who were late with the $79,000 payment.
An IRS agent explained it.
Bryan Zappulla: "She said, 'You're the only one with an asset we can attach.' And I'm like, 'Well, that's good for you, I guess. But it doesn't seem quite fair to me.'"
For nearly four years, Bryan has tried to explain to the IRS it was not his fault and the attorney who was late paying wrote the IRS, blaming COVID for not paying on time.
Bryan Zappulla: "I get it that he made a mistake, and he's admitted it in multiple letters that, 'Hey, it was a screw-up.'"
But the IRS has their rules -- and the latest letter to Bryan makes it clear what they plan to do if he doesn't pay the $30,000 fine.
Bryan Zappulla: "Final balance due reminder. Notice of intent to seize, levee your property or rights to property."
When I met with Bryan, he seemed so calm about what he is facing. He's not.
Bryan Zappulla: "Oh, i'm super mad. I am super mad, but there's just nothing I can do."
Well, Howard, it doesn't seem right. But is Bryan responsible for this $30,000 bill?
Howard Finkelstein, 7News legal expert: "Legally, the attorney who was hired to pay the IRS is responsible for the fine. But Congress has created a lazy way to get the money by going after the buyer of the house and then forcing Bryan to sue the lawyer to get his money back. Legally, the IRS can do this to Bryan, but it's not the right thing to do."
I called the attorney. I emailed him to find out if he didn't have the money, didn't have insurance, or just didn't want to pay.
He didn't respond to me, but he did call Bryan.
Bryan Zappulla: "And actually came to me and said he found a way to get the money and he paid the tax bill and took care of it."
The $30,176.85 fine from the IRS is taken care of. Bryan couldn't be happier after his call to those people from Help Me Howard.
Bryan Zappulla: "When I told him that you were involved, the attorney was much more willing to talk about the issue. It would not have gotten done if you hadn't gotten involved."
A $30,000 headache gone. Glad to help you Bryan, because you don't mess with the IRS. As Bryan pointed out, a lot of buyers and sellers in South Florida are from another country. If you buy from a foreign person, make sure the IRS gets their cut, so you don't go through what Bryan went through.
Got a problem that's foreign to you? Not fine with it? Don't let it tax you. Let us sell you on buying an easy solution.
With this Help Me Howard, I'm Patrick Fraser, 7News.
CONTACT HELP ME HOWARD:
Email: [email protected]
Reporter: Patrick Fraser at [email protected]
Miami-Dade: 305-953-WSVN
Broward: 954-761-WSVN
Copyright 2024 Sunbeam Television Corp. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Join our Newsletter for the latest news right to your inbox Email address Submit