Red-Faced IRS Puts Out Apology After Computer Foul-Up

A contrite Internal Revenue Service said today it has apologized for threatening to seize the property and bank accounts of 10,000 companies after a computer erroneously showed the firms had failed to pay $300 million in withholding taxes.

Dan Seklecki, a spokesman for the agency’s Mid-Atlantic office, said none of the companies--in Delaware, Maryland, Pennsylvania and Washington, D.C.--has had any assets seized and that such action is not likely to happen.

“No question about it--the mistake was an unfortunate mistake,” said Seklecki. “It obviously caused a lot of frustration and anxiety to taxpayers for which we apologize.”

The IRS letters threatening the firms, sent in January, began, “This is your final notice before we proceed with enforcement action. The purpose of this notice is to inform you of our intention to levy upon your properties or rights to properties.”