Joy and Kenneth Hays, residents of Livermore, California, were trying to make an early payment on their taxes, expecting to pay $3,360. But a simple mistake turned into a financial nightmare. On the check they submitted, Joy entered the correct numerical value of $3,360 in the amount box. However, in the section where the amount is written out in words, she accidentally wrote "thirty-three thousand and 60."
As a result, their bank attempted to process the check for $33,060, a far higher amount than they intended. The account didn’t have sufficient funds, causing the check to bounce — not once, but twice. "I didn't have $33,000," Joy said. "I would have bought a car!"
The situation became worse when the IRS responded not by flagging the error, but by issuing a $661 penalty, claiming the couple had underpaid or paid late. Kenneth and Joy were shocked. Their bank told them that payment processors prioritize the written-out dollar amount on a check over the numerical box, so the error was considered valid by banking standards.
The couple attempted to contact the IRS for weeks to explain the situation, but their calls were never answered. According to them, the longest they stayed on the line was six hours, only to be disconnected before speaking to a representative. Their frustration with the lack of human support was growing. “If I owed $33,000, I’d go to jail,” Joy exclaimed, adding that the stress nearly affected their marriage. “We argue so much about it, we almost got a divorce,” Kenneth added.
A tax attorney familiar with IRS processes explained that the agency's internal structure likely contributed to the issue. Payment processing and tax return departments operate separately, meaning the check and the paperwork were likely never reviewed together. The mismatch between what was owed and what was written out on the check should have been caught — but wasn't.
The attorney also noted that the IRS has lost around 25% of its workforce in recent years, causing significant delays in handling taxpayer inquiries, reviewing letters, and resolving mistakes. The agency is currently overwhelmed, and its systems aren't fully automated nor fully staffed, leading to more cases like this one slipping through unnoticed.
Taxpayers are encouraged to call during late afternoon hours when fewer time zones are open, or to try visiting a field office in person for faster support. However, even field offices and letter correspondence units are experiencing delays due to high demand and limited staff.
Looking ahead, federal policy changes are expected to increase the agency's workload further, with new requirements and additional case management demands expected over the coming year — all while staffing shortages persist. As for the Hays family, their issue is still unresolved. They're hoping the IRS eventually recognizes the mistake and removes the penalty. For now, they’re left in limbo — cautious, frustrated, and more than a little cautious about writing another check.
“A bad day is right,” Joy said, reflecting on the chain of events that started with one misplaced line on a check.
