I had a new potential client call me with a sales tax issue.
To make a long story short and confidential, the state tax commission audited this man's business for sales tax purposes and hit him with as much tax as possible -- much of it completely erroneous. After months of negotiation and review, the tax commission and this individual and his business partner had come to an agreement about the final tax bill owed.
The taxpayers each secure enough financing to pay there share of the assessed liability. The partners cashes out all of his retirement and pays his portion of the liability, and the potential client set up a home refi in order to cover his portion of the liability.
When the taxpayer was set to close, the USTC agent sends the mortgage company (never mentions this to taxpayer) a payoff that was 17,000 dollars more than the amount known to the taxpayer. When the taxpayer questioned the USTC agent she said she made a mistake! The taxpayer lost his interest rate (not sure I understood why) and he need to come up with a new mortgage.
This is probably one of the worst case screw ups I have ever heard of. To come back and try and assess an additional 17,000 dollars because of a agents mistake after the assessment had been agreed to is unconscionable. Anyone in the private sector would face an E&O suit for a similar mistake. Come on USTC!