Bryan and Ingrid Zappulla decided they would finally find their dream home in Florida. They were particularly impressed by the hand-painted picture of a Parisian street that adorned one wall.
“This is the perfect home for my son,” Ingrid told 7 News Miami. The Zappullas bought the property for $790,000 from two Russians who had built the house for themselves.
However, after a few months, the Zappullas’ dream turned into a nightmare when the couple received a $30 fine from the IRS – a penalty they say they shouldn’t have to pay.
The fee is due to the failure of the seller’s attorney to pay the required amount of tax on the home. According to 7 News Miami law expert Howard Finkelstein, foreign nationals – like the Russian duo – sell goods in the U.S.
Specifically, they must complete IRS form 8288 and pay 10 percent of the sale price within 45 days of the sale of the property.
However, Bryan was told that the Russian couple’s lawyer had closed his office for nine months during the CCID-19 pandemic and, when he reopened, he turned over $79,000 to the IRS. But at that time, it was January 2021 – nine months past the due date.
“He then sat down [during the pandemic],” said Bryan. “Maybe it was ignorance. Maybe it was COVID. ” Either way, the IRS fined Zappullas $30 million in late payment penalties.
When Bryan contacted the IRS and told them that the Russian attorney was responsible, he was told by the agent that he was “the only asset we have. [the IRS] he can join.’”
Although the attorney had also admitted his wrongdoing to Zappullas, Bryan was concerned about the “final balance reminder” sent by the IRS, which included a “notice of intent to collect.”
Despite the mistake made by the Russian sellers’ lawyer, News 7 Miami’s attorney Howard Finkelstein said IRS rules allow them to go after the home buyers for any sales.
“By law, the attorney hired to pay the IRS is responsible for the fine,” he explained. “But Congress created a lazy way to get money by going after the home buyer…legally, the IRS can do this to Bryan, but it’s not the right thing to do.”