A Greenburgh auto dealer and his wife have sued the Internal Revenue Service for allegedly refusing to refund $134,673 that they claim was erroneously withheld from the dealership in 2021.
“Plaintiffs tried to resolve the matter of refund amicably and in good faith with the IRS,” Alexander and Chaya Landa claim in a complaint filed on April 3 in U.S. District Court, White Plains, but the IRS has refused to credit or refund the sum.
Alexander Landa is managing member and main owner of Northeast Auto Holdings LLC, also known as Northeast Kia, at 468 Tarrytown Road. It is classified as a used car dealership in a U.S. Small Business Administration record, and it uses the same address as a Kia dealership operated by Tasca Automotive Group.
The Landas live in Los Angeles.
Business income from limited liability corporations such as Northeast Kia passes through to the individual owners who then pay federal taxes on their personal income.
The Landas’ accountant contacted the IRS about the error, the complaint states, and an IRS agent said the money could not be refunded to Northeast Auto Holdings.
Instead, the agent said the couple should file an amended personal tax return where Alexander Landa could claim his share of improperly withheld funds from the corporation.
The Landas filed an amended personal tax return, the complaint states, but the IRS disallowed the refund on April 7, 2023.
The Landas appealed the decision, according to the complaint, but have received no response.
Under the federal tax code, a lawsuit to recover funds must be filed within two years of an IRS Notice of Disallowance, the complaint states. By suing in federal court on April 3, the Landas beat the deadline by three days.
