In what is the most serious escalation yet of the revelations surrounding the agency, Holder said the Justice Department and the Federal Bureau of Investigation would examine whether any laws were violated at the IRS, which has acknowledged that it selected groups with the words “tea party” and “patriot” in their names for special audits. “The FBI is coordinating with the Justice Department to see if any laws were broken in connection with those matters,” Holder said in announcing the investigation. “We are examining the facts to see if there were criminal violations.” The criminal probe ensures that the IRS will be the subject of intense attention for the foreseeable future. [WaPo]
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IRS Eases Up on the Tax Liens for the Little People; Celebrities Not So Lucky
Commissioner Doug Shulman said in a statement today that the agency would make it easier for taxpayers to seek withdrawal of liens when they pay a tax debt or make arrangements to pay in installments for debts of less than $25,000. The agency also raised the dollar thresholds before liens are typically filed. “We are making fundamental changes to our lien system and other collection tools that will help taxpayers and give them a fresh start,” Shulman said in the statement. “These steps are good for people facing tough times, and they reflect a responsible approach for the tax system.” [Bloomberg]
The IRS Doesn’t Want to Burden Anyone Too Much but They Kinda Want That Money
The IRS, in its continuing effort to squeeze every last dime out of every single one of us, is planning 6,000 audits of companies and their compliance with employment taxes over the next three years.
The Service apparently figured it was about time they started putting the screws to companies since they hadn’t done an analysis since 1984:
Continued, after the jump
The Treasury Department in 2005 estimated, based on the 1984 IRS data, that companies underpay employer taxes by about $14 billion annually. In particular, federal agencies have raised concerns about whether employers are properly classifying workers as company employees or independent contractors.
The Service isn’t wasting any time, already proposing a $14 million tax on FedEx after auditing the courier’s 2002 tax return. The Service is also looking at the company’s 2004 through 2008 tax returns, so FedEx should probably get the check book.
The Service is promising to make company’s experience as ‘least burdensome as we can’ but we’re guessing they’re going to want the money, Lebowski, and being a nuisance will probably be of secondary importance.
IRS to Audit 6,000 Companies to Test Employment Tax Compliance [Bloomberg]
IRS Plans 6,000 Employment Tax Audits [Web CPA]
The IRS Is Ruining Its Weekend Plans for the Sake of the American Taxpayer Again
The April 15th deadline has come and gone but that does not mean the IRS’ work is done. In fact, getting money in the Treasury Department’s door is a 24/7/365 sorta deal and in case you didn’t notice, there’s a bit of a deficit problem.
Accordingly, the IRS has decided to host open houses at 200 facilities in all 50 states, DC, and Puerto Rico on May 15th from 9 am to 2 pm local time (locations here). IRS staff will be there to help individuals and small businesses sort out any issues they may have (See? Filing that extension was a good idea).
This marks the second time in 2010 that the IRS has opened its arms to public on the Sabbath, having done so on March 27th. According to the Service, that particular National Day of IRS Friendliness was a resounding success, with 88% of taxpayers getting their issues resolved that day.
Doug Shulman all but assures your satisfcation in the press release, “Our goal is to resolve issues on the spot so small businesses and individuals can put any issues they have with the IRS behind them. If you have a problem filing or paying your taxes or resolving a tough tax issue, we encourage you to come in and work with us.”
Okay, maybe it’s not exactly a 100% money-back guarantee but the Service is going to work their cans off to get you in compliance and cutting a check that day. Unless of course you’re a Tea Party type trying to get on the six o’clock news, in which case you’ll be dealt with in a swift and decisive manner.
Open House on Saturday May 15 to Help Small Businesses, Individuals Solve Tax Problems [IRS.gov]