When accounting goes unaccounted for
Richard Rubin reports that a "hardware failure" at the IRS has affected several systems and that Ted Cruz's favorite agency is "temporarily unable to process electronically filed tax returns."
At least some of the older tax partners out there are enjoying this moment.
[WSJ]
This is getting ridiculous, you guys. As if suicidal pilots and bulldozing protestors weren’t enough of an annoyance, now the Service has been victimized by inmates in a South Florida jail.
According to the AP, about 50 inmates are allegedly responsible for requesting $1 million in fraudulent refunds from the IRS and collecting around $100,000 for their diligent efforts. The report states that the inmates used “a standard IRS form” (we’re guessing Form 843?) most for $5,000 and that some checks were sent directly to the jail. Oh and the best part is that the scheme was foiled by “a how-to note…found in an inmate’s cell,” rather than a crack squad of investigators.
To say that the IRS needed some good press would be a gross understatement, but for crissakes, they need some good press. Sure getting Nicolas Cage to bone up $14 mil is okay and everyone is stoked for Ron Howard to make the Service hilarious but they could use a big break right now. We called the Florida branch to get their ideas but the spokesman told us that the Herald pretty much had it right and that’s all that he was saying.
At this point, nothing short of Doug Shulman capturing Osama Bin Laden (with an IRS-issued Remington no less) while singing God Bless America and apologizing for all the unanswered customer service phone calls will get the American public to looking fondly upon the IRS. If you’ve got better ideas, let us know but that would be our suggestion for an improved image campaign.
Inmates at S. Fla. jail accused of scamming IRS [AP via Miami Herald]
This is disappointing on a multitude of levels. On the one hand, the notion of thousands of IRS agents running around the country, kicking doors is kind of exciting.
On the other, if crazed tax-haters can’t threaten the lives of IRS Agents who can they threaten? The census only occurs once every ten years and threatening to gun down OSHA employees just doesn’t seem to be as effective.
Doug Shulman spoke at the National Press Club yesterday and assured everyone (despite what Dave Camp or Ron Paul says) that agents will not be storming your house packing heat if you don’t purchase insurance. The IRS will be counting on insurance companies to help them run identify those who are skipping on the required coverage.
He said insurers eventually will be required to file a document similar to Form 1099 used by financial institutions to report investment income. The agency will send letters to the uninsured notifying them fines could be deducted from their tax refunds for refusing to comply with the new law, Shulman said.
“These are not the kinds of things we send agents out about,” Shulman said. “These are things where you get a letter from us.”
We imagine the letter won’t be particularly friendly but it’s a far cry from jack-booted thugs pointing firearms at your head.
Shulman Says IRS Has Few ‘Punitive’ Ways to Enforce Health Law [Bloomberg BusinessWeek]
The Journal of Accountancy's unnecessarily dramatic headline — Limit on direct deposit of refunds will […]