IRS Employees in Need of IRS Tax Relief

IRS Employees in Need of IRS Tax Relief ?

According to the Treasury Inspector General for Tax Administration (TIGTA), for years 2004 to 2008, the Internal Revenue Service (IRS) identified that it had an average of 8,788 employees per year who were not complying with U.S. tax laws. Of the 43,941 IRS employees not in compliance with U.S. tax laws over the five-year period, 34,095 of them failed to pay taxes owed, failed to pay on-time, or failed to timely file their tax return. In a report released by the TIGTA issued May 5, 2011, and released on June 21, 2011, an additional 133 IRS employees previously undiscovered by the IRS were not in compliance with tax laws. The TIGTA findings were made during an audit of the Employee Tax Compliance Program that is supposedly designed to ensure that IRS employees are held to a high standard of compliance with the tax laws. The bottom line is that the unforgiving Revenue Officer knocking on your door may be issuing along with that  bank levy or wage garnishment, a dose of “do as I say, not as I do.”

So-Cal Pilot School Case

The owners of a Southern California test pilot school pleaded guilty to filing a false 2008 tax return. They transferred money from their corporation to several offshore accounts, then deducted the transfers from their corporate and individual income tax returns. Then they failed to report the interest on the foreign accounts. Maybe it goes without saying, but this is not allowed. Now they will have to pay upwards of $2 million in penalties on top of their $710,000 tax bill. I think its safe to say that their options for tax relief are limited at this point. If they don’t have the cash to pay it all at once, that’s going to be one big installment payment!