The Associated Press reports that “The federal government forgos the collection of millions of dollars owed every year because the IRS computers don’t record the interest due on penalties for unpaid taxes, a Treasury Department auditor said. IRS computers keep track of the building failure-to-pay penalty, but the charges aren’t applied to the taxpayer’s account. However, those accounts which are managed by hand, not by computers, do pay interest. The IRS said it doesn’t have the capacity to send monthly notices to taxpayers as those penalties and interest charges accrue. The IRS agreed to start applying the penalties annually beginning in 2006”.
“The taxpayer must pay the fine which accrues monthly until the penalty equals 25% of the unpaid tax. The taxpayer also owes interest on the mounting penalties”.
By sometime in 2006, probably half the people owing this money will have cashed out and declared bankruptcy.
Amazing what high technology can’t do for this entrenched bureaucracy who says it can still do it by hand (meaning hand held calculators). Gives you that warm, fuzzy feeling doesn’t it, knowing that whoever set up this convoluted system probably just got promoted away from the problem while probably blaming the taxpayers for not giving the IRS a larger budget.
5 comments:
at least you can pay your taxes. If you live in the Hts., your prop tax bill has been 'lost'. the treasurer will not turn on his answering machine after five or even have the civility to respond to emails, that is, if you find his email address. Mr. Widmer, its not your district, but it could be, can you light a fire under this jackass?
The IRS must have invested most of their high tech budget to designing the complicated tax return forms that now require almost anybody filing a return to hire a professional. Creates a lot more jobs and a bigger bureacracy and higher and more taxes, a vicious circle.
As to Peoria Heights, no I don't live there and do not follow their problems. I have enough problems to follow in Peoria where I have lived since 1975. Call Eric Todd. He was just elected to the village board.
Thanks for your comments.
I got audited three years in a row. I was never fined, but I couldn't figure out what I was doing to attract the IRS's attention. My accountant asked how I was turning stuff in. I showed him my anal rententive system, complete with receipts attached to corresponding deductions. Our CPA said, "Stop doing that! You're making it too easy for them to check on you!" Now I present our business taxes with the form and, if asked, a shoe box jammed packed with crumpled receipts.
Haven't been audited since.
The IRS needs to learn from Peoria Heights. Just don't send the tax bill in the first place and then fine folks for not paying a bill they never recieved. At this rate, we should become a full fledged banana republic by 2010!
I'll take the pressure off Peoria Heights. The bills for that community were prepared by our Peoria County Treaurer, were mailed and some how didn't reach some people in the Heights. I don't think "Trip" will charge a penalty unless they have a habit of paying late. His decision as he is an elected official.
Doing a good job, too.
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