IRS Commissioner Steven Miller Fired Today… More action soon to follow

During the past few days, the Internal Revenue Service (IRS) has come under harsh scrutiny for how it has conducted itself in handling the applications of conservative non-profit organizations attempting to gain tax-exempt status. The IRS appears to have been acting with political overtones as opposed to following IRS guidelines for deciding whether to grant or deny tax-exempt status to these conservative non-profit groups.IRS non-profit tax exempt status The problem appears to have originated in Ohio, but according to U.S. Attorney General Eric Holder the problem is being discovered and investigated in nationwide IRS branch offices. President Obama expressed his anger today during a press conference and vowed to fully investigate this matter and bring those responsible for this misconduct to justice.

Although I do not concentrate my tax practice in assisting non-profit organizations gain tax-exempt status, I understand the practical effect of dealing with IRS officials on a daily basis, and I understand the protocol IRS Representatives must adhere to. When the IRS fails to follow federal law and its own procedures and policies, tax clients can achieve success in resolving their tax problems and issues. The national attention this issue has received was obviously magnified because of the political implications it contains. President Obama cannot allow the IRS to go un-checked; the first step has taken place, that is acting Commissioner of the IRS was forced to step down.

At Sheppard Law Offices, we deal with the IRS on a daily basis. While this specific issue has gained national attention, I want the public to know that if you have an IRS tax debt issue, there are certain guidelines and procedures in place that the IRS must follow. My job is to make sure they are doing just that, while assisting my tax clients’ to attain the most favorable outcome of the tax case with the Internal Revenue Service.

Did you fail to file your taxes or request an extension by the April 15th deadline this year?

Now that the April 15th filing deadline has passed, most people have either filed their taxes or filed for an extension with the IRS. If you happen to be part of the group that has not, the sooner that you take care of filing the better.  If you do not owe, the IRS can be very forgiving, however if you owe taxes and have failed to file, the penalties can quickly Late filing taxesbecome quite steep. The longer you procrastinate, the greater your penalty will be. The IRS charges a combined late filing and late payment penalty of 5% for each month that the return is late, up to 25% of the net amount due. If your taxes remain unpaid after five months, the 0.5% per month failure to pay penalty will still continue to accrue up to 25%. This leads to a total failure to file and failure to pay penalty of up to 47.5% of the tax dollars owed.

Even if the net amount of your taxes is relatively low, if your return is over 60 days late the IRS imposes a minimum failure to file penalty of $135. Also important to note is that if the IRS has made several collection attempts and has issued an intent to levy, the 0.5% late payment penalty will be increased to 1%.