The United States Government is around 250 years old and before 1900, there was no such thing as an income tax. A person’s earnings from labor were considered his property and not taxable. My, how things have changed!
In the modern era, we can’t turn around and sneeze without paying some kind of a tax. The list would be too long to show them all here, but you get the point. As the song says “I owe my soul to the company store” or in our case, the IRS.
But the IRS is not known for being fair-minded and tolerant of people that owe them money, and they love to penalize anyone who does. A recent audit of the IRS revealed that the agency overcharged for penalties owed them by taxpayers who had an outstanding balance. According to the Treasury inspector general, the IRS collected $88,576 dollars more in penalties than they should have. Now, they are scrambling to fix it before they get spanked.
Via Right Wing News:
According to an audit conducted by the Treasury inspector general, the IRS slapped taxpayers with $88,576 more in penalties than it was supposed to.
The Internal Revenue Service uses both manual and automated systems to calculate a failure-to-pay penalty based on the outstanding balance owed to the IRS. The auditors found that there was an error in the computing formula, charging unpaid balances higher penalties.
“Our analysis of the open Automated Non-Master File accounts as of September 29, 2015, identified errors in the formula the Automated Non-Master File uses to calculate penalties The IRS overassessed failure to pay penalties totaling $88,576 on 153 open accounts and under assessed failure to pay penalties totaling $354,153 on 227 accounts. For 338 of the 380 accounts, we identified, IRS management indicated that the formula the Automated Non-Master File uses to compute the failure to pay penalty did not include all of the elements needed to correctly compute the penalty for accounts.”
The IRS is looking over the accounts affected by this mistake and is working on recomputing the penalties.
I’m not going to say that this is evidence that the government is ineffective and is bogged down by the absurdly large tax code.
According to the commissioner of the Wage and Investment Division at the IRS, Kenneth Corbin, reprogramming is going to be necessary before the problem can be corrected and they will be making changes to the way manual calculations are done.
“The most efficient way the IRS can address the errors that TIGTA identified in the Automated Non-Master File is to continue to enhance the Master File to further reduce the need to manually maintain taxpayer accounts on a separate taxpayer account system,” said Treasury Inspector General for Tax Administration, J. Russell George.
It’s bad enough that the IRS is always circling over us like a flock of vultures waiting for a chance to swoop in grab a juicy morsel, but very seldom are they ever held accountable for abusing their power. We suspect that when they are caught with their hand in the proverbial cookie jar, the penalties they must pay are nothing compared to what they impose upon taxpayers.
The best way to solve the entire problem would be to abolish the Federal Reserve System altogether along with its attack dog, the IRS. Get rid of both in one fell swoop.
But that’s in a perfect world and everybody knows this world is far from perfect!
Source: Right Wing News