Revenooers Just Not Getting The Message

We guess all of the negative publicity which the various IRS functionaries received a few months ago (in forced testimony before Congress and an endless number of press reports) just didn’t quite get their attention.

As noted last week in the Washington Times, Tea Party leaders are claiming that their situation has only become worse when it comes to IRS scrutiny.

An IRS letter sent to Tea Partiers last week contains a “laundry list of requests” related to virtually all of the group’s activities, including its involvement in the 2012 election!  The Revenooers are also asking for detailed financial records, including “the amounts and percentages of your total expenses that were for fundraising activities in the tax year 2011, 2012 and 2013.”

Whew!

“This is tantamount to an audit.  This is the continuation of the same thing they’ve been doing for four years.  They have not stopped,” quoth Cleta Mitchell, a D.C. attorney representing the Tea Party Patriots and several other conservative groups.

“They just keep asking more questions.  We are now looking at potential legal remedies, but that’s not easy.  Congress has made it quite difficult to sue the IRS,” says Mitchell.

And all you wealthy California taxpayers out there had better not forget the Franchise Tax Board’s mandatory “e-pay” rules which, if ignored, could cost you another percent.

Any payment made by an individual on or after January 1, 2009, regardless of the taxable year or amount, must be remitted electronically to the FTB after the individual has either:

  1. Made a single estimated tax or extension payment greater than $20,000 for a taxable year beginning on or after January 1, 2009; or
  2. Filed an original return with a tax liability greater than $80,000 for a taxable year beginning on or after January 1, 2009.

Fail to comply, and be prepared to receive a nastygram from FTB, assessing a

penalty of 1% of the amount paid, unless you can convince them you have a good excuse!

CONSULT YOUR TAX ADVISOR – This article contains general information about various tax matters.  You should consult your CPA regarding the implications to your own particular situation.

Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno.  He may be reached at 831-7288, welcomes comments at jquinn@ashleyquinncpas.com, and invites readers to consider his other commentary at http://blog.nolo.com/taxes.

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