Guy Compares the IRS to Barnes & Noble

Posted on by Jason Bramwell
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Julio Gonzalez

“The IRS destroying data for an estimated 30 million filers in March 2021 is appalling. This will create massive chaos for taxpayers in terms of filing time and refunds. The fact that the IRS is a business that operates in the dark ages in terms of technology further compounds the taxpayer’s burden. They act like they are Barnes & Noble when Amazon would be the benchmark.”

— Julio Gonzalez, CEO and founder of Engineered Tax Services, said in a press release emailed to Going Concern regarding the recent Treasury Inspector General for Tax Administration report that revealed the IRS destroyed approximately 30 million unprocessed paper information returns due to a backlog of paper returns.

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No, the IRS Will Not Be Cool with Your Request for Bogus Refunds in Order to Pay Your Gambling Debts

If you find yourself in a bit of tax trouble, the IRS is more than happy to work with you. They gave all those UBS tax evaders all the chances one could ask for. They are giving small nonprofits a break on submitting their 990s. Hell, they are opening regularly on Saturdays.

The best thing to do if you find yourself in a pinch is call them, explain the sitch and we’ll bet you dollars to vegan donuts that Doug Shulman and Co. will work it out with you.


Having said all that, it’s extremely unlikely that the Service will work with you if, say, you attempt to obtain a couple million in bogus refunds to pay off your gambling debts. You do this under the assumption that the U.S. Government will gladly take an IOU until you get around to scraping it together. Who hasn’t gotten a little careless during football season a time or two and needed to commit a federal crime to make things, amiright?

Federal authorities this week arrested a former Los Angeles County worker who allegedly used the personal information of more than 150 welfare applicants to file nearly $2 million in fraudulent claims for tax refunds.

Trang Van Dinh, a 62-year-old resident of Glendale, worked for the county for a decade and filed the returns in a desperate attempt to pay gambling debts, county auditors said.

[…]

His arrest comes months after Dinh was fired from his county job after acknowledging wrongdoing in an interview with county investigators, said Guy Zelenski, chief investigator for the county auditor-controller. County officials spoke to Dinh after IRS investigators notified them of their suspicions.

“He thought he could pay the IRS back and he would have no problems,” Zelenski said.

No problems, like facing 220 years in FPMITA prison problems?

Fired L.A. County worker arrested in tax fraud case [Los Angeles Times]

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Yesterday, the IRS announced that commissioner Doug Shulman's last day at work would be November […]

Dear Small Nonprofits, the IRS Still Wants Your 990s

In a show of understanding for nonprofits who may have been completely unaware of the Form 990 requirement in place for the last three years, IRS commissioner Doug Shulman sent out a really sweet letter encouraging smaller NFPs to go ahead and file anyway even though the deadline has come and gone.

Now that the May 17 filing deadline has passed, it appears that many small tax-exempt organizations have not filed the required information return in time. These organizations are vital to communities across the United States, and I understand their concerns about possibly losing their tax-exempt status.

The IRS has conducted an unprecedented outreach effort in the tax-exempt sector on the 2006 law’s new filing requirements, but many of these smaller organizations are just now learning of the May 17 deadline. I want to reassure these small organizations that the IRS will do what it can to help them avoid losing their tax-exempt status.

The IRS will be providing additional guidance in the near future on how it will help these organizations maintain their important tax-exempt status — even if they missed the May 17 deadline. The guidance will offer relief to these small organizations and provide them with the opportunity to keep their critical tax-exempt status intact.

So I urge these organizations to go ahead and file — even though the May 17 deadline has passed.

The Service assures us that the 990 e-Postcard is simple and easy to fill out, no need to drag your CPA into this mess.

Though the IRS sent friendly reminders to 600,000 charities over the 3 years this new rule has been effect, up to 215,000 charities may have missed the May 17th deadline. Seriously, it isn’t too late. Someone get on that.

There were complaints that the IRS was swamped with last-minute 990 filers (go figure) rushing to meet last week’s deadline so we’re going to guess that when Shulman says it’s okay to send those forms in anyway, he kind of means it. And perhaps that will teach everyone to file on time next year.

Adrienne Gonzalez is the founder of Jr. Deputy Accountant, a former CPA wrangler and a Going Concern contributor . You can see more of her posts here.