IRS Collection Action Can Be Delayed For A Long Time
If you don’t pay your tax, IRS collections can, ultimately, take your stuff (levy) or tell other people who owe you money to pay them instead of you – or else. As you can see from this case, it is possible to keep that wolf from the door for a really long time. Mr. Hauptman presented offers in compromise in August 1997 and March 1998, which were both rejected as inadequate. A third offer was made in July 2005 which was deemed to be made “solely to delay collection activity”. A fourth offer was submitted on February 10, 2010. It was for $500,000.
Taxpayer Barred From Communicating With CPA Still Hit With Late File Penalty
The late file penalty would not have been as big a deal, if Mr. Hoeffner had not had such a large balance due. Of course it could be that the money he made in 2008 was sucked up by non-deductible legal expenses, which is why not enough went in with his extension in April of 2009. I still think the late file was really piling it on.
So I guess the moral of the story is that is great to be true to your school, but your CPA not so much.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.