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A Quick Question about the IRS

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  • A Quick Question about the IRS

    This is going to be a bit short on details, but I only just heard about it from family members and it's so insane that I had to check with y'all to see what truth there might be to this whole thing.

    My relatives own a construction business in California.

    They were behind on their taxes and owed $118,000 + a penalty to the IRS for being late.

    IRS showed up for the money, and they payed the owed taxes in one go.

    A little while ago another agent has shown up to ask them if they'd known that it was against the rules for them to pay the IRS over $100,000 at any one time, telling them that they should have paid in increments - $50,000 one day, $50,000 another day, etc. - despite the fact that they were already late in the payments and that they would have been further penalized if they had delayed.

    She then tells them that the IRS is looking to impose a 10% penalty for them paying the bill they received from the IRS all at once.

    You can understand my inability to comprehend this level of insanity, and I have to check with my educated peers here to see if anyone knows of such laws or what might have lead to such a Kafka-esque situation like being fined for paying a government bill in full.

    Part of me hopes that there is a crossed wire here and that we're missing out on some salient detail, because if this is true and my relatives are being harassed by the IRS for daring to pay the IRS their bill... well, I might just lapse into a coma from the sheer stupidity of it all.

    I for one would enjoy the peace and quiet if you did, DoD.

  • #2
    Nothing surprise's me when it comes to the IRS. They are bullies and thugs. There may be some decent folks whom work there but they are a small minority. Your family should contact their reps in Congress and the Senate and have them look into this and also get a tax lawyer.

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    • #3
      Perhaps this is what your relatives were discussing.

      Comment


      • #4
        Originally posted by Gorque View Post
        Perhaps this is what your relatives were discussing.
        From what I was told they paid by check, not cash, and there was something about the limit of payment about $100k or more not being accepted.

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        • #5
          Originally posted by Daemon of Decay View Post
          From what I was told they paid by check, not cash, and there was something about the limit of payment about $100k or more not being accepted.
          The link is not about paying with cash but receiving cash payments in excess of 10K. It was enacted about 20+ years ago to combat money laundering of illegal drug profits etc. For the life of me, I can't believe that the IRS would not accept full payment.

          There is a payroll tax deposit requirement concerning payroll tax liabilities in excess of 100k and a, I believe, next day deposit requirement. Can you post a copy of the assessment with the personal details (name(s), address(s) and SSN(s)/EIN(s) redacted? BTW, IRS notices usually list the pertinent section of the Revenue code or regulation under which the penalties are being imposed. Additionally, penalties are appealable whereas interest on delinquencies are not. HTH

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          • #6
            Originally posted by Gorque View Post
            The link is not about paying with cash but receiving cash payments in excess of 10K. It was enacted about 20+ years ago to combat money laundering of illegal drug profits etc. For the life of me, I can't believe that the IRS would not accept full payment.

            There is a payroll tax deposit requirement concerning payroll tax liabilities in excess of 100k and a, I believe, next day deposit requirement. Can you post a copy of the assessment with the personal details (name(s), address(s) and SSN(s)/EIN(s) redacted? BTW, IRS notices usually list the pertinent section of the Revenue code or regulation under which the penalties are being imposed. Additionally, penalties are appealable whereas interest on delinquencies are not. HTH
            Naw, I cant. This is all second hand from family, which is why I can't really provide more details. I Talked to my parents who talked to my Aunt, and she's the one that talked directly with the IRS.

            I'm really hoping it's just a bit of confusion, but what you mention might be part of it. I'm just not as informed to fully explain it. I'm just at a loss as to the whole situation for how one can be punished for paying an IRS bill all at once.

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            • #7
              Originally posted by Daemon of Decay View Post
              Naw, I cant. This is all second hand from family, which is why I can't really provide more details. I Talked to my parents who talked to my Aunt, and she's the one that talked directly with the IRS.

              I'm really hoping it's just a bit of confusion, but what you mention might be part of it. I'm just not as informed to fully explain it. I'm just at a loss as to the whole situation for how one can be punished for paying an IRS bill all at once.
              I leaning to a misunderstanding of what was said myself. I've never seen any tax agency refuse being paid 100% of the amount due them.

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              • #8
                Originally posted by Gorque View Post
                I leaning to a misunderstanding of what was said myself. I've never seen any tax agency refuse being paid 100% of the amount due them.
                Oh no they were paid- they're just now trying to apply a fine of 10% because of them paying it in one lump.

                Still, I'm just waiting to see what it really was.

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                • #9
                  If the govt cashed the check, they must have not thought that it was too much of a problem...

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                  • #10
                    IRS + Construction Business + California + 118K = You're Screwed
                    My worst jump story:
                    My 13th jump was on the 13th day of the month, aircraft number 013.
                    As recorded on my DA Form 1307 Individual Jump Log.
                    No lie.

                    ~
                    "Everything looks all right. Have a good jump, eh."
                    -2 Commando Jumpmaster

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                    • #11
                      Originally posted by 101combatvet View Post
                      IRS + Construction Business + California + 118K = You're Screwed
                      Pretty much. When the economy is good they make good money. When things are bad though...

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                      • #12
                        Originally posted by Daemon of Decay View Post
                        Pretty much. When the economy is good they make good money. When things are bad though...
                        And I didn't even factor in the "skin tone."
                        My worst jump story:
                        My 13th jump was on the 13th day of the month, aircraft number 013.
                        As recorded on my DA Form 1307 Individual Jump Log.
                        No lie.

                        ~
                        "Everything looks all right. Have a good jump, eh."
                        -2 Commando Jumpmaster

                        Comment


                        • #13
                          Originally posted by 101combatvet View Post
                          And I didn't even factor in the "skin tone."
                          I don't get it. What do you mean?

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                          • #14
                            Originally posted by 101combatvet View Post
                            IRS + Construction Business + California + 118K = You're Screwed
                            Nah, just make sure the paperwork has one of your illegal alien workers down as the supposed owner... Then the IRS will forgive the debt, he'll get papers to make him legal and a green card...

                            Comment


                            • #15
                              Originally posted by T. A. Gardner View Post
                              Nah, just make sure the paperwork has one of your illegal alien workers down as the supposed owner... Then the IRS will forgive the debt, he'll get papers to make him legal and a green card...
                              To be honest, it's more steel foundry than home building company - they put up the metal framework for large buildings, office complexes, etc.

                              Still, my Uncle is pissed that they've been passed over for government contracts before because he didn't name his wife as the owner.

                              Progressive ideas about "minority businesses" are just another venue for racism, despite the left being unable to see it.

                              Comment

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