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Re: “City of Gould strikes deal with IRS on tax liability

IRS intentional fraud

The Internal Revenue Service Collections Division in Arkansas is knowingly dating payments as received later than they were actually received. It is estimated the IRS Collections Department has created millions of dollars owed by taxpayers in extra penalty and interest over the past fifteen years. Some IRS Collections managers in Arkansas and Tennessee direct all Revenue Officers to post payments as the date the Revenue Officer was in the office to submit the payment for processing instead of the date the payment was actually received in the office (and date stamped as received). These payments may have been submitted to the office two weeks before the Revenue Officer was in the office to post them. Needless to say, this is not the correct procedure.

This is a quote from an IRS Revenue Officer in Little Rock, AR:

“I transferred from my post of duty in San Antonio, TX, to first Pine Bluff, AR, then to Little Rock, AR, all in 2012. In San Antonio, the procedure was to designate a different Revenue Officer each day to remain in the office and make sure all payments and tax returns received that day were posted correctly, as received that day. In April of 2012, I transferred to Pine Bluff. There, I was directed, first by my former manager NAME DELETED (now retired), then by my next manager, NAME DELETED, to post payments as the date I, myself, actually received them, rather than the day they were actually submitted to the IRS by the taxpayer. I questioned this procedure. I proposed the simple method of designating a Revenue Officer of the Day. I questioned this in a group meeting with Collections Group Manager NAME DELETED, Collections Territory Manager, NAME DELETED (located in Memphis, TN), and at least five other Revenue Officers. I was still told to post the payments late. I assumed this was an acceptable (though inappropriate) procedure, if the Territory Manger and the Group Manager both approve. All the Revenue Officers in Little Rock, Pine Bluff (prior to the office closure), Jonesboro, and all of southern Arkansas post payments late in this method, as directed by these Collections managers. I asked Revenue Officers in Arkansas how long this has occurred. The usual response was, “As long as I’ve been here.” This has been happening, I estimate, for at least fifteen years, maybe longer.

This is what happens, and is still happening. A taxpayer owes money or is late with a tax return. A payment or tax return is mailed to the IRS Collections office, the envelope in which it came is date stamped the day it was received, and placed in the mailbox of the Revenue Officer to whom the payment is intended. A Revenue Officer may be working away from the office or on leave for a day or two, or maybe two weeks or more. Once the Revenue Officer returns to the office and retrieves the mail, the manager directs the Revenue Officer to post the payments or tax returns as received that day, rather than the date stamp date. If a taxpayer submitted a $100,000 payment, or a levy issued to a bank or other source produced a $100,000 payment, that payment may be credited after the accrual of an additional 5% penalty or more, and additional interest which accrues daily. The IRS system then assessed an additional $5,000 (at least) tax owed. If there were just fifty Revenue Officers in Arkansas collecting an average of $600,000 per year (which is a low average) for only fifteen years, the IRS likely, purposely, stole millions of dollars from taxpayers in Arkansas.

One reason is to avoid an error for late posting and submission. This is not a noteworthy error to receive and happens often. So what reason could these managers possibly have to not take simple, corrective measures? With an easy solution such as designating a Revenue Officer of the Day or simply posting the payments as received on the correct date, isn’t this outright fraud being committed by these collections managers? Is this their way to collect more money in their territories, have more money owed in their territories to get more federal funding, or some other reason for personal gain? In what other areas of Arkansas, or the nation, may this be occurring?

I have a fear of reprisal, to include loss of my job, or perhaps worse. I have a fully successful rating as a Revenue Officer, a rating that improves yearly. I take pride in my job and performing it with integrity. Thusly, with this integrity, I am providing this information to both Congressional and Senatorial Representatives and the people of Arkansas so that they may investigate the Internal Revenue Service and these presumably illegal practices. Still, I have reported this to Senators Pryor and Bozeman and Congressional Representative Tom Cotton. Still, action may not be taken to investigate the IRS unless more people contact their representatives.”

I hope the representatives in Arkansas will launch a quick and full-forced investigation into the IRS practices within their home and upon their people.

How to make sure your payments and tax returns have not been credited as received late by the IRS:

Order your IRS records via the Freedom of Information Act. This is easily done at…. Check to make sure your payment was posted the date it was received by the IRS, not the date the Revenue Officer or other IRS employee received it. Contact your Revenue Officer, the manager, or the IRS customer service via phone at 1-800-829-1040 or at 700 W Capitol Ave, Little Rock, 1st floor.

Posted by TAXMAN on 03/30/2013 at 2:37 PM


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