From U.S. Sen. Barbara Mikulski:
Senator asks IRS to suspend any fees or penalties levied on Maryland businesses that may have been affected as tax day approaches
U.S. Senator Barbara A. Mikulski (D-Md.) today renewed her call to Internal Revenue Service (IRS) Acting Commissioner Steven Miller to get to the bottom of allegations that Maryland-based Accu-Pay defrauded small businesses from misdirected or delayed payroll tax payments. In her letter, Senator Mikulski asked that the IRS suspend any fees or penalties levied on businesses found to be the victim of fraudulent activity by Accu-Pay as tax day approaches.
“Business owners in Maryland who may have been harmed by Accu-Pay need a government on their side. They need timely resolutions to their cases, including the waiver of fees and penalties where appropriate. These businesses should not be subject to any more red-tape or inaction by the IRS and are relying on the agency to take serious action to minimize the damage caused by fraudulent activity,” Senator Mikulski wrote. “Furthermore, I am frustrated by reports that the IRS was aware of irregularities at Accu-Pay and other third party processors for years and did not take significant steps to protect small businesses. Commissioner Miller, I am requesting that you get on this issue and personally review each case associated with Accu-Pay.”
In her letter, Senator Mikulski expressed her frustration with reports that the IRS has been aware of irregularities at Accu-Pay and has not taken significant steps to protect small businesses. She called upon Acting Commissioner Miller to take immediate action to prevent third-party payer fraud in the future, or work with Congress to provide any statutory changes that may be necessary.
Today’s action follows a letter Senator Mikulski sent to the IRS on March 5, which is available here. As Chairwoman of the Appropriations Committee, the Senator has pledged to follow up on the issue during the Acting Commissioners appearance before the committee in May.
Senator Mikulski’s letter to Internal Revenue Service Acting Director Steven Miller follows:
April 8, 2013
Mr. Steven T. Miller
Acting Commissioner
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, DC 20224-0002Dear Commissioner Miller:
I am disappointed that I did not get a response directly from you to my March 5th letter on behalf of Maryland businesses who were victims of alleged fraud by the Accu-Pay payroll processing company in Maryland. This is a serious issue that requires prompt action by you.
Business owners in Maryland who may have been harmed by Accu-Pay need a government on their side. They need timely resolutions to their cases, including the waiver of fees and penalties where appropriate. These businesses should not be subject to any more red-tape or inaction by the IRS and are relying on the agency to take serious action to minimize the damage caused by fraudulent activity.
Furthermore, I am frustrated by reports that the IRS was aware of irregularities at Accu-Pay and other third party processors for years and did not take significant steps to protect small businesses. According to the Taxpayer Advocate Service’s 2012 Annual Report to Congress, the Department of Justice has prosecuted more than two dozen payroll companies who failed to remit payroll taxes on behalf of their clients. Why is the IRS not taking serious and sustained action to prevent this type of crime?
Commissioner Miller, I am requesting that you get on this issue and personally review each case associated with Accu-Pay. Specifically, I ask that you:
1. Consider the suspension of any fees or penalties levied on businesses found to be the victim or fraudulent behavior by Accu-Pay;
2. Take immediate administrative action to help prevent third-party payer fraud in the future or inform Congress of any statutory changes that need to be made to assist the agency.
I look forward to a prompt response from you to this letter and to following-up on this issue when you testify before the Appropriations Committee in May.
Sincerely,
Barbara Mikulski
United States Senator
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Fed up says
Let me get this straight – Accu-Pay hoses business and private citizens, So Mikulski goes to the IRS looking for relief. But now we find out that the IRS is hosing private citizens with some very dark and disturbing behavior that equates to financial blackmail to those who object to the current administration. Where’s Mikulski now? Is she fighting for answers now? Is she outraged at this behavior? Does she realize how dangerous this behavior is from the all-powerful IRS? I didn’t think so…
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