Abuse of the 6672 trust fund penalty statute
Today's IRS abuse is by Audrey F. Donaldson, IRS Revenue Officer, 201 Thomas Johnson Drive, Suite 203, Frederick, MD 21701.
I have been working with a taxpayer to help get the IRS to correct corporate payroll tax payments which were posted to the wrong periods by the IRS. There have been some other distortions that we wanted to correct. We told the IRS that the corporation would pay any balance due on payroll taxes if there is a balance due.
Donaldson sent out a certified letter to Taxpayer, the person responsible for the payment of the corporate payroll taxes. The certified letter proposed to assess the "trust fund penalty" against Taxpayer. We never got it.
Donaldson said the letter was never picked up and it was returned by the Post Office. Donaldson also said that she did not have Taxpayer's new address.
We met with Donaldson on other issues. We talked with Donaldson and her manager on other issues.
If Donaldon wanted to give us notice of a proposed trust fund penalty, all she would have to do is call us on the telephone. She did not do that.
Secondly, Donaldson misapplied section 6672 which required "willful" faiilure to pay. We were "willfuly" trying to resolve the tax liabilities. We have been willfully trying to resoleve the correct assessment. The is completely opposite of the "willfull" requirement of IRC 6672. Donaldson was technically wrong on the facts and the law in her misapplication of IRC 6672.
Donaldson is a clear example of the failure of the IRS to live up to its Mission Statement to apply the tax law with "integrity" and "fairness."
She did not send the proposed assessment letter to the tax attorney because she said that I did not have "penalty" in the Power of Attorney Form.
She refused to call either the Taxpayer of me to let us know that the posposed assessment was not delievered.
Donaldson gets my award for the IRS Abuse of the Day.