My pal used to run a construction business. As it turned out, it wasn’t as lucrative as he would have hoped and he closed it down. Hey, what can you do? It was worth a shot, better luck next time, no harm, no foul, right? He filled out paperwork to dissolve the business, got a different job and went on with his life.
Fast forward a few years. While a passenger in a friend’s car, the friend ran a red light and was pulled over. The police officer, seeing two tired men at the end of a hard day, decided to cut the driver some slack. Just for kicks, he asked my pal for his identification and ran it through the system.
Ten minutes later, my buddy was handcuffed in the back of the squad car.
What happened?
Failure to file Occupational Taxes.
I just know that the armed robbers and gang leaders were shaking when he walked into the cell: My God, Dead Eye, this guy didn’t file Occupational Taxes! He is crazy, boys! I betcha he filled out his 1040 with a grape-scented marker, the psycho….
So okay, why did this happen? Undeliverable mail. Both the IRS and the city of Louisville had been sending notices to an address where my friend hadn’t resided in over five years. While he had been filing his returns with current addresses, both agencies neglected to make note of either his address change or the fact that his business had been shut down. Friend filled out the proper dissolution forms and thought that he was doing everything by the book. He did not have an accountant (SEE?! Accountants matter!).
Sadly, this isn’t such a wild scenario. The Kiplinger Tax Letter (Vol. 94, No. 20, 10/4/19) tells us that, in 2018, “14.4 million pieces of mail were returned to the IRS.” While I get a sort of kamikaze thrill just knowing that these returned items cost the IRS $43 million, it’s a short lived thrill. First, how many people are in trouble and won’t know it until it’s too late? Second, you just know that we, as taxpayers, will eventually be footing the bill for all of that postage and return to sender stickers.
According to Procedurally Taxing, the government is not required “to search for a new address for a taxpayer in databases outside of the IRS” after receiving a returned item. However, as it is pointed out, the government makes “routine use of [motor vehicle and real property records] databases for other purposes (e.g., to locate assets upon which to levy).” I guess it’s just a matter of priorities, isn’t it?
I think that the IRS and local agencies have a duty to make sure that the taxpayers know what’s going on. I believe that five seconds of research isn’t too much to ask in order to save us from fines, penalties and jail.
I also think that everyone could do with an accountant.
No matter if you’re starting a business, closing a business or just a Regular 1040 Joe, Bourke Accounting can help make any financial transition easier. So why not stop by, talk with a Bourke Accounting associate, and make sure that you don’t spend tonight in jail.
Come see us any time. Our number is 502-451-8773 and don’t forget to visit our website at www.bourkeaccounting.com. See you soon!
Written by Sue H.
It is October 17, 2019. Did you know that, exactly 32,142 days (or 88 years) ago, Al Capone was sentenced in court for tax evasion?
First, let me start by saying that I, in no way, condone crime, organized or otherwise. Let me further continue that there will always be a special place in my heart for Alphonse Gabriel “Al” Capone. Mixed messages, right?
I was born in Chicago in a sort of harsh neighborhood and all of us kids knew (a sanitized version, at least) about Al Capone by the time we were eight years old. And, not that it’s important, most of us had last names ending in vowels. We felt a certain sort of pride regarding Mr. Capone, even if we weren’t exactly sure why. I’m not going to give you a history of Al Capone, but here is a really great resource if you’re curious: Al Capone
Why did we love Capone? Maybe we thought of him as a kind of Robin Hood (he did start one of the first soup kitchens), superhero, bad guy with a heart of gold sort of guy. Eight year old kids surely haven’t been the only ones enamored by Al Capone: check out the original Scarface with Paul Muni, the (rather bizarre) remake with Al Pacino, The Godfather, etc. It’s not just ladies who love outlaws. Americans have always rooted for the anti-hero – my guess is that it’s because they always look so sharp.
However, I was torn. I loved the devil-may-care criminal, but, and here’s the big thing, my father was an accountant. Part of me cherished that, while the gun-toting mercenaries couldn’t lay a hand on Capone, it was an accountant who brought the big man down. A pencil pushing, bean-counting, green eyeshade wearing, low-key, soft-spoken, educated gentleman did what Eliot Ness and The Untouchables couldn’t. If that doesn’t make a young girl idolize her father, I don’t know what could.
So, on the anniversary of Al Capone’s downfall, let’s take a minute to honor those stalwart women and men who keep us out of trouble. Let’s raise a glass to the unsung conquerors of arithmetic and obscure tax laws. Accountants prove that, for sure, the pen is mightier than the sword.
You aren’t Al and Bourke Accounting doesn’t have Frank Wilson waiting in the wings. However, Bourke Accounting is part of a proud and prestigious history and can help you with your financial needs. Avoid prison by talking with the experts at Bourke Accounting and make sure that you’re on the up and up.
Come see us any time. Our number is 502-451-8773 and don’t forget to visit our website at www.bourkeaccounting.com. See you soon!
P.S. Also, check out interesting things around Louisville. Tim Bourke told me how the Seelbach Hotel actually has a secret room, complete with hidden escape tunnels, where Al Capone and others played covert poker games. I mean, come on! History is amazing!
Written by Sue H.