IRS and Penalties
IRS penalties have come a long way since the
beginning of the history of IRS tax penalties. In the past,
there were just thirteen IRS penalties in the tax code in 1954.
IRS and penalties have evolved and in 1988, a hundred and fifty
IRS penalties were represented in the IRS tax laws. So, why the
substantial increase in the number of IRS penalties
IRS and penalties in 1980s
In the late 1980s, Congress launched an
inquiry into the jump in the number of IRS penalties over
decades. After that, a legislation was passed aimed to reduce
and restrict the number of IRS penalties. This legislation was
not too effective as it only reduced the number of IRS
penalties from about 150 penalties to about 140 IRS penalties.
The number of IRS penalties is still at record high. IRS and
penalties were known hand in hand.
1980s legislation failed to do was to curb the
indiscriminate manner the IRS used to assess
IRS tax penalties and collect taxes. This
caused more and more IRS penalties to be
assessed. The IRS assessed IRS penalties and if
you disagreed, it was up to you to prove that
the IRS penalties were improper. The IRS did
not need to prove anything. As a result, the
IRS got away with imposing as much IRS
penalties as they could come up
Most citizens did not know how to challenge
the IRS and the imposition of IRS tax penalties and ended up
paying the taxes and IRS penalties.
IRS and penalties in 1990s
In the 1990s, the same story of IRS and
penalties continued. The number of IRS tax penalties
continued to rise as the IRS assessed more and more IRS
tax penalties against individual tax filers and
businesses. Revenues collected by the IRS in the form of IRS
tax penalties were at record high.