Thursday, March 4, 2010

More From

You know you're in big trouble when the IRS makes an example of you on its website. Here we learn of someone who got into a mess of his own making:

WASHINGTON — Massachusetts Tax Attorney Kevin Kilduff was barred from practicing before the Internal Revenue Service for 48 months for failing to file one federal tax return and for filing another five returns late.

“Professionals who demonstrate a lack of respect for our tax system by failing to meet their own tax filing obligations should not expect to retain the privilege to practice before the IRS,” said Karen L. Hawkins, Director of the IRS Office of Professional Responsibility (OPR).

The OPR had originally sought the 48-month suspension, alleging Kilduff’s conduct was willful and disreputable. OPR enforces standards of conduct under Treasury Circular 230, which governs enrolled agents, attorneys and certified public accountants. Kilduff formerly worked for the IRS Office of Chief Counsel.

The Administrative Law Judge (ALJ) subsequently set the penalty at a 24-month suspension. Kilduff appealed the ALJ decision to the Secretary of the Treasury’s Appellate Authority, which in fact ultimately imposed the harsher 48-month suspension.

Kilduff’s suspension is for a minimum of 48 months. OPR has sole discretion regarding his reinstatement to practice before the IRS. At the very least, Kilduff must file all federal returns and pay all taxes he is responsible for, or enter an acceptable installment agreement or offer in compromise. [Emphasis mine]

So let's sum up what not to do:
  • Fail to file your own tax return and/or pay your taxes for several years, when you are supposedly helping other people do just that.
  • Work for the legal arm of the IRS and then cross it.
  • Appeal a 24-month suspension when you have been that foolish already.
Yes, I do work for H&R Block during this time of year. I don't read this stuff strictly for amusement. :-)

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