I wonder what would happen if the IRS actually took the time to look at the 4,000+ pages and 47 pounds of documents sent to them by Common Cause to revoke ALEC’s 501c3 status.
I wonder if the IRS will even follow through on this.
I wonder how much tax, penalty and fine revenue all this could bring to the US treasury – IF ALEC‘s 501c3 designation was revoked.
Let’s take a gander at what POSSIBLY could happen if the IRS overturns or even partially overturns the 501c3 status for the American Legislative Exchange Council (ALEC).
Let’s take a gander at what POSSIBLY could happen to corporations who have “donated” money to the IRS overturns or even partially overturns the 501c3 status for the American Legislative Exchange Council (ALEC).
Keep in mind
Tax evaders often face large criminal penalties, including fines and imprisonment, as well as civil penalties.
Here’s a little bit from a tax penalties guide;
Timely Filers Who Do Not Pay Total Due: one-half of 1% of the tax owed for each month until tax is paid (25% maximum)
Late Filers: 5 percent of the tax owed for each month late (up to 25%); increased penalties for fraud
Combined Penalties: if both of the above apply): the failure-to-file penalty minus the failure-to-pay penalty
Frivolous Tax Submissions: $5,000 penalty
Mistakes: 20% of the underpayment
Civil Fraud: 75% of the underpayment
Criminal Penalties: civil fraud penalty (75%), plus substantial fines and jail time
Interest: for all late or under-paying filers, interest will compound daily on their unpaid taxes at the federal short term rate plus 3%
Or another website notes this:
If you have a balance due on a late tax return, the IRS will calculate additional penalties and interest. There are three separate penalties:
Failure to File Penalty The penalty is 5% for each month the tax return is late, up to a total maximum penalty of 25%.
Failure to Pay Penalty The penalty is 0.5% for each month the tax is not paid in full. There is no maximum limit to the failure-to-pay penalty.
Interest Currently, the IRS interest rate for underpayment of tax is 4% per year. The interest is calculated for each day your balance due is not paid in full.
And that’s the Fed.
If ALEC lost at the Federal level …
I wonder if ALEC and the corporations who “donated” to ALEC would be liable at the state level also.
From Massachusetts you have this blurb:
The Massachusetts interest rate for underpayments is equal to the federal short-term rate (which can change quarterly) plus four percentage points, compounded daily. The Massachusetts interest rate for overpayments is equal to the federal short-term rate (which changes quarterly) plus two percentage points, simple interest. The rate is published through Technical Information Releases in the Rulings and Regulations area of this website.
Under Massachusetts state law, there are penalties that are applied automatically to late returns or payments. Most often, a late return will generate a late-file penalty of 1 percent per month (or fraction thereof) on the unpaid tax; an unpaid balance will generate a 1 percent late pay penalty per month (or fraction thereof). Late return penalties and unpaid balance penalties are each capped at 25 percent of the unpaid tax.
You should also be aware that willful evasion of taxes is a felony punishable by imprisonment for up to five years and/or a fine -- in addition to the tax, interest and penalty owed -- of up to $100,000 for individuals or $500,000 for corporations for each offense.
I wonder if this is what Grover Norquist – a big fan of ALEC’s - would consider “new taxes”?????
I wonder how many people in the IRS are ALEC members?
I wonder how many people in the Treasury Department are members of ALEC?
I wonder how many people in the Department of Justice are ALEC members?
I wonder what the ALEC ALUMNI in Congress will say and do?
I wonder if the Koch brothers will pay for ALEC’s legal and accounting fees.
I wonder if the corporations that belong to ALEC are even considering what their liability is at this point.
After all, they have been doing this for 39 years - ALEC and Corporations.
That could be lot of money owed to the US government and possibly the state governments - ya think???.
I wonder …