Dinesh Exposes the IRS As a Rip-Off Operation


Recently, the GOP led House of Representatives repealed a congressional provision allocating almost $80 billion to the IRS to over ten years, hire a whole bunch of new agents and the House Republicans said, listen, you don't need the money. You're going to just use this money to badger harass and rip off the taxpayer. And I want to focus on a particular case that seems to show the IRS doing exactly that. I know about the case only because it wound its way up to the Supreme Court. And the Supreme Court basically weighed in and slapped down the IRS for imposing really a ridiculously excessive penalty on a guy for not reporting his foreign bank accounts. Now, here's what let's go into the story a little bit because the guy, his name is alexandru, bittner. He was born in communist Romania. He moved to the United States when he was a young guy. But then when the Soviet Union collapsed, he moved back to Romania from 1990 to 2011, so he lived in post Soviet in the post Soviet bloc for about 20 years. Now he was a really successful guy. He had a bunch of businesses, and he opened up a whole bunch of foreign bank accounts. Then later he moves back to the United States and he discovers that he is required as someone who has these foreign bank accounts simply the file a report. With the IRS noting that he has these bank accounts. He says I didn't even know I was supposed to do that, but he hired an attorney and the attorney said, I'll prepare the documents for you. And so he filed them. Now the IRS basically said that this guy did not file these timely reports. For 5 years, 2007 to 2011. Again, reports that you didn't know he needed to file. And so the IRS decides to fine him. Now, the correct amount to find him because apparently there were 5 years and he didn't file a report for 5 years, is $10,000 per year. So the amount that they could find. And remember, when you don't know there's a law, it doesn't excuse you from having to follow the law. You still have to do it. And so the IRS should have probably fine this guy $50,000, which was a small fraction of the total amount of money in those accounts. He could easily have paid it. But the IRS decided not to do that. They decided that for each account that he didn't file a report, it's a separate violation. And it needs to have a $10,000 fine attached not to each report, not each annual report, but to each particular account and because this guy had a whole bunch of accounts, it turns out that the IRS stuck him with a penalty, let me look for the actual number here. It was a penalty of $2.72 million.

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