IRS replies

[ChEAr$]

By now you may have heard, or not, that this morning IRS went back to the DC district court requesting a postponement , maybe a stay?, of the injunction of last Friday, asking for 30 more days in which to filed an appeal (failing that, just 14 days more at least). It appears, then, that IRS does think it has a leg on which to stand. Some facts: IRS has already collected 4 million $ from applicants for the RTRP and fears a class action lawsuit from those people. Also mentioned were the 157 IRS employees who would have to be reassigned.

[KBTS]

The $4 million is the monthly average of fees collected. The total fees collected so far are over $100 million and the amount spent to get the program up and running is over $50 million. The appeal is an interesting read with some good stats in it including the fact that less than 100,000 have registered to take the test - out of over 700,000 who have applied for a PTIN. I know not all who have a PTIN need to take the test, but it still means the are a LOT of people putting off this thing.

[BP.]

IRS has already collected 4 million $ from applicants for the RTRP . . . less than 100,000 have registered to take the test

The $4 million is the monthly average of fees collected. The total fees collected so far are over $100 million

Is this revenue from the RTRP? $100 million from 100,000 test registrants? Or does this revenue include the PTIN fees?

[Koss]

IRS Revenue

That figure appears to include PTIN registration and renewal fees, and the testing fees, since the inception of the entire program. In other words, it is all revenue collected since the IRS began charging a fee for a PTIN.

100,000 RTRP test registrants x $116 = $11.6 million

700,000 PTIN registrants x $64 = $44.8 million

For a total of about $56 million.

But that's only PTIN fees for one year. Probably PTIN fees collected in calendar year 2012.

When you add in the PTIN fees collected in 2010 and 2011, it's easy to see how it reaches $100 million.

BMK

[Nashville]

Govt takes care of its own

It appears, then, that IRS does think it has a leg on which to stand.

Sure they do. And even if they lose on merit, they can always get Congress to pass a special law validating their position.

It's amazing how if a private sector were on the losing end of a court decision, it wouldn't matter how many millions the company had lost or how much investment was flushed down the toilet. The court wouldn't care. But if it is government, the position changes miraculously.

One perfect example is the Chief Justice Roberts' ruling on Obamacare. While he upheld the legislation, he DID rule it unconstitutional that the states be forced to accept the Federal mandates. When asked why he ruled this section unconstitutional, he replied. "The states are broke. They can't afford it."

It's apparent that neither he nor anyone else in government cares whether the rest of us can afford it or not.

These may sound like churlish perceptions on my part, and I'll have to admit that I am quite weary and cynical of governmental units getting special treatment. But you can count on it. The IRS is not going to be affected in the long run. And even if there is relief granted via a class-action lawsuit it will take years and years, with pennies returned to the applicants and millions to the lawyers.

[JohnH]

Wow!

$11 Million here,
$56 million there,
$50 million in program costs,
toss in a couple of years' worth of activity,
and next thing you know you're talking about some real money.

Isn't government bureaucracy just wonderful?