Computer glitch lets 18% of million-dollar tax deadbeats off the hook

While common sense tells you that the people who owe the most taxes deserve the most attention, several computer errors left 18% of accounts owing more than $1 million to sit un-pursued.

A recent investigation by the Inspector General found three major programming errors, that combined, affected 448 accounts worth $1.2 billion. The report estimates that had the IRS actively made efforts to collect on these accounts they would have been able to recover $12.1 million last year.

The good news is that the IRS already fixed two of the errors that sent these accounts to IRS purgatory; including one issue which also affected at least 2,439 accounts owing more than $50,000. The bad news is that the IRS hasn't fixed the final issue, and as of right now is trying to find out if it is worth the cost of fixing it.

Commenting on the third problem, the Inspector General's report stated that, "As a result, individuals who owe a combination of tax assessments, interest, and penalties that could far exceed $1 million can have their accounts linger in the Queue or remain shelved while others who may owe less have their accounts accelerated to the field for investigation and possible enforcement action."

Even if the IRS fixes the final software issue, don't expect it to go much toward the national debt; the estimated $12.1 million that could have been recovered last year is only a fraction of the $110 million owed by these 27 taxpayers.

The 10 Most Overlooked Tax Deductions

Don't overpay taxes by overlooking these tax deductions. See the 10 most common deductions taxpayers miss on their tax returns so you can keep more money in your pocket.

Read More

Brought to you by TurboTax.com

How to Find a Good CPA for Your Taxes

Finding a good CPA for your taxes is simple with these seven tips: 1. Ask about their specialization; 2. Verify their identification number, 3. Look up their license, 4. Consider their experience, 5. Confirm their willingness to sign, 6. Ask for advice, and 7. Determine their fees.

Read More

Brought to you by TurboTax.com

Reporting Self-Employment Business Income and Deductions

Self-employed taxpayers report their business income and expenses on Schedule C. TurboTax can help make the job easier.

Read More

Brought to you by TurboTax.com

2018 Tax Reform Impact: What You Should Know

Congress has passed the largest piece of tax reform legislation in more than three decades. The bill went into place on January 1, 2018, which means that it will affect the taxes of most taxpayers for the 2018 tax year.

Read More

Brought to you by TurboTax.com
Read Full Story
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.