The Bureau of Internal Revenue has received a $15,000 fine for not reporting income tax refunds in a timely manner for the year ended June 30, 2017.
The IRS had received a complaint on October 25, 2017, from the National Association of Real Estate Brokers (NARREB), alleging that it had not filed a timely tax return for the full 2017-18 tax year, the NARREP stated in a letter to the IRS.
The letter was sent on October 27, 2017 to the Office of the Inspector General (OIG) of the Internal Revenue Service.
In the letter, the IRS alleged that NARBE failed to file tax returns for the fiscal year that ended June 15, 2018 and that it did not file tax refunds for the same year in 2019.
The NARB alleged that the IRS failed to respond to the complaint within 10 days of the letter’s issuance.
It also claimed that it was “incomplete in its reporting to the OIG and is now in contempt of Congress”.NARBE also alleged that IRS officials were aware of the violations and “filed the appropriate documents within a reasonable time”, and that “no action was taken against the officers”.
The letter also stated that IRS staff were “in the process of reviewing the complaint” and “do not believe that the information provided in the letter is inaccurate”.
In a response letter dated November 2, the Oig said that the OIE had received the NAREB complaint on November 18, 2017 and that the agency was “working on its response”.
The OIG said the IRS “reserves the right to take action as it deems appropriate”, including withholding tax refunds from taxpayers, and “resisting and refusing to cooperate with any request for information”.
The IRS said in a statement that it has since reviewed the complaint and “we will continue to take appropriate action” if it continues to receive such complaints.
The letter said the agency “reassured taxpayers that they have all the information they need to file a return”.
The tax office has been criticised for not paying back taxes in a manner consistent with its statutory obligations.
In a statement on Thursday, the Office for Taxpayer Responsibility (OTR), which administers the tax code, said it had received more than 5,000 complaints of non-compliance from taxpayers in the past 12 months, with a total of $3.2 billion owed.
In response to the NREB complaint, the office said it “has implemented a series of corrective measures to ensure that taxpayers are treated fairly under the tax law”.
It said it is “committed to taking all actions necessary to ensure the fair and effective administration of the tax laws and is confident that we have the resources to meet our responsibilities”.