The IRS has recently released data concerning unemployment insurance claims in 2008 and the data revealed that benefits were collected by nearly 3000 individuals who are considered millionaires. Of those 3000, 806 made over 2 million and 17 made over 10 million.
The IRS has the power to assess penalties in over 147 different situations. Almost every person or business suffering from an IRS problem owes the IRS even more money because of penalties. What you probably don't know is that the IRS writes-off approximately 50% of all penalties. The IRS calls the act of "writing-off" or eliminating a penalty an "abatement". The IRS does not normally volunteer any information about the likelihood to do this. You MUST ask!
Penalties and interest add up by the day if you haven't paid the IRS what you owe them. And they add up big-time if you haven't filed at all. Every day that you put off taking care of your IRS problem only makes it worse. Did You File and Not Pay? If you did, there's interest being compounded daily on what you owe, which is the quarterly federal short-term tax rate, plus 3%. As of this writing, the IRS is charging 4% per year.
The Internal Revenue Service recently released information that government employees on Capitol Hill owe overdue taxes worth $9.3 million, as part of the per agency IRS debt breakdown. It is not clear whether there are some Congress members guilty of not properly paying their taxes, as the agency refused to specify those involved.