April 8, 2013
Mr. Steven T. Miller
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, DC 20224-0002
Dear Commissioner Miller:
I am disappointed that I did not get a response directly from you to my March 5th letter on behalf of Maryland businesses who were victims of alleged fraud by the Accu-Pay payroll processing company in Maryland. This is a serious issue that requires prompt action by you.
Business owners in Maryland who may have been harmed by Accu-Pay need a government on their side. They need timely resolutions to their cases, including the waiver of fees and penalties where appropriate. These businesses should not be subject to any more red-tape or inaction by the IRS and are relying on the agency to take serious action to minimize the damage caused by fraudulent activity.
Furthermore, I am frustrated by reports that the IRS was aware of irregularities at Accu-Pay and other third party processors for years and did not take significant steps to protect small businesses. According to the Taxpayer Advocate Service's 2012 Annual Report to Congress, the Department of Justice has prosecuted more than two dozen payroll companies who failed to remit payroll taxes on behalf of their clients. Why is the IRS not taking serious and sustained action to prevent this type of crime?
Commissioner Miller, I am requesting that you get on this issue and personally review each case associated with Accu-Pay. Specifically, I ask that you:
Consider the suspension of any fees or penalties levied on businesses found to be the victim or fraudulent behavior by Accu-Pay;
Take immediate administrative action to help prevent third-party payer fraud in the future or inform Congress of any statutory changes that need to be made to assist the agency.
I look forward to a prompt response from you to this letter and to following-up on this issue when you testify before the Appropriations Committee in May.
United States Senator