One-Room School Faces $10,000 IRS Fine
Jan 13, 6:57 PM (ET)
BAYARD, Neb. (AP) - A tax error totaling less than $40 has resulted in a $10,000 fine for the Hill Public School, a one-room schoolhouse.
The IRS informed the school district of the discrepancy on June 1, 2003, and wants the fine to be paid, Rhonda Maxcy, school board secretary, said Monday.
Maxcy says an accountant is to blame for the error, which he repeated a dozen times on the school's quarterly tax returns from 2000 to 2002. The school's stated amount withheld for several federal taxes was over the limit by $3.25 each quarter, she said.
"We weren't notified by the IRS as to why they let that go so long," Maxcy said.
Now the public is being asked to contribute to the fine. The school is even trying to raise $2,000 from the sale of its 1985 Chevy van, which takes its eight students in Kindergarten through 8th grade on field trips.
The school, which was built in the early 1900s, is one of a few one-room schoolhouses still remaining in Nebraska. One full-time teacher and one teacher's aid work at the school.
If I had $10,000 I'd write a check and then another one to retain a lawyer for the school. This is absolutely ridiculous. Is there anyone out there who doesn't believe the tax code needs to be totally reformed? And what is the accountant who made the mistake doing to help fix this mess? It was an honest mistake on the accountant's part, so I don't advocate getting out the tar and feathers, but this goes beyond, "I'm sorry, I made a mistake."
Who wants to bet this is the last year this one room school house will be open? I'm guessing the school will be closed down and the kids bussed miles to the nearest schools. How sad. The time spent on the bus could have been used being kids, playing ball, having snowball fights in the winter, and even doing chores. And maybe even studying! Study! What a concept. I rode a schoolbus. I know how easy it is (not!) to study on a swaying, noisy school bus full of other kids who don't want to achieve good grades.
I've written before about how getting rid of our current archaic, undeciperable by most living, breathing human beings, tax system would benefit you as an individual. I never gave a thought to a situation such as this. This school would not be in this situation if it didn't have to be a tax collection center. The school doesn't pay taxes, it collects taxes from its employees to send to the federal government. Think about it...what does a school do to have to pay taxes to the government? It takes money from the teachers in the form of payroll taxes. Am I wrong? Please educate me. Any other revenue I can think of should be in the form of fundraisers for the school and aren't those tax exempt?
It's time to get rid of the IRS.
Note: Thanks to my better half, Dale, for bringing this to my attention. He specifically thought it was something that needed to be blogged about in reference to tax reform and he was right. Thanks, honeybunch!