Sen. Mikulski Calls on Internal Revenue Service to Get to Bottom of Potential Accu-Pay Fraud and Tax Theft

From the office of U.S. Senator Barbara Mikulski:

Senator asks IRS to expedite any Request for Abatement of Interest for Maryland businesses that may have been affected as tax season approaches

U.S. Senator Barbara A. Mikulski (D-Md.) today called upon Internal Revenue Service (IRS) Acting Commissioner Steven Miller to get to the bottom of allegations that Maryland-based Accu-Pay defrauded small businesses from misdirected or delayed payroll tax payments. In her letter, Senator Mikulski voiced her strong support for the IRS investigation and called on the IRS to expedite any Request for Abatement of Interest for Maryland businesses that may have been affected as tax season approaches.

“As the IRS continues its investigation of suspicious activity and potential fraud, anyone who is guilty of profiting from not paying their fair share in payroll taxes must be properly penalized and the Social Security Trust Fund must be made whole for any losses. But I also want to make sure that honest small businesses that properly withheld the appropriate payroll taxes are not harmed by any wrongdoing at Accu-Pay,” Senator Mikulski wrote. “Additionally, I would ask that you work with state and federal law enforcement to ensure that any criminal activity is prosecuted fully, and the victims are fairly compensated for any loss they have suffered.”

At least 10 businesses have filed complaints about Accu-Pay which is accused of failing to pay or making only partial payments of federal and state withholding and unemployment taxes. Senator Mikulski stressed that the late fees resulting from misdirected and delayed state and federal taxes could hurt Maryland small businesses you relied on Accu-Pay for their payroll services.

Senator Mikulski’s letter to Internal Revenue Service Acting Director Steven Miller follows:

March 5, 2013

Mr. Steven T. Miller
Acting Commissioner
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, DC 20224-0002

Dear Mr. Miller:

I strongly support the Internal Revenue Service’s (IRS) enforcement efforts in investigating Accu-Pay. But I also write out of concern for the Maryland businesses who trusted and relied on Accu-Pay for their payroll services.

At least 10 businesses have filed complaints about Accu-Pay, and the late fees resulting from misdirected and delayed state and federal taxes could be very damaging to Maryland’s small businesses.

As the IRS continues its investigation of suspicious activity and potential fraud, anyone who is guilty of profiting from not paying their fair share in payroll taxes must be properly penalized and the Social Security Trust Fund must be made whole for any losses. But I also want to make sure that honest small businesses that properly withheld the appropriate payroll taxes are not harmed by any wrongdoing at Accu-Pay.

I would ask that the Internal Revenue Service expedite any Request for Abatement of Interest for Maryland businesses that have been affected by malfeasance at Accu-Pay. Additionally, I would ask that you work with state and federal law enforcement to ensure that any criminal activity is prosecuted fully, and the victims are fairly compensated for any loss they have suffered.

I believe that this is a very serious issue, and I hope that you will take every appropriate action to address this problem as soon as possible. Please send your response to my State Director, Jan Gardner, in my Baltimore office at the above address.

Thank you very much for your consideration. I look forward to hearing from you.

Sincerely,

Barbara A. Mikulski
United States Senator