One-Room School Faces $10,000 IRS Fine

[rainbow4321]

Ok..so they go after these people like a pitbull, yet guys like Ken Lay and his ilk are still out living high on the hog??? WTF?

http://www.theledger.com/apps/pbcs.dll/article?AID=/20050113/APA/501131146

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.

[proud2BlibKansan]

1. Ridiculous

But it's also ridiculous to keep a school open for only eight kids.

[rainbow4321]

3. Population: 1,247

That's the town population..maybe why there are so few kids? I've run into a kid here in TX that had 15 kids in his graduating class..when he tells people that, they think he means 1500..nope, just 15! Which is incredible to me since my daughter has 1,230 in her graduating class!

[proud2BlibKansan]

5. All the kids in that community

are probably enrolled in Christian schools.

[LeftyMom]

4. We have schools that small in remote areas of CA

It isn't very economical but in the mountains it's dangerous at best and imposible at worst to transport kids from remote areas to the larger towns when there's snow and ice on the ground, assuming the roads are even open. In some cases the state pays for the family's expenses to set up a homeschool instead, but that doesn't work for everybody.

Such a large fine for a minor mistake is total BS. It's also amaxing to me that the school has such an old, unsafe van. Hopefully someone who reads the article can get them in touch with a charity that can help them out with that.

[AP]

2. It seems the fine isn't for the repeated errors. It's for not paying the

difference once the IRS notified the school of the error.

The school is now saying the IRS should have asked them more than once for the money.