The IRS may proceed to levy to collect more than $1.3 million in excess benefits taxes and nearly $600,000 in late payment penalties against a husband and wife couple that ran a 501(c)(3) pre-school, the Tax Court has ruled. The IRS began examining Sara’s Pre-School run by husband and wife couple Richard and Sara Archer in March 2011. The first letter raised questions about governance when the IRS was concerned about an apparent lack of appropriate oversight. When the Archers failed to respond, the IRS expanded the examination to investigate both the governance issues and the amount of compensation paid to the couple. The IRS asked the Archers to extend the period of limitations on...