Irs Tax Quotes

Why was I the Most Popular President Who Ever Lived? I castrated the IRS, implemented the National Sales Tax (Fair Tax) and brought an end to parasitic government - all through the use of numbers, statistics. business metrics, graphs, pie charts, efficiency - in short - results.

I long ago became convinced that the most reliable source for arcane and obscure and seemingly unobtainable information does not lie with the government or law enforcement agencies. Apparently neither the CIA nor the military intelligence apparatus inside the Pentagon had even a slight inkling of the Soviet Union's impending collapse, right up to the moment the Kremlin's leaders were trying to cut deals for their memoirs with New York publishers. Or, if a person really wishes a lesson in the subjective nature of official information, he can always call the IRS and ask for help with his tax forms, then call back a half hour later and ask the same questions to a different representative. So where do you go to find a researcher who is intelligent, imaginative, skilled in the use of computers, devoted to discovering the truth, and knowledgeable about science, technology, history, and literature, and who usually works for dirt and gets credit for nothing? After lunch I drove to the city library on Main and asked the reference librarian to find what she could on Junior Crudup.

Daddy had a strict rule about firearms. Anything we killed we had to eat. No amount of barbecue sauce would make a hairy guy like you palatable.

With vivid memories of the last IRS form I had signed, I agreed sympathetically that a two percent tax rate was a positive outrage, wondering to myself just what had become of the fiery spirit of American taxpayers over the intervening two hundred years.

1913 wasn't a very good year. 1913 gave us the income tax, the 16th amendment and the IRS.

If the IRS had to calculate the tax due and then directly take it from each "taxpayer," there would be no more federal "taxation.

So let me get this straight – this is a long sentence. We are going to be gifted with a health care plan that we are forced to purchase, and fined if we don’t, which reportedly covers 10 million more people without adding a single new doctor, but provides for 16,000 new IRS agents, written by a committee whose chairman doesn’t understand it, passed by Congress, that didn’t read it, but exempted themselves from it, and signed by a president who smokes, with funding administered by a treasury chief who didn’t pay his taxes, for which we will be taxed for four years before any benefits take effect, by a government which has bankrupted Social Security and Medicare, all to be overseen by a surgeon general who is obese and financed by a country that is broke. So what the blank could possibly go wrong?

When it comes to writing fiction, long or short, the learning curve never ends. I may be a Professional Writer to the IRS when I file my tax return, but in creative terms, I’m still an amateur, still learning my craft. We all are.

Never call your office while you’re on vacation. That’s always been one of my hard and fast rules.

And of course, everybody pays taxes. You don’t mess with the IRS, no matter which race you belong to.

The three of us exchanged glances but said nothing. After all, what was there to say? The truth was that hookers did take credit cards—or at least ours did! In fact, hookers were so much a part of the Stratton subculture that we classified them like publicly traded stocks: Blue Chips were considered the top-of-the-line hooker, zee crème de la crème. They were usually struggling young models or exceptionally beautiful college girls in desperate need of tuition or designer clothing, and for a few thousand dollars they would do almost anything imaginable, either to you or to each other. Next came the NASDAQs, who were one step down from the Blue Chips. They were priced between three and five hundred dollars and made you wear a condom unless you gave them a hefty tip, which I always did. Then came the Pink Sheet hookers, who were the lowest form of all, usually a streetwalker or the sort of low-class hooker who showed up in response to a desperate late-night phone call to a number in Screw magazine or the yellow pages. They usually cost a hundred dollars or less, and if you didn’t wear a condom, you’d get a penicillin shot the next day and then pray that your dick didn’t fall off. Anyway, the Blue Chips took credit cards, so what was wrong with writing them off on your taxes? After all, the IRS knew about this sort of stuff, didn’t they? In fact, back in the good old days, when getting blasted over lunch was considered normal corporate behavior, the IRS referred to these types of expenses as three-martini lunches! They even had an accounting term for it: It was called T and E, which stood for Travel and Entertainment. All I’d done was taken the small liberty of moving things to their logical conclusion, changing T and E to T and A: Tits and Ass!

With vivid memories of the last IRS form, I had signed, I agreed sympathetically that a two percent tax rate was a positive outrage, wondering to myself just what had become of the fiery spirit of American taxpayers over the intervening two hundred years.

A number of people who I’ve talked to about this assume that I got into a fight with the cops. (Because of, y'know, the militant politics.) I actually had an audience member come up to me once and ask me if I paid taxes. Of course I pay taxes! I pay taxes for exactly the same reason that I hate paying taxes — because I think my government is terrifying and stupid. I don't need the IRS kicking my door down and taking my meticulously alphabetized collection of Tijuana bibles.

The Union is what needs defending this year. Government of Enron and by Halliburton and for the Southern Baptists is not the same as what Lincoln spoke of. This gang of Republicans has humbugged us to death on terrorism and tax cuts for the comfy and school prayer and flag burning and claimed the right to know what books we read and to dump their sewage upstream from the rest of us and clear-cut the forests and gut the IRS and promote the corporate takeover of the public airwaves and to hell with anybody who opposes them.

You have choices and you do have some control. The IRS is not always correct! Even if you owe more than you can pay, there are other options.

If you are breaking the law, it is better when someone other than the IRS finds out first.

If you receive a ‘certified’ message in a bottle with an audit notice, be sure to have the most complete records and do not forget those receipts before the IRS boards your vessel for inspection.

Where would the money come from? The best place to start, in my view, is with the cheaters. The IRS now estimates that the United States loses more than $1 trillion a year in unpaid taxes, most of it owing to tax avoidance by multinational corporations and wealthy families. Congress hasn’t given the agency the resources it needs to hunt down tax criminals, leaving the IRS outgunned and outmatched.

The wealthy have also fought to underfund and defang the Internal Revenue Service, so it doesn’t have the resources to audit or fight dubious deductions. Only about 6 percent of tax returns of those with income of more than $1 million are audited, along with 0.7 percent of business tax returns. Meanwhile, there is one group that the IRS scrutinizes rigorously: the working poor with incomes below $20,000 a year who receive the Earned Income Tax Credit. More than one-third of all tax audits are focused on that group struggling to make ends meet, even as the agency cuts back on audits of the wealthy—while the top 5 percent of taxpayers account for more than half of all underreported income.

But, no, really, I had it this time. One of my first Salon essays was about confronting my debt, which had gotten so out of control I had to borrow money from my parents. That was a low moment, but it came with a boost of integrity. A free tax attorney helped me calculate the amount I owed the IRS - $40,000 - and put me on a payment plan. My commitment was seven years, which made me feel like the guy in Shawshank Redemption, tunneling out of prison with a spoon.

A man wrote a letter to the IRS saying, "I have been unable to sleep knowing that I have cheated on my income tax. I have understated my taxable income and have enclosed a check for $150. If I still can’t sleep, I will send the rest.

The police state We now have well over 100,000 domestic federal law enforcement agents armed and ready to enforce the laws to “make everyone safe and secure.” We also have our TSA “friends” at the airports protecting us with an army of over 50,000 bureaucrats. The Department of Homeland Security has more than 240,000 employees. The FBI has about 35,000 employees. Around 90,000 IRS employees enforce draconian tax laws that limit self-sufficiency, put people in fear, and are used as a political tool to help suppress dissenters to the empire. There are many thousands of others “making sure we’re safe and secure from our foreign enemies” while our domestic enemies, including politicians, bureaucrats, and government profiteers, are ignored.

Yes, by getting married, you’ve essentially doubled your family fuck-giving in one fell swoop. It’s sort of like when you get a bonus at work, and you’re like, “Awesome!” and then the IRS proceeds to tax it at 50 percent, and you’re like, “WTF?” Your

The idea of receiving a letter from the IRS is not a pleasant one for anyone. What makes it worse is the confusion, the fear, the assumptions and the thoughts of all the worst-case scenarios that can make you feel like you have a tidal wave of stress.

Oh, and although I don’t particularly like the IRS, I still do not like terrorists and have no desire whatsoever to attack our federal government. This is the United States. If you don’t like our government, go out and vote"--From Author's note in "Tax Break

Let’s look at the state of tax cheating under the current system. In 2001, the last year for which information is available, the IRS reports that it collected $345 billion less than it was owed—or about 16 percent of all that was owed, a figure known as “the tax gap”.

I heard about this man who fell into a pit, and while he was down there several people came by and offered their opinions. The Pharisee said, “You deserve to be in the pit.” The Catholic said, “You need to suffer while you’re in the pit.” The Baptist said, “If you’d been saved, you wouldn’t have fallen into the pit.” The charismatic said, “Just confess I’m not in the pit.” The mathematician said, “Let me calculate how you fell into the pit.” The IRS agent said, “Have you paid taxes on that pit?” The optimist said, “Things could be worse.” The pessimist said, “Things will get worse.

There were some legal boundaries. By law, tax-exempt charities, which the IRS designates as 501(c)(3)s, must refrain from involvement in lobbying and electoral politics and serve the public rather than their donors’ interests. But such laws are rarely enforced and are subject to flexible interpretation.

The fact that Trump paid no tax came to light when casino regulators issued a public report on his fitness to own a casino. Trump’s tax returns showed negative income. That’s because Congress lets big real estate investors offset their income from salaries, stock market gains, consulting fees, and other income with losses from depreciation in the value of their buildings. If these paper losses for the declining value of their buildings are greater than their cash income from other sources, real estate investors can legally tell the IRS that their income is less than zero and no federal income tax is due. Trump

An online tax program is only as good as the information the person enters into it and the understanding of what is being asked by the program.

He was formulating a plan. He would redeem the dream. I could understand that. It is the universal blessing—and curse—of those who dare.

Many people remember to include miles to their clients or vendors. However, what about those trips to the office supply store, bank, post office? These miles add up. Do not forget the miles!

Er … what is the current rate of taxation, do you think?” I asked, tactfully drawing attention away from Stanhope’s spluttering. Wylie pursed his lips, considering. A dandy, he wore the latest in modish wigs, and a small patch in the shape of a star beside his mouth. Under the powder, though, I thought I detected both a good-looking face and a very shrewd brain. “Oh, considering all incidentals, I should say it can amount to as much as two per centum of all income, if one was to include the taxes on slaves. Add taxes on lands and crops, and it amounts to a bit more, perhaps.” “Two percent!” Stanhope choked, pounding himself on the chest. “Iniquitous! Simply iniquitous!” With vivid memories of the last IRS form I had signed, I agreed sympathetically that a two percent tax rate was a positive outrage, wondering to myself just what had become of the fiery spirit of American taxpayers over the intervening two hundred years.

Just like our forefathers in Boston Harbor, who boarded a British ship to let the king know they would have none of his tyrannical rule, this man boarded the pirate ship called the IRS, and let the repressive government, the unfeeling government that is embodied by the man who inhabits the building over there," Hamilton said, pausing and pointing to the White House, a few blocks away. "This courageous man let that evil government know he would no longer suffer under its indifference. Would no longer tolerate taxation without representation. Would no longer accept the injustice and indignity met out by that government organization." From TAX BREAK, written in 1991, but sounding like today's politics.

The FairTax takes current individual taxpayers out of the tax collection and payment business altogether. Just how many people would that be? Try 165 million. That’s 165 million people who at present need to be watched, and perhaps audited, by the IRS to ensure compliance. With the FairTax, we’ll have about 25 million businesses to watch instead of 165 million taxpayers… Further, the states and the feds—at least in the forty-five states that have sales taxes—will be looking at the same companies.

In the tax profession, there are only three total official credentials. One is the enrolled agent credential. The EA is the only authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury.

For much of his life Cohn faced an almost constant threat of prosecution on charges related to his tax returns—IRS officials ultimately pegged his debt at $7 million—and his professional conduct. (He once put a pen in a comatose man’s hand in an attempt to get a signature on an amendment to his will.) Although repeated efforts were made to prosecute or discipline him through the bar association, all but one failed. The last, which ended with the revocation of his law license, occurred just prior to Cohn’s death in 1986 at age fifty-nine. More

Here is revelation bright as the evening star: Jesus comes for sinners, for those as outcast as tax collectors and for those caught up in squalid choices and failed dreams. He comes for corporate executives, street people, superstars, farmers, hookers, addicts, IRS agents, AIDS victims, and even used-car salesmen. Jesus not only talks with these people but dines with them—fully aware that His table fellowship with sinners will raise the eyebrows of religious bureaucrats who hold up the robes and insignia of their authority to justify their condemnation of the truth and their rejection of the gospel of grace.

after major-league criminals who couldn’t be caught through legal means. So Nick remained a major-league criminal himself, secretly working for the FBI, and Kate remained a top FBI field agent, secretly working with an international fugitive. And that’s why Kate was currently taking the curves on Sunset like it was the Talladega Superspeedway. She was hoping to catch Nick in his Sunset Strip penthouse. Technically, the penthouse wasn’t Nick’s. The IRS had seized it from a rapper who’d neglected to pay his taxes, and then the IRS had left it unoccupied pending sale. Nick had posed as the listing agent and quietly moved in. Thanks to rich tax cheats, Nick could always find a swanky place to stay that didn’t require him to show

[W]hen you look at who’ll be collecting this tax, the chances of drumming up a conspiracy suddenly look even worse. In America, .03 percent of all of America’s companies—688 companies, to be exact—sell 48.5 percent of all of the merchandise. Those companies aren't going to help you cheat; there’s simply too much at stake. Date also show that 3.6 percent of all of America’s companies—92,334 firms—collectively make 85.7 percent of all sales… When it comes to the services sector, the fact is that 1.2 percent of all businesses make approximately 80 percent of the sales in the services sector. They have too much to lose to risk helping you cheat. Even if the FairTax were paid only by these few companies, we would still have a better collection rate than the IRS currently has with the income tax.

In the next 25 years, we will see a 100 percent increase in the number of American retirees. The number of workers, however, will increase by only 15 percent. Given those numbers, how can these programs survive? Under our current tax code, these programs can be maintained only by increasing the tax on those who work, reducing benefits for those who have retired or by increasing the age of retirement.

Oh, it’s perfectly safe to handle if somebody else has triggered the curse and you took it from their still-smoking body.” Eve paused. “Or if they sold it to you.” “You bought it, didn’t you?” Imp walked towards her. “Didn’t you?” “I think so. I may have screwed up that side of things,” Eve admitted. “It’s unclear.” “What’s unclear?” “It was up for auction: obvs, right? But it’s not clear that the person auctioning the location of the manuscript actually owned what they were selling, that’s the thing. Also, ancient death spells and intellectual property law don’t always play nice together. I, uh, my boss has a standard procedure he has me follow in cases of handling blackmail and extortion. We pay the ransom, then once we’ve destroyed the threat I repossess the payment from the blackmailer’s bank account. Via a Transnistrian mafiya underwriter—” This time it was Wendy who interrupted: “The Russian mafiya has underwriters?” “Transnistrian, please, and yes, criminal business models are inherently expensive because they have to pay for their own guard labor—there are no tax overheads, but no police protection for carrying out business, either—so of course they evolved parallel structures for risk management, mostly by embedding the risk in a concrete slab and dumping it in the harbor—anyway. At what stage does the book consider itself to have been legitimately acquired? And by whom? Is it safe for you to handle it, as my employee? What about as an independent freelance contractor not subject to the HMRC IR35 regulations? Am I an acceptable proxy for Bigge Enterprises, a Scottish Limited Liability Partnership domiciled in the Channel Islands, in the view of a particularly dim-witted nineteenth-century death spell attached to a codex bound in human skin by a mad inquisitor? It’s like digital rights management magic, only worse.

As much as the Christian right of the twenty-first century is now fixated on abortion and sexual politics, the backlash against the efforts of the federal government to desegregate tax-exempt private schools is embedded in the movement’s DNA. The white evangelical attraction to Trump was not in spite of his extended birther crusade against Barack Obama, his racist outbursts in tweets and rallies, and his administration’s plans to eviscerate federal protection of racial minorities from discrimination in housing and education by eliminating their ability to show discrimination based on the disparate impact of a policy, as opposed to having to prove discriminatory intent. The Christian right movement was born out of grievance against civil rights gains for blacks, and a backlash against the government’s efforts to ensure those gains could endure. When Trump offers paeans to “religious freedom”—the very clarion call of the Bob Jones University defenders—or sloganeers “Make America Great Again,” he is sending a message that rings true for a movement driven by the rhetoric and organizing pioneered by Weyrich and Billings. Trump’s white evangelical admirers do not just see a leader who is making it safe to say Merry Christmas again, or holding the IRS back from penalizing pastors who endorse him from the pulpit. In Trump’s words and deeds, they see an idealized white Christian America before civil rights for people of color—and a meddling government—ruined it.

The most common ways we get probability wrong are: We overestimate certainty. When we do this, it doesn’t even occur to us that a decision has any risk associated with it. We assume if we’re buying a house, prices will only go up. Or people move to Hollywood because they believe they are better looking or more talented than most others. The Antars never thought they’d get caught. They believed Sam would always outsmart the SEC and IRS. The other criminals I interviewed didn’t consider getting caught a possibility either. We overestimate the risk of unlikely events. We assume a remote and terrible event is more likely than it is. This is why many people are more afraid of flying than driving, even if they know the odds of dying in a car accident are higher. A plane crash is especially horrific, which is why we put higher odds on its happening. We assume correlations that don’t exist. After being dealt a few good hands in poker, you could think you’re on a roll and that the next hand is bound to be good too. In fact, each hand you are dealt has nothing to do with the last. When it comes to crime, getting away with something once, or many times, creates an illusion you’ll get away with it the next time. The Antars assumed that because they pulled off tax evasion, they could also get away with securities fraud. Wrong again, and their earlier success led them to take bigger risks to continue the fraud. We put a big weight on very likely or unlikely events and put almost no weight on anything that happens in between. The difference between a 0 percent and 5 percent probability feels huge because it creates possibility. The difference between 100 percent and 95 percent also feels meaningful because it creates or eliminates risk. But the difference between 50 percent and 55 percent barely factors into our decisions. The closer we get to certainty, the more we weight a probability, but mathematically, a 5 percent increase should be given equal weight no matter what.

Case #6 Sandy and Bob Bob is a successful dentist in his community. In the 15 years since he established his own practice, he has established a reliable base of patients and has built a thriving business in a great location. A couple years ago, he brought his wife, Sandy, a business expert with an MBA, on board to help him oversee the business end of the dental practice. She had recently left her job at a financial services firm, and Bob knew that Sandy’s business acumen would be helpful in getting his administrative house in order. She brought on new employees, developed effective new processes, and enhanced the office’s marketing efforts. Within a few months, Sandy’s improvements had managed to make the dental practice a well-oiled machine. Now she could turn her attention to their real estate portfolio. Bob and Sandy owned three small apartment buildings around town, as well as one small commercial center that was home to a nail salon, a chiropractor’s office, a coffee house and a wine shop. Fortunately, Bob’s dental practice was a success and their investments earned a nice passive income for them. Unfortunately, because Bob earned on average $250,000 per year, the couple couldn’t use passive loss, which in their case came to about $100,000, from their investments to offset his high earned income. Eventually, they would be earning sheltered profits—when the mortgages on their properties were paid off and the rentals made pure profit, or if they were to sell a property. When those things eventually happened, they could use their losses to shelter those profits. But until that time, the losses were going unused. Sandy made an appointment with their CPA to discuss the situation and see how they might improve their tax situation. The CPA asked, “What about becoming a real estate professional?” He explained to Sandy that if she spent 750 hours per year, or about 15 hours a week, on the couple’s real estate investments, she would be considered a real estate professional by the IRS. This would enable the couple to write off 100 percent of their passive losses against Bob’s high income, which would bring his taxable income down to $100,000. This $100,000 deduction brought Bob and Sandy into a lower tax bracket, saving them roughly $31,000 in taxes. Sandy already devoted a large percentage of her time to overseeing their investments, and when she saw the tax advantages, her decision became clear: She would file the Section 469(c)(7) and become a real estate professional.

I’m going to tell you something right now that you may not believe, but is 100% true: There is no law in existence anywhere in the IRS tax code or elsewhere that says you have to pay income tax to the Federal Government of the United States of America.  The income tax is a completely voluntary tax, but you are led to believe that it is mandatory. A mandatory, graduated income tax completely violates the Constitution.  What our Constitution mandates is that all personal taxes collected by the government must be apportioned, which in a nutshell means equally collected and equally distributed back to the people. Not only is there no law requiring

On June 28, Werner submitted his final report on Case S.I.-19267-F, showing tax deficiencies of $1,099,944 and a penalty of $549,972. But even this was to be scaled down. After a series of further conferences between IRS officials and Wirtz, Brown & Root was ultimately required to pay a total of only $372,000. There were of course no fraud indictments, no trial, no publicity. Franklin Roosevelt had already done so much to advance Lyndon Johnson’s career. In this instance, it may be he who saved it.

Depreciation gets special IRS attention, and requires Form 4562. To fill out this form (whether you’re doing it with DIY software or providing info to your accountant), you’ll need to know the basis of your rental property. The basis for depreciation is different than the overall basis because land does not get depreciated, and may change over time if you make improvements to the property. To get started you’ll need to know: • The original purchase price of the property • The list of closing costs (most closing costs get added to the basis) • Land value, which you can find on the most recent property tax assessment paperwork • Additions or improvements you made that will add value for more than one year (think replaced roof, not repainted rooms) • The date the property was “placed in service,” meaning made available for rent The

What would make the IRS consider you a dealer instead of an investor? • You’ve flipped multiple homes during the year. • Most of your work time is spent on flipping homes. • A large percentage of your income is earned flipping houses. • Your house-flipping business is active. You may have noticed that those factors are vague; that’s not an accident. The IRS hasn’t published specific guidelines, so it’s possible to fight dealer classification (especially if you have an experienced tax accountant). Remember, under the current tax law dealers may get to use the 20 percent deduction, which could result in a lower tax bill.

If you purchased a building for $200,000 but were eligible to depreciate $5,000 of its value, you would effectively pay just $195,000. If you take depreciation deductions and then sell the property, the $5,000 will be used to pay back those costs. A 25% tax is applied to the recouped funds. If the building were sold for $210,000, the net gain would be $15,000. However, $5,000 of that total would be considered recoupment of the tax break. A maximum of 25% of the amount reclaimed is taxed as regular income. The remaining $10,000 in capital gain would be taxed at the zero, fifteen, or 20% rates described above.

For a sole proprietorship, the business income and expenses are reported on Schedule C of the owner's personal tax return, Form 1040. The sole proprietor pays taxes on the net income from the business as personal income.

Depreciation is the method through which the price of an expensive asset, like a vehicle or piece of equipment, is written off over the course of its useful life rather than all at once in a single tax year. Businesses often use depreciation to get back some of the money they spend on more expensive long-term assets during the time they are useful. Here’s how to calculate depreciation: Depreciation = Initial Investment / Expected Service Life

Tax deductibles include all legal, accounting, bookkeeping and other costs your business needs to run properly. You could also get a tax break if you use accounting or bookkeeping software for your business. These IRS rules for legal and professional fees may help you determine whether a certain professional service charge was incurred for business or pleasure.

Filing taxes as a self-employed individual can be more complicated, so it may be beneficial to consider hiring an accountant to help you navigate the tax-saving options and deductions available to you.

Setting up IRS officer Shumana Sen through the conduit of its employee Abhisar Sharma to steal the “secret and confidential” records from the Income Tax Department having a bearing upon economic sovereignty of India and then pass the stolen records to NDTV for facilitating its money-laundering.

the company also evaded taxes by bribing corrupt IRS officers such as Shumana Sen and Ashima Neb with active support from some others such as P K Mishra (IRS 1970), B K Jha (IRS 1983), S S Rana (IRS 1975), Prakash Chandra (IRS 1973), etc. This diabolical attempt failed despite fake suits of sexual harassment, molestation, sexual assault and repeated rapes by hired mercenaries Shumana Sen and Ashima Neb against S K Srivastava.

Hiring a novice reporter of Times of India, who was barely drawing a monthly salary of about Rs.7,000 (Rajdeep Sardesai) for about Rs.75,000 a month as Political Editor of NDTV because he got married to the only child of incumbent Information and Broadcasting Secretary (Bhaskar Ghose, IAS West Bengal) or an incompetent small time stringer (Abhisar Sharma) for his IRS spouse Shumana Sen for a whopping salary of Rs.70,000 per month are but a few instances of sinecure appointments or, to be more accurate, an alternate way of paying bribes.

Tax-Evasion of Rs.200 crores by fraudulently claiming that signals beamed by NDTV in Delhi to Hong Kong (STAR TV) by NDTV was export and claim tax benefits on that when no goods was taken away from India to a place outside India and nothing crossed Custom barrier of India; by bribing corrupt IRS officer Shumana Sen, in a quid pro quo, and who was given an “all-expenses paid free yearly vacation abroad with her entire family” which cost about Rs.1 crore for each of such several trips abroad.

Employing the small time stringer spouse of IRS officer Shumana Sen [Abhisar Sharma] as a reciprocal consideration to Shumana Sen for taking up the hatchet work of money-laundering by NDTV.

If you spend more time in real estate activities than you do in your regular job and the number of hours in real estate exceeds 750 hours in a year, you can fully write off your real estate paper losses against other income—no matter how much money you make and no matter how much your paper losses are. Of course, Jean kept good records to document her real estate professional status, so she had no worries from an IRS audit.

CHECKLIST Statement of earnings from Social Security Income tax returns Checkbook records Old and current statements Gifts Winnings Loans Capital gains Illegal sources Contract labor not reported to the IRS (tips, babysitting, errands)

The dubious role of Minister P Chidambaram in persecuting an honest and upright IRS officer S K Srivastava for his efforts to enforce the law stands bare for anyone and everyone to see. The conduct of female IRS officers Shumana Sen (IRS 99005) and Ashima Neb (IRS 99010), who faked sexual harassment against S K Srivastava in lieu of money paid to them by NDTV is described in detail.

Using unscrupulous individuals who were willing to play along for a few pieces of silver such as IRS officers Shuman Sen, Ashima Neb, B K Jha, etc., the promoters of NDTV Prannoy Roy and Radhika Roy used every trick in the book to shame and put pressure on IRS Officer Srivastava. Nothing was beyond them (IRS officers) – even the fake sexual harassment charges against their own colleague (Srivastava). Worse their relatives were happy to collude – husband Abhisar Sharma (for Shumana Sen) and mother Neeta Neb for Ashima Neb.

Anything that is taxed by the government, like a house or car, will forever require income to keep it in your life. This means that when we dream of living in a fancy mansion with chandeliers, we’re really yearning to fill our life with additional cost and financial burden.

The following is a list of the most common sources of provisional income: One-half of your Social Security income Any distributions taken out of your tax-deferred bucket (IRAs, 401(k)s, etc.) Any 1099 or interest generated from your taxable-bucket investments Any employment income Any rental income Interest from municipal bonds The IRS adds up all your provisional income and, based on that total and your marital status, determines what percentage of your Social Security benefits will become taxed. That percentage of your Social Security benefits is then taxed at your highest marginal tax rate. The provisional income thresholds are outlined below.

IRS Authorized service provider for online form 2290 & form 8849 Tax in a simple & easy and get your IRS 2290 Schedule-1 less than 1 minutes. starts with $7.95 per filing.

The IRS now estimates that the United States loses more than $1 trillion a year in unpaid taxes, most of it owing to tax avoidance by multinational corporations and wealthy families. Congress hasn’t given the agency the resources it needs to hunt down tax criminals, leaving the IRS outgunned and outmatched.

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Your group is decades out of compliance with IRS requirements for nonprofits. Everything I've seen from you suggests your nonprofit is a sham. And Butyl and Dowidge doesn't represent sham organizations." I paused, letting this sink in. "Even if you hadn't been trying to kill Reggie from the moment you first contacted my firm, you're still the worst client I've ever had." As I spoke, Richardson simply stood there, processing everything. "How much trouble are we in with the IRS, exactly?" "A lot," I said. "Though it's hard to say exactly how much. Best-case scenario, they'll dissolve your nonprofit." I shrugged. "When that happens, you'll be getting a bill for back taxes you won't be able to pay, given your nonprofit's annual budget. And the worst-case scenario..." John Richardson leaned forward, hanging on my every word. Excellent. "What is the worst-case scenario?" I waited a beat before answering so my next words would have maximum impact. "Worst-case scenario is the IRS finds that you intentionally withheld taxes you owed. You could face time in jail." There. The closest thing to a mic drop any accountant ever got. I leaned in closer, readying myself for the kill. "Unless, of course, you do exactly what I tell you to do." Richardson narrowed his eyes at me. "And what might that be?" Bingo. This was the part I'd been looking forward to the most. The part I'd practiced in a mirror the night before until I'd gotten the ferocity of my expression just right. "What happens next is you are going to leave Reginald Cleaves alone, forever. If you do that, we will pretend we've never heard of you if the IRS ever comes knocking." I trailed off, letting my words hang in the air for dramatic effect. In the entirety of my time as an accountant, I had never once had the opportunity to do anything for dramatic effect. I could all but feel Reggie looking on, beaming with pride. "If you continue to harass Reggie, however, I tell the IRS everything I know.

years of college. It is calculated as 100 percent of the first $2,000 you pay for eligible expenses, plus 25 percent of the next $2,000 of eligible expenses. Eligible expenses include tuition, fees and books (room and board doesn't count). It's a credit, rather than a deduction, which means that it lowers your tax bill dollar for dollar. You can claim the credit by filing IRS Form 8863 with

When it comes to writing fiction, long or short, the learning curve never ends. I may be a professional writer to the IRS when I file my tax return, but in creative terms, I'm still an amateur, still learning my craft. We all are. Every day spent writing is a learning experience, a battle to do something new.

Why are so many young men staying on in universities earning multiple degrees—and that, too, in liberal arts?’ whispered Chandini to Gangasagar. ‘So that they continue to remain as students on the campus,’ explained Gangasagar. ‘But why do you need them there?’ asked Chandini. ‘So that they can contest the elections,’ explained Gangasagar. ‘Which elections?’ ‘Students’ Union elections.’ ‘Why does the ABNS need to involve itself in Students’ Union activities across the thirty-odd universities of Uttar Pradesh?’ ‘Because if our young men control the Students’ Unions of the universities, we—the ABNS—control the youth, a key constituency in the state’s power balance.’ ‘And then what will they do?’ ‘A liberal arts education is general enough for the IAS—the Indian Administrative Service or the IRS— the Indian Revenue Service.’ ‘So they’ll enter the bureaucracy?’ asked Chandini. ‘Some of them will become trade union leaders, others income-tax commissioners, secretaries within the Reserve Bank of India—there are so many jobs that need us to have our own people!

Everyone crossed themselves at the mention of the IRS. Street gangs and the mob paled in comparison to fear of the tax code.

Getting a tax ID is absolutely free, and the entire process only takes a few minutes. Simply visit irs.gov, search for “EIN,” and fill out the online application.

We don’t simply have a problem when it comes to the amount of tax collected. We have a huge problem when it comes to the way we collect taxes. Take corporate taxes as an example. We impose taxes at the second highest rate in the rich world (35%), yet the corporate tax code is riddled with incentives, subsidies, exemptions, and loopholes.13 The result is crazy. We give firms a huge disincentive to earn money at home (because our basic tax rate is so high), while giving them huge incentives to play the system. And remember: the United States boasts some of the world’s most innovative and entrepreneurial companies. If we give those guys an incentive to find ways around our tax code, they’ll turn out to be world-beaters. World-beaters like General Electric, for example.14 GE earned $14.2 billion of profit in 2010, of which $5.1 billion was generated in the US. I’m guessing that you earned less than $5 billion that year, but I’m damn sure you had a more painful settlement with the taxman. In 2010, GE’s net corporation tax obligation to the US government was sub-zero. The firm actually derived a net benefit from the government. In the five years to 2010, GE accumulated $26 billion in American profits and booked a net benefit of $4.1 billion from the IRS. That’s completely insane. You don’t, however, need to be GE to outperform in this way. Big Oil can play the same game to almost equal effect. According to a Citizens for Tax Justice report out in 2011, ‘Over the past two years, Exxon Mobil reported $9,910 million in pretax US profits. But it enjoyed so many tax subsidies that its federal income tax bill was only $39 million‌—‌a tax rate of only 0.4%.’15

The problem is that Republicans have purposefully torn down the validating institutions,” says the political journalist Josh Barro, a Republican until 2016. “They have convinced voters that the media cannot be trusted; they have gotten them used to ignoring inconvenient facts about policy; and they have abolished standards of discourse.” The right’s ideological center of gravity careened way to the right of Rove and all Bushes, finally knocking them and their ilk aside. What had been its fantastical fringe became the GOP center. In retrospect, the sudden change in the gun lobby in the late 1970s, from more or less flexible to absolutely hysterical, was a harbinger of the transformation of the entire right a generation later. Reasonable Republicanism was replaced by absolutism: no new taxes, virtually no regulation, abolish the EPA and the IRS and the Federal Reserve.

Forming a corporation is simple. Essentially, you file a document that creates an independent legal entity with a life of its own. It has its own name, business purpose, and tax identity with the IRS. As such, it—the corporation—is responsible for the activities of the business. In this way, the owners, or shareholders, are protected. The owners’ liability is limited to the monies they used to start the corporation, not all of their other personal assets. If an entity is to be sued it is the corporation, not the individuals behind this legal entity.

growth, while slashing the national debt by more than 30 percent. Throughout most of his tenure, the nation enjoyed unparalleled prosperity, and his public service and numerous philanthropic endeavors made him a beloved national figure. As Time magazine later noted, he was widely considered the “greatest secretary of the treasury since Alexander Hamilton.” And then the stock market crashed in 1929. Mellon resigned from office in 1931, and Hoover lost reelection two years later. After taking office, Franklin Delano Roosevelt drew up a list of enemies and scapegoats. Mellon topped the list. FDR demanded that the IRS audit Mellon’s tax returns.

Lois Lerner and the tea social gathering scandal In September 2013, following 4 months of public scrutiny, Lois Lerner resigned from her place within the IRS. Lerner had been placed on paid depart in Could the identical 12 months and was subject to a review board which seemed set to fireside her, the choice to resign was successfully forced upon her. While in the Internal Income Service, Lerner had been head of the exempt organizations division, which processed claims from groups making use Billie Lerner New York of for exemption from paying tax. This put her in command of over 900 IRS workers with a budget of practically $100 million. No matter happened to the times the place public officers had been on the level of wetting their pants after they had been caught even stepping on fly. Accountability has been thrown out of the window and this may be evidenced by the truth that in the last few years, not accountability review committee has really held anyone accountable for any improper doing and all they do is find scapegoats. As many would ask how much longer this might go on, Ms. Lerner may as nicely be given a star for her impeccable service to her nation. It is simply a looking out for our personal scenario. As anticipated, this has precipitated outrage among the lots. Before her retirement, Ms. Lerner was on a paid go away as investigations had been on going. After completion of investigations by the committee that was tasked with the responsibility it was really useful that Ms. Lerner be ousted for her participation within the scandal however within the common government model of irony, Ms. Lerner can be allowed to retire with full benefits. Investigations began quickly after and in 2013 the Treasury Inspector General for Tax Administration J. Russell George revealed that certainly the IRS personnel had used inappropriate standards for subjecting organizations to further scrutiny when making use of for tax exempt standing, particularly organizations using the word “Tea Get together.” The admission prompted an uproar of speculation and anger by Republicans, and shortly sufficient Director of the IRS Exempt Organizations division Lois Lerner was targeted as accountable for the scandal. Investigations and hearings followed cumulating in Lerner’s retirement in September 23, 2013.

In order for a person to work at a church legally as an independent contractor, we believe it is prudent to consider the following guidelines:   ·       The church cannot substantially direct the person’s duties; the church can only give them overall tasks to complete.   ·       The church cannot control or set their hours that they work.   ·       Since their “company” provides the service, they can send anyone to do the job.   ·       They cannot have an office at the church that is their primary office.   ·       It cannot be their only source of income.   ·       The church needs to have a written contract in place including cost, delivery of Services, duration (i.e. six months, one year, etc.) and a termination clause.   ·       They cannot participate in any employee benefits plans (insurance, retirement plans, etc).   ·       The contractor must provide annual proof of worker’s comp and liability insurance naming the church as additionally insured or the church could be held liable in the event of a claim.   ·       The church must issue a 1099 at the end of the year for all contract wages paid if the total amount for the year exceeds $600.00 to one contractor. We strongly recommend that no payments are made until an accurate and fully completed W-9 is completed by the contractor and on file at the church.        Given these requirements, many workers such as those in the nursery, kitchens, and other service areas are not 1099 contractors, but employees.     Regarding interim pastors, there is disagreement over whether they should receive a W-2 or 1099. Factors such as length of service, who supervises them, and whether they are a contractor, come into play in the decision on how to report their salary. For the best practice we recommend always using the W-2 to report salaries, but seeking tax and legal counsel would be wise to avoid any future IRS issues.      While there are advantages to the church to pay independent contractors who regularly work for the church such as avoiding the need to pay the employer's part of the FICA tax and the ease of terminating their services, we would recommend against their regular use.      We recommend against the use of independent contractors (that regularly work at the church) because we believe it can create the following problems for the church:   ·       Less control over the position   ·       Leaves the church open to an IRS challenge, which the church only has a 50/50 chance of defending, not to mention the cost and hassle of litigation   ·       In the event of insurance claims, the church may encounter issues with worker’s compensation coverage or liability insurance coverage such as sexual misconduct, etc.   ·       The church is open to contract disputes with the independent contractor   ·       Based on how the individual/company is filing their taxes, it could bring an unwanted tax audit to the church        Our conclusion is that we do not see enough cost-saving advantages for the church to move in this direction. It also creates unnecessary red flags for the IRS. The other looming question is, why is this such an important issue for such a small incremental (if any) tax break for the individual? Because the independent contractor will have to pay employer FICA, we don’t see any large tax advantage for this shift. They can claim mileage and some home office expense (maybe), but it just does not amount to enough to place the church at risk.      Here are some detailed guidelines

Child-care tax credits for all families. Federal child-care tax credits are available to all families. The principal tax credit is the Child and Dependent Care Tax Credit. But credits can be claimed only if an individual owes taxes, and poor Americans generally do not. Only if a tax benefit is refundable—meaning it can be paid out to a recipient with or without a tax payment to the Internal Revenue Service (IRS)—do the poor reap any gain. The child-care tax credit is nonrefundable, so more than 60 percent of child-care tax credits go to the richest 40 percent of families.49

America’s power position as “the hammer of the whole earth” extends to more than military power. America tells other nations what to do and how to do it. For example, America forced the UBS AG Bank in Switzerland to close all of the offshore accounts in the Swiss Bank held by U.S. citizens, as part of an IRS “tax investigation which challenges Switzerland’s famous banking secrecy laws.” (Reuters, January 9, 2009).

In the end it’s the tax-deferred 1031 exchange that gets massive use by Millionaire Real Estate Investors. This program in the IRS tax code allows you to sell and buy properties without having to declare capital gains or pay those taxes. It’s a very straightforward procedure, but it takes some planning. First, you need to hire a 1031 Qualified Intermediary before you close on the sale of one of your properties. That person will act as your guide and escrow agent as you move through the sale of one property and the purchase of the next. After the sale of your “relinquished property” you have 45 days to identify the “replacement property” and a total of 180 days to close on that second property. You want to be looking for the replacement property before or during the marketing of the property you are selling. If you find a good opportunity, you can enter into a contract with a right to assign clause if your first property does not sell or with a 1031 clause in the purchase agreement if it does. Many people have the mistaken notion that you are exchanging your property with someone else: You take theirs, and they take yours. In some cases that can be done, but it is neither the purpose nor the requirement of a 1031 exchange. A 1031 exchange is designed for you to “exchange” one property in your portfolio (sell it) and replace it with another one that you wish to buy. It allows you to keep purchasing larger, more expensive properties without having to pay capital gains taxes on the ones you sell. This is a wonderful way to keep your money working for you.

Usually called by his guffaw-inducing initials, IRS, Schyster was the standout grappler Mike Rotunda functionally repackaged as Ted DiBiase’s financial planner. Indisputably his best angle was the time he took issue with Native American wrestler Tatanka for failing to pay taxes on a ceremonial headdress.

Here’s a sobering fact: The government has a name—a label, if you will—for that portion of your earnings that you manage, by using standard tax deductions, to keep for your own uses instead of handing it over to the IRS. What name is that? Get this: They call it “tax expenditures.” How do you like that—the government considers the portion of your earnings that you are allowed to keep to be an “expenditure” that actually belonged to the government in the first place.

Instead of a tax code that crushes innovation, that imposes burdens on families struggling to make ends met, imagine a simple flat tax that lets every American fill out his or her taxes on a postcard. Imagine abolishing the IRS. Instead of the lawlessness and the president’s unconstitutional executive amnesty, imagine a president that finally, finally, finally secures the borders. And imagine a legal immigration system that welcomes and celebrates those who come to achieve the American dream. Instead

Despite the refusal of the Obama Justice Department to prosecute anyone at the IRS, it is clear that what happened was an epic clampdown on any conservative voices speaking or advocating against the president’s disastrous policies and in favor of patriotism and adherence to the Constitution and the rule of law. Over the course of twenty-seven months leading up to the 2012 election, not a single Tea Party–type organization received tax-exempt status. Many were unable to operate; others disbanded because donors refused to fund them without the IRS seal of approval; some organizations and their donors were audited without justification; and many incurred legal fees and costs fighting the unlawful conduct by Lerner and other IRS employees. The IRS suppressed the entire Tea Party movement just in time to help Obama win reelection. And everyone in the administration involved in this outrageous conduct got away with it without being punished or prosecuted. Was it simply a case of retribution against the perceived “enemies” of the administration? No, this was much bigger than political payback. It was a systematic and concerted effort to squash the Tea Party movement—one of the most organic and powerful political movements in recent memory—during an election season. [See Appendix for select IRS documents uncovered by Judicial Watch.] This was about campaign politics. It was a scandal for the ages. President Obama obviously wanted this done even if he gave no direct orders for it. In 2015, he told Jon Stewart on The Daily Show that “you don’t want all this money pouring through non-profits.” But there is no law preventing money from “pouring through non-profits” that they use to achieve their legal purposes and the objectives of their members. Who didn’t want this money pouring through nonprofits? Barack Obama. In the subsequent FOIA litigation filed by Judicial Watch, the IRS obstructed and lied to a federal judge and Judicial Watch in an effort to hide the truth about what Lois Lerner and other senior officials had done. The IRS, including its top political appointees like IRS Commissioner John Koskinen and General Counsel William J. Wilkins, have much to answer for over their contempt of court and of Congress. And the Department of Justice lawyers and officials enabling this cover-up in court need to be held accountable as well. If the Tea Party and other conservative groups had been fully active in the critical months leading up to the 2012 election, would Mitt Romney have been elected president? We will, of course, never know for certain. But we do know that President Obama’s Internal Revenue Service targeted right-leaning organizations applying for tax-exempt status and prevented them from entering the fray during that period. That is how you steal an election in plain sight. Accountability is not something we will get from the Obama administration. But Judicial Watch will continue its independent investigation and certainly any new presidential administration should take a fresh look at this IRS scandal.

Mr & Mrs Love by Stewart Stafford The elephant in town remembered, Mr & Mrs Love were stony pariahs, Gossip branded them the greatest, "See You Next Tuesdays" around. They repeatedly bounced cheques, Juggled their finances in tax havens, Pledged charity money and reneged, Refused to give gifts or Halloween candy. Then the piper called for his payment, It came on a day of more wrongdoing, Served a hefty portion of just desserts, With a surprise audit by Mr & Mrs IRS. © Stewart Stafford, 2022. All rights reserved

Today I received a letter from the IRS. It appears they are notifying the State Department that I owe substantial taxes and that my passport should not be renewed!

Ir de puerta en puerta, cambió a ir de contenido y contenido.” ​— ​@CoachDaniasTax

Finally, you can keep the money in the corporation and wait until you die. Obviously, this isn’t my favorite technique. However, upon death, your heirs get a step up in basis for the corporate stock and can liquidate the corporation and receive the proceeds tax free.

Once again, a single sentence would hold the key. I found it in The Economic Status of Black Women: An Exploratory Investigation, a 1990 staff report of the U.S. Commission on Civil Rights: On average married black women contribute 40 percent to household income compared with only 29 percent for white women.° Simply put, all wives did not contribute to their households in the same way: Black women were likely to earn as much (or more) money as their husbands, while white women were likely to earn much less. This was certainly true in the case of my parents (whose income was more or less equal most years). But the joint tax return system, under which most married couples file their taxes together, offers the greatest benefits to households where one spouse contributes much less than the other to household income. That meant couples like my parents-my hardworking, home-owning, God-fearing parents, who wanted to earn a little bit more to enjoy their lives after raising two daughters-weren't getting those breaks. My parents' tax bill was so high because they were married to each other. Marriage-which many conservatives assure us is the road out of black poverty -is in fact making black couples poorer. And because the IRS does not publish statistics by race, we would never know. It's long been understood that blacks and whites live in separate and unequal worlds that shape whom we marry, where we buy a home, whom we have as neighbors, and how we build a future for our children. Race affects where we go to college and how we pay for it. Race influences where we work and how much we are paid. What my research showed was that all of this also determines how much we pay in taxes. Taxpayers bring their racial identities to their tax returns. As in so many parts of American life, being black is more likely to hurt and being white is more likely to help. The implications of this go far beyond the forms you file every April. In the long run, tax policy affects whether and how you'll be able to build wealth. If you're eligible for tax breaks, you either pay less in taxes throughout the year or receive a larger refund in the spring. If, like my parents, you're considered ineligible for a particular tax break, you never see that money. One missed tax break may not sound like much, but those dollars not given to Uncle Sam can be put into your bank account, invested in stocks or property, or used to build home equity through improvements or repairs every year. Think of that money as an annual pay raise – but if you do not get it, you cannot save it. Over time those dollars, or the lack of them, add up to increased or depleted wealth.

Once again, a single sentence would hold the key. I found it in The Economic Status of Black Women: An Exploratory Investigation, a 1990 staff report of the U.S. Commission on Civil Rights: On average married black women contribute 40 percent to household income compared with only 29 percent for white women.° Simply put, all wives did not contribute to their households in the same way: Black women were likely to earn as much (or more) money as their husbands, while white women were likely to earn much less. This was certainly true in the case of my parents (whose income was more or less equal most years). But the joint tax return system, under which most married couples file their taxes together, offers the greatest benefits to households where one spouse contributes much less than the other to household income. That meant couples like my parents-my hardworking, home-owning, God-fearing parents, who wanted to earn a little bit more to enjoy their lives after raising two daughters-weren't getting those breaks. My parents' tax bill was so high because they were married to each other. Marriage-which many conservatives assure us is the road out of black poverty -is in fact making black couples poorer. And because the IRS does not publish statistics by race, we would never know. It's long been understood that blacks and whites live in separate and unequal worlds that shape whom we marry, where we buy a home, whom we have as neighbors, and how we build a future for our children. Race affects where we go to college and how we pay for it. Race influences where we work and how much we are paid. What my research showed was that all of this also determines how much we pay in taxes. Taxpayers bring their racial identities to their tax returns. As in so many parts of American life, being black is more likely to hurt and being white is more likely to help. The implications of this go far beyond the forms you file every April. In the long run, tax policy affects whether and how you'll be able to build wealth. If you're eligible for tax breaks, you either pay less in taxes throughout the year or receive a larger refund in the spring. If, like my parents, you're considered ineligible for a particular tax break, you never see that money. One missed tax break may not sound like much, but those dollars not given to Uncle Sam can be put into your bank account, invested in stocks or property, or used to build home equity through improvements or repairs every year. Think of that money as an annual pay raise – but if you do not get it, you cannot save it. Over time those dollars, or the lack of them, add up to increased or depleted wealth

How can you tell if your investment is taxable? The tip-off is the love letter you get from the financial institution at the end of every year. It’s called a 1099. Simply put, it’s a tax bill. It tells the IRS how much taxable income you earned from a given investment.

Consider the following example: If you have $100,000 in a CD and it grows 2%, you have a taxable event. You will have $102,000 in your account at the end of the year, but you will have to pay federal and state tax on every last bit of that 2% growth. So, $2,000 gets thrown right on top of all your other income and is taxed at your highest marginal tax rate. Assuming marginal tax rates of 30% (24% federal, 6% state), you would owe the IRS $600. So you didn’t really experience $2,000 of growth, you only experienced $1,400. Thus, your after-tax rate of return on that $100,000 is only 1.4%. This annual taxation is one of the perils of the taxable bucket.

the IRS created income limits, or “thresholds,” that determine whether or not your Social Security benefits will be taxed. The types of income that contribute to these thresholds are collectively referred to as provisional income. Any growth which you experience in your taxable bucket counts toward these thresholds and could potentially cause your Social Security benefits to be taxed.

The tax-deferred accounts with which Americans are most familiar are 401(k)s and Individual Retirement Accounts (more commonly known as IRAs). Other tax-deferred accounts, such as 403(b)s, 457s, SIMPLES, SEPs, and Keoghs, have different rules that apply to them, but they all generally have two things in common: Contributions are tax-deductible. Generally, when you put money into this bucket, you get a tax deduction. For example, if you make $100,000 this year, and you put $10,000 into your 401(k), your new taxable income is $90,000. Distributions are treated as ordinary income. When you divert a portion of your income to a tax-deferred investment, all you’re really doing is postponing the receipt of that income until a point in time much further down the road. When you take the money out, you pay taxes at whatever the rate happens to be in the year you make the distribution. For that reason, the IRS calls these distributions ordinary income and taxes them accordingly.

When you contribute money to a tax-deferred account, it’s a bit like going into a business partnership with the IRS. The problem is, every year the IRS gets to vote on what percentage of your profits they get to keep.

The Rock: You have to remember that the IRS wants to tax you on your money so badly that, at a certain point, they will force you to take money out. This happens at age 70½, and it’s called a Required Minimum Distribution (RMD). If you forget or choose not to take the money out, the IRS imposes what’s called an excise tax. In reality it’s a penalty, and it’s an astounding 50% of your RMD. In other words, if you were supposed to take out $10,000 but didn’t, you would get a bill in the mail for $5,000. And that doesn’t even include the income tax! Throw in another 30% (24% federal and 6% state) for that, and you’re looking at forfeiting 80% of whatever you were supposed to take out but didn’t. As you can see, the IRS is pretty serious about getting their money. The Hard Place: Now we understand what happens if you don’t take enough money out of your tax-deferred investments. But what happens if you take out too much? Beyond paying increasingly higher amounts of tax, the IRS says that as much as 85% of your Social Security becomes taxable. What?! you may be thinking. Social Security felt like a tax when it came out of my paycheck, and now they’re going to tax it before I get it back? That’s like a double tax! Sadly, you read correctly.

bitcoin and issued guidance on its tax treatment with IRS Notice 2014-21. Without detailing the fine print of the ruling,27 the basic message was that although bitcoin may be called a virtual currency, for tax purposes the IRS would treat it as property. For example, stocks, bonds, and real estate are also considered property.