Taxes Update

“The hardest thing in the world to understand is the income tax.” - Albert Einstein, physicist. Well! It may be connected to his theory of relativity but, being a physicist that he was, he didn't think of the U.S. tax system in reverse. It would have been a lot easier for him if he understood two things:

The more you make, the less you pay - ever heard of loopholes?
The less you make, the more you pay - never heard of loopholes?

Filing tax returns, for some, is like going to the dentist. If you have flossed once a day and brushed twice a day regularly, then going to the dentist should be a breeze and not something to dread upon. So keep records of all your income and expenses. Figuring out your tax returns should be a breeze as well.

IRS vs Voluntary Tax Arguments

Sat Aug 14, 2010 | | Posted in Taxes

Once in a while we hear that someone has sued the Internal Revenue Service, otherwise known as IRS, for taxpayers’ various contentions. In many such cases brought before the courts, some taxpayers assert that they are not required to file federal tax returns because the filing of a tax return is voluntary. If you look … Continue Reading »

Taxes on $1.3 Trillion Slip Through IRS Fingers Each Year

Sun Aug 1, 2010 | | Posted in Taxes

There are two types of economies in a country – the Official Economy where GDP is calculated among other things and the Shadow Economy where the total sum is an estimate. In some countries, it’s cash economy and that can hardly be traced. The shadow economy is not necessarily all illegal but for the most … Continue Reading »

Filing Separately Does Not Mean “We Are Through!”

Mon Jul 19, 2010 | | Posted in Taxes

You still have over 5 months to start filing your taxes. As married couple, you might want to think about whether to file jointly or separately. Research by experts shows that the most favorable way for a married couple to file their taxes is not necessarily a joint tax return. If you are married, don’t … Continue Reading »

The Importance of Keeping Records For Tax Filing

Tue Jul 13, 2010 | | Posted in Taxes

Just to remind you that, before you know it, tax season will be upon us. This is probably the best time to start keeping records for your next-year taxes if you are already not doing it. If you have lost some records, you have probably misplaced them in your home. Give it some time now … Continue Reading »

3 Steps To Revisit Deductions In Your Workplace

Tue May 25, 2010 | | Posted in Taxes

Too often, employees neglect to make the most of the tax-favored benefits their employers provide for them. Sometimes we just ignore certain benefits or make excuses to not take advantage of them. On the contrary, an employee should start these accounts at the very beginning of the year to take full advantage of. There are … Continue Reading »

Congress Trying To Break Da Vinci Code. Oops! U.S. Tax Code

Sun Apr 25, 2010 | | Posted in Taxes

Dictionary defines lethargy as state of being drowsy and dull, listless and un-energetic, or indifferent and lazy; apathetic or sluggish inactivity. Under the said state of mind that will never go away, the U.S. Congress is trying to break the tax code as if it was the Da Vinci Code and it needs top-notch investigators … Continue Reading »

IRS Will Audit Taxpayers More Rigorously As Never Before

Fri Apr 16, 2010 | | Posted in Taxes

The tax season of 2010 for most of us is over, unless some folks filed in the automatic extension. The Federal government is running a humongous budget deficit this year and will do so in the coming years as well. To lower the deficit, the government has always turned to the American public for better … Continue Reading »

IRS Is Holding $1.3 Billion In Unclaimed 2006 Tax Refunds

Thu Apr 1, 2010 | | Posted in Taxes

It’s always the IRS that’s after us folks. You don’t get too many chances to square off with the agency. When folks filed their tax return in 2007 for the year 2006, $1.3 billion worth of tax refunds were not, for one reason or another, delivered to the respective tax filers. IRS has your money … Continue Reading »

Two Benefits For Last-Minute Contribution To IRA For 2009

Wed Mar 31, 2010 | | Posted in Taxes

Two more weeks till April 15. Most of folks will have filed their 2009 taxes unless some requested the 6-month automatic extension. Everyone wants to look for ways how to lower the tax burden on their income. IRA is one such benefit to do just that. You have till April 15 to still contribute to … Continue Reading »

Understand And Beware Of Refund Anticipation Loans – RAL

Thu Mar 25, 2010 | | Posted in Taxes

Many of us have already received tax refund – big and small. Some who are in dire need of the refund money now than wait for something like two weeks are increasingly taking advantage of Refund Anticipation Loans (RALs). These loans have extremely short duration and last for as little as when you actually receive … Continue Reading »