The Tax Man Cometh
Stan Grimes
April 10, 2006
It?s that time of year again. Get out your calculator, your 1040s, 1098s, Schedule As, 4137s, and let?s rock n? roll. It?s time to put on your mathematician hat, roll up your sleeves, and pretend you know something about your taxes. That?s right. You do know something about your taxes, don?t you?
I am going to use that overused clich?gain. We know how to put men on the moon, build smart bombs, create computers smaller by the day, but we can?t figure out how to make a better system for collecting taxes. Everyone paying taxes suddenly has to become an accountant in order to do taxes. Of course, you have your 1040 EZ, your E-filing, H and R Block, and the old standby second cousin majoring in Business Administration that lives two houses down. But, what you don?t have is a tax system that makes a darn bit of sense.
Taxes are always discussed at election time, but have you noticed they are never discussed seriously. Republicans and Democrats alike have hailed the idea of a ?flat tax.? Forbes presented it several years ago when he ran as a Republican candidate and I noticed in 2004 both parties fell on the idea (like it was something new). However, no politician wants to seriously consider the idea of tax reform fearing, me thinks, the wrath of the wealthy. A flat tax would mean that the rich and the poor would have to pay the same percentage rate and it would mean the closing of one of the most powerful bureaus in the country, the IRS. Believe me, no one wants to mess with the demigods of the IRS, not even the President.
In 1913 Congress was given the power to levy taxes and collect those taxes. Since that time many citizens have protested the idea of paying taxes, believing it is ethically and legally wrong for a country to impose taxes on its citizens. However, the IRS has imposed stiff penalties on what they call frivolous tax arguments:
The IRS and Treasury have issued notices warning taxpayers that if returns are filed under the theory that U.S. citizens and residents aren't subject to tax on their wages and other income earned or derived within the United States, they may be subject to penalties. This argument is known as the "zero tax theory" and is possibly known by other names. Despite all the warnings about this and other frivolous arguments, some taxpayers insist on presenting frivolous arguments in court. The law allows the courts to impose a penalty of up to $25,000 when the court comes to any of three conclusions:
In other words, don?t fight it because you can?t fight it. I do my own taxes with the help of ?Tax Act,? a software program to help calculate the bad news. The software comes at the cost of about $45.00. You can always try ?Turbo Tax? or one of the other programs. They ease the pain of paying an accountant or a firm. It?s too bad they can?t ease the pain on your checking account when you write that final check for underpayment. Someone give me an aspirin please.
I am going to use that overused clich?gain. We know how to put men on the moon, build smart bombs, create computers smaller by the day, but we can?t figure out how to make a better system for collecting taxes. Everyone paying taxes suddenly has to become an accountant in order to do taxes. Of course, you have your 1040 EZ, your E-filing, H and R Block, and the old standby second cousin majoring in Business Administration that lives two houses down. But, what you don?t have is a tax system that makes a darn bit of sense.
Taxes are always discussed at election time, but have you noticed they are never discussed seriously. Republicans and Democrats alike have hailed the idea of a ?flat tax.? Forbes presented it several years ago when he ran as a Republican candidate and I noticed in 2004 both parties fell on the idea (like it was something new). However, no politician wants to seriously consider the idea of tax reform fearing, me thinks, the wrath of the wealthy. A flat tax would mean that the rich and the poor would have to pay the same percentage rate and it would mean the closing of one of the most powerful bureaus in the country, the IRS. Believe me, no one wants to mess with the demigods of the IRS, not even the President.
In 1913 Congress was given the power to levy taxes and collect those taxes. Since that time many citizens have protested the idea of paying taxes, believing it is ethically and legally wrong for a country to impose taxes on its citizens. However, the IRS has imposed stiff penalties on what they call frivolous tax arguments:
The IRS and Treasury have issued notices warning taxpayers that if returns are filed under the theory that U.S. citizens and residents aren't subject to tax on their wages and other income earned or derived within the United States, they may be subject to penalties. This argument is known as the "zero tax theory" and is possibly known by other names. Despite all the warnings about this and other frivolous arguments, some taxpayers insist on presenting frivolous arguments in court. The law allows the courts to impose a penalty of up to $25,000 when the court comes to any of three conclusions:
- a taxpayer instituted a proceeding primarily for delay,
- a position is frivolous or groundless, or
- a taxpayer unreasonably failed to pursue administrative remedies. (Internal Revenue Services. Gov)
In other words, don?t fight it because you can?t fight it. I do my own taxes with the help of ?Tax Act,? a software program to help calculate the bad news. The software comes at the cost of about $45.00. You can always try ?Turbo Tax? or one of the other programs. They ease the pain of paying an accountant or a firm. It?s too bad they can?t ease the pain on your checking account when you write that final check for underpayment. Someone give me an aspirin please.
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