Morality Tale
From one of his slogs through wingnuttia, Thers offers up a sad tale of IRS persecution.
The most important thing a tax accountant ever told me was if you decide to attempt to play games with the IRS, do it on the expense side. If they don’t like the expenses and disallow them, you will only get hit with interest and penalties. If you don’t report all of your income, you can go to prison.
I could have reduced my tax bills over the years in perfectly legal ways, but many of them required more time and paperwork, and I would rather do other things with my life.
What the woman in Thers tale of woe apparently didn’t know was that most businesses generate Forms 1099s for stringers and contractors. They need the 1099s to back up their deductions. The woman certainly received her copy of the 1099 and ignored it at tax time. The 1099 is like a W-2, the IRS gets a copy, and they expect to see your copy when you file your taxes. If you don’t report the income, you are in deep yogurt, and should expect to be audited at a minimum.
I certainly hope that this woman doesn’t owe more than $1000 in taxes on her unreported income, because things get nasty at that point.
May 17, 2013 8 Comments
Friday Cat Blogging
Here Comes the Sun
What’s he up to?
[Editor: JR is settling down to soak up some ‘rays’ and would just as soon I left the area. He doesn’t dye his hair on purpose, but the oak leaves the cats use as cushions tend to give them a ‘henna rinse’.]
May 17, 2013 2 Comments
