Showing posts with label IRS. Show all posts
Showing posts with label IRS. Show all posts

Sunday, April 3, 2011

Undue Burdon on IL Taxpayers

Doing my state taxes now. Came across a new item called Use Tax, or UT (aka, internet tax). They want to tax us on any item we purchase outstate. Check out the wording from the IL-1040 instruction booklet.
How do I determine the Illinois Use Tax I owe?
To determine the Illinois Use Tax you owe, check your records to see if you were charged tax on internet, mail order, or other out-of-state purchases and use the Use Tax (UT) Worksheet to calculate your tax. If your records are incomplete and you had major purchases, add the actual cost of your major purchases to the estimated cost of any other purchases you made during the year. Enter the total on Lines 1a or 2a of the UT Worksheet to calculate the use tax you owe. no major purchases, use the UT Table to help you estimate the use tax you owe. Enter the Illinois Use Tax from the UT Worksheet or UT Table on Form IL-1040, Line 22.
Note: If we find that you owe additional tax, we may assess the additional tax plus applicable penalties and interest. We conduct routine audits based on information received from third parties, including the U.S. Customs Service and other states.
They actually expect us to keep records of what we buy. And at the end they try to scare us by threatening penalties and interest if they find out we owe more. I guess Duty Free is no longer free, you'll have to pay 6.25% if you live in IL.


Booooo!!!! Get it on the collection end, or don't get it at all.

Saturday, March 19, 2011

I love the IRS

The IRS is doing a great job! (really)


I received a higher refund than I submitted on my return, so I went to IRS.gov to "check refund status" to make sure it wasn't a mistake (I was worried they might withdraw the funds later). Not only did the IRS website confirm that they changed my refund, but they explained why, and provided links to help me back-track and learn from my mistake. 5-star customer service! Thank you! Keep up the great work!

Thursday, January 20, 2011

Tax Tax Tax

I don't mind paying tax. I have equal access to the political access, therefore, I have a say in how those resources are used. But when someone suggested to me that an employee of the IRS encourages his child to lie a little on his tax return, (because the IRS won't bother auditing small earners), that was the last straw.

Too many people cheat on their taxes. People are no longer proud of supporting the public. I don't mind paying taxes, unless others are cheating... making ME pay a larger percentage than agreed by the government.

So what do we do? Simple. Yes, make it simple. Do away with all deductions. I don't care if they make it flat or not, just get rid of all deductions.

Worried about people avoiding tax by doing business in cash? That already happens today, too. Changing the code won't change that. To attack that issue, one can follow Taiwan's lead an create a standard Receipt that includes a weekly tax lottery #. When the receipt can win you millions, you tend to ask for the receipt.