Category: Taxes

IRS amnesty regarding independent contractors deserves analysis

Many small businesses attempt to save taxes and employee benefit costs by classifying their workers as independent contractors. When business owners classify workers as independent contractors they do not pay the employer’s share of Social Security and Medicare costs, state employer taxes, state unemployment insurance taxes, and workers’ compensation insurance premiums. Independent contractors also do …

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Permanent link to this article: https://betweenthenumbers.net/2011/10/irs-amnesty-regarding-independent-contractors-deserves-analysis/

30,000 Tax Cheats Confess Under IRS Programs

The IRS has created two disclosure programs where approximately 30,000 tax cheats have come clean.  The IRS has created these voluntary disclosure programs in a larger effort to identify and pursue U.S. taxpayers who avoid paying taxes by hiding assets in overseas accounts.  Efforts by the IRS began in 2009, after Swiss bank UBS AG agreed to …

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Permanent link to this article: https://betweenthenumbers.net/2011/09/30000-tax-cheats-confess-under-irs-programs/

The IRS 400

Although it sounds like a stock-car race, the IRS 400 is the four hundred largest Adjusted Gross Income tax returns. Of course the IRS does not actually publish the names, but every so often they publish the year-by-year statistics for that elite group of individuals. The latest publication covers from 1992 to 2008. For 2008 …

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Permanent link to this article: https://betweenthenumbers.net/2011/08/the-irs-400/

Spending That Pays for Itself

Occasionally one is faced with a moment of clarity; a choice that forces a display of where someone’s true priorities lie.  This occurs when two professed priorities are placed at odds against each other.  Congressional Republicans recently faced this dilemma.  What was foremost on their minds? Is it reducing the deficit, making the government run sensibly like a business, or shrinking …

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Permanent link to this article: https://betweenthenumbers.net/2011/04/spending-that-pays-for-itself/

House votes to reduce GRATs – Act before the effective date

A grantor retained annuity trust (GRAT) can be a tax-efficient technique for transferring to children property that the transferor expects to appreciate in value. The transferor (the “grantor” of the trust) creates an irrevocable trust, places property into the trust as a gift, and retains the right to a fixed payment each year until the …

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Permanent link to this article: https://betweenthenumbers.net/2011/03/house-votes-to-reduce-grats-act-before-the-effective-date/

Large IRS Whistleblower Payoff Encourages Others

The Internal Revenue Service paid a $1.1 million reward to an anonymous whistleblower for information that exposed a tax fraud by Enron, Bankers Trust and others before the company collapsed.  The whistleblower, a Wall Street banker who has chosen to remain anonymous to protect his job and career, received the maximum reward of 15 percent. …

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Permanent link to this article: https://betweenthenumbers.net/2011/03/large-irs-whistleblower-payoff-encourages-others/

The IRS may get over a billion dollar windfall because taxpayers failed to ask for it.

There is no time limit for the IRS to pursue a taxpayer for failing to file a prior year’s return when money is owed to the government. The same is not true from the taxpayer’s perspective. Time is ticking for those who failed to file a 2007 tax return upon which the government owes a …

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Permanent link to this article: https://betweenthenumbers.net/2011/03/the-irs-may-get-over-a-billion-dollar-windfall-because-taxpayers-failed-to-ask-for-it/

What Tax is “Fair”?

photo by David Reber, Hammer Photography

Many national governments are funded through a combination of income and broad based consumption taxes, usually in the form of a Value-Added-Tax (VAT).  In the United States, consumption taxes (in the form of sales taxes) have been left to the states, while the federal government relies on a combination of income taxes, payroll taxes, excise taxes, …

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Permanent link to this article: https://betweenthenumbers.net/2011/01/new-site-feature-the-question/