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Ten IRS Tax Audit Red Flags

Ten IRS Tax Audit Red Flags

I’ve been doing my own taxes since I was 16. It’s really not that hard when your taxes aren’t too complicated. That and I’m just too cheap to hand someone money to do what I can do on my own. I must be doing it correctly since I’ve never been audited, but today I am doing some community service and pointing out ten red flags that will get the IRS to audit your taxes.

Statistically, getting audited is a pretty rare event.  Only about 1.11% of all tax filers are every audited, but if you happen to do some dumb things, you raise those odds dramatically.

No matter who prepares your taxes you are ultimately responsible for what gets submitted to the IRS. It doesn’t matter if the tax preparer was shady or if you miraculously found some extra receipts to submit to the IRS.  If you don’t want the IRS popping up at your door, don’t do anything below. […]

Nine Tax Deductions That Prostitutes Can Claim

Nine Tax Deductions That Prostitutes Can Claim

I had an interesting conversation with my cousin over lunch – which she made me pay for, damn college student – as we discussed taxes.  Well, no we started out discussing all of the pimps and prostitutes that she runs into at parties as an intern for our state government, but that’s a whole different story.  What I explained to her was although prostitution itself was illegal; the IRS really doesn’t care what it is that you do for a living, as long as they get their cut.  It’s the tax evasion charge that usually has people spending years in jail.

The IRS doesn’t care if you’re an illegal alien working here when you shouldn’t be.  It doesn’t care if you’re growing weed in your basement, as long as when you sell it, you let them know.  Because really, Uncle Sam just wants its cut of whatever you make.  The government’s pimp hand is way strong. […]

Applying All the Right Deductions to Increase That Return

Applying All the Right Deductions to Increase That Return

For many of us, the holiday season tends to strip us down to our bare financial bones. We overspent on gifts, food, traveling, and that excellent New Year’s party, and now we are wondering how we are ever going to get on the right financial foot in the New Year.

While looking for cheap apartments and clipping coupons are definitely a few easy ways to increase the amount of money left over every month, many people rely on their tax return to once again give them a savings account or an emergency fund for the New Year. While this may not be the best practice, it is a fact of life for many struggling with low incomes or one income. So to help you get the most out of your tax return, make sure to not miss out on the following deductions: […]

Top Corporations That Pay No Taxes

Top Corporations That Pay No Taxes

Taxes.

I hate them and you hate them but we somehow manage to pay them. As a single person with no kids, no dependents, no house with a mortgage, and making a decent salary, I probably pay more than my fair share. But, that doesn’t compare to what corporations pay…or does it? We’d like to think that large corporations making millions and millions of dollars every year have no problem dropping a little summin’ summin’ into the hat of Uncle Sam every now and then, but you and I are being fooled.  While the Federal tax rate for corporations is always quoted at being 35%, unless you’re a small business without a gang of accountants behind you, many corporations are not paying anywhere near that amount.  If you think that Bernie Madoff had a good scam going, wait until you see the top companies paying no taxes. […]

The State Plays Hardball, But So Do I

The State Plays Hardball, But So Do I

If you’ve been following my saga about the state and some taxes that I owe, here’s an update on that situation.  No one has yet to be assigned to my file, however, I just received a notice in the mail stating that the state will “refer my debt to the U.S. Treasury Offset Program whereby any money owed to you by a federal agency may be subject to offset up to the amount of your debt.”

What does that mean?  […]

What To Do About The Government?

What To Do About The Government?

Time to really handle this whole tax situation and effed up predicament that I find myself in.  Get caught up on with my crazy situation before reading the rest of this post.  So, I think that I have a couple of solutions available to me.  Check them out below.

  1. I can probably get a loan from Prosper.com for the entire amount that I supposedly owe, pay the government off and then wait for them to do a review and send me a refund check.  At this point I’m considering it because I really want to get THE MAN off my back.
  2. The other option that I have is to get a personal loan from a bank, if I qualify.  I would have said sure, I qualify before, but now that my credit score has tanked like the economy because of this crap, I’m not so sure.
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Finally, My W-2

Am I the only been that’s been impatiently waiting for their W-2? I FINALLY got mine on Saturday and I plan on doing my taxes today! I plan on using some of my refund to start an emergency fund and the majority to reduce some debt. So I’ve heard a million times that you should always make sure you have your deductions at the right level so that THE MAN doesn’t end up owing you money at the end of the year. Personally, I’d prefer to have the peace-of-mind of knowing that I won’t owe the IRS than getting a tax free and interest free loan all year. But I also don’t want to be so stupid that I end up with a large refund at the end of the year either. That would mean that I am depriving myself all year and giving the government a loan. So I change my deduction two to three times each year. That was I make sure they will owe me something, but not too much.
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