All Articles Tagged "IRS"
We can all use a little good news with tax day on the horizon right?
One of the reasons to fear the IRS is the prospect of getting an audit. However, steep budget cuts since 2010 — $1 billion in budget cuts, to be exact — mean that the agency simply doesn’t have enough money to conduct a ton of audits. And the audits they are doing are more likely to be conducted on someone in a higher tax bracket. This might be the only time you’re happy that you’re not making a ton of cash.
One wealthy woman who isn’t happy about the IRS’ current state of affairs is Giselle Bundchen. Word is she made the Forbes list of wealthiest people for seven years in a row and ended up getting audited as a result. Named the richest supermodel in the world by raking in $42 million between June 2012 and June 2013, she says that figure is inaccurate and it brought unnecessary attention to her financial affairs. So the threat to rich people is very real. (I’m sure no one is crying crocodile tears over this.)
The only problem with this is that the budget cuts have also impacted the IRS’ ability to take your call. They’re responding to far fewer requests and call wait times have reached an average of more than 17 minutes in the last few years. If you need help (or know someone who does) and they make less than $52,000, are elderly, speak another language or have other extenuating circumstances, the Volunteer Income Tax Assistance program (VITA) might be able to help. But be warned: There will probably be a wait on that as well.
Watch who you talk to on the phone! Scam artists are calling unsuspecting folks and acting like Internal Revenue Service agents. So far, the con game has cost thousands of taxpayers more than $1 million. In fact, it’s the largest such phone scam the IRS has ever experienced, revealed the agency’s watchdog.
According to J. Russell George, Treasury inspector general for tax administration, more than 20,000 victims have been targeted by fake tax agents who tell taxpayers they owe taxes. They then demand that they pay using a prepaid debit card or via wire transfer, reports USA Today.
Victims are told they could be arrested, deported or lose their business or driver’s license if they do not pay, George said in a news release.
The IRS generally notifies taxpayers via mail first. Also real IRS agents would never demand a payment by debit card or wire transfer. Actually IRS agents don’t even ask for credit card numbers over the phone.
This scam, which has hit residents in almost every state, has been going on since last March, but will probably escalate while we’re in tax season. Sometimes the scam artists even know the last four digits of the Social Security number of the person they’re swindling. “They also use common names, fake badge numbers and follow up with official-looking e-mails,” reports USA Today.
Uncle Sam has Flo Rida’s head spinning “right round” with a whopping $1.2 million tax lien. The Wild Ones rapper, whose real name is Tramar Lacel Dillard, is accused of owing the IRS large sums of cash between 2009 and 2011, Radar Online reports.
The legal document, acquired by Radar, was filed on Jan. 2; the federal record states that Dillard is behind on three payments: $343,317.03 in 2009, $10,245.41 in 2010, and $844,093.00 in 2011. Altogether, the Right Round musician owes the taxman $1,197,655 — and 44 cents.
“We have made a demand for payment of this liability, but it remains unpaid. Therefore there is a lien in favor of the United States on all property and rights belonging to this taxpayer for the amount of these taxes, and additional penalties, interest, and cost that may accrue,” the federal filing stated.
This isn’t the first time Flo Rida was singled out for unpaid taxes. In 2012, the rapper owed the IRS $1,040,777.45 and there was a lien against his 2.3-acre Miami estate, according to Gossip Extra.
The chart-topping artist is one of the many, in recent years, who have gotten on Uncle Sam’s bad side including Kelis, Damon Dash, Faith Evans, Fat Joe, Jurmaine Dupri, and Mary J. Blige. It’s getting a little ridiculous, isn’t it?
1. The customer’s payment must be made free from compulsion;
2. The customer must have the unrestricted right to determine the amount;
3. The payment should not be the subject of negotiation or dictated by the employer policy;
4. And, generally, the customer has the right to determine who receives the payment.
“All too often, large tables order up a storm, and then when the bill gets there and they realize how much they’ve spent, they decide, ‘ooh, well I don’t have enough for a tip now. 10% is all I can afford,’ and the server gets the short end of the stick,” a poster named Andrew said.As many restaurant workers currently live on $2.13 an hour, servers often rely on customers to subsidize their income. By 2014, as gratuity fees start to disappear, waiters and waitresses may experience a greater drought in tips. While this should be incentive for all wait staff to step up their game, diners, don’t be cheap. Minimum of 15 percent, but more like 18 percent should be the rule for good service. This new law was implemented back in June of 2012, however it was delayed until 2014 to give employers enough time to adjust to the IRS’ new ruling.
So Mc Hammer looks to be having money troubles again and this time, the IRS is on his back over taxes from over 15 years ago.
According to TMZ, “Uncle Sam” has filed a lawsuit against Hammer (real name Stanley Burrell) for close to $800,000 in unpaid taxes.
If you can believe it, the lawsuit is based on his unpaid taxes from 1996 and 1997. If memory serves correctly, he’d already had huge financial problems years before the mid-90s, so to be that far in debt with the IRS shows that he still hadn’t really gotten it together.
According the documents leaked to TMZ, the IRS now wants every dollar Hammer makes in order to pay the $798, 033.48 bill. We haven’t heard much from him over the last few years; for years, he’s been trying to make different web based projects work but none have seemingly been overly successful in recent times.
We’re not quite sure what he’ll do to pay the IRS back but make no mistake, they will get their money. Perhaps his team can talk to someone who produces celebrity reality shows and he can get on there to not only make a check, but also to become visible again. Hmmm, Dancing With the Stars, anyone?
So far, no comment from Hammer.
Maybe you’re thinking that you don’t have enough capital or connections to making the world a better place for your children and grandchildren. Think again! In all worthwhile endeavors, one must start small to reap big rewards in the future. If you have ever dreamed of creating your own nonprofit charity or philanthropic foundation, read on for our nine tips to push you on your way.
As we approach the month of November, you’re going to spend your days soon thinking about holiday shopping, decorations, and dinner table place cards. But, don’t forget about your taxes. In fact, it would be best to go ahead and not only start thinking about them, but to begin organizing your paperwork now for early filing.
Because of this year’s government shutdown, the IRS will not begin to process tax returns until one to two weeks after the originally planned January 21st date. If you’e expecting a return and need that money ASAP, you should act in advance. Just because the government is behind schedule does not mean that you should be. Tax season officially starts in December and you will still be able to send your tax returns at any time. Keep ahead of the game and continue to prepare on time — or early — so you’re not pulling your hair out when we’re talking about how close we are to April.
Taxing a dead man? Well, kind of. The Internal Revenue Service is trying to figure out just how much the image of Michael Jackson is worth.
“There’s a big disparity over Jackson’s image, as well as his recording legacy. The late singer’s estate said the taxable value of his image and likeness was $2,105 — while the IRS says it’s more like $434 million. The estate’s stake in Jackson’s recording assets was valued at $469 million by the IRS, but was not even included in a 2009 estate filing,” reports CNBC.
And get this, the IRS claims the Michael Jackson estate owes $702 million in federal taxes, plus penalties, according to charges the agency brought in U.S. Tax Court.
The agency claims the estate has undervalued the late “King of Pop’s” assets, amounts they charge were not disclosed in a court challenge the estate filed in July, as a response to a bill from the IRS.
But according to Alex Raskolnikov, a professor at Columbia Law School, who specializes in tax law, there is no exact formula the IRS uses to determine the value of assets. “When there is an audit and a valuation of substantial assets (over $50,000), they will use a panel of experts,” he told NBCNews.com.
When Jackson died on June 25, 2009, he left his estate to his mother Katherine, his three children and various charities. At the time, his estate was valued at $7 million, for tax purposes. The IRS disagrees. It said that was deficient by $505.1 million, plus penalties of $196.9 million.
A spokesperson for the Jackson estate told Reuters that the IRS figures were “based on speculative and erroneous assumptions unsupported by the facts or law.”
Thus far, the Jackson estate has covered $100 million in taxes.