How big a deal is tax evasion?

[preciousjeni]

Originally Posted by AOII Angel

They are also talking about people who claim that they didn't intentionally not pay, ie. Daschle and Geithner. People who deliberately evade their taxes clearly wouldn't be up for cabinet positions.

Riiiight.

[AOII Angel]

Originally Posted by preciousjeni

Riiiight.

I just choose not to be so cynical about it. Just because Daschle is a Senator doesn't mean he has the code memorized inside and out. The real problem with tax evasion is at much higher levels than Daschle. Major corporations get away with paying essentially no taxes...and they do it intentionally. Oh my GOD! Daschle forgot to claim a car service....the few thousand the government is owed from that pales in comparison to the millions evaded by corporations!

[UGAalum94]

Originally Posted by AOII Angel

From the standpoint of someone who now pays A LOT of taxes, it's not always so black and white. My taxes are fairly simple since I don't claim lots of deductions or have multiple sources of income. However, I don't receive a W2 anymore. Determining my taxable income is easy since I only have one source, but for others, they often do the best they can. Tax codes are complex. I rely completely on my accountant to keep me in line with regulations. I could easily miss something that I would have no clue was taxable! They don't charge penalties for these "oops" evasions because they give people the benefit of the doubt that an error was not deliberate. If you do your taxes on a 1040EZ, you have no concept of how complicated taxes can be!

What you are describing is different from my experience. I'm definitely paying a penalty for an "oops" evasion.

[agzg]

Corporations aside, I know a few people that didn't even pay taxes for a few years. At least one has been NAILED by the IRS.

I think it's more common than people who pay every year might think.

[AOII Angel]

http://en.wikipedia.org/wiki/Tax_rates_around_the_world

I guess we'd have to do more research to be sure how we fit in. Our range is pretty wide, but if you take the top figure with no deductions, we are pretty high. With deductions, however, not so much! I'd be interested to see whether other countries have a flat tax or accept deductions. The info I've read in the past indicated that US taxes were pretty low. I'll have to revise my statement until I can get more info.

[srmom]

Oh my GOD! Daschle forgot to claim a car service

As of today, it turns out he didn't claim plane rides to the Bahamas and some other resort place provided by a non-profit that weren't used for non-profit business too. WOOPS!

Here in Texas, we get alot of politicians who get "outed" for not paying social security or employer taxes to maids/gardeners etc. They also get outed for the fact that the maids/gardners are illegal aliens. WOOPS!

In my opinion, if you are going to run for public office, you damn well better have your house in order before you are vetted. I am amazed sometimes at the excuses that come from people who claim ignorance! As far as knowing tax policy - As someone said above - these people hire CPA's to do their taxes, and I doubt very seriously that they are using newbies straight out of business school at HR Block.

[UGAalum94]

Originally Posted by srmom

As of today, it turns out he didn't claim plane rides to the Bahamas and some other resort place provided by a non-profit that weren't used for non-profit business too. WOOPS!

Here in Texas, we get alot of politicians who get "outed" for not paying social security or employer taxes to maids/gardeners etc. They also get outed for the fact that the maids/gardners are illegal aliens. WOOPS!

In my opinion, if you are going to run for public office, you damn well better have your house in order before you are vetted. I am amazed sometimes at the excuses that come from people who claim ignorance! As far as knowing tax policy - As someone said above - these people hire CPA's to do their taxes, and I doubt very seriously that they are using newbies straight out of business school at HR Block.

That's how I see it too. Sometimes I understand things seeming like they might be in a gray area, but these folks are in a position to seek professional advice.

And I'll admit it, if you're a politician who basically supports bigger government and more spending, I fully expect you to pony up everything you possibly could it support of the programs you are compelling other Americans to pay for. No loopholes for you.

[KSigkid]

Originally Posted by UGAalum94

And I'll admit it, if you're a politician who basically supports bigger government and more spending, I fully expect you to pony up everything you possibly could it support of the programs you are compelling other Americans to pay for. No loopholes for you.

I agree completely on this point; if you are one of the people who equate patriotism with paying taxes, and who are looking for taxes to be raised, I have a bit of an issue with your taking advantage of the loopholes, or even accepting any sort of refund.

[AGDee]

Well, I'm being totally and completely nailed on my state income taxes this year because of changes in the law this year from last. I inherited some stuff from my mom's estate and some of it was liquidated this year, some of it last year. Last year, for the state, I didn't have to pay income tax on it. This year, I do. I didn't know the tax laws had changed until I did a rough estimate of my taxes a couple weeks ago using Tax Cut. I totally would have had state taxes withheld at the time if I'd known the law was going to change. At the time that I liquidated it, the law hadn't been changed yet. Sure, it stinks having to suddenly come up with $3500 in the next 3 months, but I wouldn't evade taxes by not reporting it. I'm going to owe the state additional penalties for not having more withheld through out the year too, even though I'll be paying it all on time by April 15th. They will bill me for that later. I do wish I'd known about the changes so I could have planned better, but I won't cheat on my taxes. In fact, my ex-husband (an accountant!) tried to lie about some of charitable deductions when we were married and I refused to sign it until he made it right. I'm not taking any chances. I deduct my mortgage interest and charitable deductions as allowed. I don't consider those "loopholes". I did know that Federal was going tax me on everything that was liquidated and planned for that and am even getting a refund from them. It will help pay off the state... It is a little shocking when you realize that you paid more in taxes in one year than your usual taxable income for a typical year!

[preciousjeni]

Originally Posted by AGDee

I'm going to owe the state additional penalties for not having more withheld through out the year too, even though I'll be paying it all on time by April 15th. They will bill me for that later.

Paying throughout the year just doesn't make sense to me. Why won't the IRS let us pay once and keep our money during the year? Heck, they'd get even MORE money from a lot of people if they did that.