It's the Most Wonderful Time of the Year April 15

[maryals]

What I am about to share is NOT an April Foll's Day Joke. I actually received the following from the IRS, who decided my taxes had been mis calculated. Instead of an audit they just did the re-calculation, billed me for it and OH YES charging me penalties and interest.
Here goes:

Social Security
1. Total Social Security Benefits (including RRB)...
2. Line 1 divided by 2 ...
3. Modified Adjusted Gross Income plus the amount on Line 2 and Tax exempt interest ...
4. Enter $25,000 ($32,000 if married filing joint, 0 if married filing separate and you lived with your spouse anytime during the year) ...
5. Subtract line 4 from line 3 (not less than zero) ...
6. Enter $9,000 ($12,000 if married filing joint, 0 if married filing separate and you lived with your spouse any time during the year) ...
7. Subtract line 6 from line 5 (not less than zero) ...
8. Enter the smaller of lines 2 and 9 ...
9. One half of line 8 ...
10. Enter the smaller of line 2 and 9 ...
11. Multiply line 7 by 85% ...
12. Sum of line 10 and 11 ...
13. Multiply line 1 by 85% ...
14. Taxable Social Security Benefits = smaller of lines 12 and 13

OH it gets better ... next post I'll share the directions from Form 6251

Mary and Bessie :wall:

[maryals]

Form 6251 - Alternative Minimum Tax Computation

1. If filing Schedule A, enter taxable income before exemptions; otherwise, enter adjusted gross income ...
2. Total adjustments and preferences (excluding any NOL Deduction) ...
3. Net operating loss deduction ...
4. Alternative Tax net operating loss deduction ...
5. Alternative minimum taxable income (combine lines 1 thru 4) ...
6. Exemption amount (see worksheet below) ...
7. Subtract line 6 from line 5 (if zero or less enter zero) ...
8. If Capital Gains are reported, see line 20 from Continuation Page (if FEIT worksheet for AMT is used, enter amount from line 6 of that worksheet instead) All others: If line 7 is $175,000 or less ($87,500 if MFS) multiply line 7 by 26%. Otherwise, multiply line 7 by 28% and subtract $3,500 ($1,700 if MFS) from the result ... I mean doncha just love Line 8??
9. Alternate minimum tax foreign tax credit ...
10. Tentative minimum tax (line 8 minus line 9) ...
11. Regular tax before credits (if Schedule J was used to figure tax, use the refigured amounts for lines 44 and 47 of Form 1040 without using Schedule J) ...
12 Alternate minimum tax ...

Exemption Worksheet (line 6 above)

A. Exemption amount based on filing status ...
B. Alternative minimum taxable income ...
C. Enter $112,500 ($150,000 if married filing jointly or qualifying widow(er), $75,000 if married filing separately)
D. Subtract line C from line B ...
E. Multiply line D by %25 ...
F. Subtract line E from line A (if zero or less enter zero) ...

Are we having fun yet?

I think I'll spare you all Form 6251 - Continuation, Tax Computation Using Maximum Capital Gains Rates

Mary and Bessie :wall:

[maryals]

Accuracy - Related Penalties under IRC 6662

20 Percent Penalty - Internal Revenue Code Section 6662(a)

"It has been determined that the underpayment of Tax for 2007 blah blah yadda yadda

Therefore an addition to Tax is imposed as provided by Section 6662(a) of the Internal Revenue Code

1. Total underpayment ...
2. Less: Underpayment attributable to non-penalty issues ...
3. Less: underpayment attributable to Section 6662A penalty issues ...
4. Less: underpayment attributable to Section 6662(h) penalty issues ...
5. Less: Underpayment attributable to civil fraud penalty issues ...
6. Less: Allocable prepayment credits ...
7. Underpayment to which Section 6662(a) applies (line 1 less the sum of lines 2, 3, 4, 5 and 6) ...
8. Applicable penalty rate ...
9. Section 6662(a) accuracy-related penalty (line 7 times line 8) ...
10. Less: Previously assessed/previously agreed Section 6662(a) accuracy related penalty ...
11. Total Section 6662(a) accuracy-related penalty (Line 9 less line 10)

And now follows the calculations for the 40% Penalty imposed:

1.Total underpayment ...
2. Less: underpayment attributable to non-penalty issues ...
3. Less: underpayment attributable to Section 6662A penalty issues ...
4. Less: underpayment attributable to Section 6662(a) penalty issues ...
5. Less: underpayment attributable to civil fraud penalty issues ...
6. Less: Allocable prepayment credits ...
7. Underpayment to which Section 6662(h) applies (line 1 less the sum of lines 2, 3, 4, 5 and 6) ...
8. Applicable penalty rate ...
9. Section 6662(h) accuracy-related penalty (line 7 times line 8) ...
10. Less: previously assessed/previously agreed Section 6662(h) accuracy-related penalty ...
11. Total Section 6662(h) accuracy-related penalty (line 9 less line 10)

Now, somebody, please explain to my why you are against a Flat Tax across the board, or in place of that a flat National Sales Tax??

So, anyway, the IRS is taking $200/month out of my checking account, probably forever. I have decided I am NOT going to File anything with the IRS ever again. Let 'em find me. I have sooooooo decided to not worry about this IRS Issue another minute.

Mary and Bessie :wall:

[VOguy]

Did you ever get the feeling you're dealing with the guy with the three cups and the one ball?

[maryals]

Did you ever get the feeling you're dealing with the guy with the three cups and the one ball?

And I can't even do what I saw in a movie once ... it involved guessing which card was the Queen. The Guy stuck his knife in one of the cards, sticking that card to the table. The Dealer turned the other 2 over neither of which of course was the Queen. The Dealer had to pay off on the assumption the nailed card was the Queen (which is wasn't of course). Anyway I feel like that nailed card ... not even the Queen but somebody else is winning the $$$.

Mary and Bessie :wall:

[Delphine]

This is scary.

And the IR-SS will be overseeing who pays for health insurance? This is getting REALLY scary.

[VOguy]

And the IR-SS will be overseeing who pays for health insurance? This is getting REALLY scary.

Like I've always said, they are not the brightest people, they have no vested interest in us other than being one of their "assets", and like kid with a BB gun, they like to throw their weight around.

This is a prescription for disaster.

[VOguy]

And I can't even do what I saw in a movie once ... it involved guessing which card was the Queen. The Guy stuck his knife in one of the cards, sticking that card to the table. The Dealer turned the other 2 over neither of which of course was the Queen. The Dealer had to pay off on the assumption the nailed card was the Queen (which is wasn't of course). Anyway I feel like that nailed card ... not even the Queen but somebody else is winning the $$$.

Mary and Bessie :wall:[/COLOR]

Yep. It's just a con game. It's basically, "how can we fool them, how can we get what is theirs, and how can we empower ourselves to the next level."