“The hardest thing in the world to understand is the income tax.” - Albert Einstein, physicist. Well! It may be connected to his theory of relativity but, being a physicist that he was, he didn't think of the U.S. tax system in reverse. It would have been a lot easier for him if he understood two things:

  1. The more you make, the less you pay - ever heard of loopholes?
  2. The less you make, the more you pay - never heard of loopholes?

Filing tax returns, for some, is like going to the dentist. If you have flossed once a day and brushed twice a day regularly, then going to the dentist should be a breeze and not something to dread upon.

So keep records of all your income and expenses. Figuring out your tax returns should be a breeze as well.

Always remember this golden rule:
You earn your money in pre-tax dollars but you spend them in post-tax dollars.

Don't try to fool IRS

Al Capone was not sent to jail by Eliot Ness
Al Capone was sent to jail by IRS

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IRS vs Voluntary Tax Arguments

Saturday, August 14, 2010, 3:33 AM | 4 Comments

Once in a while we hear that someone has sued the Internal Revenue Service, otherwise known as IRS, for taxpayers’ various contentions. In many such cases brought before the courts, some taxpayers assert that they are not required to file federal tax returns because the filing of a tax return is voluntary. If you look […]

Taxes On $1.3 Trillion Slip Through IRS Fingers Each Year

Sunday, August 1, 2010, 9:51 AM | 3 Comments

There are two types of economies in a country – the Official Economy where GDP is calculated among other things and the Shadow Economy where the total sum is an estimate. In some countries, it’s cash economy and that can hardly be traced. The shadow economy is not necessarily all illegal but for the most […]

Filing Separately Does Not Mean “We Are Through!”

Monday, July 19, 2010, 4:19 AM | 2 Comments

You still have over 5 months to start filing your taxes. As married couple, you might want to think about whether to file jointly or separately. Research by experts shows that the most favorable way for a married couple to file their taxes is not necessarily a joint tax return. If you are married, don’t […]

The Importance of Keeping Records For Tax Filing

Tuesday, July 13, 2010, 10:56 AM | 1 Comment

Just to remind you that, before you know it, tax season will be upon us. This is probably the best time to start keeping records for your next-year taxes if you are already not doing it. If you have lost some records, you have probably misplaced them in your home. Give it some time now […]

Congress Trying To Break Da Vinci Code. Oops! U.S. Tax Code

Sunday, April 25, 2010, 2:48 AM | 3 Comments

Dictionary defines lethargy as state of being drowsy and dull, listless and un-energetic, or indifferent and lazy; apathetic or sluggish inactivity. Under the said state of mind that will never go away, the U.S. Congress is trying to break the tax code as if it was the Da Vinci Code and it needs top-notch investigators […]

IRS Will Audit Taxpayers More Rigorously As Never Before

Friday, April 16, 2010, 1:47 AM | Leave Comment

The tax season of 2010 for most of us is over, unless some folks filed in the automatic extension. The Federal government is running a humongous budget deficit this year and will do so in the coming years as well. To lower the deficit, the government has always turned to the American public for better […]

IRS Is Holding $1.3 Billion In Unclaimed 2006 Tax Refunds

Thursday, April 1, 2010, 2:41 AM | 1 Comment

It’s always the IRS that’s after us folks. You don’t get too many chances to square off with the agency. When folks filed their tax return in 2007 for the year 2006, $1.3 billion worth of tax refunds were not, for one reason or another, delivered to the respective tax filers. IRS has your money […]

Two Benefits For Last-Minute Contribution To IRA For 2009

Wednesday, March 31, 2010, 2:41 AM | Leave Comment

Two more weeks till April 15. Most of folks will have filed their 2009 taxes unless some requested the 6-month automatic extension. Everyone wants to look for ways how to lower the tax burden on their income. IRA is one such benefit to do just that. You have till April 15 to still contribute to […]

Understand And Beware Of Refund Anticipation Loans – RAL

Thursday, March 25, 2010, 6:00 AM | 2 Comments

Many of us have already received tax refund – big and small. Some who are in dire need of the refund money now than wait for something like two weeks are increasingly taking advantage of Refund Anticipation Loans (RALs). These loans have extremely short duration and last for as little as when you actually receive […]

2010 Individual Tax Return Checklist And Review

Friday, March 19, 2010, 1:11 PM | 3 Comments

Small Business Tax Review – The tax and management guidance to small and medium sized businesses – like previous years have done a super job this year as well for individual taxpayers convenience. Among other things, they have developed a checklist you can use if you are preparing your own return, reviewing your return, etc. […]