“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 Hits Minorities To Boost Tax Revenues

Saturday, December 4, 2010, 4:55 AM | Leave Comment

To boost tax revenues, IRS hits minorities and hits them enough that some folks think the agency is racist and being racist coming from a branch of the U.S. Government is serious business. Needless to say it’s against the law to discriminate against minorities by a U.S. agency. If you are a minority especially of […]

Debt To IRS – or How I Learned To Pay Past Due Taxes

Friday, December 3, 2010, 5:00 AM | Leave Comment

When you owe money to IRS and you are past due in taxes, then the agency mandates that you use third party services. These parties are registered with and are approved by IRS. IRS says Paying a Balance Due is called Lockbox for individual taxpayers. “Lockbox is a collection and processing service provided by a […]

Get Energy Tax Credit This Year

Tuesday, November 23, 2010, 6:33 AM | 9 Comments

Get energy tax credit when you weatherize your home this year. According to the Internal Revenue Service, homeowners making energy-saving improvements this fall can cut their winter heating bills and lower their 2010 tax bill as well. Last year’s Recovery Act expanded two home energy tax credits: 1) non-business energy property credit and 2) residential […]

Taxes Are What We Pay For A Civilized Society

Monday, November 8, 2010, 11:39 AM | 7 Comments

Oliver Wendell Holmes (March 8, 1841 – March 6, 1935), former Justice of the United States Supreme Court, said, “Taxes are what we pay for a civilized society.” Now that the midterm elections are over, soon Congress would be in session. I saw a bumper sticker that said “Bush tax cuts: Keep ’em or kill […]

Your Paycheck May Shrink Next Year

Sunday, September 19, 2010, 12:41 PM | Leave Comment

Tax experts and other finance guys tell us Americans’ paychecks will shrink if the Congress of the United States does not act otherwise and sooner. It must act by the middle of November so the Internal Revenue Service may be able to modify and print tax tables. The ex-president George W. Bush signed and enacted […]

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 […]