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Stories and comments across the archive that link to irs.gov.

Comments · 1,238

  1. Re:AMT by jonatha · · Score: 1 · on Bill Gates Is Coming To A College Near You

    Charitable deductions are not affected by the AMT.

    However, the charitable deduction itself is limited to 50% of your AGI (30% for certain charities). See http://www.irs.gov/publications/p526/index.html for more than you ever wanted to know about it...

  2. Re:Ok, I'm running for president. by bluGill · · Score: 1 · on 24 Mb Consumer Broadband Launched

    A few thousand WiFi towers might suffice for a tiny country like Holland to get high speed internet to everyone. It is however not enough to give just those with ocean front property in the US high speed. (even if you don't count Alaska and Hawaii)

    I don't see how installing broadband every home is saving taxpayers billions. I see it costing billions.

    Presidents do not have near the power you think. Anything a president does will make something mad - even if it wasn't his fault. (People are mad at Bush for not sending troops to New Orleans, even though he was refused permission to send them!) As a Third party president you will have it harder - the two major parties stick together, and they will both work together to make sure you don't get things done. Whine on CNN, and you will appear as a whiner, not a leader, and not only will you not get anything done, but you will loose the next election.

    Don't forget that while you are attacking someone in congress, they are attacking back. People who don't have good social and debate skills don't get elected, so you are dealing with masters of this. (You might be a master, but you are against other masters) Everything you try can backfire on you, and they will be trying to make that happen.

    ALL of the pork that the government does is popular with someone. 37% of the budget is Social Security, Midicare, and other retirement. 21% for other social programs. Don't even think about cutting either one, because the retirees vote in enough numbers that no congressmen who wants to be re-elected will touch any plan to cut them. Military is 22%, and no congressmen will touch any cuts here if there is anything military in their state - lest their state be cut. Interest on the debt is 7%, don't touch that if you want the US to survive as a strong country. Physical, human, and community development is 10%, nobody will touch that because some of it goes to their community. 3% is law enforcement and general government, not much to touch here, much of it supports the other above, so this cannot be cut without touching the other programs. (source IRS

    If you want me to believe that you will actually cut pork from the budget, then you need to propose specific areas to cut it. All politicians propose to cut pork, because it a good sound bite. When it comes down to it though, someone wants each part. Cut anything significant and you make enough people mad that you don't get elected - you may not care, but congress does.

    In short: you are following the same no content formula that all politicians do to get elected. Because you are not doing it as part of a major party you will not be elected - in fact most people will not even know your name until they see it on the ballot form.

  3. Re:The alphabet according to google suggest by DeadSea · · Score: 4, Interesting · on Google Firefox Toolbar Out Of Beta

    It is also interesting to see the most popular web sites. Start by typing www. into google suggest. The top 10 are:

    1. www.yahoo.com - Search/Directory
    2. www.hotmail.com - Email
    3. www.google.com - Search
    4. www.ebay.com - Shopping
    5. www.msn.com - Portal
    6. www.aol.com - Portal
    7. www.ebay.co.uk - Shopping
    8. www.irs.gov - Government
    9. www.mapquest.com - Maps
    10. www.amazon.com - Shopping

    Typing one more letter shows you the top sites for that letter. Here is the top for each letter:

    This is some random commentary to make sure that my post has enough characters per line on average to get by the lameness filter. Just a few more words should do it. Then I will be over the limit. Maybe you would like to hear a bit about my projects: Attesoro - A internationalization editor for Java programs. Coinmill - A currency conversion website with many currencies, and features such as abilty to parse English sentences asking for currency conversion. Java Utilities - Utilities for common task in the Java programming language such as parsing CSV files and string manipulation.

  4. Re:The alphabet according to google suggest by DeadSea · · Score: 4, Interesting · on Google Firefox Toolbar Out Of Beta

    It is also interesting to see the most popular web sites. Start by typing www. into google suggest. The top 10 are:

    1. www.yahoo.com - Search/Directory
    2. www.hotmail.com - Email
    3. www.google.com - Search
    4. www.ebay.com - Shopping
    5. www.msn.com - Portal
    6. www.aol.com - Portal
    7. www.ebay.co.uk - Shopping
    8. www.irs.gov - Government
    9. www.mapquest.com - Maps
    10. www.amazon.com - Shopping

    Typing one more letter shows you the top sites for that letter. Here is the top for each letter:

    This is some random commentary to make sure that my post has enough characters per line on average to get by the lameness filter. Just a few more words should do it. Then I will be over the limit. Maybe you would like to hear a bit about my projects: Attesoro - A internationalization editor for Java programs. Coinmill - A currency conversion website with many currencies, and features such as abilty to parse English sentences asking for currency conversion. Java Utilities - Utilities for common task in the Java programming language such as parsing CSV files and string manipulation.

  5. Re:You cannot tax illegal activity by Kadin2048 · · Score: 2, Informative · on MP3 Company Refuses to Pay Swedish Copyright Levy

    It was, I believe, for not reporting his "income." The money was all laundered and couldn't be proven conclusively to come from illegal activities other than gambling (although it was rather clearly coming from the alcohol trade), but what they got him on was not paying taxes on his 'gambling' income.

    http://en.wikipedia.org/wiki/Al_Capone
    http://www.fbi.gov/libref/historic/famcases/capone /capone.htm

    In something that's tangentially related, did you know that your gambling losses are tax deductible? Kind of ironic that the fiscal incentive to donate money to the Red Cross is the same that it is to blow it down at the track on the ponies.

  6. Re:You cannot tax illegal activity by Kadin2048 · · Score: 2, Informative · on MP3 Company Refuses to Pay Swedish Copyright Levy

    It was, I believe, for not reporting his "income." The money was all laundered and couldn't be proven conclusively to come from illegal activities other than gambling (although it was rather clearly coming from the alcohol trade), but what they got him on was not paying taxes on his 'gambling' income.

    http://en.wikipedia.org/wiki/Al_Capone
    http://www.fbi.gov/libref/historic/famcases/capone /capone.htm

    In something that's tangentially related, did you know that your gambling losses are tax deductible? Kind of ironic that the fiscal incentive to donate money to the Red Cross is the same that it is to blow it down at the track on the ponies.

  7. Re:Personal Responsibility by Karma_fucker_sucker · · Score: 3, Interesting · on Some Rights May Have To Be 'Eroded' For Safety
    Cut off authorian access to your pocketbook and they'll be unable to affect your civil rights.

    Except when they come and take your pocketbook with guns. Like these guys.

  8. Re:Private, non-profit... by Media+Withdrawal · · Score: 1 · on Katrina Delays Shuttle

    Ahh, you're right. I should have said private corporation, but of course that's an even nastier word...

    To be organized exclusively for a charitable purpose, the organization must be a corporation, community chest, fund, or foundation... -IRS exemption requirements

  9. Re:Correction + my info by Anonymous Coward · · Score: 0 · on How Much Money do Programmers Really Make?

    fuck taxes? fuck you.

    ps, you don't make that much.
    $35/hour for *snicker* actionscript coding.
    40hrs/week for more than 2 years now.
    That doesn't count the freelance actionscript at $40+/hr ... and /. users laugh at Flash!

    And I pay my taxes, love this country, and always vote Dem. ...and yes, I will make every effort to report Slashdot user #243852 (Baddas) to the IRS.

  10. Re:Correction + my info by The+Bungi · · Score: 1 · on How Much Money do Programmers Really Make?
    (pure profit, fuck taxes)

    I hear there's a large government agency looking for good webdevs. Might want to check them out.

  11. Re:Vancouver as well, I think by TogusaS9 · · Score: 1 · on New York Taxis Will Go Hybrid
    I only know that I've heard enough people here in the U.S. talk about getting a tax credit for buying an alternative fuel vehicle that it's become almost a habit of pointing out to them that hybrids don't qualify as an alternative fuel vehicle.
    Actually, the Toyota Prius does qualify for the US$2,000 alternative fuel vehicle credit -- in fact, the IRS document that certifies the Prius as qualifying for the credit can be found here:

    http://www.irs.gov/pub/irs-news/ir-04-125.pdf
  12. Re:Well... by Anonymous Coward · · Score: 0 · on Is Programming Art?

    If you download the tax stats from the IRS (http://www.irs.gov/taxstats/indtaxstats/article/0 ,,id=96981,00.html#_grp1), you'll see that the 90th percentile is about $100,000 per year. So anyone making 6 figures is making more than 90% of the people in the United States.

    Here's a few other number for you:

    9.7% make less than $10,000
    37.1% make less than $20,000
    51.3% make less than $50,000
    83.6% make less than $75,000

    Great to live in the richest country in the world isn't it?

  13. Re:Never happen. by BoomerSooner · · Score: 1 · on The Lawsuit of the Rings

    Take a look pdf

    Fed caps at 39.6% I think. Not sure since the GWB taxcut for billionaires.

  14. The New Socialist Movement Tramples On by LinuxWhore · · Score: 1 · on Supreme Court Rules Private Property Can be Seized

    What happens when you allow the federal goverment to seize your income without representation? They seize even more.

    Today, the Supreme Court once again invented new law, ignoring all previous precident, which allows the government to take your property in the name of goverment-imposed "economic development". This isn't even eminent domain. This is a private venture.

    Let's take a look at the Judges who had opposed this ruling:
    - Reagan appointee Chief Justice William H. Rehnquist
    - Reagan appointee Justice Sandra Day O'Connor
    - Reagan appointee Justice Antonin Scalia
    - Bush 41 appointee Justice Clarence Thomas

    And those who ruled for it:
    - Ford appointee John Paul Stevens
    - Reagan appointee Justice Anthony Kennedy
    - Bush 41 appointee Justice David H. Souter
    - Clinton appointee Justice Ruth Bader Ginsburg
    - Clinton appointee Justice Stephen G. Breyer

    Take a guess at what party is the face of the new Socialist movement.

  15. Fed Gov't offers this already... by kenh · · Score: 1 · on CA State Offers To Prepare Simple Tax Returns

    See http://www.taxhelpers.com/glossary/substitute-for- return-sfr.html - it is called Substitute For Return, and it is designed, as the glossary entry linked to here indicates, maximize your tax payment (no deductions, etc.).

    But honestly, does the IRS From 1040EZ really confuse so many people?

    Form 1040EZ http://www.irs.gov/pub/irs-pdf/f1040ez.pdf
    Form 1040EZ Instructions http://www.irs.gov/pub/irs-pdf/i1040ez.pdf

  16. Fed Gov't offers this already... by kenh · · Score: 1 · on CA State Offers To Prepare Simple Tax Returns

    See http://www.taxhelpers.com/glossary/substitute-for- return-sfr.html - it is called Substitute For Return, and it is designed, as the glossary entry linked to here indicates, maximize your tax payment (no deductions, etc.).

    But honestly, does the IRS From 1040EZ really confuse so many people?

    Form 1040EZ http://www.irs.gov/pub/irs-pdf/f1040ez.pdf
    Form 1040EZ Instructions http://www.irs.gov/pub/irs-pdf/i1040ez.pdf

  17. Re:National by rvega · · Score: 1 · on CA State Offers To Prepare Simple Tax Returns

    The IRS website offers PDF versions of their forms and instructions for you to fill out on-screen and print. If I recall correctly, if you use a recent version of Acrobat Reader, you can even save your filled-in PDF to complete or print later. It's not as simple as e-filing, but there's no reason to fill them out "by hand" ... unless you consider typing "by hand", which I don't.

    Also, in my opinion, geeks should strive to have a good understanding of finance, economics and taxation. It's just another machine/system, and one which is especially to your benefit to understand. You can learn a lot from filing your own taxes, and it's not very hard. I've had to deal with some "advanced features" of our tax rules -- income earned outside the US, capital gains and losses, carry-forward capital loss, next year: participation in a partnership -- and I've always done my own filing and have never had a complaint from the IRS, knock on wood.

  18. Re:I don't know about you guys.. by Anonymous Coward · · Score: 0 · on CA State Offers To Prepare Simple Tax Returns
    For the past couple of years, my state, Virginia, has provided free online web-based tax preparation software. All you have to do is answer a few questions, enter a few numbers from the federal tax return and from the employer W2 form, and you're done.

    Even better, starting last year, the US IRS arranged for free online filing of federal income taxes. They basically got several commercial tax preparation companies like Intuit TurboTax to provide free online-versions of their products.

    See IRS free tax preparation info and the Virginia Department of Taxation"

  19. Re:What a rube! by A+Commentor · · Score: 1 · on SCO Announces Q2 2005 Results
    Where did you get the 40% number? The highest tax rate is 35% and then it's only on the marginal income, not all of your income. Looking at IRS's tax Rates and putting it into Excel, the working making $200K is only paying an over all income tax rate of just under 27% (also not factoring any deductions they would have).
    if you make $200K in an honest job you pay 40% taxes - so you hire someone specifically to represent you for your taxes. This person (your accountant) earns his money by lowering your taxes. By common sense, you would pay up to $80K to lower your tax bill - but the only way to do that is to take control of the government.

    So in making that $200K, the government provided you nothing? Umm... Did you drive on public roads to get to your job? Did you get paid in U.S. Currency(instead of live stock)? Did you have to worry about another country coming in, taking your stuff, and killing you? Did you have to worry about someone with a bigger gun taking over your property (and having no legal recourse if they did)? Does it provide a legal framework in which to enter agreements?

    There are so many other things that the government does which allows you to make this money because it takes care of the basics that you no longer have to worry about. It is incredibily ignorant to think that the government does not help you in earning your income.

  20. US 2001 Federal Income Tax Returns by Wyatt+Earp · · Score: 3, Insightful · on The Microsoft Millionaires Come of Age

    $75,000 under $100,000 - 8,903,894 returns
    $100,000 under $200,000 - 8,469,199
    $200,000 under $500,000 - 2,018,372
    $500,000 under $1,000,000 - 355,617
    $1,000,000 under $1,500,000 - 85,479
    $1,500,000 under $2,000,000 - 36,492
    $2,000,000 under $5,000,000 - 52,157
    $5,000,000 under $10,000,000 - 12,266
    $10,000,000 or more - 6,836

    21% of the tax returns pay roughly 55.9% of the Federal Income Tax, the 6836 at the top, pay 3% of the Federal Income Tax

    http://www.irs.gov/taxstats/indtaxstats/article/0, ,id=96981,00.html

  21. Re:Taxes by BenEnglishAtHome · · Score: 1 · on Consumers Union Wants You to Share Your Story

    Try talking to the office of the Taxpayer Advocate.

  22. Re:Tax Issues by YrWrstNtmr · · Score: 1 · on Offshoring to a Ship in International Waters

    If you live and work abroad for the entire tax year, you may (probably) qualify to exclude the first $80,000 of your foreign earned income.

  23. Re:The morality of the story: by anthony_dipierro · · Score: 1 · on Tracking Your Taxes

    Ummm... No. I used TaxAct this year (and last). It's free to create your return, but you have to print it and mail it in.

    No, you got ripped off. I filed my return through TaxAct and my girlfriend filed her return through them, and both of them were free.

    You must have gone directly to the site. If you do that, you have to pay. But if you enter the site from the IRS's free file page, it's free. Free to print, and free to e-file. You gotta pay for the state, though, that is, if your state has an income tax (mine doesn't).

  24. Re:The morality of the story: by anthony_dipierro · · Score: 1 · on Tracking Your Taxes

    I don't e-file because I'm cheap.

    I e-file because I'm cheap.

    A stamp costs $.37, and I drive by the Post office anyway to get the weight. e-file costs me more than that.

    E-file is free. That's less than $.37.

  25. Re:Finance: Money for Moon Base Unknown by John+Little+John · · Score: 1 · on Site for Moon Base Determined

    IANAA, but, you do NOT get taxed when receiving a gift, which a birthday present would be. You get taxed if you GIVE a gift over a certain amount. http://www.irs.gov/businesses/small/article/0,,id= 98968,00.html#gift

  26. Re:The morality of the story: by anthony_dipierro · · Score: 1 · on Tracking Your Taxes

    But wouldn't the expense of creating a secure cross-platform e-filing system, be more than offset by the efficiency savings resulting from more people e-filing?

    Well, the government is trying to get it both ways. They're trying to get more people e-filing without building the e-filing system themselves. It'll take longer, perhaps, but in the long run I think it's the smart thing to do. In ten years, e-filing will likely cost less than a stamp, and I'm talking about a full open source software package. You can already e-file for free if you can find the right place to go (hint, it's linked to from the government's list of Free File Alliance Companies. I e-filed for free, and my girlfriend e-filed for free. Everyone is eligible to e-file for free through TaxAct.com. The only problem is that "free file" isn't very highly publicised.

    Well, that and the fact that the US tax code is too complicated for most people to file on their own anyway. But even here, the federal government might go the same way as California, and start mandating that paid preparers who use software packages e-file all returns that are eligible.

  27. That's weird by wiresquire · · Score: 2, Informative · on Tracking Your Taxes
    from http://www.irs.gov/efile/article/0,,id=118991,00.h tml

    Your tax information and data will be protected -- Privacy and Security concerns

    * Tax return preparation is accomplished using proprietary software approved by the IRS; transmittal is through the established IRS e-file system.
    * Each company must attain a third party privacy and security certification.
    * Alliance companies must comply with all federal rules and regulations on taxpayer privacy for paying and free customers. These rules prohibit use of tax return data for purposes not specifically authorized by the taxpayer.
    * The IRS monitors the progress of each of the companies. If any problems develop, the companies are required to alert the IRS. If appropriate, the IRS will remove the company from the IRS.gov site until the problem is resolved.
    * For more information about IRS Privacy, please visit the IRS Privacy Policy.

    I guess you need to read the fine print on what those company's can do with your info

  28. Re:National sales tax now by anthony_dipierro · · Score: 1 · on Tracking Your Taxes

    It's been my experience that most upper class earners spend virtually everything they earn.

    This hasn't been my experience at all, but also consider that much of what they spend wouldn't be taxed anyway. First of all, someone who makes $200,000 almost certainly has a large mortgage, and no sales tax I've ever heard of taxes interest payments. People who make more almost certainly save/invest more, and savings/investments aren't taxed. Then there's services. Many sales taxes do tax some services, but you couldn't possibly tax all services, because then you'd have an income tax. For instance, if a rich person has employees who work for them, and they spend money on that, that wouldn't be subject to sales tax, would it?

    But don't just take my word for it. The government has set up a chart of the estimated sales taxes paid by people based on their income. In Florida, someone making $25,000 is estimated to pay $509 in sales taxes. Someone making $200,000 is estimated to pay $1474. Those aren't numbers out of my ass, they're actual IRS estimates.

    As structured in H.R. 25, everyone gets a monthly check to prevent exactly what you describe.

    That doesn't make the tax non-regressive. Remember, regressive means that those who make more money pay less as a percentage of income. The only way to avoid that is to have an income tax, you can't do it by having a sales tax and then giving everyone a monthly check.

  29. Re:The morality of the story: by anthony_dipierro · · Score: 1 · on Tracking Your Taxes

    If there is an actualy test the software manufactueres have to pass, i'm assuming somethign on it owuld be surrounding privacy.

    No, the test is to ensure that the software is properly formatting the data it sends to the federal government.

    Were can i find out more about the croteria on writing fileing software?

    e-file for Software Developers/Transmitters. You might want to learn how to write English first, though.

  30. Re:The morality of the story: by anthony_dipierro · · Score: 3, Informative · on Tracking Your Taxes

    Or, for that matter, you could file on paper, for cheaper.

    Cheaper than free? I don't think so.

    In an ideal world, you'll be sufficiently under-withheld that you don't have to worry about getting a refund anyway, removing the only rational reason to e-file.

    I've got another rational reason to e-file. You save the cost of the stamp (actually to be safe you should probably use two stamps as one is probably not enough), as well as the hassle of printing out the form and mailing it in. In my case, I save the hassle of driving to the post office and buying stamps, since I generally don't have any stamps around anyway.

    Of course, I wound up working less last year than expected, so I wound up with a refund, and I'll probably get one again in 2005 since changing my exemptions to 7 probably won't be enough (should have gone for 9, I guess). But yeah, the target is to owe $999 at the end, unless of course you can manage to get your income taxes down to $0, which is actually not too hard for 2005 (a married couple can earn $41,000 if they both contribute $4000 to an IRA and have $3000 of capital losses; if they have kids or one is a teacher or have student interest or have rental property or paid tuition costs they can earn even more; just having a few rental properties can theoretically raise that number to $66,000).

    Filing on paper is still legal (as long as you prepare your own return, anyway).

    For the federal return it's still legal. California (and possibly other states), has made it illegal for a paid preparer who files more than 50 (or something like that) California returns from not e-filing an eligible state return unless the customer specifically requests not to e-file, but the federal government has done no such thing - yet.

  31. Re:The morality of the story: by anthony_dipierro · · Score: 3, Interesting · on Tracking Your Taxes

    If the IRS would actually come out with a method of E-Filing that does not require third party involvement, they would go a long way towards elimenating this type of problem.

    It would also be a large taxpayer expense. As it stands now you could get access to send your tax return directly to the government. But you'd have to write the software, and pass the tests, and undergo a criminal background check. This ensures that the government needs to do the least work once it's received a return. It also makes it very hard for criminals to screw up the system by for instance filing false returns for people other than themselves.

    Look at the E-Filing instructions and it's all about how to find the right third party to do it for you (for a Fee!).

    Actually, at least one third party (the makers of TaxAct), offers e-file for free to everyone. They make it hard to find the link, but if you go to the IRS free-file page, scroll down to "TaxACT.com", click the link, click "Leave IRS Site", and then click on "Start Free Return" then you can e-file your federal return absolutely free.

  32. Re:Not exactly false premise by starrsoft · · Score: 1 · on Google Founders Cut Salaries to $1
    If they take a salary they pay: 35% income tax + FICA, medicare, etc.


    If they take stock, they pay income tax (35%) on the value of the stock when it was given. Any gains would be taxed at the capital gains rate of 15%.


    If they have stock options, they pay income tax (35%) on the difference between purchase price and and market value at the time that they excercise the options. Any gains (the amount the stock goes up after the excercise of the options) are taxed at the 15% capital gains rate.

  33. Re:Not exactly false premise by starrsoft · · Score: 1 · on Google Founders Cut Salaries to $1
    If they take a salary they pay: 35% income tax + FICA, medicare, etc.


    If they take stock, they pay income tax (35%) on the value of the stock when it was given. Any gains would be taxed at the capital gains rate of 15%.


    If they have stock options, they pay income tax (35%) on the difference between purchase price and and market value at the time that they excercise the options. Any gains (the amount the stock goes up after the excercise of the options) are taxed at the 15% capital gains rate.

  34. Re:Geez by anthony_dipierro · · Score: 1 · on Google Founders Cut Salaries to $1

    Here's the problem. If the stock falls to $5 before you sell, you still owe taxes on the $99,000 even though the stock you own is worth $5000.

    That's an interesting scenario, and I'm not sure how likely it is, but in any case wouldn't that person be eligible for the credit for prior year minimum tax? I'd have to input the details to be sure, but I think you would.

    I should also note that the AMT on $99,000 is going to be much much less than $25,000.

    Nice system, that AMT.

    It's no different from the regular tax system, where if you make $100,000 capital gain one year and then lose $100,000 the next year you still pay taxes. Now, if we were going to make AMT the only tax we'd need some sort of net operating loss carryback, but I believe that is adequetely handled by the form 8801 credit (if not, then it should be).

  35. 3 Billionaires Kick In $0.18 FICA, $0.06 Medicare! by theodp · · Score: 1, Insightful · on Google Founders Cut Salaries to $1

    Who says compassion is dead? That the system's broken? After all they're giving their fair share! Just because Social Security and Medicare are in crisis, why do they deserve a percentage of poor Sergey's, Larry's, and Eric's stock sales?

  36. capital gains tax by dAzED1 · · Score: 1 · on Google Founders Cut Salaries to $1

    form 1040, line 13: "Capital gain or (loss). Attach Schedule D if required."

    Then see schedule d. That income does have to be reported, and will be captured somewhere. Dividend income is capped at...28%? hell, I don't remember...but if you exersize options and sell the stock, or flat out sell stock you own (a long-term gain instead of short-term), you still pay taxes.

    And as far as FICA and medicare...FICA is what, 7% of the first $120k? Think the $8,400 is really all that big to someone making hundreds of millions? Medicare is similarly only taxed for the first bit of income, I just don't recall what the cutoff is.

    All in all, they're not really cutting their tax burden. If anything, they're shifting from short-term to long-term, which only puts off taxes really - which maybe hints they plan on retiring in a few years? Who knows.

  37. FICA and Stock Options - The actual story by Grech · · Score: 1 · on Google Founders Cut Salaries to $1
    Some people, (and TFP) seem to think that this move by the founders represents some sort of evil plot to dodge FICA taxes on their compensation. And so we have a couple links.

    First, this is the IRM section that deals with stock options and FICA taxes. It's worth a read, especially the bit where the Service's position regarding FICA/FUTA etc, is laid out, and the temporary and permanent regulations indefinitely forestalling the formal adoption of the position.

    Second,This piece of political grandstanding (scroll down to secion 162(m)) is the reason so many corporate presidents have bizarre compensation packages. Note the the $1,000,000 figure was set by the Clinton administration in 1993, and has not been updated since. (This is much like the AMT, but that is an issue for another time.)

    Finally, you will recall that Social Security is, to a non-trivial extent, a means-tested benefit program. Google's founders are going to be on the receiving end of every punitive modification to the program made "to ensure that it is fair". That this might lead to a certain reluctance to fund it is not surprising. OTOH, we are only talking about $6885 in FICA taxes, if that really is the issue, which I doubt.

    Personally, I agree with the other posters who think this is Jobsesque PR.

  38. Re:Give a man a fish... by Anonymous Coward · · Score: 1, Informative · on Zen and the Art of Apache Maintenance

    The answer is E) none of the above. Chairman Bill is a hypocrite who donates a few hundred million dollars, which he won't miss because he deducts it from his income tax, at the same time he gets tens of billions dollars from his illegal monopoly

    You really have no clue; first, Bill Gates donated over 25 billion dollars, not "a few hundred million". Second, the amount deductible from taxes is only 30% of the individual's income or 20% in the case of securities (as were most of Gates's donations). And even if he'd be able to deduct all of it, he'd still only save the part of it that's taxable for his income level, which is probably 35%. You have to be pretty silly to say he's giving away 100 dolars to save 35.

  39. It's changed - See IRS form 4562 instructions by tlambert · · Score: 1 · on Is Leasing Really Worth It?

    It's changed - See IRS form 4562 instructions.

    As a special case, you can depreciate PC equipment and software over 3 years if it was purchased ina certain date range, or if it's purely a business asset:

    http://www.irs.gov/instructions/i4562/ch02.html%23 d0e441

    But consult your tax professional for rules changes.

    See also:

    http://www.irs.gov/instructions/i4562/ch02.html

    which describes all the depreciation rules used in filling out form 4562 (the form you use to claim depereciation of capital assets).

    -- Terry

  40. It's changed - See IRS form 4562 instructions by tlambert · · Score: 1 · on Is Leasing Really Worth It?

    It's changed - See IRS form 4562 instructions.

    As a special case, you can depreciate PC equipment and software over 3 years if it was purchased ina certain date range, or if it's purely a business asset:

    http://www.irs.gov/instructions/i4562/ch02.html%23 d0e441

    But consult your tax professional for rules changes.

    See also:

    http://www.irs.gov/instructions/i4562/ch02.html

    which describes all the depreciation rules used in filling out form 4562 (the form you use to claim depereciation of capital assets).

    -- Terry

  41. Re:Why do they need the SSNs? by Anonymous Coward · · Score: 1, Informative · on Berkeley Grads' Identity Data Stolen

    Most schools will use an ITIN assigned by the IRS for foreign nationals, because they often need to pay taxes on earnings/whatnot but have no SSN.

  42. Other sources of IRS income... by grafikdude · · Score: 2, Informative · on How the Secret Service Cracks Encrypted Evidence
    Other sources of income according to the IRS From the IRS website at= http://www.irs.gov/publications/p17/ch13.html
    Other income sources (this is for real)
    • Bribes If you receive a bribe, include it in your income.
    • Kickbacks You must include kickbacks, side commissions, push money, or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040), if from your self-employment activity.
    Example
    You sell cars and help arrange car insurance for buyers. Insurance brokers pay back part of their commissions to you for referring customers to them. You must include the kickbacks in your income.
    • Illegal income Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
    • Pulitzer, Nobel, and similar prizes. If you were awarded a prize in recognition of accomplishments in religious, charitable, scientific, artistic, educational, literary, or civic fields, you generally must include the value of the prize in your income. However, you do not include this prize in your income if you meet all of the following requirements.
      • You were selected without any action on your part to enter the contest or proceeding.
      • You are not required to perform substantial future services as a condition to receiving the prize or award.
      • The prize or award is transferred by the payer directly to a governmental unit or tax-exempt charitable organization as designated by you.
      • See Publication 525 for more information about the conditions that apply to the transfer.
    • Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner.
  43. Re:It's like social engineering, without the perso by anthony_dipierro · · Score: 2, Informative · on How the Secret Service Cracks Encrypted Evidence

    Unless it's from a self-employment activity!

    Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.

    http://www.irs.gov/publications/p17/ch13.html

  44. Re:The level of ignorance here is astounding. by BenEnglishAtHome · · Score: 1 · on HP Contract Workers Sue For Recognition

    First, the disclaimers. I may be an IRS employee, but I am not a lawyer, not currently directly involved in tax enforcement, not technically qualified to say any of this stuff, not writing this on government time, and (in all caps, so people don't miss it) I AM NOT SPEAKING FOR MY EMPLOYER! Got it? Good. Now...

    You ask several excellent, excellent questions. Thank you so much.

    The IRS form simply asks questions by which an IRS employee can make a determination, not the criteria by which such decisions are made.

    True. The determination is based on the "20 common law factors" but the form maps to those factors pretty directly. And yes, for the *really* clueful out there, those factors are far from perfect and not controlling in all cases. Where taxes are concerned, they are pretty much the be-all and end-all, but for other things, such as fair labor practices, other agencies have other definitions of "employee" that are similar but just different enough to keep armies of lawyers employed.

    The Internal Revenue Code simply references common law and goes on to say that an employee is anyone who "has the status of an employee." Real clear, huh? The actual 20 common law factors are laid out in Revenue Ruling 87-41. For a good discussion of these issues (in a different context, but a good one because it was written in a division of folks who are about as anal-retentive and detail-oriented as any employees at the IRS), start at item 4 on page 11 of this report.

    In my case, the IRS receives its employment taxes (also corp income taxes) from my consulting corporation so it does not care. In the case of TFA, Adecco pays these taxes so the IRS does not again care.

    In practical terms, quite correct. Things only get sticky when people start disputing who is actually employed by who. That's what's happening here.

    IMNAL but its my understanding that the laws are structured to make it illegal to make a contracting agreement so that nobody pays the employment taxes.

    Correct, again, in practical terms. But that's a dangerous oversimplification.

    In my corp-to-corp structure my company pays these taxes, so why should HP be liable.

    Setting up an insulating corporation is a good way to stack evidence on the side of the notion that you are not an HP employee. In fact, you seemed to have approached this thing thoughfully enough that you probably aren't. In practical terms, as long as the taxes get paid, the question probably doesn't come up.

    But consider this - Do you have a formal retirement plan? Depending on the type, such a plan may only be legal if it is maintained by the employer. So what if your corp gets audited and everything turns out fine except that under the 20 common law factors it is determined that you are actually an employee of HP? The IRS might not change any tax items, but your entire retirement plan might be disqualified because it is not being maintained by the actual employer! This area is a freakin' minefield in tax law and it really bugs me to see the way people are glossing over the details and misunderstanding so many basic things about it.

    If the laws structured such that nobody but direct employees could perform certain tasks,

    That's not, afaik, what's being discussed here at all. A legitimate independent contractor can perform almost any work that an employee performs, the only real exception being the officers of a corporation. (You really can't contract out the positions of corporate officers although small corps try to do it all the time.) The difference (and remember, there is no bright line, just a judgement based on a bunch of factors) is more in the way things are done. If I'm an employee, the employer can tell me when to show up, what tools to

  45. IRS Publication 15-A by anthony_dipierro · · Score: 2, Informative · on HP Contract Workers Sue For Recognition

    For more information on who is an employee and who is a contractor, see IRS Publication 15-A.

  46. So what if the IRS reclassifies them? by lorcha · · Score: 1 · on HP Contract Workers Sue For Recognition
    If the IRS reclassifies these contractors as employees, all that means is that someone had better be paying employment taxes on them and withholding their income tax. That is what the "20 guidelines" are for. The IRS doesn't give a shit if you give your employees benefits or not.

    For more information (as well as the list of 20 criteria), please see IRS Form SS-8: Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding .

  47. It's even dumber than that by lorcha · · Score: 2, Insightful · on HP Contract Workers Sue For Recognition
    These contractors are claiming that the IRS would consider them employees of HP so they are employees.

    Well, guess what. Even if they get the IRS to reclassify them as employees, all these "employees" are entitled to is to have HP withhold their income taxes for them. That is the purpose of the guidelines. To determine HP's tax liability. For more information, please see IRS Form SS-8: Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. In it, you will find the infamous "20 questions" for determining whether or not your contractor is really a contractor for income tax purposes.

    The IRS couldn't give two shits if you give your employees benefits or not as long as you withhold their income taxes.

  48. The level of ignorance here is astounding. by BenEnglishAtHome · · Score: 4, Insightful · on HP Contract Workers Sue For Recognition

    How many posters have said "They signed a contract! They're contractors! Screw 'em!"? Those posters are idiots. With the notable exception of just a couple of posters, the ignorance here amazes me.

    For those of you who want some idea what's real and what's hot air being blown by a bunch of no-nothing nerds who think their world-view should inform every business relationship in the country, listen up. IT DOES NOT MATTER IF YOU'VE SIGNED A CONTRACT. IT DOES NOT MATTER (much) WHAT THE CONTRACT SAYS.

    You can sign a contract to work for a big corp wherein you swear a thousand times that you're not an employee and you'll never seek employee benefits and you're not entitled to them and you'll never sue. You and your new bosses can sing from the mountaintops for a month that you are not an employee. And none of that matters.

    Employees are defined by law, not by some silly piece of paper drawn up by the legal department at MegaCorp. If you meet certain criteria, you are an employee. It doesn't matter if you and your bosses agree differently. It doesn't matter what the contract says. If you meet the criteria, you ARE an employee. Period. And if you ARE an employee and your employer is treating you different from other employees (by, for example, referring to you as a contractor and not giving you benefits), then you've got a reason to sue.

    Those criteria are found on this form. Read it and learn something and quit spouting off about stuff when (most of) you obviously have no idea what you're talking about.

    PS - What really amazes me is how many of you guys are posting "I'm a contractor and..." stories. Reading your posts makes it crystal clear that you often haven't a clue what the definition of "independent contractor" is. And you're making your living as one?!? The mind boggles. It really does.

  49. Re:Contract workers by BenEnglishAtHome · · Score: 1 · on HP Contract Workers Sue For Recognition

    This form is where the rubber really meets the road.

  50. Re:Contract workers by Reignking · · Score: 0 · on HP Contract Workers Sue For Recognition

    The link is here, and contains headings such as
    Behavorial Control,
    Financial Control, and
    Type of Relationship.