vpFREE2 Forums

another W2G question...

#1

4c. Re: another W2G question...
Date: Sun Jan 4, 2009 10:44 am ((PST))

They will catch it. The W2-G is in their computer system. You will get a
surprisingly nice letter stating that the IRS believes you did not report an
income item and will give a chart showing how that increases your income and the
amount of additional tax you owe.

While you're at it, fill out your tax form with less income than you actually made from other areas - it's no different, so why not try and see if they catch you.

I'm not a tax expert, just an amateur, but I think you'll also find yourself being billed for interest and possibly penalty. If they can prove you INTENTIONALLY didn't report income (I'm guessing they wouldn't have proof and if they did, wouldn't bother with such a small case), that is tax fraud and a criminal offense.

The best defense if you get in tax trouble for doing something where you knew better, unless you actually think they are incorrect (notice I didn't use the word "wrong"), is to say, gee I didn't know that, what do I have to do to make it right?

This is not the only unfair thing about taxes; there are undoubtedly even other areas in which you can get tagged with a tax for money you didn't make from your perspective (I don't know any, but I'm just guessing based on how absurd the tax code is).

You might want to see if you can make a quick visit to a lost-cost tax preparer or do some research on your own to see if itemizing would be better for you than the standard deduction for this one year, and if you have anything else "on the books" that you can deduct while you're at it. You might be surprised.

--BG

···

===============

#2

even other areas in which you can get tagged with a tax for money you
didn't make from your perspective (I don't know any, but I'm just
guessing based on how absurd the tax code is).

End of year mutual fund distribution is another, a lot of people will
be discovering that one this year. Another trick is deduction
disqualification and phase-outs for "excessive" AGI. AGI is not the
same as net money you've earned, hence the unfairness. Another trick
is AMT ... the list goes on and on ... If you have enough money to
hire a hotshot tax lawyer and bribe ("donate to") a senator, you can
get out, if you're poor you can get credits, if you're in the middle
you get screwed.

···

--- In vpFREE@yahoogroups.com, b.glazer@... wrote:

This is not the only unfair thing about taxes; there are undoubtedly

#3

I've got one - I live outside of the U.S. but as a U.S. citizen I pay
nearly the same taxes as if I lived in the country. And what do I get
for it? The right to vote and um... can't think of anything else!

--- In vpFREE@yahoogroups.com, "nightoftheiguana2000"
<nightoftheiguana2000@...> wrote:

···

--- In vpFREE@yahoogroups.com, b.glazer@ wrote:
> This is not the only unfair thing about taxes; there are undoubtedly
even other areas in which you can get tagged with a tax for money you
didn't make from your perspective (I don't know any, but I'm just
guessing based on how absurd the tax code is).

#4

I've got one - I live outside of the U.S. but as a U.S. citizen I pay
nearly the same taxes as if I lived in the country. And what do I get
for it? The right to vote and um... can't think of anything else!

Well, the main one is the right to live in the US any time you want.

Cogno