Death and Taxes 2011 is here! Jess Bachman is famed for his annual poster where he spends two months researching and creating a visual representation of where your taxes go. The result is a stunning six-foot poster that boggles the mind. Now in it’s 4th year, the poster has over 500 departments, agencies, programs, and whatever else the government can spend money on. “It is still the single most open and accessable record of government spending ever created,” says its creator. After the jump, here is this year’s version in full! [More]
IRS
What To Do If You Didn't File Your Taxes
By 4.26.10
So you couldn’t pay your taxes and you opted not to file them, or an extension, at all. Don’t sit around worrying about when the IRS will catch on and come after you; file them as soon as possible, writes consumer reporter Iris Taylor, so that you can set up a repayment plan and move on with your life. The sooner you do this, the sooner you can pay them off (you can take up to 5 years to pay them), and the less you’ll end up paying in penalties and fees over the long run. [More]
Fake IRS Agent Racks Up $55K In Hotel Bills
By 4.21.10
A woman in California lived for free in a hotel room for two years — a $55,000 bill — by pretending to be an IRS agent. Of course, now she’s been caught and has to pay it all back. [More]
If You Were Broke, You Don't Need To Pay Taxes On Forgiven Debt
By 4.8.10
Here’s an important caveat to our “You Need To Pay Taxes On Forgiven Credit Card Debt,” post: you don’t need to pay the taxes if you were insolvent at the time the debt was discharged. [More]
12 Scams To Watch Out For During Tax Time
By 4.5.10
For the last several years, the IRS has released their Dirty Dozen list of tax scams, including schemes involving return preparer fraud, hiding income offshore and phishing. They recently posted the 2010 version on their website. [More]
You Need To Pay Taxes On Forgiven Credit Card Debt
By 4.2.10
If you had some credit card debt canceled in 2009 the IRS might want a piece of it. [More]
IRS Extends Tax Deadline To May 11 For Victims Of Flood
By 4.1.10
With torrential rains causing massive flooding in Rhode Island and parts of Massachusetts, the IRS has decided to make victims’ lives a little less stressful by moving the due date for filing their federal income tax returns. [More]
Not Signing Your Name & 9 Other Common Tax-Filing Mistakes
By 3.29.10
It would be generous to describe tax forms as daunting. Even the 1040-EZ looks significantly more complicated than it actually is. And, while you’re worrying about exemptions and deductions, you might forget to do something as simple as sign your name. That’s why the folks at USA Today put together this list of 10 common mistakes you should be aware of when filing. [More]
Stay On Top Of New And Overlooked Deductions
By 3.15.10
Are you up-to-date with all the tax code changes this year? The TurboTax blog rounds up some of the newest tax credits and highlights deductions that people sometimes sleep on, like the long-term resident credit and unemployment and job search deductions. More coin in your coinpurse means you can buy all the churros you want this year! Update: Looks like we broke their blog. Here’s a cached copy of the post in question. [More]
Making The Most Of Medical Expense Tax Deductions
By 3.10.10
Kiplinger has advice on on how to maximize your medical expense deductions at tax time. You can only deduct out-of-pocket expenses that exceed 7.5% of your adjusted gross income, so you should try to bundle medical procedures in the same year if possible. [More]
Tax Tips For Gay Couples
By 2.26.10
There’s a reason why same-sex couples end up spending an average of $12,300 more over the course of a lifetime in tax prep fees: it’s more complicated! To help guide gay couples through the murk and mire, NYT Bucks Blog has a comprehensive guide to pitfalls and considerations to keep in mind when filling out those forms. Gay rights may divide our country, but nobody likes doing taxes.
Tax Tips for Same-Sex Couples [NYT Bucks Blog]
5 Tax Changes The IRS Thinks You Should Know About
By 2.25.10
The IRS tells Tax Cat that the rules have changed slightly this year. Learn how you can benefit. [More]
10 Ways To Provoke An IRS Audit
By 2.22.10
Life can get a little humdrum sometimes, so why not shake things up with an IRS audit? You can’t just check off a box and get an audit, you’ve got to earn it. You’ve got to provoke them. Here’s 10 ways to get some IRS agents knocking on your door: [More]
What Are You Going To Do With Your Tax Refund?
By 2.17.10
What are you going to do with the money once you get your tax refund check? Take our poll and let us know! [More]
Help! My W-2 Is Late And I Want Justice!
By 2.1.10
Tax Cat here. Reader Jason wants to know what to do when your lazy former employer doesn’t send your W-2 on time. [More]
Friday Is The Cutoff To Pay Estimated '09 Taxes Without Penalty
By 1.13.10
January 15th is the last day you can pay estimated taxes for 2009 without worrying about the IRS’s 4% interest penalty. For most people, you need to have paid 90% of what you owe for 2009 or have a good reason why you didn’t (e.g. casualty, retirement). Kiplinger notes that even if you can’t pay the full amount, pay whatever you can by January 15th to reduce the amount that’s penalized. [More]
IRS Opens Can Of Whoopass On Paid Tax Preparers
By 1.4.10
Tax Cat here! Calling it a “game changing event for the tax system”, the IRS announced in a press conference call, that they invited me, a tax cat, to that they’re launching 6 sweeping regulatory reforms to clean up the paid tax prep industry. The IRS is not naming names but I’m growling at you, H&R Block and Jackson Hewitt. Numero uno: [More]
IRS Tells Single Mom She's Too Poor, Must Be Lying
By 12.6.09
A single mom in Seattle thought she was playing by the rules. She earned under $19,000 per year as a hairdresser, supported her two children, and shared a home with her parents. Then the IRS audited her, claiming that she simply didn’t earn enough money to be able to live in Seattle, and must be hiding something. Two years and $10,000 in accountant bills later, the IRS has determined that she isn’t trying to run a scam, but can’t figure out who her children are dependents of. [More]
