Do you cheat on your taxes?

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CPA

Elite Member
Nov 19, 2001
30,322
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Two things:

1. Audit. If you start that you had $10,000 in expenses, you will get a flag. You say $9,547 that same flag might not come up (maybe 2 flags for the first, 1 for the second). Numbers that are too easily fabricated naturally arouse suspicion.

2. Internet Taxes. They should just put a small federal tax on these guys and be done with it. Half the tax goes to the state of purchase, the other half goes to the state purchased from. If you let the states decide what they want to do, all hell will break loose.


1. What?

and

2. What?
 
Dec 10, 2005
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2. Internet Taxes. They should just put a small federal tax on these guys and be done with it. Half the tax goes to the state of purchase, the other half goes to the state purchased from. If you let the states decide what they want to do, all hell will break loose.

Why? That makes no sense. You, as a consumer, were already required to pay sales taxes to the state you are bringing the item into. There are already laws on the books for this stuff. All you'd have to do is force internet companies to collect sales tax even if they don't have a nexus in the state. The companies will just pay another company to figure out the rules of collection anyway, just like all other major companies do that do have physical presences in states with sales taxes.
 

Vette73

Lifer
Jul 5, 2000
21,503
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I used TurboTax last year, it didn't let me take it, but the IRS caught it and gave me the extra!

No S**t!!!


Did you update the software?

The software comes out before all the updates are out. So make sure you update it and don't file before the end of Feb this year.

IRS said they will not be done with the code till early-mid Feb since congress changed it so late in the year. So Late Feb is the soonest you should file, after updating.
 

GTaudiophile

Lifer
Oct 24, 2000
29,767
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Haha. Such an odd question. An impossible one?

I complete my taxes as honestly possible using my software tool of choice.

Does this mean I am following the tax code to the letter? Are you? Does anyone? Does anyone fully comprehend the tax code? Do IRS employees? Does Congress?

It's essentially a convoluted moving target. You will never get the same answer twice.

And in the eyes or the IRS, it is guilty until proven innocent...and if YOU are right and they are wrong you cannot collect the money they owe you with interest...
 

Bignate603

Lifer
Sep 5, 2000
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I don't intentionally cheat but I'd be surprised if I hadn't screwed something up in the past.
 

Bateluer

Lifer
Jun 23, 2001
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No, I'm always honest to the best of my knowledge on my taxes. I'm not in the President's cabinet or in Congress, so I have to pay my taxes or the IRS hunts me down.
 

Ninjahedge

Diamond Member
Mar 2, 2005
4,149
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Why? That makes no sense. You, as a consumer, were already required to pay sales taxes to the state you are bringing the item into.

No, you aren't.

When I was working in NYC, I had Newegg deliver there for 0% tax.

There are already laws on the books for this stuff. All you'd have to do is force internet companies to collect sales tax even if they don't have a nexus in the state. The companies will just pay another company to figure out the rules of collection anyway, just like all other major companies do that do have physical presences in states with sales taxes.

No. It is not that simple, because if the law was there and could be enforced easily with no challenge, they would have done it already. Between fear of quashing intenet sales and the fear of prolonged litigation over unclear taxation statutes, they are looking for a way to make this work w/o killing the golden goose.

As for Mr. What.

1. If you put in round numbers for your deductions, it raises flags. Nobody spends exactly $2000 for office supplies. If you add up your receipts and did it right, very few would EVER come to an even rounded number.

Also, if you put too much down, that will also raise a flag. The numbers are not well known, but this is a no-brainer. Claim too much on a deduction and they will want proof.

2. See above. They want to start taxing the internet? They need to take it out of the hands of local municipalities or all internet buisnesses will move to some place like New Hampshire to avoid having to pay the state they are in the taxes.

If it is only tax on the state you are in, it is unfair to the state that has the company HQ'd there AND it will make people less likely to shop online (if they get no discount AND have to pay shipping, why bother? A lot of things would be cheaper to drive over to Target to get, you know?)

If they made it uniform, you would get some income from the sales, but that would be split evenly between the producing and consuming states and not force a weird migration/transformation in the market that could be trouble for many municipalities.
 

gophins72

Golden Member
Jul 22, 2005
1,541
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i dont, and not sure i would if i knew how to. a lot of my old coworkers used to, but they did it through their accountant with flakey side businesses and crazy deductions.
 

BurnItDwn

Lifer
Oct 10, 1999
26,353
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Income tax, no. I do not cheat on my income tax.
Sales Tax, yes, like most people, I do not pay income tax on stuff I buy from Amazon, etc... even though I'm supposed to.
 

Slew Foot

Lifer
Sep 22, 2005
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If you're getting a bj from someone who's standing in one state while you're in another, does that count as interstate commerce?
 
Dec 10, 2005
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No, you aren't. When I was working in NYC, I had Newegg deliver there for 0% tax.

Doesn't matter that Newegg doesn't collect sales tax in NY. You are still required to pay the sales and use tax. In fact, since about 2007, there has been a line on NYS tax returns to pay the use tax. The reason they don't go after it more is because you'd have to go after thousands of individuals and subpoena millions of records from businesses. That's why there are pushes within states to force the businesses, like Amazon, to collect sales tax.

As for the "discount" you get by shopping online, things are still cheaper online when I have to pay sales tax with Amazon than going to a local store for most things. And I don't think states are worried about "killing" online sales (like that would ever happen :rolleyes:). They would love if people bought stuff locally instead, since those businesses already collect the sales tax.

And I think you have a misunderstanding of how sales tax works. Though it might be collected by the business at times, it is a tax on the consumer's purchase, paid for by the consumer. Having some sort of uniform tax that splits the money between two states is kind of dumb. Why should I pay Washington sales tax (note: state is an example, don't know if they actually have a sales tax) if I live in NY?
 

Ns1

No Lifer
Jun 17, 2001
55,420
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If you're getting a bj from someone who's standing in one state while you're in another, does that count as interstate commerce?

you don't even need to be standing in different states

see: raiche vs gonzalez
 

ShawnD1

Lifer
May 24, 2003
15,987
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US taxes must be ridiculously complicated. You guys write off mortgage interest payments, in one thread someone said something about writing off your monthly energy bill?, you also write off weird things like which side of your pants your penis swings to.


I have no idea how I can cheat on taxes in Canada. Do I claim dependents that I don't really have? I could claim my cat as a dependent since he's very similar to illegal immigrants. He justs sits around all day watching TV and expects me to give him free shit. Then again I don't have a cat so they would catch that lie pretty quick.
 

The-Noid

Diamond Member
Nov 16, 2005
3,117
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My wife is a CPA, cheating no. If you follow the letter of the law and can control your own expenses by being a partner in a firm or owning your own firm/company there are more than enough deductions and offsets you can get.

From putting away SEP contributions to doing target benefit or defined benefit plans, to leased car expenses that include all your maintenance, to *, there is enough already. Once it is on my personal return it is as clean as can be.
 

DrPizza

Administrator Elite Member Goat Whisperer
Mar 5, 2001
49,601
167
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www.slatebrookfarm.com
I spend a lot of money on stuff for my classroom each year. Last year, my deduction was $0, because, said my accountant, "did you keep all those receipts?" Ooops! Well, sort of ooops. I'm still trying to decide if it's worth the time to save $5 and $10 receipts. But, in the end, they really add up. I have so many other deductions, that it's just not worth it to attempt to cheat the system. Hell, I can't even figure out my own taxes, and I doubt the software is going to be able to do it.