# Taxes...go Figure!



## Whyemier (Mar 28, 2016)

This year I did the fast 1040, not the 1040EZ but the other one you don't have to itemize.  Did I tell you I hate doing taxes?  I don't hate taxes, they're a necessary evil in this system we live in, I just hate doing the filing every year.

I sent them off early, thinking I was getting a moderate refund.  Then a few days later I realized I was s'posed to pay the penalty for not having health care.  You know the so-called 'Affordable Healthcare' the gubment requires you to have.  I won't get into the whys and wherefores but just suffice it to say I didn't purchase it!  That being the case I had to file the 1040X for those of us who screw up on our taxes.  Ugh! Not only was I not getting a refund, I had to pay more than the refund I thought I was going to get.  Okay, okay, okay... I can live with that as long as I don't have to purchase the 'Affordable Healthcare'.  So I sent that corrections in with my check. 

Then I get a letter from the IRS, doncha hate those, telling me I made an error in filing the original form and I needed to give them more information.  Dang!  I really thought of just trashing that letter and saying I don't remember getting it.  But I didn't.  I dragged out the info I had stuck in a file in the back office (read spare bedroom) filled out the paper they sent and sent it back.

Today I got another letter from the IRS, man I hate that, but this one telling me they had made an error and owed me more on my refund.  HMMMM?  What's up with that? I don't trust this cuz they still haven't gotten around to addressing my 1040X corrected return.  If they send me a cheque, and believe me I'm keeping every letter they send to back me up, I'm going to hold on to the cheque and not cash it.  Not until they get through all the forms.

_*Did I tell you I hate doing taxes?*_


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## ScrapMetal (Mar 28, 2016)

Yeah, I understand.  It's pretty messed up when the IRS doesn't even understand the tax code (and nobody else does either) yet expects us to.

-Ron


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## John Hasler (Mar 28, 2016)

ScrapMetal said:


> Yeah, I understand.  It's pretty messed up when the IRS doesn't even understand the tax code (and nobody else does either) yet expects us to.
> 
> -Ron


Don't forget where that code comes from.


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## Billh50 (Mar 29, 2016)

your 1040x is probably been looked at by another irs agent who hasn't bothered to tell the first agent yet.


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## kvt (Mar 29, 2016)

One had does not tell the other what is going on,  Then if you make a mistake you pay extra, but if they make the mistake you pay extra.   Oops we sent you to much, oh by the way, you owe us interest on what we sent you.   But when they owe you it is like, oh,  you owe us for keeping your money from you.  It seems like at times there is no way to win with them,.


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## TommyD (Mar 29, 2016)

It's the gubbermint, does it surprise you?


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## aliva (Mar 29, 2016)

Well glad to see that the Canadian system is the same as U.S. system


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## CraigB1960 (Mar 29, 2016)

ScrapMetal said:


> Yeah, I understand.  It's pretty messed up when the IRS doesn't even understand the tax code (and nobody else does either) yet expects us to.
> 
> -Ron



What is really horrible is that you can be put in prison for a mistake that the IRS provided faulty information on.   I served as foreman in Federal Court on a tax case....scared the bejeebies out of me when the " IRS Tax experts" testify.  Totally incompetent.

The whole system begs for a complete overhaul.....which is why I am a huge proponent (have been for 30 years) for a simple sales tax or in today's jargon "Fair Tax".


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## Bill Gruby (Mar 29, 2016)

So far OK, but let's be careful.

 "Billy G"


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## savarin (Mar 29, 2016)

The tax laws are a kludge on top of a kludge on top of a stuffup.
Every country has the same problem.
Rather than fix the system just stick another kludge on the top.
No one fully understands the tax laws not even the IRS because its impossible to iterate all the ramifications of each "fix" through the mess.
I really believe in a flat tax with no get out clauses and everyone pays the same percentage irrespective of their income and that includes mega corps as well.
The trouble is there is very little chance of any country fixing their tax laws because its in the too hard basket but those that have gone to flat rate have prospered at all levels and rapidly at that.
Some years after WW2 the brits converted hong kongs tax from basically what most western nations have today to flat rate.
Prior to this it had always been very difficult to collect sufficient tax revenue.
The first year it was introduced basic income tax was low enough that most people just paid it without attempting to bypass it.
They took in more than they ever had before.
Hong Kongs tax has changed since then but is still basically a flat rate that works exceedingly well and everyone is better off.
These make interesting reading
http://www.businessinsider.com.au/a...imple-and-efficient-flat-tax-2010-7?r=US&IR=T
http://www.cato.org/publications/commentary/hong-kongs-excellent-taxes


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## ScrapMetal (Mar 29, 2016)

CraigB1960 said:


> What is really horrible is that you can be put in prison for a mistake that the IRS provided faulty information on.   I served as foreman in Federal Court on a tax case....scared the bejeebies out of me when the " IRS Tax experts" testify.  Totally incompetent.
> 
> The whole system begs for a complete overhaul.....which is why I am a huge proponent (have been for 30 years) for a simple sales tax or in today's jargon "Fair Tax".



Yep, I had a couple auditors from the Fed on my tail for a year and a half.  At the end of it they announced that I stilled owed Uncle same about another $1.5 million (yes, you read that right).  I got my tax lawyer on it (great guy CPA and lawyer) and he was able to show the court that the IRS actually OWED me about $500.  All I can figure is that the agents were on a "witch hunt" and had to justify the time they spent on the case so they tweaked the numbers to get their total, either that or they were just horribly incompetent.  Your choice. 

As Savarin posted, there are systems out there that are much simpler and probably better it's just that politicians (of all stripes) use the twisted tax code to exert their power and don't want to give it up for that reason.

-Ron


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## CraigB1960 (Mar 29, 2016)

savarin said:


> No one fully understands the tax laws not even the IRS because its impossible to iterate all the ramifications of each "fix" through the mess.
> I really believe in a flat tax with no get out clauses and everyone pays the same percentage irrespective of their income and that includes mega corps as well.



I am not opposed to flat tax, but the reason I like the fair tax better is because it is a consumption tax that puts the burden of tax collection on the ones that sell and/or provide services.  The common person is not required to do anything except to pay the tax when making a purchase.  Also it taxes everyone regardless if you declare income or not.

If you worry about the poor, than don't tax food and clothing.

But certainly, simplification is far overdue.


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## Whyemier (Mar 30, 2016)

Just a final thought from one of my friends (Hmmm? Is he the only one?) who read my blurbs on taxes.  This was an experience he had:

Been there done that with the IRS (Incompetent Rude System). Tried sending a death certificate to prove a loved one died and they send a letter telling me NOT to send a death certificate and I didn't send in form so and so showing that my mother was deceased...._*huh???*_...then another letter comes in saying I didn't attach a death certificate and a copy of the signed estate probate to the same form that says NOT TO!!

_*AAAAAAHHHHHH....!!!*_

I finally CALLED the main hot line in Atlanta who gave me her counterpart's number in Kansas City who finally FULLY explained what forms I needed.
The fantastic part was that when the checks came to my brother and I we also got a letter from Atlanta wanting to know why we filled the forms with K.C. instead of Atlanta......another...._*huh???*_ At least they gave me a number and regional contact name. I called and we talked, I explained what and why, etc., etc., and she wanted a copy anyway.....another _*aaaahhhhh*_.....are you s%*#ing me!!

I sent it registered to her and wrote a note saying that I will no longer deal with this matter and it was closed! A month later I get "another" refund check......_*bwa ha ha ha*_....I told my brother about it and we signed it and put it in a savings account, waited six months, no more IRS bungling, went to the bank and drew out half and gave it to my brother!

_*Yes, I hate the IRS too!!*_


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## RJSakowski (Apr 4, 2016)

We just got a refund check for a sizable amount from the IRS.  We were not expecting any refund.  Does anyone know what's going on?


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## CraigB1960 (Apr 4, 2016)

RJSakowski said:


> We just got a refund check for a sizable amount from the IRS.  We were not expecting any refund.  Does anyone know what's going on?



Yea, they sent my refund to you by accident.  Please sign and forward it on to me.


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## Billh50 (Apr 4, 2016)

evidently who ever stole your identity did a better job on taxes than you did. He just forgot to change the address.


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## TOOLMASTER (Apr 4, 2016)

i got a letter once telling me that i couldn't take my 2 children's deductions.. i call them up and they try to tell me i didn't have kids...like wtf "i had them for the last 6-10 years. never heard back...


second time i bought a 1000 dollar row boat..no engine...a month later i get a "luxury tax" letter for my boat.. they wanted over 3 g..you can guess how that conversation went too.


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## silence dogood (Apr 4, 2016)

The tax code is over 70,000 pages and still counting.  That should help explain your problem.


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## hman (May 8, 2016)

The trouble with simplifying the tax code would be that ALL THOSE TAX COLLECTORS would be out of jobs ... and they're FEDERAL jobs at that!  I hold out absolutely no hope


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