| Vern Jacobs'
Taxwire Commentary, news and
reflections about
this taxing life, by Vernon Jacobs, CPA. Jacobs is the co-author of Legal Ways to Save Taxes Offshore & Onshore, of Offshore Tax Strategies, of The Controlled Foreign Corporation Tax Guide and of Risk Management for Amateur Investors. He is the Editor & Publisher of the International Wealth Protection Monitor newsletter and the free Q&A service, the Jacobs Report on International Financial Planning. He is the President of Offshore Press, Inc. and is a member of the International Tax Technical Resource Panel of the American Institute of CPAs. He has been a CPA since 1962, with a focus on taxes since 1975. . |
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Reflections on This
Taxing Life By
Somehow,
it seems there is something fundamentally
wrong when so many experts are so profitably employed at protecting our
sovereign citizens from our civil servants. The
taxes you pay may be part of the price we bear to
live in a civilized society, as it states on the top of the U.S.
Treasury
Department building in Do
you think we could get rid of the income tax by
getting the F.D.A. to declare that it’s a cancerous growth? Most
of the major religions of the world that ask
their members to tithe only ask for 10% of their member’s income. If
God only
needs 10%, why does the Politicians
are philanthropists who want give your
money to other people. Some
of our politicians have the strange notion that
we can use the tax laws to solve every sort of social problem. They
haven’t
discovered that you can’t bribe someone to be honest.
Simultaneous
efforts to stimulate the economy with
tax incentives while trying to close up tax loopholes is like heating
water in
a tea kettle to make it boil and putting a cork in the spout to shut
off the
whistle. During
the past few decades, the U.S. Congress has
discovered a form of perpetual motion. They call it “tax reform”.
A
tax reformer is someone who tries to cut his own
taxes by eliminating other peoples
loopholes. Those
who say the rich people should be glad to pay
half their income for taxes obviously aren’t rich. If
we really want to simplify the tax law, we should
start by making he Congress tax a five year
vacation. If
the tax laws were too complicated for Einstein to
figure out, what hope is there for the rest of us? The
IRS has done an outstanding job of terrorizing
the No
one has ever experienced sheer terror like the
taxpayer who received a past due notice from the IRS computer with
their social
security number in the box marked, “Past Due”. One
of about 200 taxpayers is audited each year.
Could that have anything to do with the nearly equal number of heart
attacks
each year? For
those who have ever lived on a farm, it’s
appropriate that the IRS changed their name from the Internal Revenue
Bureau to
the Internal Revenue Service. After all, what they do to taxpayers is
like what
the bulls do when they are servicing the herd. Ignorance
of the law is an excuse from criminal
charges. If you are ever confronted by an IRS special agent, the safest
thing
to say is, “No kidding? I didn’t know
that.” Have
you heard of the “audit lottery”? It’s a game
where 99.5% of the people are winners. If the IRS audits your return,
you lose.
Everyone else is a winner. By Vernon
K. Jacobs, CPA
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