Lil’ Kim Says She Left Taxes to Accountant – This is the now classic Willie Nelson Defense to not paying taxes.  It won’t do much good for the million dollars in taxes she owes IRS.

Gas Prices Seen Hurting SUV, Truck Sales – Well, duh.  As I’ve been saying every time some freedom hating environmental wacko proposes banning SUVs or charging extra sin taxes for owning them, their cost and the cost of their fuel and insurance are penalties enough. 

Pay Your Taxes, Pa-Rum-Pum-Pum-Pum…. – Thanks to Ben Cunningham for this article on the “creative” way one city in India is using to motivate people to pay their property taxes.  This isn’t meant to give any ideas to tax agencies here in the USA; but to show just one more way in which taxpayers are made to suffer.

Survivor Winner Explains Tax Flap – Richard Hatch is supposedly so smart, yet he expects anyone to believe that CBS was supposed to pay his taxes?  What a moron!  Let’s see how well he survives the slammer.

Q:

Mr. Kerstetter,

I came across your blog via a link in “The Cool Tricks and Trinkets Newsletter #341  3/10/2005”

I noticed that you responded to questions in your blog, but did not see how the questions were submitted to you.

I went to your “.org” web site and got your e-mail address there.

I was wondering how long after submitting a tax return has the IRS to review/audit ones return?
I ask this in the context of someone discovering a mistake on a previously submitted tax return and wondering if they should file an amended return of not.

Thx

Rgds,

A:

Legally, you have three years after you file an income tax return with IRS to go back and fix any errors.

If you are going to pay them more money, there shouldn’t be a problem in filing an amended return (1040X). 

However, if you are asking for a refund, there is a high probability of having IRS conduct a full blown audit on that year’s full tax return, not just the items you are changing.   If you go to my blog (www.TaxGuru.net) and type Amended into the search box, you will find several items I’ve posted about this topic.

Kerry Kerstetter 

 

Q:

Subject: quickbooks question

Hello. I found your website doing a google search and learned alot from that little bit. I am a house framer. I am currently using quickbooks contractor ed. I can build a house with my eyes closed, but when it comes the the bookeeping thats another story. I was wondering if you can answer a question for me. I wanted to switch versions to the QB Simple Start 2005. I already bought the software, but haven’t started using it yet. All I use it for now, is to enter the transactions directly from my checking account. Nothing fancy, just something for my accountant to use. I wanted to know the best, and easiest way to go thru this transition. I was thinking once she (accountant) is done with last years taxes, I could take all those figures and start fresh with it in the new program and take it from there. Do you have any advise you could offer on this topic? Any help would be greatly appreciated. Thank you for your time. 

A:

Stay away from the Simple Start program and stick with a regular version.

You can see lots of tips on using QB on my website

including a link to my review of the Simple Start program.

Good luck.

Kerry Kerstetter

 

Florida Lawmaker Seeks Toilet Paper Tax – It’s hard to know whether this is a joke or not, with quotes like these from the rulers down there:

 pay-as-you-go

the idea is likely to pretty quickly end up in the tank

We’ll be getting to the bottom of it real soon

we’ll certainly let it go through the system

 

Twenty-somethings Weigh Whether It Makes Sense to Hire a Tax Pro – What’s even more important in a pure dollars sense, is having a tax advisor who can help people reduce the amount they pay in Social Security & Medicare taxes.  With annual savings of over $10,000 per year possible, those people who start such a strategy early can easily save hundreds of thousands of dollars over their working career that can be put to much better use than feeding the addictions of the spendaholics in DC.  There’s no need to wait until our rulers in DC get off their butts and allow personal ownership of Social Security money.