Tax Laws in the U.S.: What to Know

[Mental Gridlock]

Hi. I live in the United States. I know that most of us aren't lawyers and can't technically give legal advice. That said, if I know I don't owe any taxes (to the feds) then I don't have a "deadline" right? I mean if I owe something, then they can mail me an invoice I assume?

 

[Pengwuino]

No, today is your deadline or you will be guilty of tax evasion if they find you intentionally didn't pay your taxes. They don't do your taxes and send you invoices either. First time paying taxes?

 

[Greg Bernhardt]

You really really need to talk to a CPA immediately. You HAVE to file taxes even if you don't think you owe anything. Any income over the past year has to be reported.

 

[Pengwuino]

If you're young and this is your first time, they probably won't care much and might just fine you. If not, it is 100% illegal and a criminal act

 

[loseyourname]

It's only a deadline to pay taxes. If they owe you a refund, you can file for it two years from now and still receive it. If you do owe money, they'll only find out if they audit you. You'll get a late fee; it's not like you're going to jail over this, so I wouldn't panic. Assuming you are young and not making much, the only way you'd have to pay more is if you claimed a dependent you shouldn't have or claimed exemption and weren't really exempt. Other than that, you're almost certainly due a refund and the government will be more than happy to not pay it to you when you don't file.

 

[Ivan Seeking]

I mean if I owe something, then they can mail me an invoice I assume?

Now that's funny! Doing one's taxes are a yearly ritual in the US. And by all means see a CPA at least to get acquainted with the tax system. For most people the tax laws are not very complicated, but even then it can be confusing. Each day late for filing or paying [two separate issues] may result in additional fines or penalties.

 

[Pengwuino]

Uhm.. LYN... not filing is a criminal offense whether or not the government owes you anything from my understanding. Hell what am i doing, my father is a licensed tax prep., ill ask him and get back to ya.

 

[Evo]

I know you're supposed to file, but I think LYN is right, if your income is under a certain amount ?3K? and the government owes you money back, you're safe.

 

[Pengwuino]

I know you're supposed to file, but I think LYN is right, if you're income is under a certain amount ?3K? and the government owes you money back, you're safe.

I just asked him and here's the lowdown.

If your income is under the minimum amount (around $3,000, i forgot the exact number), you don't have to file taxes.
If your income is above that amount and you have a refund coming, you don't have to file and the IRS will hold your refund and it will earn interest until you actually do file.
If your income is above that amount and OWE taxes, they will simply send you notices and after a while, talk to your employer about taking money out of your salary. If it's substantial amounts, they can put a lean on your property.

They can only get you for criminal tax evasion if they find out you willfully hid income or willfully attempted to defraud the government which is an extreme case.

The IRS knows basic knowledge about you and will use standard deductions along with their basic knowledge (how much the employer reported paying you and how much they took in taxes) in order to pre-determine whether or not you'll be oweing or have a refund coming and take action from there.

 

[Mental Gridlock]

Okay thanks I should have elaborated my fault.

Yes I have filed my own 1040 since I was 17 and I know about the deductions and all that. Now I make the typical worker salary way over the standard deduction, but this year is different since now I have a house and can only get a bigger refund by itemizing.

The idea that if THEY owe me the money, and not the other way around, yet they still need me to do the work, waste the stamp etc. to PROVE that is ludicrous! Like if I owe amazon.com some money for a book they sent me or something, I presume that THEY would do some work and mail me an invoice, at which point I would cut them a check. Now we are talking about two separate things with the federal government I know, but before it seems like apples/oranges the premise is still the same. I thought this was a free country, so why should you HAVE to take part in a yearly ritual that they impose? The idea that it could be criminal is shocking! But don't worry if they really will slap the cuffs on me for not filing, I still have enough time to e-file in 15 minutes.

 

[Evo]

I just asked him and here's the lowdown.

If your income is under the minimum amount (around $3,000, i forgot the exact number), you don't have to file taxes.
If your income is above that amount and you have a refund coming, you don't have to file and the IRS will hold your refund and it will earn interest until you actually do file.
If your income is above that amount and OWE taxes, they will simply send you notices and after a while, talk to your employer about taking money out of your salary. If it's substantial amounts, they can put a lean on your property.

They can only get you for criminal tax evasion if they find out you willfully hid income or willfully attempted to defraud the government which is an extreme case.

The IRS knows basic knowledge about you and will use standard deductions along with their basic knowledge (how much the employer reported paying you and how much they took in taxes) in order to pre-determine whether or not you'll be oweing or have a refund coming and take action from there.

Thanks Pengwuino.

 

[Pengwuino]

The idea that if THEY owe me the money, and not the other way around, yet they still need me to do the work, waste the stamp etc. to PROVE that is ludicrous! Like if I owe amazon.com some money for a book they sent me or something, I presume that THEY would do some work and mail me an invoice, at which point I would cut them a check. Now we are talking about two separate things with the federal government I know, but before it seems like apples/oranges the premise is still the same. I thought this was a free country, so why should you HAVE to take part in a yearly ritual that they impose? The idea that it could be criminal is shocking! But don't worry if they really will slap the cuffs on me for not filing, I still have enough time to e-file in 15 minutes.

Alright step down from the pulpit. The reason you have to file taxes is because there are a lot of things they simply don't know of and can't keep track of. For example, if you buy solar panels... they'd never know and they'd never know to apply any tax credits. For a simple 1 income non-itemized income tax return, there isn't that many things to worry about unless your smart enough to actually know about all the deductions you can get that only you would know whether or not you qualify for.

 

[FredGarvin]

The idea that if THEY owe me the money, and not the other way around, yet they still need me to do the work, waste the stamp etc. to PROVE that is ludicrous! Like if I owe amazon.com some money for a book they sent me or something, I presume that THEY would do some work and mail me an invoice, at which point I would cut them a check. Now we are talking about two separate things with the federal government I know, but before it seems like apples/oranges the premise is still the same. I thought this was a free country, so why should you HAVE to take part in a yearly ritual that they impose? The idea that it could be criminal is shocking! But don't worry if they really will slap the cuffs on me for not filing, I still have enough time to e-file in 15 minutes.

Ahhh, the outlook of the young. You have to take part because it is the law of the land. No ifs ands or buts. Haven't you heard the saying about death and taxes? Everyone has to do it. If you think the IRS is staffed enough to do your taxes for you to send you an invoice, you're sadly mistaken and give the IRS way too much credit. Anytime money is involved with ANY situation, not just with the government, you will always have to prove your justification for paying or not paying.

 

[Astronuc]

The idea that if THEY owe me the money, and not the other way around, yet they still need me to do the work, waste the stamp etc. to PROVE that is ludicrous! Like if I owe amazon.com some money for a book they sent me or something, I presume that THEY would do some work and mail me an invoice, at which point I would cut them a check. Now we are talking about two separate things with the federal government I know, but before it seems like apples/oranges the premise is still the same. I thought this was a free country, so why should you HAVE to take part in a yearly ritual that they impose? The idea that it could be criminal is shocking! But don't worry if they really will slap the cuffs on me for not filing, I still have enough time to e-file in 15 minutes.

People must pay taxes since it is the law. 'Free' country doesn't mean free of taxes and other obligations (e.g. obeying the law). The IRS keeps track of your SSN and address, and what you paid in the past. The Social Security department also keeps a record of your yearly income since you began filing taxes - that is how they determine your SS payment when you retire and file for SS. Beyond that, the IRS does not track all details and they can't tell one taxpayer from the other 140 million or so, except those who file differently, e.g. self-employed and others who might file quarterly.

 

[Mental Gridlock]

I told myself that I wasn't going to respond... I said to myself "wait, just think it over and see if you still feel the way you do".

Believe me I had a response for all of you. My argumentative propencity dictates that I should dissent first think later. I need to work on that.

But yeah there is a point to doing taxes. I don't think it's credits that the government cares about, but I'm sure they would like to know how much you made in tips, or lottery winnings or whatever else that they don't know about, unlike your paycheck. I didn't think that there were more ways to income than the paycheck which the government already knows about. If you didn't make money in some other way I guess it is fair that the government asks you to certify that so they can have piece of mind that they are getting all of their taxes.

I am so quick to complain about my country, I take every little thing (suchas this) and run with it. Maybe I should look at the good things too.

 

[Pengwuino]

The government regulates lottery winnings so they damn well know what you won there :D

There definitely are a lot of ways one can earn income! Rentals, gambling, pensions, tips, sales of property, stocks, bonds, anything farm related, your business, foreign obligations, bank robberies (oops did i report that on my return!), and a lot of other things that thankfully the government doesn't have its nose in.