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PaulConventionWV
05-11-2012, 01:56 PM
I need help with a situation I seem to have found myself in. I went to a top-end school for three years on a full ride to run track and cross country. I would never have been able to afford this school otherwise. I received scholarships and grants that covered the entire cost except for a tiny fraction that I have already paid off. This was the deal that was offered to me so that I could go there and run for the team. What I didn't know at the time is that the IRS considers anything you receive over tuition costs to be income, and this school costed about 48k per year to attend, normally.

Now that I have already finished three years, unaware that this was the case, as it was patently absurd in my mind, I just found that, because of my ignorance and the information I did not receive from the coach, who solicited me for this deal, I will owe about $12,000 to the IRS after I had already been debt free. Suffice it to say, that will take me a long time to pay off, and I need all the money I can get right now.

So I contacted my brother-in-law, a math genius who had worked at the IRS for 2 years, and he said that if my mom removed me as a dependent, that I could lower my taxes to about $400-500 per year. But something doesn't add up.

We consulted with an IRS agent and they said that room and board did not qualify as an educational expense, which my brother-in-law had assumed, I think. First of all, how can you, in one sense, consider non-discretionary funds for school income, and then tell me it's not an educational expense? If it really was income, then it would have been my money to spend, but it wasn't. Secondly, the amount for room and board was way lower than the actual tuition, so $4,000 per year seems like an aweful lot. There was no way I could have gone to that school without getting room and board because it was out of state. I am really stressed about this at the moment, so I would really appreciate it if someone could help me avoid getting ripped off by the IRS as much as possible. Is there something I missed that I can deduct?

cjm
05-11-2012, 02:04 PM
not sure if this is doable, but can your mom refile prior year tax forms without you as a dependent? She might see an increase in her tax liability removing you as a dependent, but you might be below the poverty line as a "regular" tax payer. Again, I have no idea if that's doable, just throwing it out there.

PaulConventionWV
05-11-2012, 02:18 PM
not sure if this is doable, but can your mom refile prior year tax forms without you as a dependent? She might see an increase in her tax liability removing you as a dependent, but you might be below the poverty line as a "regular" tax payer. Again, I have no idea if that's doable, just throwing it out there.

Well, I am certainly below the poverty line with my individual earnings, but the problem is that they count the school funds as "income" so that means I am above the poverty line.

brandon
05-11-2012, 02:21 PM
Sounds like complete BS. Go find a good CPA to help you sort this out.

angelatc
05-11-2012, 02:22 PM
The IRS agent is right. Room and Board are considered taxable income. They're quite clear on it - chart is on page 6. (http://www.irs.gov/pub/irs-pdf/p970.pdf)

You can read that to see if there are any deductions you may be entitled to.

How much do universities typically charge for room and board, anyway?

tsai3904
05-11-2012, 02:22 PM
You said the IRS considers anything you received OVER tuition is considered income. So they are contending that money you received to pay for room and board is considered income?

Lishy
05-11-2012, 02:22 PM
WTF is wrong with America? I'm a Canadian, so I'll admit I'm not educated about the matter, but WTF is up with the IRS? They sound like they're some mob asking for "protection money" or something, I'm always hearing how they harass people at the worst times!

I'm a Canadian, so I probably pay higher taxes than any American, but what's up with the IRS anyways? They sound waaaaay more complicated than anything in Canada...

PaulConventionWV
05-11-2012, 02:29 PM
You said the IRS considers anything you received OVER tuition is considered income. So they are contending that money you received to pay for room and board is considered income?

Yes, but I never saw the money. It was non-discretionary. It was essentially a donated service, as far as I'm concerned.

jkr
05-11-2012, 02:29 PM
useless people with nothing to do and nothing to offer humanity at all.
so we give them jobs, and guns, and unlimited authority to enforce a voluntary program
it is sick

i wish they would all just disappear. they don't seem to have minds to think and change. we cant fight back. i just wish they would go away.

another jobs program brought to us courtesy of the federal reserve act.

oppressing humanity since 1913

angelatc
05-11-2012, 02:33 PM
Yes, but I never saw the money. It was non-discretionary. It was essentially a donated service, as far as I'm concerned.

It doesn't matter. They gave you something that you benefited from, and as far as they're concerned (which is really all that matters) it is indeed income.

How did you find out you owe it? If the IRS hasn't said anything, I'd be tempted to not self-report. If they catch it later, you'll have to pay up (Penalties and interest, too.) But if they don't audit you......well......

PaulConventionWV
05-11-2012, 02:34 PM
useless people with nothing to do and nothing to offer humanity at all.
so we give them jobs, and guns, and unlimited authority to enforce a voluntary program
it is sick

i wish they would all just disappear. they don't seem to have minds to think and change. we cant fight back. i just wish they would go away.

another jobs program brought to us courtesy of the federal reserve act.

oppressing humanity since 1913

I would be careful calling them useless. My brother-in-law worked there and he's a genius. My female cousin also currently works there and is quite smart. They are people just like you, and if there is a job available, they will take it.

phill4paul
05-11-2012, 02:34 PM
Yes, but I never saw the money. It was non-discretionary. It was essentially a donated service, as far as I'm concerned.

Lawyer up.

Lishy
05-11-2012, 02:35 PM
Why wont the IRS audit Ben Bernanke?

PaulConventionWV
05-11-2012, 02:37 PM
Lawyer up.

It's dangerous fighting the IRS. What's more, they would probably pretty easily be able to out-spend me on legal fees, unless my lawyer was willing to do a lot of pro bono work.

mrsat_98
05-11-2012, 02:43 PM
write NOT LIABLE on the form sign it and send it back.

phill4paul
05-11-2012, 02:45 PM
It's dangerous fighting the IRS. What's more, they would probably pretty easily be able to out-spend me on legal fees, unless my lawyer was willing to do a lot of pro bono work.

Then shaddup and pay your dues you tax cheat. :p

Seriously though, sorry your in this mess. Hope you can find a way to mitigate the damage.

Kords21
05-11-2012, 02:51 PM
Oh sure, they'll come after you for that, but do absoultely nothing about this:

http://www.wthr.com/video?clipId=7054149&topVideoCatNo=103348&autoStart=true

I really hope you get your situation all worked out. Seems pretty bogus to me that they're taxing you for that, not sure if I've ever heard that before, but just like any good mafia, they'll find something to shake you down for.

PaulConventionWV
05-11-2012, 02:59 PM
write NOT LIABLE on the form sign it and send it back.

Go on...

PaulConventionWV
05-11-2012, 03:08 PM
Oh sure, they'll come after you for that, but do absoultely nothing about this:

http://www.wthr.com/video?clipId=7054149&topVideoCatNo=103348&autoStart=true

I really hope you get your situation all worked out. Seems pretty bogus to me that they're taxing you for that, not sure if I've ever heard that before, but just like any good mafia, they'll find something to shake you down for.

That's ridiculous. They'll let 4.2 billion for illegals go, but my $12,000 is unacceptable because I'm an actual citizen.

Uncle Emanuel Watkins
05-11-2012, 03:09 PM
WTF is wrong with America? I'm a Canadian, so I'll admit I'm not educated about the matter, but WTF is up with the IRS? They sound like they're some mob asking for "protection money" or something, I'm always hearing how they harass people at the worst times!

I'm a Canadian, so I probably pay higher taxes than any American, but what's up with the IRS anyways? They sound waaaaay more complicated than anything in Canada...

When deciding whether to choose between the barbaric or the scythian way of dying, never choose the latter. At worst, in that far off land, one might find themselves being sliced methodically into pieces by a ceremonial execution called "a thousand cuts of death" all the while the pain being further reinforced by the inclusion of a drug. After nine hundred and ninety-nine cuts are made, the head is then cut off and the scalp removed to be sewn in and worn as a garment.
While the IRS system of doing business is better than the scythian, it should be remembered that they are still barbaric.

RDM
05-11-2012, 03:12 PM
It's dangerous fighting the IRS. What's more, they would probably pretty easily be able to out-spend me on legal fees, unless my lawyer was willing to do a lot of pro bono work.

Seriously! Get yourself a Tax Settlement Attorney. They will work for a % of what they saved you. You may have to pay a upfront retainer fee. You may get your tax settled for over half of what you owe. Look into it.

Kords21
05-11-2012, 03:13 PM
It's beyond ridiculous. In 2010, I had worked out a debt forgiveness deal with American Express and had recieved their tax statement on that after I filed my taxes and had forgot to amend my tax return. Flash forward to 2012, I got a letter from the IRS about last month and they wanted $756 due to difference it made. Since forgiven credit card debt is considered "income" even though the credit card company got to write it off. It's getting to the point, where being a citizen really isn't worth it anymore. Seems like the illegals and the corpatations get all the perks at our expense and at the same time us citizens get more and more rules imposed on us. Why anyone would not vote for Ron Paul is a mystery to me. I think this nation has stockholm syndrome.

CaptainAmerica
05-11-2012, 03:15 PM
I would be careful calling them useless. My brother-in-law worked there and he's a genius. My female cousin also currently works there and is quite smart. They are people just like you, and if there is a job available, they will take it.

.......just doing their jobs. typical excuse for screwing up every one elses life but their own all for a pay check and free hotels/airline tickets and the free government vehicle with the free gas.

LibertyEagle
05-11-2012, 03:17 PM
It's beyond ridiculous. In 2010, I had worked out a debt forgiveness deal with American Express and had recieved their tax statement on that after I filed my taxes and had forgot to amend my tax return. Flash forward to 2012, I got a letter from the IRS about last month and they wanted $756 due to difference it made. Since forgiven credit card debt is considered "income" even though the credit card company got to write it off. It's getting to the point, where being a citizen really isn't worth it anymore. Seems like the illegals and the corpatations get all the perks at our expense and at the same time us citizens get more and more rules imposed on us. Why anyone would not vote for Ron Paul is a mystery to me. I think this nation has stockholm syndrome.

Sorry, but no. You welch on repaying money that you borrowed and spent and then are ticked off at the IRS for valuing the amount of the debt forgiveness? Sorry, but that example does not equate to some evil wrong that has been done to you. Just, no.....

Uncle Emanuel Watkins
05-11-2012, 03:19 PM
That's ridiculous. They'll let 4.2 billion for illegals go, but my $12,000 is unacceptable because I'm an actual citizen.

As an insignificant member of a war and whoremongering nation, well, it seems like it is the only products we produce and screw, I smell the next war happening down in Latin America. Why solve the problem of illegal aliens by the menial task of policing the borders when, after years of letting the issue simmer, the Washingtonians can ride valiantly into battle with their fireworks to save us all so gloriously from being over run by Mexicans!

LibertyEagle
05-11-2012, 03:19 PM
I would be careful calling them useless. My brother-in-law worked there and he's a genius. My female cousin also currently works there and is quite smart. They are people just like you, and if there is a job available, they will take it.

Well, then just sit back and reap the rewards of the family business.

TomtheTinker
05-11-2012, 03:23 PM
Quit every thing and sell drugs..im just saying.






Jk

odamn
05-11-2012, 03:25 PM
Seriously! Get yourself a Tax Settlement Attorney. They will work for a % of what they saved you. You may have to pay a upfront retainer fee. You may get your tax settled for over half of what you owe. Look into it.
Or better yet ... contact your congressional represenative and ask for a tax payer advocate. (it's free) then you will fwd all your paperwork (copys) to the advocate and they will plead your case. It worked for me in 2 weeks and i got my $7000 refund. Just do it ... you will be glad you did.

Seraphim
05-11-2012, 03:30 PM
CRA is just as bad. TRUST ME.


WTF is wrong with America? I'm a Canadian, so I'll admit I'm not educated about the matter, but WTF is up with the IRS? They sound like they're some mob asking for "protection money" or something, I'm always hearing how they harass people at the worst times!

I'm a Canadian, so I probably pay higher taxes than any American, but what's up with the IRS anyways? They sound waaaaay more complicated than anything in Canada...

Uncle Emanuel Watkins
05-11-2012, 03:31 PM
Seriously! Get yourself a Tax Settlement Attorney. They will work for a % of what they saved you. You may have to pay a upfront retainer fee. You may get your tax settled for over half of what you owe. Look into it.

Strange, seems the ultimate solution to every problem is hiring an attorney. Excuse me? What did an attorney ever do to help create this nation? You know, there is a sign at the border saying stay out. If that isn't legitimate, nothing is. It then becomes every evil bastard for himself. This really goes to prove that there is no such thing as contempt against the law for laws sake. Ultimately, where is the treason in regards to the law? How does one commit treachery?
Inheriting the notion from the secular, the only reason we think it serious to be in contempt of the law was because Christ Himself fulfilled the prophecy and blessed the law. But Christ did this act against His own nature because the established Jewish law was accusing his mother of being a prostitute.
There is no such thing as treason or treachery committed against the law. There is only contempt against the people's Civil Purpose.

sailingaway
05-11-2012, 03:45 PM
I would be careful calling them useless. My brother-in-law worked there and he's a genius. My female cousin also currently works there and is quite smart. They are people just like you, and if there is a job available, they will take it.

I would call the IRS web site a 'starting point' not the end all and be all, but remember that you are guilty (owe) until proven innocent if it makes it to tax court. Having said that, if you don't want an attorney I'd say at least pay for an hour of CPA time, or even H&R block and see if you are looking for a settlement, a terms agreement, or being able to cut the amount. THAT you owe isnt' the same as saying HOW MUCH you owe.

but this is from the IRS web page:


Topic 421 - Scholarship and Fellowship Grants
A scholarship is generally an amount paid or allowed to a student at an educational institution for the purpose of study. A fellowship is generally an amount paid to an individual for the purpose of research.

If you receive a scholarship or fellowship grant, all or part of the amounts you receive may be tax-free.

Qualified scholarship and fellowship grants are treated as tax-free amounts if the following conditions are met:

You are a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
Amounts you receive as a scholarship or fellowship grant are used for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.
You must include in gross income amounts used for incidental expenses, such as room and board, travel, and optional equipment, and generally amounts received as payments for teaching, research, or other services required as a condition for receiving the scholarship or fellowship grant. Also you must include in income any part of the scholarship or fellowship that represents payments for services.

However, you do not need to include in gross income any amounts you receive for services that are required by the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program.

If any part of your scholarship or fellowship grant is taxable, you may have to make estimated tax payments. For more information refer to Publication 970 , Tax Benefits for Education.

Bodhi
05-11-2012, 03:46 PM
You need to find yourself a good accountant, simple as that. You can get all the opinions here about what you should do but at the end of the day you need a good accountant.

rp4prez
05-11-2012, 03:51 PM
Be glad it's the IRS who is after you and not the Child Support Enforcement Agency. They don't give a shit about you and will totally destroy you and then throw you in jail.

HOLLYWOOD
05-11-2012, 04:38 PM
<strong>Since forgiven credit card debt is considered "income" even though the credit card company got to write it off.</strong>The government is a corporation and they protect the corporations/banks. You are an expendable peon, and like others have stated, they can ruin your ENTIRE life. When Douglas Shuman and the IRS were at the National Press Club, all the questions were BS propaganda. No question about how much or many people they stole additional money from, or how many they seized their assets, etc. How about all the people that committed suicide because the IRS? How many Americans have been/were prosecuted or jailed. Or what the incarcerating costs were to American Taxpayers, etc etc. The press are accomplices to the fascist partnered state we live in... it's all lies and the American Idol/DWTS public are bunch of idiots.

It's all a smokescreen... the IRS are ruthless, evil, passionless, thugs, that can take everything from you without court appearance, just by simple accusation. Oh and BTW, it's liberty and justice for some in the rigged TAX COURT judicial system... just ask Charlie Rangel, or Maxine Waters, or Timothy Geithner.

Get a good TAX CPA and look for every way to carry forward or back expenses to write-off anything you are accused of owing now or in the future by way of tax returns.

They don't call the 1986 IRS Tax Reform Bill... the National Accountants Act for nothing.

PS: A little trivia... the IRS Tax Code has expanded more than 50,000 pages in the last 20 years to ~73,000 pages. In the first 23 years (1913-1936) only 300 pages were added to the 300. It's all done for a reason... basically we're fucked by Washington DC :mad:

PaulConventionWV
05-11-2012, 04:46 PM
.......just doing their jobs. typical excuse for screwing up every one elses life but their own all for a pay check and free hotels/airline tickets and the free government vehicle with the free gas.

Just saying I have relatives that work there.

mrsat_98
05-11-2012, 04:49 PM
write NOT LIABLE on the form sign it and send it back.


Go on...

Thats what they ( the IRS ) told me to do years ago, also according to the IRS its not a frivolous return.

VBRonPaulFan
05-11-2012, 04:49 PM
file for bankruptcy and tell the IRS to eat a dick.

i work at the corporate headquarters for one of the 'big 3' tax prep firms... i'll pass your story along to a couple tax analysts I know to see if they can think of anything to help you out or have some advice...

PaulConventionWV
05-11-2012, 04:50 PM
Sorry, but no. You welch on repaying money that you borrowed and spent and then are ticked off at the IRS for valuing the amount of the debt forgiveness? Sorry, but that example does not equate to some evil wrong that has been done to you. Just, no.....

Anything done by the IRS is evil and wrong. His case is no different. There's no need to criticize someone for not wanting to be stolen from by the IRS. All they're capable of is theft, so I don't think there are any illegitimate reasons to complain about the IRS.

PaulConventionWV
05-11-2012, 04:51 PM
Well, then just sit back and reap the rewards of the family business.

Family business? Are you serious right now?

GeorgiaAvenger
05-11-2012, 04:52 PM
Call Sheriff Joe!

edit-really though, if you think you can win get a lawyer, if not go along with it or they may ruin you

PaulConventionWV
05-11-2012, 04:57 PM
Be glad it's the IRS who is after you and not the Child Support Enforcement Agency. They don't give a shit about you and will totally destroy you and then throw you in jail.

Point taken.

PaulConventionWV
05-11-2012, 05:00 PM
Thats what they ( the IRS ) told me to do years ago, also according to the IRS its not a frivolous return.

What does that mean? Why would they tell you that?

emazur
05-11-2012, 05:02 PM
That amount seems to me like it's double what it "should" be (of course it really should be ZERO but let's forget that for the moment).

Federal Tax Bracket: (http://en.wikipedia.org/wiki/Tax_bracket#2010.E2.80.9311)
$6,001–$35,000 15c for each $1 over $6,000

Let's say you received $20,000 for lodging [which in my opinion is a very generous number - in most cities that aren't NYC or San Francisco you can find find a 1 bedroom or studio apt. for $600~$800/mth. Multiply 800 by 12 months a year (even though you're probably only living there for 8 or 9 months a year) and that's $9600 needed per year]. Anyway, at $20k/yr "income" you are taxed 15% of $14,000 = $2100. $2100 x 3 years = $6300.

ghengis86
05-11-2012, 05:05 PM
Get a good CPA. I forward all my receipts, pay stubs, excel spreadsheets, everything to him, he fills out all the firms, finds deductions, takes exemptions, file for the right credits and basically saves me a boatload of money, all for the incredible sum of....$200.

He's even filed amended returns for previous years returns when I did them my own.

PaulConventionWV
05-11-2012, 05:16 PM
That amount seems to me like it's double what it "should" be (of course it really should be ZERO but let's forget that for the moment).

Federal Tax Bracket: (http://en.wikipedia.org/wiki/Tax_bracket#2010.E2.80.9311)
$6,001–$35,000 15c for each $1 over $6,000

Let's say you received $20,000 for lodging [which in my opinion is a very generous number - in most cities that aren't NYC or San Francisco you can find find a 1 bedroom or studio apt. for $600~$800/mth. Multiply 800 by 12 months a year (even though you're probably only living there for 8 or 9 months a year) and that's $9600 needed per year]. Anyway, at $20k/yr "income" you are taxed 15% of $14,000 = $2100. $2100 x 3 years = $6300.

There may have been other expenses involved, such as travel. I'm not sure yet, but I would also think it was less than that.

sailingaway
05-11-2012, 05:24 PM
There may have been other expenses involved, such as travel. I'm not sure yet, but I would also think it was less than that.

They make you prove any deductions. If you don't have receipts you will have to make backwards calculations. But you really do need to speak to a CPA to find out what categories of expenses you may be able to deduct.

dannno
05-11-2012, 05:29 PM
Sorry, but no. You welch on repaying money that you borrowed and spent and then are ticked off at the IRS for valuing the amount of the debt forgiveness? Sorry, but that example does not equate to some evil wrong that has been done to you. Just, no.....

If the credit card company is willing to settle with a lower payoff amount to ensure that at least some of their investment is retained and they get to hit the person's credit score, that is a voluntary market transaction un-related to the government. Every lender of money takes the risk that some of their clients might not be able to pay back their loan, that is the NATURE of lending. There is nothing inherently evil about not paying back money you owe when you fail to be able to pay it back, it depends on the situation. Some people take advantage of the system and don't pay their loans back because they never intended to, others have a difficult time in a debt-driven society where going into debt is actually ENCOURAGED.

I don't see why they should have to pay taxes on that, or any income for that matter.

Kluge
05-11-2012, 05:32 PM
I would be careful calling them useless. My brother-in-law worked there and he's a genius. My female cousin also currently works there and is quite smart. They are people just like you, and if there is a job available, they will take it.

So pay up if you think they're so wonderful.

rpwi
05-11-2012, 05:55 PM
Yeah this doesn't sound right. Not an expert (and you would probably get better advice on an accounting or tax forum)...but normally isn't the university SUPPOSED to mail out 1099's to scholarship athletes? From what I thought...the big-name football full-scholarship players in college get their 1099's for room & board, but normally for them it's not a big deal because the living cost usually don't get past the first exemption. Are you talking about 12k of taxable income you need to report...or 12k in taxes you need to pay? If the latter...this doesn't make sense, unless you are talking about interest penalties. Were you living in lavish dorms? Just seems strange... You probably want to contact the financial department of the college and ask them about this. Ask why 1099's weren't sent out if they weren't. Figure out what happens to other athletes in your situation. Did you have a job on the side? If so, that might be what is complicated things.

PaulConventionWV
05-13-2012, 05:58 AM
So pay up if you think they're so wonderful.

Never said they were. They're good people, but I highly discourage anybody working for the IRS.

PaulConventionWV
05-13-2012, 06:01 AM
Yeah this doesn't sound right. Not an expert (and you would probably get better advice on an accounting or tax forum)...but normally isn't the university SUPPOSED to mail out 1099's to scholarship athletes? From what I thought...the big-name football full-scholarship players in college get their 1099's for room & board, but normally for them it's not a big deal because the living cost usually don't get past the first exemption. Are you talking about 12k of taxable income you need to report...or 12k in taxes you need to pay? If the latter...this doesn't make sense, unless you are talking about interest penalties. Were you living in lavish dorms? Just seems strange... You probably want to contact the financial department of the college and ask them about this. Ask why 1099's weren't sent out if they weren't. Figure out what happens to other athletes in your situation. Did you have a job on the side? If so, that might be what is complicated things.

No job. No lavish dorms. As far as I know, no 1099s. I ran track, I didn't play football. All the info was sent to the IRS by the university, and when we asked about it, since we had not been aware before all the things that were included as income, they said that's what it would amount to.

ghengis86
05-13-2012, 06:24 AM
No job. No lavish dorms. As far as I know, no 1099s. I ran track, I didn't play football. All the info was sent to the IRS by the university, and when we asked about it, since we had not been aware before all the things that were included as income, they said that's what it would amount to.

First, find out about the 1099's from the university and get them for the years in question.

Next, track down any other 1099's and W2's.

Get your federal returns from the years in question. You may also need your parents, since you were most likely claimed as a dependent on their return.

If you or your parents received any communication from the IRS, such as letters, gather all of those too.

Take all of the above to a CPA who deals in personal income taxes. For a couple hundred dollars, they will get you the best possible outcome at the lowest cost. Seriously, you cannot hope to fight the IRS on your own and from what I'm hearing, you have a poor grasp of how hard the IRS can/will cornhole you and the methods they employ. The tax code is convoluted so as to ensnare as many as possible. You're not the first nor the last to find themselves owing a shitload of money to the IRS because they didn't understand their tax liability. Get professional help, which can't be found in an Internet forum (though there is sound advice and many a good nugget of wisdom to be mined).

Take control of the situation, learn as much as possible about you liabilities, how the tax is calculated, what the universities role is, your parents role and finally how you fit into all of this. The Internet and even the IRS website will have good info.

But please, please, please, get to a CPA so you can have the best possible chance at getting this taken care of properly.

MRoCkEd
05-13-2012, 06:42 AM
not sure if this is doable, but can your mom refile prior year tax forms without you as a dependent? She might see an increase in her tax liability removing you as a dependent, but you might be below the poverty line as a "regular" tax payer. Again, I have no idea if that's doable, just throwing it out there.
Legally you cannot just choose whether or not you file as a dependent for the type of credits related to education. The law is written not as "would you like to be claimed as a dependent?" but as "are you dependent according to X rules?". So that would not work.


Anyway, as many have said, make an appointment with a reputable CPA and have him or her work through this with you. Do exactly what ghengis86 said in the post above this.

rpwi
05-13-2012, 07:42 AM
No job. No lavish dorms. As far as I know, no 1099s. I ran track, I didn't play football. All the info was sent to the IRS by the university, and when we asked about it, since we had not been aware before all the things that were included as income, they said that's what it would amount to.Yeah...something doesn't sound right. Would absolutely recommend contacting other scholarship athletes from the same school and the financial/billing department to figure out what is up with those missing 1099's. If you are tight on money...and the school has an accounting program...you can probably get free advice from the professors that are certified accountants...especially as it is an university matter. I know the accounting professors where I went to school did pro-bono work for what they considered charitable causes.

Still seems that you probably should be ok...your first exemption in my opinion probably should have covered room and board expenses even with an amended return...but I could be wrong as I'm not a professional...

Peace&Freedom
05-13-2012, 07:56 AM
Take all of the above to a CPA who deals in personal income taxes. For a couple hundred dollars, they will get you the best possible outcome at the lowest cost. Seriously, you cannot hope to fight the IRS on your own and from what I'm hearing, you have a poor grasp of how hard the IRS can/will cornhole you and the methods they employ. The tax code is convoluted so as to ensnare as many as possible. You're not the first nor the last to find themselves owing a shitload of money to the IRS because they didn't understand their tax liability. Get professional help, which can't be found in an Internet forum (though there is sound advice and many a good nugget of wisdom to be mined).

Take control of the situation, learn as much as possible about you liabilities, how the tax is calculated, what the universities role is, your parents role and finally how you fit into all of this. The Internet and even the IRS website will have good info.

But please, please, please, get to a CPA so you can have the best possible chance at getting this taken care of properly.

Seriously, don't tell people they are helpless, and always require experts. It's a double message to tell people to "take control of the situation" while insisting their only viable path of action is to accept the IRS's claims, pay up, and also pay a professional servant of the tax gestapo to help them pay up, in my dissenting opinion. That is not taking control, that is sheepish surrender. I have not filed or paid in 12 years to the IRS, and did not use CPAs and lawyers to fight them successfully. Most people (including the OP) will not choose the tax honesty path, but that doesn't mean it does not exist.

All tax claims made against people by the IRS are exactly that, CLAIMS, or allegations, not unilateral laid-down truths or commandments brought down from Mt. Sinai. If the alleged liability is past a certain number of years, the IRS is not even going to press the issue as per their own rules. There is no positive law requiring most Americans to pay or report income taxes, but there is an administrative system used to aggressively misapply the tax code to most people, by presuming liability and jurisdiction of everybody under the IRS. This presumption mainly receives its legitimacy due to people and third parties filling out information reports (W2s, 1099s et al) on IRS forms that are prejudicially worded to concede the person or entity is under their jurisdiction and has liability. Once one's status is inaccurately so characterized, the unsworn reports serve to provide an equitable basis (via the created paper trail) to establish jurisdiction (through IRS assessments) over the nature of receipts of any earnings (presumed as income). All specific IRS tax claims require an assessment, including those made to allege penalties and interest, based on that presumption and paper trail.

Since false presumptions and improper assessments are at the heart of the misapplication, the LAST thing a person genuinely fighting that tyranny would want to do is accept or submit the unsworn information reports that create the alleged liabilities, or accept any assessments based on them, or bring in government licensed CPA slaves who simply accept the misrepresentations on face value (in order to keep their government license). I have resisted IRS 'scare letters' and attempted enforcement actions for a decade by simply correcting bogus information they have received by writing a sworn affidavit, and by requesting verified proof of claim that they have a lawful, correct, and completed assessment to justify their claims (including any penalty claims, which also require an assessment). I usually have backed this up with the response letter I requested from the IRS's own FOIA office to obtain evidence of the assessment, a letter that says there is no record (or complete record) of it on file---because said completed assessment is never done.

The IRS then backs off, and the alleged liability and penalty quietly 'disappears,' because the burden of proof has been shifted to them. They don't have the proof, precisely because the system is based on UNverified claims (unsworn reports, false presumptions), and thus erroneous and incomplete assessments. And why is the system based on that? Because that is the smoke and mirrors set-up one resorts to in order to create the paper trail needed to misapply the tax code to most people. Those taking the tax honesty path should educate themselves about fighting them administatively in this fashion and similar tactics, such as found at SEDM.org.

speciallyblend
05-13-2012, 08:08 AM
i am sorry to hear you have 12,000 in debt . I know it is no small matter for you, but i do chuckle when i see that as big debt . When corrupt insurance companies left us with 500,000 in medical bills. I can only laugh in sadness over your debt and mine. I find the words F IT helps!

Do your best and try to keep your chin up. That is what i try to tell myself.

VBRonPaulFan
05-13-2012, 08:38 AM
If the credit card company is willing to settle with a lower payoff amount to ensure that at least some of their investment is retained and they get to hit the person's credit score, that is a voluntary market transaction un-related to the government. Every lender of money takes the risk that some of their clients might not be able to pay back their loan, that is the NATURE of lending. There is nothing inherently evil about not paying back money you owe when you fail to be able to pay it back, it depends on the situation. Some people take advantage of the system and don't pay their loans back because they never intended to, others have a difficult time in a debt-driven society where going into debt is actually ENCOURAGED.

I don't see why they should have to pay taxes on that, or any income for that matter.

it's actually really simple why a reduction in past debt is considered income.

company A loaned you 5 grand. you pay back 2 grand and say you're unable to pay any more than 1 grand or you'll declare bankruptcy. so all in all, you end up giving company A back 3 grand on their 5 grand they gave you. that's like getting 2 grand for free, so it's considered income.

the system was never designed to be fair, so what do you expect? they play by their rules.

Kluge
05-13-2012, 09:14 AM
Never said they were. They're good people, but I highly discourage anybody working for the IRS.

There's something wrong with you. Go back and read your posts.

ghengis86
05-13-2012, 09:45 AM
Seriously, don't tell people they are helpless, and always require experts. It's a double message to tell people to "take control of the situation" while insisting their only viable path of action is to accept the IRS's claims, pay up, and also pay a professional servant of the tax gestapo to help them pay up, in my dissenting opinion. That is not taking control, that is sheepish surrender. I have not filed or paid in 12 years to the IRS, and did not use CPAs and lawyers to fight them successfully. Most people (including the OP) will not choose the tax honesty path, but that doesn't mean it does not exist.

All tax claims made against people by the IRS are exactly that, CLAIMS, or allegations, not unilateral laid-down truths or commandments brought down from Mt. Sinai. If the alleged liability is past a certain number of years, the IRS is not even going to press the issue as per their own rules. There is no positive law requiring most Americans to pay or report income taxes, but there is an administrative system used to aggressively misapply the tax code to most people, by presuming liability and jurisdiction of everybody under their IRS. This presumption mainly receives its legitimacy due to people and third parties filling out information reports (W2s, 1099s et al) on IRS forms that are prejudicially worded to concede the person or entity is under their jurisdiction and has liability. Once one's status is inaccurately so characterized, the unsworn reports serve to provide an equitable basis (via the created paper trail) to establish jurisdiction (in IRS assessments) and the nature of receipts any earnings (presumed as income). All specific IRS tax claims require an assessment, including those made to allege penalties and interest, based on that presumption and paper trail.

Since false presumptions and improper assessments are the heart of the misapplication, the LAST thing a person genuinely fighting that tyranny would want to do is accept or submit the unsworn information reports that create the alleged liabilities, accept any assessments based on them, or bring in government licensed CPA slaves who simply accept the misrepresentations on face value (in order to keep their government license). I have resisted IRS 'scare letters' and attempted enforcement actions for a decade by simply correcting bogus information they have received by sworn affidavit, and by requesting verified proof of claim that they have a lawful, correct, and completed assessment to justify their claims (including any penalty claims, which also require an assessment). I usually have backed this up with the response letter I request from the IRS's own FOIA office to obtain evidence of the assessment, a letter that says there is no record (or complete record) of it on file---because said completed assessment is never done.

The IRS then backs off, and the alleged liability and penalty quietly 'disappears,' because the burden of proof has been shifted to them. They don't have the proof, precisely because the system is based on UNverified claims unsworn reports, false presumptions), and thus erroneous and incomplete assessments. And why is the system based on that? Because that is the smoke and mirrors set-up one resorts to in order to create the paper trail needed to misapply the tax code to most people. Those taking the tax honesty path should educate themselves about fighting them administatively in this fashion and similar tactics, such as found at SEDM.org.

Good counter point. I've done a lot of reading on tax honesty and I tend to find it logical. I have yet to meet someone as successful with it as you in person, so forgive my lack of courage in undertaking it. Kudos to you

presence
05-13-2012, 12:17 PM
Oh... I thought that money they're saying you used for "room and board" was actually used to house the startup business you were creating while in college and cater meals for prospective business clients and suppliers... Its a shame your business never got off the ground. At least once you explain, you don't owe any taxes on that income though.

presence

presence
05-13-2012, 12:24 PM
i am sorry to hear you have 12,000 in debt . I know it is no small matter for you, but i do chuckle when i see that as big debt . When corrupt insurance companies left us with 500,000 in medical bills. I can only laugh in sadness over your debt and mine. I find the words F IT helps!

Do your best and try to keep your chin up. That is what i try to tell myself.

That's about the perspective I have on this shit.

F IT F EM

6 figures under with nothing to show,

presence

Indy Vidual
05-13-2012, 12:42 PM
Seriously, don't tell people they are helpless, and always require experts. It's a double message to tell people to "take control of the situation" while insisting their only viable path of action is to accept the IRS's claims, pay up, and also pay a professional servant of the tax gestapo to help them pay up, in my dissenting opinion. That is not taking control, that is sheepish surrender. I have not filed or paid in 12 years to the IRS, and did not use CPAs and lawyers to fight them successfully. Most people (including the OP) will not choose the tax honesty path, but that doesn't mean it does not exist.

All tax claims made against people by the IRS are exactly that, CLAIMS, or allegations, not unilateral laid-down truths or commandments brought down from Mt. Sinai. If the alleged liability is past a certain number of years, the IRS is not even going to press the issue as per their own rules. There is no positive law requiring most Americans to pay or report income taxes, but there is an administrative system used to aggressively misapply the tax code to most people, by presuming liability and jurisdiction of everybody under their IRS. This presumption mainly receives its legitimacy due to people and third parties filling out information reports (W2s, 1099s et al) on IRS forms that are prejudicially worded to concede the person or entity is under their jurisdiction and has liability. Once one's status is inaccurately so characterized, the unsworn reports serve to provide an equitable basis (via the created paper trail) to establish jurisdiction (in IRS assessments) and the nature of receipts any earnings (presumed as income). All specific IRS tax claims require an assessment, including those made to allege penalties and interest, based on that presumption and paper trail.

Since false presumptions and improper assessments are the heart of the misapplication, the LAST thing a person genuinely fighting that tyranny would want to do is accept or submit the unsworn information reports that create the alleged liabilities, accept any assessments based on them, or bring in government licensed CPA slaves who simply accept the misrepresentations on face value (in order to keep their government license). I have resisted IRS 'scare letters' and attempted enforcement actions for a decade by simply correcting bogus information they have received by sworn affidavit, and by requesting verified proof of claim that they have a lawful, correct, and completed assessment to justify their claims (including any penalty claims, which also require an assessment). I usually have backed this up with the response letter I request from the IRS's own FOIA office to obtain evidence of the assessment, a letter that says there is no record (or complete record) of it on file---because said completed assessment is never done.

The IRS then backs off, and the alleged liability and penalty quietly 'disappears,' because the burden of proof has been shifted to them. They don't have the proof, precisely because the system is based on UNverified claims unsworn reports, false presumptions), and thus erroneous and incomplete assessments. And why is the system based on that? Because that is the smoke and mirrors set-up one resorts to in order to create the paper trail needed to misapply the tax code to most people. Those taking the tax honesty path should educate themselves about fighting them administatively in this fashion and similar tactics, such as found at SEDM.org.

I'd like to believe your story.
(Assuming it's true)
How come people like Sherry Peel Jackson, Peter Schiff's father, and others are (were) in jail for tax issues?

angelatc
05-13-2012, 01:16 PM
Yeah this doesn't sound right. Not an expert (and you would probably get better advice on an accounting or tax forum)...but normally isn't the university SUPPOSED to mail out 1099's to scholarship athletes?\.

Not 1099's. 1098-T. (http://www.irs.gov/pub/irs-pdf/f1098t.pdf)

angelatc
05-13-2012, 01:18 PM
Oh... I thought that money they're saying you used for "room and board" was actually used to house the startup business you were creating while in college and cater meals for prospective business clients and suppliers... Its a shame your business never got off the ground. At least once you explain, you don't owe any taxes on that income though.

presence

This is just wrong. The IRS clearly says that room and board is considered taxable income.

And it's probably even more accurate to say that the IRS considers tuition to be taxable income, but there's a legal exemption from Congress regarding that.

angelatc
05-13-2012, 01:21 PM
Legally you cannot just choose whether or not you file as a dependent. The law is written not as "would you like to be claimed as a dependent?" but as "are you dependent according to X rules?". So that would not work.


.

That's not exactly right either. His Mom isn't under any obligation to claim his as a dependent if she doesn't want to. And it's perfectly legal for him to file on his own if she didn't claim his as a dependent, even if he technically qualified as her dependent.

angelatc
05-13-2012, 01:26 PM
it's actually really simple why a reduction in past debt is considered income.

company A loaned you 5 grand. you pay back 2 grand and say you're unable to pay any more than 1 grand or you'll declare bankruptcy. so all in all, you end up giving company A back 3 grand on their 5 grand they gave you. that's like getting 2 grand for free, so it's considered income.

the system was never designed to be fair, so what do you expect? they play by their rules.

The real issue arises when the debt is mortgage related. Person A sold a house. COmpany B bought the house, then loaned me the money so I can buy it from them. I can't make the payments, so they foreclose. According to the IRS, technically I owe the difference between the mortgage balance and the eventual sales price of the house, even though I never actually received any cash in the deal.

Although, Congress gave us an exemption from this for a while too.

pcgame
05-13-2012, 02:05 PM
..

MRoCkEd
05-13-2012, 02:12 PM
That's not exactly right either. His Mom isn't under any obligation to claim his as a dependent if she doesn't want to. And it's perfectly legal for him to file on his own if she didn't claim his as a dependent, even if he technically qualified as her dependent.

Yeah, What I meant is that the school-related deductions and credits that supposedly would save him money filing as an independent only apply if you could not be claimed as a dependent.

Assuming your parents are in a higher bracket than you, they are saving more claiming you as a dependent than you would save as an independent.

Peace&Freedom
05-14-2012, 01:23 PM
I'd like to believe your story.
(Assuming it's true)
How come people like Sherry Peel Jackson, Peter Schiff's father, and others are (were) in jail for tax issues?

Specific court cases involve different judges and juries, who may be misdirected or intimidated by IRS tactics. In the Jackson case the IRS brought in last-second witnesses (with limited discovery offered to the defense), who defamed her personal character. In the Snipes case, he was specifically acquitted of the felony charges of tax evasion, and convicted on the misdemeanor for "willful failure to file," despite having submitted tax statements in court for the years in question! In the Schiff case, not a single legal exhibit of evidence supporting Schiff was allowed by the judge to be shown to the jury. When you get a "I will not allow the law in my courtroom" kind of judge, you know the IRS has stacked the deck to get a win. When they lose many of these cases, the IRS often immediately requests the decision go unpublished, and is granted the request to limit the magnitude of their defeats.

I am not alone in the tax honesty success scene, as most quietly fight the battle administratively, by demanding proof and corrections to the record about their status from the IRS first, such that they are repeatedly forced to correct or rescind their false presumptions. It thus doesn't get to the stage where the gestapo can prosecute a person, making them defend themselves based on mere 'arguments' in court to protest the liability, because the facts of the case have been never been established. The honesty advocate, through written and witnessed correspondance with the IRS, builds up an exculpatory record of due diligence all along the way to challenge the integrity of their assessment, which the IRS otherwise presumes is correct in making the issue of liability and their jurisdiction a settled fact. If you counter paper trail them long enough, they do back down.

PaulConventionWV
05-16-2012, 05:40 AM
Seriously, don't tell people they are helpless, and always require experts. It's a double message to tell people to "take control of the situation" while insisting their only viable path of action is to accept the IRS's claims, pay up, and also pay a professional servant of the tax gestapo to help them pay up, in my dissenting opinion. That is not taking control, that is sheepish surrender. I have not filed or paid in 12 years to the IRS, and did not use CPAs and lawyers to fight them successfully. Most people (including the OP) will not choose the tax honesty path, but that doesn't mean it does not exist.

All tax claims made against people by the IRS are exactly that, CLAIMS, or allegations, not unilateral laid-down truths or commandments brought down from Mt. Sinai. If the alleged liability is past a certain number of years, the IRS is not even going to press the issue as per their own rules. There is no positive law requiring most Americans to pay or report income taxes, but there is an administrative system used to aggressively misapply the tax code to most people, by presuming liability and jurisdiction of everybody under the IRS. This presumption mainly receives its legitimacy due to people and third parties filling out information reports (W2s, 1099s et al) on IRS forms that are prejudicially worded to concede the person or entity is under their jurisdiction and has liability. Once one's status is inaccurately so characterized, the unsworn reports serve to provide an equitable basis (via the created paper trail) to establish jurisdiction (through IRS assessments) over the nature of receipts of any earnings (presumed as income). All specific IRS tax claims require an assessment, including those made to allege penalties and interest, based on that presumption and paper trail.

Since false presumptions and improper assessments are at the heart of the misapplication, the LAST thing a person genuinely fighting that tyranny would want to do is accept or submit the unsworn information reports that create the alleged liabilities, or accept any assessments based on them, or bring in government licensed CPA slaves who simply accept the misrepresentations on face value (in order to keep their government license). I have resisted IRS 'scare letters' and attempted enforcement actions for a decade by simply correcting bogus information they have received by writing a sworn affidavit, and by requesting verified proof of claim that they have a lawful, correct, and completed assessment to justify their claims (including any penalty claims, which also require an assessment). I usually have backed this up with the response letter I requested from the IRS's own FOIA office to obtain evidence of the assessment, a letter that says there is no record (or complete record) of it on file---because said completed assessment is never done.

The IRS then backs off, and the alleged liability and penalty quietly 'disappears,' because the burden of proof has been shifted to them. They don't have the proof, precisely because the system is based on UNverified claims (unsworn reports, false presumptions), and thus erroneous and incomplete assessments. And why is the system based on that? Because that is the smoke and mirrors set-up one resorts to in order to create the paper trail needed to misapply the tax code to most people. Those taking the tax honesty path should educate themselves about fighting them administatively in this fashion and similar tactics, such as found at SEDM.org.

It is risky to simply ignore tax claims, however, as my dad lost his house that way a long time ago. However, I'm curious how many years it takes for a claim to die. Specifically how long does it take not filing in order for them to not chase you down?

PaulConventionWV
05-16-2012, 05:41 AM
i am sorry to hear you have 12,000 in debt . I know it is no small matter for you, but i do chuckle when i see that as big debt . When corrupt insurance companies left us with 500,000 in medical bills. I can only laugh in sadness over your debt and mine. I find the words F IT helps!

Do your best and try to keep your chin up. That is what i try to tell myself.

Sorry to hear that. F IT! I feel better already. :)

PaulConventionWV
05-16-2012, 05:44 AM
There's something wrong with you. Go back and read your posts.

I don't appreciate the disrespect. I never said they were "so wonderful." The people who work for the IRS are not the IRS. Is it really so wrong to have a shred of respect for family members who happen to have taken a job at said organization? They may be ignorant as to what they're actually doing, but there's nothing wrong with me nor them.

PaulConventionWV
05-16-2012, 05:55 AM
I would like to know how did u first find out that you owed money? Did u get a letter? How come u didn't get a letter sooner?

My mom was filing with me as a dependent for the current year, and after delving into some things, she found out that the grants I had received for room and board and other things as per my deal with the coach so that I could go there counted as income. She hadn't know this before. I never got a letter (yet) but I'm wary of the situation now, so I am trying to find a way to avoid trouble.

Exiled_LFOD
05-16-2012, 06:03 AM
first, they came for people who avoid taxes and I did not speak up...

jbauer
05-16-2012, 09:23 AM
I'm curious I've got a 3 and 1 yr old. I have been "gifting" them room and board!! Probably time to start worrying!! Also next time a family member comes and freeloads for a week or 2 I'm going to give them a 1099 as well.

Come over for Easter = 1099
Christmas gift = 1099
Drink my beer = 1099

How about this forum, we are receiving value for being able to post content on it aren't we?

Screw getting a CPA. Take this to the news. I'm sure NBC or CBS woudl be interested in the IRS coming after a college student for room and board. It'd be even better if you could find a case where they didn't come after someone and claim discrimination.

Uncle Emanuel Watkins
05-16-2012, 09:57 AM
I'm curious I've got a 3 and 1 yr old. I have been "gifting" them room and board!! Probably time to start worrying!! Also next time a family member comes and freeloads for a week or 2 I'm going to give them a 1099 as well.

Come over for Easter = 1099
Christmas gift = 1099
Drink my beer = 1099

How about this forum, we are receiving value for being able to post content on it aren't we?

Screw getting a CPA. Take this to the news. I'm sure NBC or CBS woudl be interested in the IRS coming after a college student for room and board. It'd be even better if you could find a case where they didn't come after someone and claim discrimination.

Taxes started off as penalties. As the king owned all the land both private and public, it was deemed illegal to do business on it. So, a penalty in the form of a tax was waged. We are speaking of the leisure class here. Those who were born entitled. One could never own the kings land, but share it with him or her. As the oldest child traditionally went into the employment of the monarchy, the second oldest went into the service of the church. The other children were left to fend for themselves which meant doing business on land owned by the king or the church. In order to protect the monarchy from the commoners, a noble military aristocracy was set up. This was done by the granting of titles to share the land with the king. Barons were then employed to work the peasants on this land and "taxes" were collected that went to the monarchy.
So, things haven't changed. We are talking about a leisure class and an entitled military aristocracy set up to protect them. The tax you are paying is a penalty for being born a commoner.

mport1
05-16-2012, 09:59 AM
Kinda off topic, but nobody "owes" anything to the IRS. Nobody has ever entered into a contract obligating them to pay for services. We are forced at a barrel of a gun to pay what they demand. They are trying to rob you for a certain amount. Good luck with dealing with those thugs.

Athan
05-16-2012, 10:28 AM
WTF is wrong with America? I'm a Canadian, so I'll admit I'm not educated about the matter, but WTF is up with the IRS? They sound like they're some mob asking for "protection money" or something, I'm always hearing how they harass people at the worst times!

I'm a Canadian, so I probably pay higher taxes than any American, but what's up with the IRS anyways? They sound waaaaay more complicated than anything in Canada...
They sound like because THEY ARE.
And yes WAY more complicated. We need to disolve the organization. Even a flat tax would be better than what we have now: A den of theives.

Uncle Emanuel Watkins
05-16-2012, 10:35 AM
They sound like because THEY ARE.
And yes WAY more complicated. We need to disolve the organization. Even a flat tax would be better than what we have now: A den of theives.

I guess we can simplify matters by having a throne constructed for the Queen to sit on like they do in Canada.

LimitedGovernment
05-16-2012, 10:39 AM
Taxes started off as penalties. As the king owned all the land both private and public, it was deemed illegal to do business on it. So, a penalty in the form of a tax was waged. We are speaking of the leisure class here. Those who were born entitled. One could never own the kings land, but share it with him or her. As the oldest child traditionally went into the employment of the monarchy, the second oldest went into the service of the church. The other children were left to fend for themselves which meant doing business on land owned by the king or the church. In order to protect the monarchy from the commoners, a noble military aristocracy was set up. This was done by the granting of titles to share the land with the king. Barons were then employed to work the peasants on this land and "taxes" were collected that went to the monarchy.
So, things haven't changed. We are talking about a leisure class and an entitled military aristocracy set up to protect them. The tax you are paying is a penalty for being born a commoner.

So now I want to know. Is there any way to legally avoid paying taxes anymore, besides using loopholes? Like, is it possible to buy a chunk of land somewhere, build a house made of sticks, grow your own food, and not get taxed after the initial production?

angelatc
05-16-2012, 10:49 AM
So now I want to know. Is there any way to legally avoid paying taxes anymore, besides using loopholes? Like, is it possible to buy a chunk of land somewhere, build a house made of sticks, grow your own food, and not get taxed after the initial production?

If you don't have any income, you don't owe income tax. But in the scenario above, you'd likely owe property taxes.

rockerrockstar
05-16-2012, 10:59 AM
Sorry to hear you owe money to the IRS. I believe you can sign up for a payment plan for the past taxes. Maybe that would help.

LimitedGovernment
05-16-2012, 11:14 AM
If you don't have any income, you don't owe income tax. But in the scenario above, you'd likely owe property taxes.

That's it; I'm buying my own island.

Edit: Better yet, a space island.

Uncle Emanuel Watkins
05-16-2012, 04:41 PM
Sorry to hear you owe money to the IRS. I believe you can sign up for a payment plan for the past taxes. Maybe that would help.

Just don't forget to make a payment of some sort or the computer will spit you out to a real person.

Peace&Freedom
05-16-2012, 05:56 PM
It is risky to simply ignore tax claims, however, as my dad lost his house that way a long time ago. However, I'm curious how many years it takes for a claim to die. Specifically how long does it take not filing in order for them to not chase you down?

I believe the IRS currently does not originate action if six years have passed, but once they initiate action on a claim and file a notice of tax lien, they may follow-up on it for 10 years. The administrative route to fighting off the tax theives involves NOT ignoring claims, but actively challenging them as I have described. It also involves preparing to make your self as judgment proof as possible at the outset, getting everything out of your own name such that there is nothing for the gestapo to freeze, seize or garnish.

In the case of housing, what some have done beforehand is convert ownership of the real property into personal property via a land trust with multiple beneficial interests, which courts have ruled makes the asset impervious to tax liens or other liens (because multi-party personal property held in trust is deemed indivisible).