| > | | | | from the taxreturns of 15 million people, an IRS official |
| I'm a little upset right now, so please bear with me. | | | | has the nerveto make this pronouncement: |
| Idon't get upset very often - you can always tell | | | | "We will continue our efforts to reduce the burden |
| becausesmoke starts coming right out of the top of | | | | ontaxpayers and simplify the tax code." |
| my bald head! -but I'm here to tell ya', this one really | | | | Can you believe it? This lady, and I mean no |
| has me bothlaughing and crying at the same time! | | | | disrespecthere toward Ms. Olson - I'm sure she's a |
| Recently the IRS came out with this press release: | | | | hard-workinggovernment employee who does a great |
| IRS Increases Interest/Dividend Threshold | | | | job, but this lady, inmy humble opinion, has her head in |
| Source: Associated Press | | | | the sand, as do virtuallyall politicians and other |
| Publication date: 2002-09-26 | | | | government authorities who havecreated the ungodly |
| WASHINGTON (AP) - More than 15 million taxpayers | | | | monster know as the Internal Revenue |
| will beable to skip filing a separate IRS form for | | | | Code. |
| interest anddividend income next year under a move | | | | The IRS changes one little rule that removes one form |
| announced by the taxagency Thursday. | | | | fromonly 15% of all returns filed - and this gives the IRS |
| Beginning with 2002 returns due next April, most | | | | theright to think that they are reducing the burden |
| taxpayerswon't have to file the separate schedule | | | | ontaxpayers??? (Keep in mind that there are over 100 |
| with their 1040forms if their interest and dividend | | | | milliontax returns filed every year. So, if this Schedule B |
| income is $1,500 orless. That replaces the current | | | | rulechange affects 15 million people, that's a measly |
| threshold of $400, which hasbeen in place since 1974. | | | | 15% of alltax returns filed.) |
| Taxpayers who file 1040 forms use Schedule B to | | | | C'mon - what is wrong with this picture? Do you get |
| listinterest and dividend payments. Under the new | | | | mypoint? |
| rules,millions of taxpayers will simply report their interest | | | | Taking away one lousy form from a small percentage |
| anddividend income without filing the separate forms. | | | | of taxreturns filed - how is that reducing the burden |
| Charles Rossotti, the Internal Revenue Service | | | | ontaxpayers? It's not! It's a drop in the bucket. |
| commissioner,estimated that 15 million taxpayers will be | | | | It'speanuts. It doesn't even come close to making an |
| no longer haveto file the extra form. | | | | impact onthe incredible burden that taxpayers have |
| "We will continue our efforts to reduce the burden | | | | each year on April |
| ontaxpayers and simplify the tax code," said Pam | | | | 15. |
| Olson, actingassistant Treasury secretary for tax | | | | Furthermore, how does this one little change "simplify |
| policy. END OF PRESS | | | | thetax code"? I am appalled that a government official |
| RELEASE | | | | wouldeven use the phrase "simplify the tax code". We |
| Now, aren't you just thrilled to hear that the IRS, in | | | | have neverhad tax simplification. Never. Never ever! |
| it'sinfinite wisdom and undying compassion for the | | | | Since 1913,when the tax code was first implemented, |
| Americantaxpayer, has decided to make life easier for | | | | there has beennothing but tax complications, never tax |
| you bychanging the rules regarding the filing | | | | simplifications. |
| requirements for onetax form know as Schedule B? | | | | The rules only get more and more complicated. Tax |
| Give me a break! | | | | laws onlyget more and more complex. The Tax Code |
| In case you were just dying to know, Schedule B is a | | | | just gets biggerand bigger. Don't let the politicians' hype |
| formthat you must file with your personal tax return if | | | | fool you. |
| yourtotal interest and/or dividend income exceeds | | | | Never for a minute should you believe the government |
| $400. Now,you only have to file Schedule B if your | | | | whenthey say that they are trying to "simplify the tax |
| investment incomeexceeds $1,500. | | | | code." |
| By the way, no matter how much investment income | | | | So, what's the average taxpayer to do? If the tax |
| you have, | | | | rules justget more complicated, how are you supposed |
| ALL taxable investment income must be reported on | | | | to make anysense out of all this mess? |
| your taxreturn. The issue here is whether or not you | | | | You only have 2 options, as I see it. One I offer |
| have toprovide a detailed itemized listing of your | | | | tongue-in-cheek, the other is "words-to-live-by." |
| investmentincome. | | | | OPTION #1: Become a Tax Professional and prepare |
| Example: Let's say you have $1,000 of interest income. | | | | hundreds oftax returns every year. That's the only |
| Under the new rules, you can just put the $1,000 right | | | | way I know for youto become sufficiently |
| on | | | | knowledgeable in the crazy world of |
| Page 1 of Form 1040. And that's it. | | | | U.S. taxation. Obviously, this is not a viable option for |
| But if you have $2,000 of interest income, you have | | | | 99.9% of the population. But you get the point. |
| tocomplete a separate form (Schedule B) and list each | | | | OPTION #2: Hook up with a Tax Professional. |
| sourceof that interest income, i.e. the name of each | | | | Find someone else who does tax returns for a living. |
| bank accountor other financial institution and how much | | | | Notyour "family tax preparer", you know, Uncle Fred |
| interest ordividend income you earned from each | | | | who likesdoing returns and so offers to do yours for |
| source. | | | | free. But anexperienced tax person who does |
| So because of this simple rule change, about 15 | | | | hundreds of returns everyyear and can help you |
| millionpeople will not have to file Schedule B. | | | | make sense out of the most nonsensicalcollection of |
| And because the IRS has removed this one form | | | | rules on the planet. |