A New E-file Record

The IRS is announcing that taxpayers set a new record for e-filing with 101 million returns being e-filed as of the April 18th tax deadline. This is an 8.8 percent increase from the 2010 e-filed returns. This is attributable to the requirement that paid preparers must e-file the returns of clients.

Also, the IRS announced that the milestone of 1billion e-filed returns since the e-file program began is within reach.

Will the local IRS offices start have signs like this one?

The IRS Will Be In Charge of Defining 'Relatively'

CNN reports that some may face a penalty for failing to purchase health insurance. The article covers most of the points about who would be penalized and by how much as well as who may be exempted. As I wrote earlier, opponents of the health care reform bill are leary of giving the IRS more responsibility in addition to more authority. The following passage is telling:

The Democratic position is that similar worries were heard before the IRS was instructed to implement the Earned Income Tax Credit, yet the program ended up running relatively smoothly.

If you define 'relativley smoothly' as only slightly better than a coin flip in regards to accuracy then read no further.

This Department of the Treasury compliance study reveals that 49.5% of all returns filed claiming EITC overreport the amount of credit entitled. This results in $9.9 billion (with a B) in unrecovered claims. Anecdotally, there are numerous stories of taxpayers 'buying' social security numbers of children they don't have in order to falsely claim the credit for which they don't qualify.

Statistics back this up. According to The Earned Income Tax Credit and Illegal Immigration - A Study in Fraud, Abuse, and Liberal Activism, the EITC which originated as an anti-poverty program, has seen returns claiming benefits grow at a rate 25 times faster than the poverty population over the past two decades. That strongly suggests that this program is anything but realtively smooth.

Than again, maybe that coin the IRS uses is 'Heads the government wins, Tails the taxpayer loses'!

No Mathematician Left Behind

US News & World Report has an article to help determine if you are middldle class. In it, we learn that the middle-class task force headed by Vice President Joe Biden found the median two-parent family spends $5,100 per year on health insurance and non-covered health expenses.

The Health Care Reform Bill which became law this week will give a tax credit to those middle-class families who earn $81,000 a year (the median according to the article above) to ensure that they pay no more than $7,695 in premiums. Those families that fail to purchase insurance will be assessed a fine of around $2,000.

So the shell game in Washington is to rally the base talking about out of control healthcare costs, mandate that middle class families must by insurance or pay a fine and then only ensure that premiums will be no more than $2,500 more than current levels.

Contact your representatives! We need a government takeover of math education!

Because Health Care Decisions Should Be Between You and Your IRS Auditor

Last night the House passed the Senate version of Obamacare.

This most likely will expand the powers of the IRS and require 16,500 additional IRS auditors and revenue officers. According to the Republicans of the House Ways and Means Committee the following will additional authority will be granted to the IRS:

• IRS agents verify if you have 'acceptable' health care coverage
• IRS has the authority to fine you up to $2,250 or 2% of your income (whichever is greater) for failure to prove that you have purchased 'minimum essential coverage'
• IRS can confiscate your tax refund
• IRS audits are likely to increase
• IRS will need up to $10 billion to administer the new health care program this decade
• IRS may need to hire as many as 16,500 additional auditors, agents and other employees to investigate and collect billions in new taxes from Americans
• Nearly half of all these new individual madate taxes will be paid by Americans earning less than 300 percent of poverty ($66,150 for a family of four)
• IRS will be prohibited from imposing these taxes and penalties on illegal immigrants.

If you are concerned about the Internal Revenue Service's overarching powers, this bill should be very worrisome to you.

Waste 3 Hours of Your Life Watching Lousy Basketball, Get Free Tax Services

That's the promotion the New Jersey Nets are running this Friday night as they get beat by the Orlando Magic.

Tax Attorney Roni Deutch will be giving vouchers for a free state income tax return for those in attendance. That's a $29 value and all you have to do is subject yourself to some of the worse basketball being play. Of course, you can get a similar voucher here and save yourself the frustration.

On second thought, make that the second-worst basketball being played.

Wanted Dead or Alive?

CNNMoney reports on ways you can received a bounty by reporting tax evaders. To be an information use Form 3949.

Be forewarned: If you hear a low-flying plane heading for you house, get out quickly!

Ogden, UT IRS Building Evacuated

A suspicious substance was found at the Ogden, UT IRS Building on Monday. Officials say the substance was not hazardous. Part of the building was evacuated and two people were removed on stretchers. They were treated for medical issues unrelated to the substance. The Ogden, UT IRS office is where many corporate tax returns are filed.