What about massive tax exemptions, using the $ for planning? Will the IRS really be able to collect after Y2K?greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
From the former director of the IRS, who essentially left because he could see they were toast and wanted to get out of the way of that big falling tree, to the current comments by some IRS employees, contractors, and their recent audit report, one is led to believe that if they can find their head with both hands after Y2K it will be a miracle, and that the republican's "flat tax" might become a necessity long prior to 2003.
I'm considering -- this may be stupid, but hey, I've owed money before -- revising my witholding status to whatever the maximum allowance might be (does anybody know?). And then of course, whatever extra funds I might have I will put toward Y2K planning.
I seem to have a real case of tunnel vision where this topic is concerned. I'm interested in what other people think about the IRS's future, and this idea in general.
PJ in TX
-- PJ Gaenir (firstname.lastname@example.org), March 20, 1999
Funny you should mention that because my sister's husband is an IRS agent and she is claiming nine exemptions this year. They don't think the IRS will be around and she's using the extra money to buy supplies and cash reserves.
-- bardou (email@example.com), March 20, 1999.
9??? I only upped my exemptions to 6. Guess I need to go back and redo it:-)... I've heard 10 is the limit without some sort of verification of who you are claiming.
-- Nabi Davidson (firstname.lastname@example.org), March 20, 1999.
Yep, I claimed 10 and had no problems. (Lots to pay at the end of the year...but that was then ;-)
-- Sub-Mit (email@example.com), March 20, 1999.
Yet again, I post a link to Otto Skinner's site (just copy and paste the link to your browser "location" or "goto" window and press 'enter' -- hot link NOT necessary).
Why not keep ALL the money you earn; couldn't you use it in your Y2K preps?
If you are still paying "income" tax, you may be GI re Y2K, but are DGI -- really DWGI -- re income tax. Chances are, YOU OWE NOTHING, REGARDLESS OF HOW MUCH YOU MAKE.
-- A (A@AisA.com), March 20, 1999.
Sounds great AisA, but how much in legal fees do you have to pay to set up your case for proper defense? Failing that, how long before you get acquitted? You may be correct on a technicality but can any of us afford that kind of time or risk right now? (maybe not a rhetorical question; was it easy for you?)
Seen these kinds of things around for years and used to know someone doing it who was free but in hiding, forever on the run from the Franchise Tax Board; no way to live. Go for the exemptions.
-- Debbie (firstname.lastname@example.org), March 20, 1999.
I wonder whether the IRS is already having major Y2K problems. I filed my taxes in late February this year. I called the IRS phone mail system, and it told me that I will not receive my refund for at least 6 weeks after they received my forms. (I filed using the old- fashioned snail-mail method. I don't trust little children and the IRS with anything electronic.)
I filed in March last year and received my refund in less than 4 weeks.
-- Incredulous (email@example.com), March 20, 1999.
We filed ours electronically a week ago, we shall see what happens. Another thing my sister told me about the IRS is that they are two years behind on audits. So if you think you are out of the clear you aren't..that is until December 31, 1999 at 11:59 p.m.
-- bardou (firstname.lastname@example.org), March 20, 1999.
If the IRS goes defunct, wont others come after your reserves?
-- Watchful (email@example.com), March 20, 1999.
As per my CPA...You may claim any amount of dependents you wish. If it reduces your withholding below 90% of esimated tax, there is a penalty for failure to pay. Since the wihheld tax does not come under IRS scrutiny until 4/15/2000, you might be safe. The other problem is that if you suddenly increase your dependents, YOUR EMPLOYER is bound by IRS regulations to 'counsel' you and then if you do not follow the 'party line', they are supposed to REPORT you to the IRS. Failure to report you or to 'advise' the IRS of your noncompliant 'attitude' can subject the employer to a fine not in excess of $10,000 per occurence.
You worry about next six months and Big Brother??? Heck, Big Brother has BEEN here for quite some time.
Actually, if done in moderation, limiting your IRS withdrawal is a logical step. I just wish that I could limit the SS also but there is no legal way to do that without starting my own religious retreat and taking a vow of poverty. (that is the truth straight out of the SS Admn booklets).
My CPA (who is licensed to present cases in the Tax Court) say that in his personal opinion, the IRS will be non-functioning by March 2000. He expects an emergency bill to be rammed through Congress by April 15 for a flat tax. This for what it's worth--a professional's ersonal opinion. Nothing to back it up.
-- Lobo (Hiding@woods.com), March 22, 1999.