Non-Filer Question and Other

Practical and Practice issues for Professionals who practice in the area of taxation. Moral, social and economic issues relating to taxes, including international issues, the U.S. Internal Revenue Code, state tax issues, etc. Not for "tax protestor" issues, which should be posted in the "tax protestor" forum above. The advice or opinion given herein should not be relied on for any purpose whatsoever. Also examines cookie-cutter deals that have no economic substance but exist only to generate losses, as marketed by everybody from solo practitioner tax lawyers to the major accounting firms.
Number Six
Hereditary Margrave of Mooloosia
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Joined: Fri Aug 29, 2008 6:35 pm
Location: Connecticut, "The Constitution State"

Non-Filer Question and Other

Post by Number Six »

I was speaking with a long term non-filer last night about getting into compliance. Makes mainly cash income through farmer's markets. Net income last year was under 10K. He doesn't want to have to come up with self-employment tax on said income, after paying much of their disposable income for property taxes. I told him to go to a local library and find an expert on taxes to get his low income situation adressed in a legal way. I made some more arguments with him, the Wikipedia article on the Social Contract, and how filing his taxes will help him establish some real identity of his own. I will relay answer back to him.

The apple farmer who I spoke with in response to my other posting on charitable donations--about how he could deduct the cost of growing--fertilizer, labor, etc. in making the donation to a food bank. He said he stopped record keeping on labor when it became clear and depressing to him how little he was making on an hourly basis. His accountant isn't competant enough to help him on this. He fears that a change of tax return could generate a lot of aggravation if questioned.
'There are two kinds of injustice: the first is found in those who do an injury, the second in those who fail to protect another from injury when they can.' (Roman. Cicero, De Off. I. vii)

'Choose loss rather than shameful gains.' (Chilon Fr. 10. Diels)
jkeeb
Pirate Judge of Which Things Work
Posts: 321
Joined: Thu Jan 22, 2004 6:13 pm
Location: Atlanta, GA

Re: Non-Filer Question and Other

Post by jkeeb »

Apple farmer-can deduct cost of goods donated as long as that cost does not include his own labor. Amended returns do not garner additional scrutiny with the exception that they are manually processed and reviewed for outlandish claims.

Long time non-filer, cash type person. There would be a good chance this guy would never get caught as long as he continues a mediocre lifestyle. When it's time to collect social security he may be SOL, but many under 40 would doubt the solvency of SSA. Of course he would never want to marry as that brings his problems to someone else, never want to get a mortgage (I have a feeling banks might be a little stricter in the next 10 to 20 years), never want to get a Small Biz loan or student loan. There are ways he could fall into the IRS net, but frankly, not likely.
Remember that CtC is about the rule of law.

John J. Bulten
Number Six
Hereditary Margrave of Mooloosia
Posts: 1232
Joined: Fri Aug 29, 2008 6:35 pm
Location: Connecticut, "The Constitution State"

Re: Non-Filer Question and Other

Post by Number Six »

I'll give the information to the taxpayer, though he probably gives unquestioned authority to the accountant. He has an outstanding tax debt, so he is probably scared of an "eye-opener" in my accountant's words. Maybe I'll send him a copy of Dan Pilla, Jr.'s book, "The IRS Problem Solver".

On the non-filer. Eventually the non-filing situation will complicate his life if he tries to get a loan,SS benefits etc.
'There are two kinds of injustice: the first is found in those who do an injury, the second in those who fail to protect another from injury when they can.' (Roman. Cicero, De Off. I. vii)

'Choose loss rather than shameful gains.' (Chilon Fr. 10. Diels)