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You remember Irwin: professional tax protestor extraordinaire.
Seems Irwin has been in the news for decades -bouncing in and out of various courts, proclaiming his shtick that the Federal income tax is bogus, doesn't apply to we and thee, and why would anybody pay it.
So now, again, right here in the Silver State, cometh Irwin into court, prompting U.S. District Court Judge Kent J. Dawson to warn potential jurors that the pending trial (in Las Vegas) could take weeks-if not months.
Schiff claims, among other things, that the Federal income tax really doesn't apply to individuals (like we and thee).
We even hear Irwin, in furtherance of his personal crusade, may not even have paid one red cent since 1974.
We further hear from published sources that Irwin's fledglings have likewise proclaimed their exoneration from Federal taxes to the tune of some $56 million.
And you wonder why your tax obligation is so high? Doesn't somebody have to make up the difference created by these scofflaws?
Stay tuned-only in Nevada ...
And speaking of scofflaws - ne of the classic arguments advanced by tax dodgers is the notion that wages, tips and other compensation received for personal services are not "income" under some bit of tortured logic which has convinced them that because folks have "tax basis" in their labor, there is really no gain realized upon the exchange of that labor for greenbacks.
But like it or not, the Internal Revenue Code defines "gross income" as "all income from whatever source derived, including (but not limited to) the following items:
1. Compensation for services...
2. Gross income derived from business
3. Gains derived from dealings in property
4. Interest
5. Rents
6. Royalties
7. Dividends
8. Alimony ... etc.
You get the message, we think. Income is income, in the common sense definition of the word-notwithstanding what Irwin Schiff and others of his "right field" ilk might think.
We wish Irwin well, but he's clearly swimming against the tide of Congressional and Judicial logic which has spanned decades-centuries.
And finally this week cometh some good news, in the form of opinion from The Kiplinger Tax Letter, which suggests that:
1. The 15 percent maximum rate on capital gains and dividends will remain in place (i.e.-be extended) until 2010;
2. Estate tax (permanent) repeal, long languishing in the bowels of Congress, will come to a head in September with some finality in the nature of a tax rate of a measly 25%, only on estates of somewhere between $5 and $10 million; and
3. No chance for any sort of national sales tax or "flat" tax, as long espoused by such luminaries as Steve Forbes.
Stay tuned.
CONSULT YOUR TAX ADVISOR Š This article contains general information about various tax matters. Consult your CPA for applicability to your particular situation.
Mr. Quinn is a shareholder of Ashley Quinn, CPAs and Consultants, Ltd., located in Incline Village. He is also a contributor to the recently published eighth edition of Tax Savvy for Small Business, published by Nolo. He may be reached at 831-7288.
Seems Irwin has been in the news for decades -bouncing in and out of various courts, proclaiming his shtick that the Federal income tax is bogus, doesn't apply to we and thee, and why would anybody pay it.
So now, again, right here in the Silver State, cometh Irwin into court, prompting U.S. District Court Judge Kent J. Dawson to warn potential jurors that the pending trial (in Las Vegas) could take weeks-if not months.
Schiff claims, among other things, that the Federal income tax really doesn't apply to individuals (like we and thee).
We even hear Irwin, in furtherance of his personal crusade, may not even have paid one red cent since 1974.
We further hear from published sources that Irwin's fledglings have likewise proclaimed their exoneration from Federal taxes to the tune of some $56 million.
And you wonder why your tax obligation is so high? Doesn't somebody have to make up the difference created by these scofflaws?
Stay tuned-only in Nevada ...
And speaking of scofflaws - ne of the classic arguments advanced by tax dodgers is the notion that wages, tips and other compensation received for personal services are not "income" under some bit of tortured logic which has convinced them that because folks have "tax basis" in their labor, there is really no gain realized upon the exchange of that labor for greenbacks.
But like it or not, the Internal Revenue Code defines "gross income" as "all income from whatever source derived, including (but not limited to) the following items:
1. Compensation for services...
2. Gross income derived from business
3. Gains derived from dealings in property
4. Interest
5. Rents
6. Royalties
7. Dividends
8. Alimony ... etc.
You get the message, we think. Income is income, in the common sense definition of the word-notwithstanding what Irwin Schiff and others of his "right field" ilk might think.
We wish Irwin well, but he's clearly swimming against the tide of Congressional and Judicial logic which has spanned decades-centuries.
And finally this week cometh some good news, in the form of opinion from The Kiplinger Tax Letter, which suggests that:
1. The 15 percent maximum rate on capital gains and dividends will remain in place (i.e.-be extended) until 2010;
2. Estate tax (permanent) repeal, long languishing in the bowels of Congress, will come to a head in September with some finality in the nature of a tax rate of a measly 25%, only on estates of somewhere between $5 and $10 million; and
3. No chance for any sort of national sales tax or "flat" tax, as long espoused by such luminaries as Steve Forbes.
Stay tuned.
CONSULT YOUR TAX ADVISOR Š This article contains general information about various tax matters. Consult your CPA for applicability to your particular situation.
Mr. Quinn is a shareholder of Ashley Quinn, CPAs and Consultants, Ltd., located in Incline Village. He is also a contributor to the recently published eighth edition of Tax Savvy for Small Business, published by Nolo. He may be reached at 831-7288.
