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The debate of change has been on everyone's lips, it seems. One topic I would like to focus on today is Taxes. Ah, everyone's favorite subject, I know. I found a good break down on Forbes earlier today. Here's the skinny.
1. Everything is still income - It doesn't matter if it is the lottery, gambling, it's going to be taxed, just like every other type of income.
2. Paying Taxes Later - If you have the legal right to money, and wished to be paid later, you are still taxed at that moment.
3. Forms 1099 are important - The tax forms you get in the mail are very important, so keep track of them.
4. Keep track of your foreign accounts - Even though you won't receive a 1099 Form, you still need to report them.
5. Pay small tax bills - If you receive a small tax bill, pay it anyway, if it's not correct.
6. Reply to every IRS letter, unless told not to - That one pretty much speaks for itself.
7. Don't talk to the IRS if they visit, and never lie - Decline to speak to them and refer them to your lawyer.
8. The IRS can audit 3 years, but keep records for 7, and returns forever - It's the usual IRS statute of limitations, after you file a return.
9. Avoid amending returns - Amended returns have a high audit rate, especially if they request a refund.
10. File returns even if you can't pay - Payment can come later, and could be subject to an IRS installment agreement.
11. Don't explain or attach too much - Tax returns should be concise, never attach extra documents, unless they are requested.
12. Be cautious with big refunds - You might consider applying it to the next year's tax payments, instead of asking for the money upfront. This way helps to lower your profile.
13. Seek professional advice - If you find yourself in a tax case, you may consider asking a professional in tax matters.
Did the article miss something important? If so, chime in. :)