The "jock tax" refers to a type of income tax that is imposed by states or cities on athletes that make money while playing inside of a specific state or city. While the tax can also be applied to other businesses, it has been often used to charge visiting athletes since it is easier to track when and where they made their money.
Back taxes can be filed for up to 10 years after the tax year in which the resident neglected to file income taxes, according to ETaxes.com. After 10 years, the statute of limitations runs out for the Internal Revenue Service to collect back taxes in most states. In a few states, the statute of limitations never runs out, meaning back taxes can be filed at any point in the resident's life.
SFGate Home Guides explains that since property taxes are public records, information about the taxes levied on a specific address are obtainable from the local government entity that maintains those records, which is typically the county assessor's office or recorder's office. Many localities make this information available online.
As of 2014, a fat tax is a proposed tax on unhealthy foods to discourage consumers from buying them. This tax, also known as the Twinkie tax, was largely developed by Kelly Brownell, a psychology professor at Yale University, who discussed the idea in the New York Times in 1994.
According to Publication 526 of the Internal Revenue Service, cash donations to religious organizations are tax-deductible. Examples given in the publication include "churches, a convention or association of churches, temples, synagogues, mosques and other religious organizations." Since tithes are monetary gifts to a church, they are not subject to taxation by the IRS.
One example of an indirect tax is sales tax, which is imposed entirely on the buyer rather than both on the seller and the buyer. Indirect taxes are taken from stakeholders that are generally not thought to be entirely responsible for the amount being taxed.
One simple way to see if the IRS has received your tax return, especially if you are anticipating a refund, is to use the IRS's special "Where's My Refund" tool. The IRS updates refund statuses every 24 hours.
Switzerland's strict privacy laws make it difficult to see who holds an account there, making Swiss bank accounts ideal for those who are trying to hide money. In other words, Switzerland makes an excellent tax shelter for those who want to keep their money in a bank but don't want to pay taxes for it.
As of 2014, the IRS can audit tax returns that have been filed within the past three years. However, if a substantial error is found, the agency can include additional years. In this case, an audit usually does not cover returns that date back further than the past six years.
Rock and roll pioneer Chuck Berry served 120 days in prison during the late 1970s as a result of tax evasion chargers. This sentence also included a requirement that Berry complete 1,000 hours of community service, which he apparently took care of by performing concerts.
The hotel room tax in California is 12 percent of the bill charged by the hotel owner. Known as Transient Occupancy Tax, it is the responsibility of the hotel owner to pay the tax to the state of California.
Some examples of direct taxes include income taxes, taxes on assets and real property and personal property taxes. These are taxes that a person must pay directly to the entity collecting the tax. The taxpayer is not able to shift the burden of these taxes onto another individual or group.
Tax is added to the price of a product by first determining the tax amount by multiplying the tax rate by the product price, and then adding the tax amount to the product price, according to the Basic-mathematics.com. Tax rates are determined by each state.
In 1952, former IRS commissioner Joseph Nunan got in trouble for tax evasion. In an odd twist, his problems were not due to corruption or hypocrisy but a simple misunderstanding over $2,000. He won a bet on a presidential election and forgot to claim the winnings on his tax return.
While only about 1 percent of taxpayers get audited every year, there are a few red flags the IRS tends to look out for in order to determine the unlucky few who fall under that category. These include tax filings that point to carelessness or dishonesty.
American country music legend Willie Nelson got into trouble with the Internal Revenue Service (IRS) when he used an illegal tax shelter in the early 1980s to avoid paying federal income tax - to the tune of $16.7 million. In 1990, federal authorities raided his property and seized his assets, including his Texas ranch. They didn't make off with Nelson's favorite guitar, Trigger, which he made sure to keep safe.
The Internal Revenue Service states that the amount paid for dental implants can be reported as a medical expense on Schedule A, Itemized Deductions. Not all taxpayers benefit from these expenses, as medical expenses have to exceed a percentage of income before they become deductible.
In addition to paying a federal income tax, most Americans have to pay an annual state income tax. Some states have higher rates than others, with California topping the list in 2014. Other factors such as local property tax rates may influence how expensive it is to live in a particular state.
According to About.com, a flat tax refers to a proposed income tax system in which everyone pays the same "flat" tax rate regardless of income level. Meanwhile, a fair tax refers to a proposal that seeks to tax money that is spent rather than money that is earned by establishing a national sales tax and abolishing federal income and corporate taxes. This latter idea is delineated on FairTax.org.
A luxury tax is essentially a tax placed on any goods or services the United States government as well as many state governments deem as non-essential. Such a tax is aimed at only those who are wealthy enough to afford luxury items. Despite the fact that many items formerly considered luxury goods no longer are viewed that way, the term persists.
Taxation is when governments require citizens to pay a certain amount of money to help fund public institutions. Taxes are used to pay for things like public education, welfare programs, transportation infrastructure, defense funds and libraries.