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.
According to Investopedia, a tariff is a tax imposed on goods and services imported from another country. This is a tool used by governments as a trade barrier.
As of 2014, there are four U.S. states that do not impose a sales tax on consumers: Delaware, Montana, New Hampshire and Oregon. While Alaska does not impose a state sales tax, city governments do have the right to impose some sales tax there, meaning the average Alaskan retail shopper pays about 1.69 percent in sales tax.
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.
The IRS indicates that taxes are vital to support the infrastructure that citizens rely on at the local, state and federal levels. Taxes support national defense programs, roadway construction, social service programs, public health and education. Without taxpayer support, many of these programs cannot exist.
People cannot claim their dogs as dependents on their federal income taxes. According to the Internal Revenue Service Publication 501, a dependent must have a valid tax identification number to be claimed.
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.
As of 2014, if you earn $600 or more working as an independent contractor for one company, you need to file a 1099 form to the Internal Revenue Service. The company should send you a 1099-MISC form by January 31 of the following year.
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.
The strongest tax systems create fairness, assure adequacy, simplicity, transparency and promote administrative ease according to the Oklahoma Policy Institute. Ultimately, strong and healthy tax systems create healthy and vibrant economies, and may even promote peace and create strong and stable governments.
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.
While there are some ways to deduct medical expenses from federal taxes, the rules for who and what qualifies for these deductions are strict and may be a bit confusing to some taxpayers. For example, there is a rule stating that taxpayers and the spouses of taxpayers who are 65 years and older may deduct medical expenses that are more than 7.5 percent of the taxpayer's gross income so long as those expenses were not reimbursed. This rule only applies during the period of Jan. 1, 2013 through Dec. 31, 2016, further narrowing the field of which senior citizen taxpayers qualify to claim medical expenses on a tax return.
There are a couple of reasons why the Skatteverket, the Swedish tax agency, oversees the names Swedes give to their children. Their goals are to protect children from potentially confusing or offensive names and to prevent Swedes from naming their children after the Swedish royal family.
France's so-called "Google tax" isn't aimed at the search-engine company but rather at the international tech industry as a whole. The tax allows the French government to levy taxes on Internet companies that operate in France like traditional businesses.
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.
In the United States, a cow flatulence tax does not exist, but some European nations have imposed taxes on cow owners. The main argument for a cow flatulence tax is that cows release methane, one of the greenhouse gases that causes climate change.
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 term "501(c)3" refers to the most common type of nonprofit organization recognized by the IRS. According to About.com, this category embraces such diverse entities as old-age homes, charity hospitals, schools, churches and the Red Cross, among others. These organizations are exempt from taxation, and donations to them are generally tax deductible.
Find out if back taxes are owed to the Internal Revenue Service by calling the toll-free number at 1-800-829-1040 or visiting a local IRS office. Phone services are available Monday through Friday between 7:00 a.m. and 7:00 p.m. in each local time zone, according to the official website.
During an IRS audit, a tax return is examined line-by-line to make sure that everything is in order and nothing unusual is listed. If a suspicious item is found, the auditor asks the taxpayer to explain or justify it. Depending on the results of the audit, additional taxes may be owed.
Though the law is no longer in place, in the 1700s Russia had a federal tax on people with beards. The motivation for this strange revenue source stemmed from the country's then-ruler, Peter the Great, and his crusade against facial hair.