14 replies to this topic

[WreckWench]

Ok so are you filing today or extending?

Or have you done one or the other already?

And who will be doing the midnight post stamp run tonight?

[peterbj7]

Speaking as an English accountant, I am amazed at how many Americans happily pay too much tax, claim it back in due course as is their entitlement, then thank Uncle Sam for his benificence. So may people talk as if it's perfectly normal about getting their "tax cheque". I suppose it is a way of enforced saving, sans interest.

On the specific question Kamala poses, is there any reason why having got to today you wouldn't defer rather than file your return?

[ev780]

You actually have until Monday, Washington DC is closed today.

[ScubaTex]

Good news, you have until Monday, April 18, to make this decision. Don't remember the excuse the gov't made to do this.
Personally, I filed the beginning of March, and received my refund in two weeks, record time considering I didn't file electronically.

[Landlocked Dive Nut]

As an American accountant, I agree that there are too many people using their payroll taxes as a savings account without the benefit of interest. Mainly, it's because of 4 different reasons: 1) either they don't understand that they can change the amount of tax withheld from their paychecks; 2) because they would prefer to get a refund than take the chance of owing a large sum when they file; 3) they don't have the discipline to save on their own for that big purchase; or 4) they have income other than typical payroll income, and their quarterly estimates were larger than they needed to be because the economy did not rebound as expected.

Whether you file your tax documents by the deadline, or file an extension, the actual TAXES you owe are due on Monday 4/18/11. Don't let the offer of an "extension of time to file" lure you into thinking you can also defer the tax that is due.....or major penalties & interest will be due when you do actually file!

Also, you should check to see if YOUR state also has 4/18/11 as the filing deadline. Some may have the normal 4/15/11 deadline.
Personally, I file as soon as I have all the documents I need to get the returns completed. But, that's just how I roll!

[Parrotman]

I also file as soon as I get all of my documents. I find it easier to save up for a dive trip by getting a refund. If we were talking about a significant amount of interest I would do it differently but lets face it. With the interest that banks are paying today, I can let Uncle Sam have the $1.12 that I would get on interest.

[scubaski]

Actually if you expect a Refund, a extentsion is not required. If you owe tax a extension and estimate payment of taxes owed is required or you face penalty and interest.

[Landlocked Dive Nut]

Actually if you expect a Refund, a extentsion is not required. If you owe tax a extension and estimate payment of taxes owed is required or you face penalty and interest.

The IRS will reduce your refund by a late filing penalty if you do not file an extension.

[scubaski]

Actually if you expect a Refund, a extentsion is not required. If you owe tax a extension and estimate payment of taxes owed is required or you face penalty and interest.

The IRS will reduce your refund by a late filing penalty if you do not file an extension.

This has never happened to me for filing after Apr 15. My tax person works the numbers and never a penalty If I'm DUE a Refund. If you OWE money your in troble for filling late. THBME.

[georoc01]

As one of those Americans who gets a refund, I tend to be conservative in my estimate of my taxes and given the high witholding on holiday bonuses which are withheld at the max. So as soon as I get my paperwork, I file usually by the end of January so I can get my refund back asap. However, this year the US government decided to hold onto my money for an extra couple of weeks due to the late passing of the tax deal at the end of December of last year.

[uwfan]

Speaking as an English accountant, I am amazed at how many Americans happily pay too much tax, claim it back in due course as is their entitlement, then thank Uncle Sam for his benificence. So may people talk as if it's perfectly normal about getting their "tax cheque". I suppose it is a way of enforced saving, sans interest.

On the specific question Kamala poses, is there any reason why having got to today you wouldn't defer rather than file your return?

As an American teacher, my pay has fluctuated from school district to school district and thankfully, usually, that has been an upward trend in pay. However, this next year it will be less with 6 furlough days and my pay this year frozen from last year, it's a game of what to do to continue the standard of living I want to maintain and I've done several things with my finances that because of the "unique" way our tax structure works, it's very hard to decide what "number" goes on the W-4 for my pay .... the end result is that sometimes I'm paying the government for several months an amount of money that they actually owe me. But as someone else said, the dollar or two I'd miss (if that) from interest, really isn't that big of a deal. What I really wish is that we could get the US financial situation under control so that our schools are funded properly and our nation's debt is under control.

(Now moderating myself for stepping a big toe over the no politics line...)


As for the original question, I finally found time to complete my taxes a couple days ago.

[WreckWench]

Did not realize we had until the 18th...

Wouldn't have made a difference. Got the lionshare of the work done but opted to file an extension 'just to be safe'. Should be a refund...lost money this year but paid at the rate I paid the last time I made money through out the year in estimated taxes just in case I did better.

The IRS scares the crap out of me. They have hired HUNDREDS of auditors to get the last drop of blood out of the few people left in this country that actually pay taxes... basically all of our members. Sadly those who 'collect' don't dive and those who make so much they pay less by comparison...well sadly they have not discovered SingleDivers.com yet!

The folks who dive with us are the ones who like me, pay thru the nose for those who either cheat, refuse to pay or expect someone to support them.

No politics...simply a statement of fact.

As a result I over pay on purpose to avoid any FURTHER issues. I've been audited twice and twice I've come thru squeaky clean but the IRS wants to know why I can take in half a million* but clear less than $20k. I've explained the math quite easily. 90% belongs to the vendors we rep and the remaining 10% just doesn't go very far paying the rest of the bills.


*Percentages are accurate but the total dollar amount taken in annually actually varies between 500k and 750k.

[peterbj7]

If it works the same way it does in the UK you don't always know when you're being audited. A lot of analysis of people's affairs is done by computer and they have a pretty good idea if you're telling the truth without ever letting on that they're checking. In fact the US is hotter on this that the UK is - a big difference is that in the US the authorities have an automatic right to see your bank accounts, whereas in the UK they don't have access to those unless you give explicit written permission.

By the time they do come to see you (or write to you) they've already seen something they aren't comfortable with. In Britain the first and very serious warning is when you're asked to sign a "certificate of full disclosure". This is just basically confirming that you've told them everything you should have done. BEWARE! They only ask for this if they already have evidence or serious suspicions that you haven't. When I was working full time in the accounting profession (just as I'm trying to do now!) one of these letters sounded a serious warning bell. I would advise clients NEVER just to sign it, but to come clean with me, because signing the letter would tip someone over from having just made a mistake to having committed deliberate fraud. Then I'd advise them on the best way out of the mess they had clearly gotten into, but I couldn't do that unless I knew its full extent.

It's all fun!

Edited by peterbj7, 16 April 2011 - 08:36 AM.

[WreckWench]

Our issue is we take so much money in...but have so little to show for it. When 90% of all your expenses fall into one category... aka 'cost of services provided'...it throws a flag. Now I include copies of the previous clean stellar reports with each return along with an overview of who we are and what we do and it seems to do the trick.

Fingers crossed it remains that way!

[peterbj7]

In Belize you're taxed on what you take in, regardless of your expenses. In the dive industry it's perfectly possible to have a hefty tax bill even though you're running at a loss. So you're forced to find ways around it, some of them legal. In Belize especially, and largely anywhere, running a dive-related business is a mug's game. So we must all be grateful to Kamala for her altruism!