After a spate of Obama cabinet nominees with tax issues, the thought crosses one's mind: how common are tax problems?

Nope and I hope I never do.

I had a bad tax problem shortly after graduating from college and it was completely my own fault.  I am NOT, NOT good with things like this but at the time I was really broke and having someone do my taxes was just not an option, though from what I ended up owing, I should have found the money.

 

I had a LOT of jobs making very little money my first few years out of college.  I usually worked 2 jobs at a time and sometimes 3.  I filed 13 W-2s my first year out and 11 the second year and I think 8 the 3rd year, hard to remember as it's been awhile.  Well, I think it was the 2nd year out, I completely left out an entire job off the tax form.  Because I had so many jobs I had to include a lot of supplemental forms and there were so many W-2s and forms I think I just got confused and forgot.  I had the W-2, but I left it off the form when doing my computing and didn't know that I did it.  It took like almost 2 years for the IRS to figure it out, and of course when they did they sent me a nasty letter saying how they were going to garnish my refund for the upcoming year as well as continue to take $ out of my checks until the original amount plus a HUGE penalty (partly because of the long time since filing) was paid.  I cannot remember the exact amounts but I know at the time it seemed like an astronomical amount to me and I had just gotten off of food stamps and was starting to do a little better and it felt like a huge step backwards, it was really upsetting.  I have never done my own taxes since then, I just don't trust myself to do it.  I hate, hate, HATE paying $$$ for someone to do them, but it gives me peace of mind because it's not my fault if they're wrong, it's the preparer's fault.

RNR, girl are a Hedley?  You HAD 11 jobs?

 

LOLZ!  I had 13 jobs the first year, and filed a whopping $4600.  Yeah, you wonder why people live on credit cards.

My tuition is more than my income, has been for years now, so I've had zero federal liability.  Local taxes are another matter... when I first found out I had to pay two different cities here I flipped.  Still hate it.

No, but it is so complicated, I don't know if I am doing it right or not, even when I pay someone to do it. I do not blame anyone for making mistakes.  Tom Daschle's was the only one that bothered me, mostly because it is obvious that a limo and a driver are a provided service.  But it was more the fact that he has made $5 million as a consultant since he lost his seat.

 

Also, I throw all reciepts away after 5 years.  I was told that if you make it past 5 years the IRS cannot come after you anymore.

In the very early days of e-filing, I filed my return using a what was then a new software called TurboTax.  I was so proud I had done something so cutting edge.  I even had a confirmation number from TurboTax the filing.  Months later, I recieved a letter from the IRS I needed to file my taxes, pay my taxes and pay a fine.  It seems my transmission never made it through to the IRS and Turbotax could not trace it. Thankfully, e-filing has improved by leaps and bounds since those days.

I voted no on the survey because I don't consider it trouble since I didn't get caught. I realized a couple years ago that I never paid city taxes to the city I worked in while in college. By the time I realized it, my tax records from that far back had been long since lost, (I've moved 14 or 15 times since I dropped out of college), so I'm assuming I'm off the hook by now. I grew up in a township that didn't have local taxes, so when it came to filing local tax wasn't something I thought about

 

Also, I throw all reciepts away after 5 years. I was told that if you make it past 5 years the IRS cannot come after you anymore.

 

There is no limit for fraud.  If you were audited, and they suspected fraud, they could go back indefinetly.

I voted no on the survey because I don't consider it trouble since I didn't get caught. I realized a couple years ago that I never paid city taxes to the city I worked in while in college. By the time I realized it, my tax records from that far back had been long since lost, (I've moved 14 or 15 times since I dropped out of college), so I'm assuming I'm off the hook by now. I grew up in a township that didn't have local taxes, so when it came to filing local tax wasn't something I thought about

 

I hope that wasn't RITA.  They came after my sister and it had been over 8 years and many address changes.  Her mistake was inadvertent, but they don't care about that.

I sent an $800 check to the IRS.  They sent it to the wrong bank, twice, and then threw it away.  One year later, they told me I owed them the $800 plus penalties and interest.  I paid them the taxes, but they deducted the penalty and interest from my $600 stimulus from last year.  After a round of strident letters, they refunded the $80 penalties, but not the $75 interest.

Turbotax is your friend. Took me an hour and a half to do the wife and I's taxes, both federal and state. Goes through the list of every possible deduction if you itemize, it's impossible to miss anything.

Looks like tax troubles are a non-partisan bete noir. This only proves the more complicated your life, the more complicated your taxes.

 

Palin to pay tax on past per diem

EXPENSES: Governor received meal money while living in Wasilla.

 

By LISA DEMER

[email protected]

 

(02/17/09 22:20:13)

 

Gov. Sarah Palin must pay income taxes on thousands of dollars in expense money she received while living at her Wasilla home, under a new determination by state officials.

 

The governor's office wouldn't say this week how much she owes in back taxes for meal money, or whether she intends to continue to receive the per diem allowance. As of December, she was still charging the state for meals and incidentals.

 

More below:

 

Find Lisa Demer online at adn.com/contact/ldemer or call 257-4390.

 

http://www.adn.com/palin/story/693695.html

Turbotax is your friend. Took me an hour and a half to do the wife and I's taxes, both federal and state. Goes through the list of every possible deduction if you itemize, it's impossible to miss anything.

It's not impossible. If your taxes are more complicated than normal, I'd personnally verify TurboTax's calculations. Didn't our new treasury secretary say he used TurboTax?