Comments on: Am I Required to Report All Income to the IRS?

By: dan

dan — Thu, 05 Apr 2012 06:47:46 +0000

I’m disabled Because of Two car accidents and didn’t work but received money in a lawsuit and got loans I have no other income plus I lost alot of money in instant tickets do I file taxes and write off my losses

By: Kaitlyn

Kaitlyn — Thu, 29 Mar 2012 17:24:44 +0000

How could you have gained a profit on everything you sold? Unless you sold all of your personal belongings for MORE than you originally bought them for? That’s not usually possible.

By: Kathy Hunley

Kathy Hunley — Sun, 08 Jan 2012 17:54:25 +0000

I helped a lady with babysitting once in a while for extra cash, does it need to be reported.

By: J

Sun, 11 Sep 2011 12:50:47 +0000

I sold all most my material belongings to create more cash flow for myself during a rough time. (TV’s, furniture, appliances, art, clothes, shoes) and gained a profit from everything I sold. It was reported last year by my tax preparer as self employment. Is this the correct classification? If not, how do I correct it or is it to late. (2010 return filed in 2011. I did not sell any stocks, bonds or anything like that. Just material goods as listed)

By: Courtney

Courtney — Thu, 01 Sep 2011 21:38:43 +0000

What section in the Internal Revenue Code does it say that you will be taxed on a reward that you receive for providing information that leads to an arrest?

By: crimewatch

crimewatch — Thu, 16 Apr 2009 18:45:36 +0000

perhaps that would increase your basis in the property? LOL

By: crimewatch

crimewatch — Thu, 16 Apr 2009 18:43:12 +0000

When the Feds can’t make the real case against the criminal, they always check on income tax evasion – catches quite a few hard-core criminals.

By: Mike

Mike — Mon, 23 Mar 2009 08:24:45 +0000

FG– YES, you would report the capital gains to the IRS, on the same form you use to report domestic capital gains. But the good news is that you can get a dollar-for-dollar tax credit for the taxes you paid to the other country. The tax credit form is 1116.

By: Flexo

Flexo — Sat, 21 Mar 2009 13:13:01 +0000

Heh, I doubt it anyone believes that. But it does provide another path for law enforcement to go after criminals they can prove received income but they can’t quite prove they’ve committed a crime.

By: Flexo

Flexo — Sat, 21 Mar 2009 13:11:16 +0000

Ron: That’s a terrible thing to happen. I hope your mom has recovered fully. Prior to 1996, injury lawsuit settlements and awards were not reportable to the IRS, so 20 years ago she wouldn’t have to report the award and the attorney, accountant, and IRS were correct.

By: Roger

Roger — Sat, 21 Mar 2009 04:57:43 +0000

Wow, this is hilarious. I’m starting to see how Al Capone got into trouble with the IRS:

Q: I’m running a massive criminal empire as one of the most famous (and infamous) people in the country. Do I have to report my income?

A: Yes. Or the IRS will succeed where every other law enforcement agency has failed and arrest you, inspiring constant quips from hundreds of commentators for decades about how you evaded the FBI and the police, only to be taken down by the IRS.

By: Ron

Ron — Sat, 21 Mar 2009 03:51:48 +0000

Things may have changed, but about 20 years ago my mother was awarded a mega-dollar lawsuit when a guy struck her from behind while she was sitting in her car at a traffic light. She broke her neck, had internal brain injuries and had to learn to walk again. Her lawsuit proceeds were not taxable at that time according to her attorney, her accountant, and the IRS.

For the record, the guy was a VP for the largest privately owned insurance company in the state … and he was driving the company car. From the attorney’s point of view, it didn’t get any sweeter than that.

By: Matthew

Matthew — Sat, 21 Mar 2009 03:39:08 +0000

Ok. How about:

I dug a hole in the ground in the backyard of the house that I own and found a $10,000 gold nugget. Do I have to report this?

By: Eric

Eric — Sat, 21 Mar 2009 03:08:33 +0000

ROFLMAO!

(If Internet acronyms aren’t your thing, it’s Rolling On the Floor Laughing My Ass Off!) ;-)

By: FG

FG — Sat, 21 Mar 2009 02:53:43 +0000

Let me try this: I own a mutual fund in a country other than the US. I have double citizenship: US and that of the country where I own the mutual funds. On withdrawing my gains, the mutual fund company in that country automatically withholds the capital gains tax (according to that country’s tax regulations) and sends it promptly to the local tax authority.

Under these circumstances, do I still have to report the capital gains to the IRS even though I have already been taxed once for them? (If yes, what forms would I need to use?)

By: Shaun

Shaun — Sat, 21 Mar 2009 02:34:51 +0000

Anca,

It’s there to help punish illegal actions, and to give the government extra “room” to investigate people they believe are doing illegal things. It’s not about taxes, but about finding a way to excuse extra-invasive investigations. It’s actually humorously clever. ;-)

Say, Flex, I’ve sent a few emails to you (I believe, at least) about a possible guest post. Have you received the emails? They might have been sent to the spambox, so I wanted to make sure you knew. :)

By: Anca

Anca — Sat, 21 Mar 2009 00:54:03 +0000

Does anyone honestly believe most criminals report their illegal income?

By: thomas

thomas — Sat, 21 Mar 2009 00:29:05 +0000

Wow, the government wants their hand on everything. Not condoning certain behavior, but it might be hard to verify certain prize earnings or rewards.

By: SJ

SJ — Fri, 20 Mar 2009 22:41:34 +0000

This post was hilarious!! It was great and had me laughing =)!!

By: Nate

Nate — Fri, 20 Mar 2009 19:36:46 +0000

Q: If you read a very entertaining (er..educational) post what should you do?

A: Promote it!

Make sure that you mention it on all your favorite social networks including Twitter, Stumble Upon, and Digg. ;)

Thanks,
Nate

By: ib

ib — Fri, 20 Mar 2009 18:43:21 +0000

LOL! this was a very entertaining post — er, i mean educational. thanks for sharing it. i enjoyed it. :)