There,Such,Thing,Tax,Simplific finance, share, loan There Is No Such Thing As Tax Simplification!

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I'm a little upset right now, so please bear with me. Idon't get upset very often - you can always tell becausesmoke starts coming right out of the top of my bald head! -but I'm here to tell ya', this one really has me bothlaughing and crying at the same time!Recently the IRS came out with this press release:IRS Increases Interest/Dividend ThresholdSource: Associated Press Publication date: 2002-09-26WASHINGTON (AP) - More than 15 million taxpayers will beable to skip filing a separate IRS form for interest anddividend income next year under a move announced by the taxagency Thursday. Beginning with 2002 returns due next April, most taxpayerswon't have to file the separate schedule with their 1040forms if their interest and dividend income is $1,500 orless. That replaces the current threshold of $400, which hasbeen in place since 1974. Taxpayers who file 1040 forms use Schedule B to listinterest and dividend payments. Under the new rules,millions of taxpayers will simply report their interest anddividend income without filing the separate forms. Charles Rossotti, the Internal Revenue Service commissioner,estimated that 15 million taxpayers will be no longer haveto file the extra form. "We will continue our efforts to reduce the burden ontaxpayers and simplify the tax code," said Pam Olson, actingassistant Treasury secretary for tax policy. END OF PRESSRELEASENow, aren't you just thrilled to hear that the IRS, in it'sinfinite wisdom and undying compassion for the Americantaxpayer, has decided to make life easier for you bychanging the rules regarding the filing requirements for onetax form know as Schedule B? Give me a break!In case you were just dying to know, Schedule B is a formthat you must file with your personal tax return if yourtotal interest and/or dividend income exceeds $400. Now,you only have to file Schedule B if your investment incomeexceeds $1,500.By the way, no matter how much investment income you have,ALL taxable investment income must be reported on your taxreturn. The issue here is whether or not you have toprovide a detailed itemized listing of your investmentincome.Example: Let's say you have $1,000 of interest income.Under the new rules, you can just put the $1,000 right onPage 1 of Form 1040. And that's it.But if you have $2,000 of interest income, you have tocomplete a separate form (Schedule B) and list each sourceof that interest income, i.e. the name of each bank accountor other financial institution and how much interest ordividend income you earned from each source. So because of this simple rule change, about 15 millionpeople will not have to file Schedule B.And because the IRS has removed this one form from the taxreturns of 15 million people, an IRS official has the nerveto make this pronouncement:"We will continue our efforts to reduce the burden ontaxpayers and simplify the tax code."Can you believe it? This lady, and I mean no disrespecthere toward Ms. Olson - I'm sure she's a hard-workinggovernment employee who does a great job, but this lady, inmy humble opinion, has her head in the sand, as do virtuallyall politicians and other government authorities who havecreated the ungodly monster know as the Internal RevenueCode.The IRS changes one little rule that removes one form fromonly 15% of all returns filed - and this gives the IRS theright to think that they are reducing the burden ontaxpayers??? (Keep in mind that there are over 100 milliontax returns filed every year. So, if this Schedule B rulechange affects 15 million people, that's a measly 15% of alltax returns filed.)C'mon - what is wrong with this picture? Do you get mypoint? Taking away one lousy form from a small percentage of taxreturns filed - how is that reducing the burden ontaxpayers? It's not! It's a drop in the bucket. It'speanuts. It doesn't even come close to making an impact onthe incredible burden that taxpayers have each year on April15.Furthermore, how does this one little change "simplify thetax code"? I am appalled that a government official wouldeven use the phrase "simplify the tax code". We have neverhad tax simplification. Never. Never ever! Since 1913,when the tax code was first implemented, there has beennothing but tax complications, never tax simplifications. The rules only get more and more complicated. Tax laws onlyget more and more complex. The Tax Code just gets biggerand bigger. Don't let the politicians' hype fool you.Never for a minute should you believe the government whenthey say that they are trying to "simplify the tax code."So, what's the average taxpayer to do? If the tax rules justget more complicated, how are you supposed to make anysense out of all this mess?You only have 2 options, as I see it. One I offer tongue-in-cheek, the other is "words-to-live-by."OPTION #1: Become a Tax Professional and prepare hundreds oftax returns every year. That's the only way I know for youto become sufficiently knowledgeable in the crazy world ofU.S. taxation. Obviously, this is not a viable option for99.9% of the population. But you get the point.OPTION #2: Hook up with a Tax Professional. Find someone else who does tax returns for a living. Notyour "family tax preparer", you know, Uncle Fred who likesdoing returns and so offers to do yours for free. But anexperienced tax person who does hundreds of returns everyyear and can help you make sense out of the most nonsensicalcollection of rules on the planet. Article Tags: Burden Ontaxpayers