Don’t Fall Prey to the 2011 Dirty Dozen Tax Scams

In a new press release, the IRS warns taxpayers of twelve tax scams to avoid this year.

From IRS.gov:

“The Dirty Dozen represents the worst of the worst tax scams,” IRS Commissioner Doug Shulman said. “Don’t fall prey to these tax scams. They may look tempting, but these fraudulent deals end up hurting people who participate in them.”

The IRS works with the Justice Department to pursue and shut down perpetrators of these and other illegal scams. Promoters frequently end up facing heavy fines and imprisonment. Meanwhile, taxpayers who wittingly or unwittingly get involved with these schemes must repay all taxes due plus interest and penalties.

Following is the Dirty Dozen for 2011:

Hiding Income Offshore

The IRS aggressively pursues taxpayers involved in abusive offshore transactions as well as the promoters, professionals and others who facilitate or enable these schemes. Taxpayers have tried to avoid or evade U.S. income tax by hiding income in offshore banks, brokerage accounts or through the use of nominee entities. Taxpayers also evade taxes by using offshore debit cards, credit cards, wire transfers, foreign trusts, employee-leasing schemes, private annuities or insurance plans.

In early February, the IRS announced a special voluntary disclosure initiative designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. The new voluntary disclosure initiative will be available through Aug. 31, 2011. The IRS decision to open a second special disclosure initiative follows continuing interest from taxpayers with foreign accounts. In response to numerous requests, information about this initiative is available on IRS.gov in eight different languages, including: Chinese, Farsi, German, Hindi, Korean, Russian, Spanish, and Vietnamese.

More at IRS.gov...

How to Take a 100% Tax Write-Off for a New Porsche, BMW or Cadillac

Looking for a way to lower your tax liability in 2011? Thanks to a temporary tax law, you can write off the full cost of many luxury SUVs as long as it is used 100% for business, and weighs at least 6,000 lbs. Remember the “Hummer loophole?” Yep, it’s back and it’s even more ridiculous.

According to Fortune.com, vehicles that qualify include: the Porsche Cayenne Turbo, the BMW X6 M, and the Ford Lincoln Navigator.

If this high octane tax deduction sounds to you like an echo from the past, it is. Early last decade, there was a public furor over the “Hummer loophole” which allowed small business owners and self employed folks (including doctors, real estate agents and others with a purported business use for a vehicle) to deduct most of the cost of purchasing big SUVs.

Back then, taxpayers were exploiting Section 179 of the U.S. Tax Code – a provision designed to allow small businesses to expense (or immediately write off) small capital investments. As part of the 2003 Bush tax cuts, the maximum Section 179 write-off was increased from $24,000 to $100,000. In October 2004, after the Hummer hullabaloo, Congress limited the write-off for trucks weighing between 6,000 and 14,000 pounds to $25,000, curbing luxury SUVs’ tax appeal. (Write-offs for luxury cars were already more limited.)

But as my colleague Ashlea Ebeling explains in a story here in Forbes about smart tax moves for the next two years, an immediate SUV write off is allowed again under a different, even more generous provision of the tax code, good through Dec. 31, 2011. She writes:

Last December’s bipartisan tax deal included a temporary 100% write-off (known as 100% bonus depreciation) for new equipment placed in service by Dec. 31, 2011. This break, which is unlikely to be extended, isn’t just for big companies. “It could be significant savings for the little guy, too,” says Howard Krant, a New York City CPA. He notes that 100% bonus depreciation can be more valuable than another, longer-standing 100% write-off provision (known as Section 179) available to small businesses. That’s because you can’t use Section 179 to claim a loss.

Continue reading here

Top 20 Tax-Procrastinating Cities

Texas and California lead the nation in the amount of residents that wait until the last minute to file their tax returns. MSN Money put together the following list of this year's late filing cities. Check out the 20 top tax-procrastinating cities below, or click here for the full article.

1. Houston

2. Chicago

3. New York

4. Austin, Texas

5. San Antonio, Texas

6. San Francisco

7. Seattle

8. San Diego

9. Los Angeles

10. Dallas

11. Las Vegas

12. Washington, D.C.

13. Portland, Ore.

14. Atlanta

15. Phoenix

16. Philadelphia

17. Orlando

18. Jacksonville, Fla.

19. Tampa

20. San Jose, Calif.

Read more here

Questions for the Tax Lady: April 11th, 2011

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question: Roni, is there any way to get an extension of time to file my state return? I live in California.

Answer: Oh, are you ever in luck! The California Franchise Tax Board, who is in charge of state income tax filing, automatically grants you an extension until October 17, 2011. No forms to fill out, nothing to mail in.

That said, if you owe more state income taxes than you paid, you still have to pay that by April 18^th. You can pay by online here, and you can pay by credit card, but additional fees will apply. Not sure if you owe? Check out this site to get a tax estimate. Remember, this is only for California income taxes.

Check with your own state’s taxing authority to find out whether you can get an extension of filing time as well.

Question: Is it better to use my refund to pay off credit card debt or save it for retirement?

Answer: Well, that all depends upon your financial situation. If your debt issues are causing problems, but your retirement savings are doing well, by all means, pay down debt (remember, highest interest rate debt first). On the other hand, if your debts are minimal and of the “responsible debt” variety (like student loans, or your mortgage) but your retirement savings are laughable, go ahead and use your tax refund to start investing in your future.

If you are like many people and your situation falls between these two extremes, I recommend using the rule of thirds: devote 1/3 of your refund to paying off debt, another 1/3 to saving for your future, and 1/3 to buy something you need now.

At the end of the day, there are no hard and fast rules for how you use your tax refund. It all depends upon your personal financial situation.

General Electric's Aggressive Tax Strategy

Check out The Onion's hilarious take on GE's tax strategy.

Americans were outraged when it came to light recently that multinational corporation General Electric paid no taxes for 2010. Here are some of the ways GE avoided the tax man:

• Saved all receipts from aggressive lobbying efforts
• Purchased TurboTax Corporate Max Edition
• Wrote off bankruptcy of sister company Abstract Electric
• Brought a few hundred million good things to life; claimed them as dependents
• Somehow managed to locate a loophole in the transparent, ironclad U.S. tax code
• Claimed entire NBC prime-time lineup as a loss
• Claimed cash as a spouse, earned marriage tax credit
• God hates us

Hat Tip: TaxProf Blog

Remember That $7,500 First-Time Home-Buyer Credit?

According to reports, the credit has turned into quite a headache for the IRS, as taxpayers who took advantage are supposed to begin repaying the loan.

From WashingtonPost.com:

Under the Housing and Economic Recovery Act, certain homeowners were eligible for a tax credit equal to 10 percent of the purchase price of a home, up to a maximum of $7,500. Married individuals filing separately could get a $3,750 credit. Unmarried people who jointly purchased a home were allowed to divide the credit.

Buyers jumped at the opportunity. Now the repayment process is causing the Internal Revenue Service some frustration.

It was never fair to call the original first-time buyer stimulus a credit. It was an interest-free loan. Those who took the credit are required to repay the government over 15 years in equal installments for any amount received. So if you qualified for the maximum credit of $7,500, this means a yearly loan payment of $500. The loan/credit applied only to homes purchased after April 8, 2008, and before Jan. 1, 2009.

To further boost housing sales, Congress added two additional tax breaks for home buyers. Which credit you claimed depended on when you purchased your home. An $8,000 credit became available for qualifying first-time buyers who generally closed between Jan. 1, 2009, and April 30, 2010. If you had a binding sales contract signed by April 30, however, you had up to Sept. 30 to complete the sale and still qualify for the credit.

Continue reading here…

HSBC Records on American Clients with Accounts in India Sought by U.S. Tax Officials

On Thursday the Justice Department announced that it was seeking authorization to get information from HSBC regarding account holders in India that may have evaded paying their taxes.

Business Week reports:

The government asked a federal judge in Oakland, California, for permission to serve a so-called John Doe summons to “obtain information about possible tax fraud by people whose identities are unknown,” according to the statement. The request comes amid a crackdown by the Internal Revenue Service on offshore tax evasion that focused on UBS AG, the largest Swiss bank, and spread to other banks.

In January, a New Jersey businessman was charged with conspiring with five HSBC bankers to hide his Indian bank accounts from the IRS. The businessman, Vaibhav Dahake, is scheduled to plead guilty on April 11 in Trenton, New Jersey.

“The IRS continues to focus its attention on international tax evasion,” IRS Commissioner Douglas Shulman said in the statment. “This summons request is focused on obtaining more information to determine if additional actions are needed.”

Juanita Gutierrez, a spokewoman for HSBC, didn’t immediately return a phone call and e-mail seeking comment.

More here

Taxpayer Alert: The Coming Postal Service Bailout

Experts are warning that the postal service could reach its debt ceiling as early as September, which could push Congress to provide the federal agency with a cash bailout.

MSN reports:

Facing a projected $6.4 billion loss this year, on top of a record shortfall in fiscal 2010, the Postal Service is expected to slam into the $15 billion statutory debt limit established by Congress by the end of the current fiscal year on Sept. 30. At that point, it could be faced with the choice of running out of cash or defaulting on its sizable pension obligations, including a required $5.5 billion annual payment to fund future retiree health costs. This has intensified efforts on Capitol Hill to scrutinize Postal Service management practices, as well as to find ways to provide potential short- and long-term relief to the beleaguered agency.

House Oversight and Government Reform Committee Chairman Darrell Issa, R-CA, convened a hearing this week to take aim at the Postal Service’s recent deal with the American Postal Workers Union, representing more than one-third of the agency’s 572,000 person work force. The deal, which still requires ratification by the union’s membership, calls for a two-year pay freeze followed by a 3.5 percent wage increase over three years. "Eighty percent of the Postal Service's operating expenses are workforce-related. Costs must be reduced to align them with falling mail volume and declining revenue projections,” Issa declared.

But others suggest the major culprit is not current Postal Service management -- which has reduced the size of the agency by 100,000 employees in the past two years -- but rather Congress itself. While demanding that the Postal Service find ways to achieve economic self-sufficiency, members of Congress often have hamstrung the Postal Service with a series of restrictions aimed at averting blowback from their political constituencies.

As the Postal Service adjusts to email, electronic bill paying and faxes replacing so-called snail mail, "it would be irresponsible for Congress, as it does now, to stand in the way and act like a 535-member board of directors," Sen. Thomas Carper, D-Del., said recently. "No real business could ever function under that type of governance and it's unrealistic to think that the Postal Service would be well served by that type of micromanagement."

Read more at Money.MSN.com…

JPMorgan CEO Says Rich Should Pay "Lion's Share" of Taxes

According to JPMorgan Chase Chief Executive Jamie Dimon, the rich should pay the majority of taxes in this country. He made the statements on Tuesday at a meeting of the Council of Institutional Investors. Head of the financial powerhouse also said that if “we are no tvoluntarily fiscally responsible, we will be involuntarily fiscally responsible.”

Reuters reports:

Dimon, who also backed getting government spending under control, spoke as Republicans and Democrats failed to reach agreement during White House talks aimed at forging a budget deal that would keep the U.S. government operating beyond Friday.

On Tuesday, House Republicans also unveiled a plan for tackling long-term budget shortfalls that focuses on slashing spending including what goes to Medicare and Medicaid.

"I for one have no problem, as a well-off American... paying taxes," Dimon told the annual spring meeting of the Council of Institutional Investors.

"I think those well off should pay a lion's share, I have no problem with that," he said. "But I think we can't just go on endlessly spending money."

Continue reading here…

Married Gay Couples "Refuse to Lie" on Tax Forms

A growing number of same-sex married couples are refusing to call themselves "single" on their federal tax returns this tax season. The taxpayers are no longer willing to comply with the federal law that does not recognize their marriages, and have vowed to pay the IRS when they law changes.

NYTimes.com reports:

Same-sex couples who have married, or who have a legal status equivalent to marriage in certain states, must still file separate federal returns because the government — and therefore the Internal Revenue Service — defines marriage as a legal union between a man and a woman.

Using that definition, federal tax returns ask taxpayers to check one of five options under their filing status: single, married filing jointly, married filing separately, head of household or qualifying widow(er) with dependent child. Married same-sex partners typically file their own federal returns either as single or, if they qualify, as head of household, which has more favorable rates than the single filing status.

But many same-sex couples contend that filing as single amounts to lying about their marriage status, and that’s the message behind the “Refuse to Lie” campaign created by gay activists, which is timed to coincide with tax season.

“More people are refusing to lie on those forms, even though the government is telling them to,” said Nadine Smith, executive director of the gay, lesbian, bisexual and transgender advocacy group Equality Florida, who plans on filing a joint return with her wife, Andrea. “It would be both dishonest and deeply humiliating to now disavow each other or our marriage and declare ourselves single on our tax form.”

Continued at NYTimes.com…

Prices are Low! Mortgages Cheap! But You Can't Get One

With home values continuing to fall, and mortgage interest rates at record lows, you might think it's a buyers market these days. You would be wrong. According to the Federal Reserve (via CNN), nearly a quarter of Americans who apply for home loans are being turned down.

"Good borrowers with one or two blemishes on their credit are being denied credit," said Lawrence Yun, chief economist for the National Association of Realtors.

The denial rates tell only half the story. Many potential buyers aren't even applying for loans because they assume they can't get one.

"A lot of people know it's very difficult to get a mortgage and they're not even trying," said Alan Rosenbaum, CEO of GuardHill Financial, a New York-based mortgage broker.

That shows up in credit scores for loans financed with backing from Fannie Mae and Freddie Mac. The average credit score has risen to 760 from 720 a few years ago. For FHA loans, the average score has gone to 700 from 660. Loans made to borrowers with sub-620 scores are almost nonexistent.

Another factor keeping people out of the mortgage market is that lenders now require much more up-front cash. The median down payment for purchase is about 15%. During the housing boom, it approached zero.

Read more at CNN.com…

IRS Announces Qualified Disaster Treatment for Japan

Yesterday the IRS designated the recent earthquake and tsunami in Japan as a qualified disaster for tax purposes.

From IRS.gov:

The guidance allows recipients of qualified disaster relief payments to exclude those payments from income on their tax returns. Also, the guidance allows employer-sponsored private foundations to assist employee victims in areas affected by the March 2011 earthquake and tsunami in Japan without affecting their tax-exempt status.

Charities usually fall into one of two categories – public charities or private foundations. Under the tax law, a private foundation that is employer-sponsored may make qualified disaster relief payments to employees affected by a qualified disaster. These payments generally include amounts to cover necessary personal, family, living or funeral expenses that were not covered by insurance. They also include expenses to repair or rehabilitate personal residences or repair or replace the contents to the extent that they were not covered by insurance. Again, these payments would not be included in the individual recipient’s gross income.

Qualified disasters include Presidentially declared disasters, as well as other catastrophic events. Because of its catastrophic nature, the IRS has determined that the earthquake and tsunami in Japan that occurred last month is a qualified disaster for purposes of the federal tax law. The IRS has made similar determinations regarding prior international disasters, such as the Haitian earthquake in 2010 and the Indian Ocean tsunami in 2004.

The IRS will presume that qualified disaster relief payments made by an employer-sponsored private foundation to employees and their family members in areas affected by the earthquake and tsunami in Japan are consistent with the foundation's charitable purposes.

Read more here

House Republican Budget Calls for 25% Top Individual and Corporate Tax Rate

Peek into the future: you can read The House Budget Committee Chairman’s budget recommendations for 2012. Check out the main tax points below, or download the full PDF (Path to Prosperity: Restoring America's Promise) here.

Individual tax reform: The current code for individuals is too complicated, with high marginal rates that discourage growth. This budget embraces the widely acknowledged principles of pro-growth tax reform by proposing to consolidate tax brackets and lowers tax rates, with a top rate of 25 percent, clearing out the burdensome tangle of loopholes that distort economic activity.

Corporate tax reform: American businesses labor under the highest corporate income tax in the developed world. The perverse incentives created by the corporate income tax do a lot of damage, yet the tax itself raises relatively little revenue. This budget improves incentives for job creators to work, invest, and innovate in the United States by lowering the corporate rate from 35 percent to a much more competitive 25 percent.

Hat Tip: TaxProf Blog

White House States Opposition To Energy Tax Prevention Act

From NYTimes.com:

In case there was any doubt, the White House on Tuesday issued a formal statement opposing a bill now before the House that would bar the Environmental Protection Agency from regulating greenhouse gases for the purpose of combating climate change.

The bill, known as the Energy Tax Prevention Act of 2011, could come up for a vote as early as Wednesday and is almost certain to pass when it does. It has virtually unanimous support among the Republican majority and will probably draw votes from a few Democrats from coal and oil producing states.

The measure, sponsored by Representatives Fred Upton, Republican of Michigan, and Ed Whitfield, Republican of Washington, would overturn the E.P.A.’s finding that carbon dioxide and other greenhouse gases pose a danger to human health and the environment. That finding, based on a broad scientific consensus, is the basis for pending regulation of carbon emissions from vehicles and large stationary sources like power plants, factories and refineries.

Republicans assert the new rules are a hidden energy tax that will significantly raise production costs and drive jobs offshore.

Administration officials have spoken out against the bill in speeches and congressional testimony, but President Obama had not formally threatened to veto it. On Tuesday, the White House issued a strongly worded statement that erases any doubt.

More here

Turn Your House into a Billboard, Get Free Mortgage

Looking for a way to reduce your monthly bills? A new advertising firm is offering to pay the mortgage for homeowners that are willing to turn their homes into massive billboards!

CNN reports:

Adzookie launched the offer on its website Tuesday -- and by late afternoon, the company had already received more than 1,000 applications, according to Adzookie CEO Romeo Mendoza. One even came from a church.

"It really blew my mind," Mendoza said. "I knew the economy was tough, but it's sad to see how many homeowners are really struggling."

Adzookie intends to paint its logo and social media icons onto participating homes. Houses must remain painted for at least three months, and the agreement may be extended up to one year.

Painting is expected to begin in a few weeks. The above photo, which is included on the program's site, is a digital mockup. (No actual homes have yet been painted.)

Continue reading at CNN.com…

11 Last Minute Tax Tips

Tax day is so close you can feel the panic in the air as millions of Americans struggle to get their taxes filed on time. Now, I’m sure you already filed your state and federal tax returns, but for everyone else who procrastinated here are 11 tips to help you finish tax season strong!

April 18th

This year the deadline to get your returns filed has been moved to April 18th, giving you three extra days to avoid late penalties. Use them wisely!

Post Office Hours

Your return has to be postmarked on or before the tax deadline to avoid being considered late. If you are cutting it close, you may want to call a few local post offices to find out what their hours are on April 18^th. Some stay open until midnight to help last minute filers, but not all of them!

Your Old Return

If you are planning on preparing your own return, then you should be able to use last year’s tax return as a guide. Unless your financial situation has changed significantly most of the information should be the similar and might help remind you if you missed a deduction. If you are using tax preparation software, you can even automatically import your data from the previous year. Just make sure you double check everything!

Always E-File

Unless you are required to mail in a paper return, you should consider e-filing your tax return. Not only is it easier than driving to the post office, but you will also get an electronic confirmation from the IRS showing they have received your return. That little confirmation can save you a lot of worry, and the fees that come along with your return getting “lost in the mail.”

Pay by Credit

As I explained in this response to a question from a reader, you do not have to pay the IRS with a check. If you do owe, you can pay with credit card, however you will have to pay additional convenience fees, up to 2.35%.

Direct Deposit

On the other hand, if you are expecting a refund, I recommend having it directly deposited into your bank account. You could have your refund in as little as 8-10 days, as opposed to the weeks or months it can take the IRS to mail you a paper check.

Automatic Extension

If you are unable to get your return filed before the deadline, you can request an automatic extension from the IRS. It will give you an additional six months to get your return filed, but keep in mind that it does not extend your deadline to pay any owed taxes. For more information, check out this article with tips and instructions on requesting on automatic extensions. And remember, you MUST file for an extension by April 18. Any extension requests sent after that will be denied.

There's Still Time to Reduce your Tax Bill

A few weeks ago I posted this article on your options for reducing your 2010 tax liability. You could contribute to an IRA, or health savings account (HSA). Keep in mind though that these contributions must be made before the tax deadline. If you request an extension it will give you more time to file your return, but not to make IRA or HSA contributions.

Mistakes are Expensive

In your rush to get your returns filed, make sure that you avoid making a costly mistake. It may seem obvious, but you would be surprised how many taxpayers forget to sign their returns, or put down the wrong SSN. Click here for a list of the 10 most common tax preparation mistakes, and make sure you avoid them!

Be Honest

The most important advice I can give you is to be honest on your tax return. Do not claim any credits you are not entitled too, or exaggerate your charitable contributions. The best way to avoid tax problems is to be 100% honest on your tax return.

Tax Day Freebies

Every year a handful of companies offer tax day promotions and freebies to help reduce the stress for all those last minute filers out there. Getting a free cinnamon bun won't help you get your return in time, but it can make tax day a little more enjoyable! Be sure to check the ads in your newspaper, or Google "tax day freebies" to find out which businesses are participating this year.

US Government Spent More than Eight Times its Monthly Revenue

According to new data from the Treasury Department, the federal government grossed $194 billion in March, paid out nearly $66 billion in refunds, netting $128 billion in tax revenue. However, the Treasure paid out a total of $1.1187 trillion in federal expenses.

From CNS News.com:

That $1.0528 trillion in spending for March equaled 8.2 times the $128.179 in net federal tax revenue for the month.

The lion’s share of this federal spending went to redeem Treasury securities that had matured during the month—most of which were short-term Treasury bills that have terms of one-year or less.

In fact, during March the Treasury redeemed $705.3 billion in Treasury securities of which $623.9 billion were short-term bills with a term of one year or less.

After the disbursements made to pay off the $705.3 billion in loans that came due in March, three of the other top four federal spending items for the month were entitlements programs. The other top item was payments to defense contractors.

The Treasury paid $49.8 billion in Social Security benefits in March, $47.4 billion in Medicare benefits, and $22.575 billion in Medicaid benefits. It also paid $37.9 billion to defense contractors.

To help pay off its $1.0528 trillion in monthly bills on only $128.179 in monthly tax revenue, the Treasury turned primarily to new borrowing. During the month, according to the Treasury statement, the government sold $786.5 billion in new securities. It also drew down its cash balance from $190.6 billion at the beginning of the month to $118.1 billion at the end of the month. It also reaped $18 billion from the sale of assets in the Troubled Asset Relief Program.

Continue reading here...

McDonald's Wants to Fill 50K Jobs on Hiring Day

The corporation is planning to hold its first national hiring event on April 19th to fill over 50,000 openings across the country. That’s 3 or 4 new jobs per franchise location.

The Associated Press reports:

McDonald's is hiring restaurant crew and management for full-time and part-time positions. The company's hiring goal translates to between three and four new hires per restaurant.

Turnover slowed in the past few years because of the weak economy, the company says. McDonald's sees this event an opportunity to attract employees in a tough job market.

It is also trying to shed the negative connotation of employment at the fast-food chain, once dubbed "McJobs." About half of its franchisees and more than 75 percent of its managers started as store workers.

"A McJob is one with career growth and endless possibilities," the company said in a statement.

McDonald's held a similar event in its Western region last year. More than 60,000 people applied for the 13,000 positions.

Continue reading here...

New York Times Gives False Information on General Electric's Zero Income Tax Bill

Check out this opinion piece defending GE's corporate tax strategy.

From Yahoo News:

It is hard to imagine that General Electric (GE), whose nuclear plants have been in the spotlight since the recent Japanese earthquake and subsequent tsunami, would have anything positive to say about that natural disaster, but the media uproar that followed it meant that the world's newspapers were distracted from the multinational corporation's recent SEC filing. That filing, Form 10-K, revealed that in 2010, for the second year in a row, General Electric paid zero federal income taxes.

The 258 page long PDF document was finally analyzed this week by reporters who latched onto phrases like "GE's effective tax rate is reduced because active business income earned and indefinitely reinvested outside the United States is taxed at less than the U.S. rate." The New York Times in particular took pleasure in writing a long-winded four-page diatribe that all but accused GE's tax department, led by John Samuels, a former Treasury official, of committing tax evasion in an effort to avoid paying the 35% federal income tax rate on tax profits.

What most readers of the New York Times, and anyone else not well versed in accounting rules and tax regulations, is likely unaware of, is that tax profits are different than book profits. There are expenses that can be deducted for accounting records but not for tax liabilities and vice versa. Major corporations like GE do complicated calculations each quarter to find out exactly what those differences are so that there are no ugly surprises when they report information to both their shareholders and the taxing authorities.

One of the New York Times' accusations is that GE pays no taxes in the United States. Logic tells us, though, that this simply is not true. With nearly 150,000 employees in the United States, GE pays millions in payroll taxes like employers of all sizes. GE also may pay income taxes to those states that it has a significant presence. While each state defines nexus, which triggers income tax return filing requirements, differently, considering GE's size, it is likely that they file and pay taxes in many states in this country. They also likely pay franchise tax fees as well as sales tax to various states and cities.

More here

IRS Files Tax Lien Against Lil Wayne

Right around tax season the IRS loves to go after celebrities, and this year is no different. Most recent in a long line of celebs with tax problems, it's Young Money rap star Lil Wayne who reportedly owes $5.6 million.

BET reports:

Lil Wayne has racked up a tax bill that isn't very little. The platinum-selling rapper has just been hit with a tax lien by the IRS in the amount of $5.6 Million.

This isn't the first time the IRS has filed a lien against Weezy. Last June, Uncle Sam filed a $1.13 million tax lien for income taxes owed for the years of 2004, 2005 and 2007. The $5.6 million dollar debt now includes taxes owed for the years 2008 and 2009. Wayne has until 2020 to refile the taxes.

Wayne, who is currently selling his mansion in Miami Beach for $12.9 Million, is reportedly bringing in big bucks on the I Am Music Tour. The rapper is also getting ready to release his highly-anticipated Tha Carter IV album.

More here