Huckabee Woos Voters With 23% Sales Tax

Christopher Beam explores the potential evader's options

(NEWSER) - With millions of Americans enduring long lines at the post office today to file their tax returns, Christopher Beam of Slate can’t help wonder: What would happen if you simply didn’t file? The answer is probably not much—7 million Americans declined to file last year, and only 158,000 of them were investigated—although certain factors increase your chances of being an IRS target. More»

Candidates offer differing views on 'fair tax,' extending Bush cuts

(NEWSER) - With President Bush’s tax cuts set to expire in 2010, tax reform could become a key issue in this year’s presidential race, the Christian Science Monitor reports. Most Republican candidates favor extending the cuts, though Mike Huckabee and Ron Paul support eliminating income tax altogether. The Democratic candidates almost universally favor repealing Bush’s cuts but differ slightly in their proposals. More»

IRS rules onerous, expatriates say

(NEWSER) - It's April again: time to add up receipts, find little-known tax breaks , and, in some cases, renounce US citizenship altogether. In fact, a record number of Americans abroad renounced their citizenship last year as complaints increased about IRS rules, Reuters reports. One rule forces all Americans to file forms for foreign accounts containing at least $10,000. Another, newer rule stipulates that financial institutions must cough up information on US clients to the IRS. More»

Accountants and tax lawyers share tips for beating Uncle Sam

(NEWSER) - So the New York Times is offering tips for tax cheaters. Guess we know which newspaper will be audited next—but for now, let's take advantage of the paper's survey of 20 tax lawyers, accountants, and policy wonks:

• The easiest way to cheat is ... running your own company—or, more specifically, being the sole proprietor of a Schedule C business. Such tax filers write off tons of personal expenses and payments to family members (even to "infant children," says one CPA).

He could owe tens of thousands, tax lawyers say

(NEWSER) - Newt Gingrich's tax returns might qualify him for an audit, tax attorneys tell USA Today, saying that the presidential contender may have dodged paying tens of thousands in Medicare tax. Gingrich's campaign contends that "the salary and distribution were handled properly and legally." The matter stems from Gingrich's use of what is known as an S Corporation, which sends income and losses to shareholders for tax assessment. S Corporations don't have to pay a 2.9% Medicare tax on non-salary distributions—but they are supposed to pay employees via salary to a "reasonable" extent, the IRS says. More»