HDTenEightyP/NetNews huggingface dataset:
From: cep@taligent.com (Christophe Pettus)
Subject: Re: Yikes! Am I Facing a Tax Penalty?
Organization: Taligent, a little subsidiary of two really big companies.
Distribution: usa
Date: Tue, 15 Dec 1992 17:53:13 GMT

In article <924603u1c35O00@amdahl.uts.amdahl.com> tiwana@uts.amdahl.com (Gurumukh Singh Tiwana) writes:
>I am underheld for the California state tax. Only about 50% of the
>tax is withheld from my wife's and my paycheck. Does anyone know how
>I can remedy the situation without paying a penalty?

First, file a new DE-4 to correct this situation; while there is a
definite tendency to be underwithheld on state taxes, there is no
reason at all to be underwithheld by 50%.

Second, estimate how much your 1992 state income tax will be.  Estimate
how much you've had withheld so far, and figure the difference between
that and 90% of your state tax.  Then, divide that by the number of pay
periods remaining, and have your employer withhold that amount from
each paycheck for state taxes, in addition to the standard
withholding.

You can also send in a 540ES by January 15th for that amount; you will
still pay a penalty, but it will be somewhat less than it would be
otherwise.  If you file by January 30th, you can send in the 540ES with
your return, and it will count as if filed by January 15th.

Lastly, you could just wait until April 15th and pay the penalty.  It
probably will not be significant.
--
-- Christophe

"I draw the line at Styrofoam packing kernels, you sick pervert."
Newsgroups: misc.taxes
From: ehrlich@world.std.com (Stuart R Ehrlich)
Subject: 5500 filing amnesty program?
Organization: The World Public Access UNIX, Brookline, MA
Distribution: usa
Date: Tue, 15 Dec 1992 14:55:33 GMT

An issue of "The Kiplinger Tax Letter" mentions "... the Labor Dep't
is waiving fines for non-filers of 5500 forms, provided that reports for
past years are filed with Labor Dep't this year".  Does anyone have any
details about this?  (Although I am meeting with my accountant this
week, and trying to phone the IRS, I would appreciate any info I can
get.)

When I was a lowly sole-propreitor, I had a qualified retirement plan/Sep/
Keogh.  The bank, may it rest in hell, never could make up their mind what
the plan really was.  5500 forms were only filed the first year (1984).

I am sure nothing improper was done, other than non-filing the forms.
(P.S. What does the Labor Dept have to do with this?  I thought this
was an IRS thing.)
From: rdyreng@oodis01.hill.af.mil (Russell I. Dyreng;OO-ALC/LILE-1)
Newsgroups: misc.taxes
Subject: Re: Can I "Double Fund" an IRA?
Date: 17 Dec 92 23:02:15 GMT
Organization: Fedtax-L<==>Misc.Taxes Gateway
X-Gateway-Source-Info: Mailing List

In your message of 17 Dec 1992 at 1508 MST, you write:
> IRAs for 1992 need to be opened by April 15, 1993.  IRAs for 1993 can be
> opened starting January 1, 1993.  Is there any reason I can't open an
> IRA on (say) April 1, 1993, and put $2,000 for 1992 AND $2,000 for 1993
> into it at the same time?
> --
> -- Christophe
>
> "I draw the line at Styrofoam packing kernels, you sick pervert."
>
Perfectly legal.  At the time of investment, you indicate the tax year
against which the deposit will be calculated.  The 01Jan-15Apr window
can be used for either this year or last year.  As long as you don't
exceed the $2000 per tax year limit.

Russ
From: "hilary miller" <hilary.miller@execnet.com>
Newsgroups: misc.taxes
Subject: allocated tips
Date: 18 Dec 92 17:28:18 EST
Reply-To: "hilary miller" <hilary.miller@execnet.com>
Distribution: misc
Organization: Executive Networks Information


Cheryl Allen, in a message to All on 12-16-92 at 1:05pm, said:

CA>|I have a question, I work part time at a pizza restaurant for extra
   |money. The IRS now has this law that you must claimat least 8% of the
   |store sales in tips. How can they, THE IRS do this?? This store is real
   |a fast food type restaurant, not everyone that comes in leaves tips,
   |we for the most part cater tokids and they dont leave tips. The IRS
   |now claims that the amount of sales for the storeI should of claime
   |almost $800.00 dollars more they I did.
   |_______________________________________________________________________

          You should familiarize yourself with the tip-reporting rules,
          which are at I.R.C.  6053(c) and Reg.  31.6053-3.  You are
          only required to allocate tips to "employees who customarily
          receive tips."  And you are entitled to apply to the Service
          to have the allocation reduced from 8% to not less than 2%. 
          I believe the Service has a consumer publication (the number
          of which I do not remember) which covers this subject.  Call
          1-800-TAX-FORM and ask for it.


   L A
 I    R        Hilary B. Miller of Greenwich, Connecticut
  H/\Y         CIS: 76040,1743
    
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  DeLuxe/386 1.25 #11645  As easy as 3.1415926535897932384626433832795028841
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From: tar@ISI.EDU (Thomas A. Russ)
Newsgroups: misc.taxes
Subject: Re: 401K -> IRA -> 401K?
Date: 11 Dec 92 19:33:55 GMT
Reply-To: tar@isi.edu
Organization: USC-ISI
In-reply-to: pc@bellcore.com's message of 10 Dec 92 19:28:36 GMT

In article <...> pc@bellcore.com (Peter Clitherow) writes:
 > i'm about to leave my company, where i've had a 401K for some years now.
 > i believe i must take distribution of the 401k, but can roll it over, in
 > some reasonable time, to an IRA.

Thanks to new rules, if you don't roll over the proceeds from the 401K
directly to an IRA you will have 20% of it withheld for taxes.  If you
then can't make up this 20%, you will have an early withdrawal (with
its associated penalties) forced on you.  Moral:  Move the funds
directly to an IRA

 > 
 > now, 401Ks have some good things, such as being about to borrow from
 > them.  Are there any IRAs that have similar provisions?

There are no IRAs to my knowledge that let you do this.

 > is it possible
 > to roll over an IRA into a new 401K if i subsequently work for a company
 > that has such a plan?
 > 

Yes, this is possible.  When you set up an IRA with some custodian,
have it designated a "Roll-Over IRA".  As long as you DO NOT
contribute any additional funds to this IRA, you will be able to roll
it over into a new 401K plan (company permitting).

 
--

Thomas A. Russ                                             tar@isi.edu    
USC/ISI, 4676 Admiralty Way, Marina del Rey, CA 90292      (310) 822-1511
Newsgroups: misc.taxes
From: "hilary miller" <hilary.miller@execnet.com>
Newsgroups: misc.taxes
Subject: annuity tax question
Date: 13 Dec 92 08:16:37 EST
Reply-To: "hilary miller" <hilary.miller@execnet.com>
Distribution: misc
Organization: Executive Networks Information


George W Gavaras, in a message to All on 12-11-92 at 5:45pm, said:

GW>|Any annuity tax experts out there?
   |My story:  My father died leaving no estate.  He was a retired Florida
   |teacher with a very small annuity income.  I was named as a beneficiary
   |of the annuity.
   |_______________________________________________________________________

          George, there is really less to this than meets the eye. When
          you buy an annuity, you pay the insurance company a premium
          in return for a fixed payment from the insurance company
          every month for a term measured by a lifetime, or a number of
          years, or both.  Every payment in an annuity contains two
          pieces: a return of a portion of the premium you paid, and
          imputed interest.  The former is a tax-free return of capi-
          tal; the latter is taxable income.  The IRS promulgates
          tables which show how to take such amounts into income.  Your
          accountant or the insurance company which issued the annuity
          can assist you in applying the tables to your particular
          facts.


   L A
 I    R        Hilary B. Miller of Greenwich, Connecticut
  H/\Y         CIS: 76040,1743
    
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Newsgroups: misc.taxes
From: dattier@ddsw1.mcs.com (DWT)
Subject: Re: how to effect a gift of $20,000 without tax problems?
Date: Mon, 14 Dec 1992 06:51:32 GMT
Distribution: usa
Organization: Contributor Account at ddsw1, Chicago, Illinois  60657

ask@cbnews.cb.att.com (Arthur S. Kamlet) wrote in
<1992Dec11.055343.20326@cbnews.cb.att.com>:

K> In article <1992Dec11.042828.24292@colorado.edu>
K> wouk@alumni.cs.colorado.edu (Arthur Wouk) writes:

W> we wish to give $20,000 to a child without causing estate tax
W> complications.  we each can give $10,000.

W> the child is an adult. the gift is of stock held in my wife's name.
W> she can give $10,000 directly.

W> the question is, must my wife first transfer the second $10,000 to my
W> name, before i give it, or can it all be done in a single actions,
W> using the intra-marital exemption to cover it?

K> If this was cash, and funds were in a joint account, and you both
K> sign a check for $20,000 from this acount, that should establish
K> your intent for each of you to share in making this gift.

K> Or your wife can give you $10,000 which you can further gift.

K> Or your wife can give $10,000 now and $10,000 in January.

Oy.  All Arthur [Wouk, not Kamlet] has to do is to join in the gift, provided
that he has given their daughter nothing else during 1992.  [Last week I took
Kamlet to task for oversimplifying something; now I'm disagreeing with him
because he overcomplicated something.]  A married couple can make joint gifts
up to $20,000 per recipient per year without gift taxes, regardless of which
spouse supplies the assets given.

In case there might be questions in the future, it's a moderately good idea
to declare the gift on a form 709 (gift tax return) for 1992.  There would,
of course, be no tax and no charge against their unified credit.

K> Or your wife can give you $10,000 which you can further gift.

In this case that's harmless, but normally it's a bad idea; the IRS has been
known, I was told when a similar question came up in my own family, to look
at the net effect of chain gifts and to deem the individual components sham
transactions.  A couple cannot give a person $40,000 in a year without gift
tax by giving $20,000 directly and getting two other people to act as condu-
its for the other $20,000, for example.

K> Or your wife can give $10,000 now and $10,000 in January.

And use up part of their 1993 exclusion?  Permissible, but imprudent unless
there are other reasons for withholding some of the gift until January.

David W. Tamkin   Box 59297   Northtown Station, Illinois  60659-0297
dattier@ddsw1.mcs.com    CompuServe: 73720,1570    MCI Mail: 426-1818
Newsgroups: misc.taxes
From: burke@tss.com (Jim Burke)
Subject: TurboTax
Reply-To: burke@tss.com (Jim Burke)
Organization: Teknekron Software Systems. Inc.
Date: Fri, 18 Dec 1992 21:42:16 GMT

Has anyone bought the 1993 TurboTax "getting started" version yet?
How does it compare with last year's TurboTax?  Is there a better
product?

-- 
***********************************************************************
 Jim Burke	"Life is uncertain - eat dessert first!"
 Teknekron Software Systems		... burke@tss.com
 phone:(415) 617-2432			... uunet!tekbspa!burke
Newsgroups: misc.taxes
From: Dave Dodson <dodson@convex.COM>
Subject: Re: medical deductions...
Originator: dodson@bach.convex.com
Date: Wed, 16 Dec 1992 19:32:51 GMT
Distribution: usa
Reply-To: dodson@convex.COM (Dave Dodson)
Organization: Engineering, CONVEX Computer Corp., Richardson, Tx., USA
X-Disclaimer: This message was written by a user at CONVEX Computer
              Corp. The opinions expressed are those of the user and
              not necessarily those of CONVEX.

In article <BzD1Hr.8s@cs.columbia.edu> swfc@cs.columbia.edu (Shu-Wie F Chen) writes:
>Given a 1992 salary of x dollars, how much must my medical expenses be
>in order to claim the medical deduction?

You can deduct medical expenses that you (not insurance) pay that exceed
7.5% of x.  To be worthwhile to do so, the total of your itemizable
deductions must exceed your standard deduction, which depends on your
filing status.

----------------------------------------------------------------------

Dave Dodson		                             dodson@convex.COM
Convex Computer Corporation      Richardson, Texas      (214) 497-4234
Newsgroups: misc.taxes
From: cep@taligent.com (Christophe Pettus)
Subject: Re: Yikes! Am I Facing a Tax Penalty?
Organization: Taligent, a little subsidiary of two really big companies.
Distribution: usa
Date: Tue, 15 Dec 1992 00:37:00 GMT

In article <1992Dec15.000120.5812@cbnews.cb.att.com> ask@cbnews.cb.att.com (Arthur S. Kamlet) writes:
>AGI of $75,000    AND   1992_AGI -  1991_AGI > $40,000 AND Filed
>1040ES within the last 3 years.
>
>I specifically assumed from the post that he the poster never filed
>a 1040ES.

Nearly.  If you were assessed a penalty for failing to pay enough
through withholding or estimated tax returns, it's the same as having
filed a 1040ES for purposes of these rules.
--
-- Christophe

"I draw the line at Styrofoam packing kernels, you sick pervert."
Newsgroups: misc.taxes
From: dattier@ddsw1.mcs.com (DWT)
Subject: Re: Final Estimated tax payment...
Date: Sun, 20 Dec 1992 01:44:50 GMT
Distribution: usa
Organization: Contributor Account at ddsw1, Chicago, Illinois  60657

bdowning@unixland.natick.ma.us (Bill Downing) wrote in
<1992Dec17.182654.27887@unixland.natick.ma.us>:

| I file quarterly estimated taxes, both state and federal. I've found
| that I don't need to make a final quarterly payment because income was
| substantially less than estimated.
| 
| My question is, am I still required to file Voucher 4 for fed and
| state even though taxes due will be zero for this quarter. Or can I
| just ignore it?

IRS rules changed as of, I think, 1/1/83.  Since then you need to file a
voucher only when you make a payment; before that you needed to file all four
(even if an installment was covered by the previous year's overpayment) or at
least all those starting with the period when you saw you'd have to pay
estimates.  If you were crediting the previous year's overpayment to the new
year and paying in nothing else (except perhaps withholding), you still had
to file (and, in those days, sign) all the vouchers.

As to state, that varies.  I'll leave that part of Bill's question to someone
from Massachusetts.  It's "ignore it" in Illinois in case anyone is interested.

David W. Tamkin   Box 59297   Northtown Station, Illinois  60659-0297
dattier@ddsw1.mcs.com    CompuServe: 73720,1570    MCI Mail: 426-1818
Newsgroups: misc.taxes
From: bdowning@unixland.natick.ma.us (Bill Downing)
Subject: Final Estimated tax payment...
Organization: Unixland Public Access Unix and BBS
Distribution: usa
Date: Thu, 17 Dec 1992 18:26:54 GMT


I file quarterly estimated taxes, both state and federal. I've found
that I don't need to make a final quarterly payment because income was
substantially less than estimated.

My question is, am I still required to file Voucher 4 for fed and
state even though taxes due will be zero for this quarter. Or can I
just ignore it?


-- 
Bill Downing, President		Email: bdowning@unixland.natick.ma.us		
DOWNING ASSOCIATES, INC.
8 Doyle Lane, Hopkinton, MA 01748
508-435-4567
Newsgroups: misc.taxes
From: cep@taligent.com (Christophe Pettus)
Subject: Re: medical deductions...
Organization: Taligent, a little subsidiary of two really big companies.
Distribution: usa
Date: Wed, 16 Dec 1992 19:38:25 GMT

In article <BzD1Hr.8s@cs.columbia.edu> swfc@cs.columbia.edu (Shu-Wie F Chen) writes:
>Given a 1992 salary of x dollars, how much must my medical expenses be
>in order to claim the medical deduction?

Medical Deduction = (Medical Expenses) - (7.5% * Adjusted Gross
Income), to a minimum of zero, of course.
--
-- Christophe

"I draw the line at Styrofoam packing kernels, you sick pervert."
Newsgroups: misc.taxes
From: acheng@ncsa.uiuc.edu (Albert Cheng)
Subject: Re: Yikes! Am I Facing a Tax Penalty?
Originator: acheng@shalom.ncsa.uiuc.edu
Organization: Nat'l Ctr for Supercomp App (NCSA) @ University of Illinois
Distribution: usa
Date: Mon, 14 Dec 1992 16:16:09 GMT


In article <1992Dec13.232529.3950@cbnews.cb.att.com>, ask@cbnews.cb.att.com (Arthur S. Kamlet) writes:
>If you were OK last year there's a real good chance you're OK this
>year too.  You can get a form 2241 (I think -- call the IRS at
> 800-TAX-FORM and ask them to send it to you -- it's the form for
>figuring your (possible) penalty.  Or wait until you get your taz
>form shortly after Christmas and do some preliminary calculations.
>
>If it looks OK by real early January, you're OK and need do nothing.
>Otherwise you can file a Form 1040ES by January 15 with enough of a
>payment to meet one of the two rules above.  (The 100% of last year
>is the easiest rule -- a real no-brainer since you know how much your
>tax was last year and how much was withheld this year.)

I don't remember any big tax rules change this year.  How about
pulling out your last year's 1040 and try fill it with this year's
numbers.  That should give you a good idea if you are way behind
in withheld tax.

>>2. I thought that FICA was 6% social security and 1.65% Medicare/
>>   Medicaid.  My percentage (7.65) was right on the button.  Why
>>   is my wife's not the same (7.23)?
>
>There may be Child/Elder/Health care plans and 401(k) plans which
>distort the figure, and your or her employer may attribute certain
>income assigned to pay for your benefits as FICA taxable.  In any
>case check with the payroll office if any questions.

The social security tax stops somewhere at $50-$60 (I think) but the
Medicare goes on to the $100K and beyond.  So, if the wife's income is
above the security tax capoff, the overall percentage starts to drop.
Newsgroups: misc.taxes
From: douglis@chimay.MITL.COM (Fred Douglis)
Subject: Re: Yikes! Am I Facing a Tax Penalty?
Organization: /u/douglis/.organization
	<1992Dec13.232529.3950@cbnews.cb.att.com>
	<1992Dec14.175233.17932@cbnewsh.cb.att.com>
Distribution: usa
Date: 14 Dec 92 17:44:15
Comments: Hyperbole mail buttons accepted, v3.06.

>>>>> Regarding Re: Yikes! Am I Facing a Tax Penalty?; ahn@cbnewsh.cb.att.com (john.k.ahn) adds:

>   2) 100% of the taxes on your 1991 income.
>

    ahn> Not to alarm the original poster, but I think starting this
    ahn> year, rule 2) no longer holds for people with AGI of $75,000
    ahn> or greater.

I thought I heard that it doesn't hold if and only if you have paid
estimated tax in the past three years.  Can anyone confirm/deny this?  
--
Fred Douglis
Matsushita Information Technology Laboratory  | Email: douglis@mitl.com
182 Nassau Street			      | Phone: +1 609 497-4600
Princeton, NJ 08542 USA 		      | Fax:   +1 609 497-4013
From: "hilary miller" <hilary.miller@execnet.com>
Newsgroups: misc.taxes
Subject: a question about the
Date: 15 Dec 92 14:02:56 EST
Reply-To: "hilary miller" <hilary.miller@execnet.com>
Distribution: misc
Organization: Executive Networks Information


Peter Kaplan -yodh, in a message to All on 12-14-92 at 2:12am, said:

PK>|I am sorely tempted to pay as much tax, now, at our current 15% tax bra
   |as possible.
   |Am I missing some advantage for deferring tax on the principal?
   |_______________________________________________________________________

          Yes, you are missing something big time.  There is no differ-
          ence between the interest and the principal -- they're both
          taxed to you the same way if you withdraw them.  The question
          you must answer is whether it makes sense for you to have the
          opportunity to invest your money on a tax-deferred basis.  If
          you think not, then by all means withdraw the funds.  There
          are billions of dollars invested in IRAs, deferred annuities,
          pension plans, etc. because people believe that the opportu-
          nity to compound investment gains tax-free is superior to
          paying current taxes on those gains.  If you do the 'rith-
          metic, you may come up with the same answer.


   L A
 I    R        Hilary B. Miller of Greenwich, Connecticut
  H/\Y         CIS: 76040,1743
    
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From: cep@taligent.com (Christophe Pettus)
Newsgroups: misc.taxes
Subject: Re:  Income Taxes Of A Self-Employed Lawyer
Date: 14 Dec 92 21:41:29 GMT
Organization: Taligent, a little subsidiary of two really big companies.

In article <1992Dec14.204200.20747@eng.umd.edu> georgec@eng.umd.edu (George B. Clark) writes:
>He told me that 50% of his profits go to taxes, and 35% of his
>income go to taxes.

Goodness, he must have gotten some very, very poor tax advice indeed,
since the marginal federal tax rates top out at 31%, and I don't think
that Georgia has a 19% individual income tax.  Even including
self-employment tax, I have trouble making those numbers work out.

>Is there anyone out there who can relate to this problem, and offer a
>solution? Perhaps recommend a book he can read?

If he is in immediate trouble with the IRS, I recommend (more than
words can say) STAND UP TO THE IRS from Nolo Press.  It is,
definitively, the best book available for dealing with an unhappy tax
man; it saved my financial life (as in getting a >$80,000 tax bill
reduced to $784).

>Since CPAs are giving him advice the IRS rejects, is there some other
>advisor he should be consulting, instead?

Two suggestions:

1. The IRS "rejecting" something can be complicated issue; they
frequently reject something, only to accept it later on appeal or in
tax court.

2. Research the background of any tax professional.  Get several client
recommendations, and ask those clients questions.  Do some studying,
take in hypothetical tax situations to the professional, and see how
they deal with it.

Lastly, while I would not like to add another burden into an already
too-lawsuit-happy country, if the advice was negligent, your brother
might want to seek some damages from the professionals who steered him
wrong.
--
-- Christophe

"I draw the line at Styrofoam packing kernels, you sick pervert."
From: "hilary miller" <hilary.miller@execnet.com>
Newsgroups: misc.taxes
Subject: gambling as a profess
Date: 15 Dec 92 14:02:57 EST
Reply-To: "hilary miller" <hilary.miller@execnet.com>
Distribution: misc
Organization: Executive Networks Information


An2355, in a message to All on 12-13-92 at 7:43am, said:

A5>My question is: How does this change if I gamble professionally (for
A5>myself and others) as a primary means of supporting myself?  Can I
A5>deduct gambling losses in access of gambling gains?  In past years,
A5>when I've had gains, I have filed Schedule C and I plan to do so again
A5>this year.
A5>Where in the Tax Code might I find the answer to my questions?

               Jason, you can indeed deduct your losses as a pro-
               fessional gambler.  The key is good record-keep-
               ing.  It's not in the Code, so you won't find it;
               you have to look at the cases.


   L A
 I    R        Hilary B. Miller of Greenwich, Connecticut
  H/\Y         CIS: 76040,1743
    
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Newsgroups: misc.taxes