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From: mrgofor@mmm.UUCP (MKR)
Newsgroups: net.taxes,net.legal
Subject: Re: Schiff
Message-ID: <513@mmm.UUCP>
Date: Mon, 17-Feb-86 13:17:40 EST
Article-I.D.: mmm.513
Posted: Mon Feb 17 13:17:40 1986
Date-Received: Wed, 19-Feb-86 00:59:12 EST
References: <662@decwrl.DEC.COM> <1082@lsuc.UUCP> <1005@psivax.UUCP> <1707@bbncc5.UUCP>
Reply-To: mrgofor@mmm.UUCP (MKR)
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Xref: watmath net.taxes:1002 net.legal:2935

In article <1707@bbncc5.UUCP> mfidelma@bbncc5.UUCP (Miles Fidelman) writes:
>
>I don't remember where I heard this, but I believe that:
>
>	1. it is *not* mandatory to file an income tax return
>
>	2. if you don't, the IRS can "estimate" your income using
>	   whatever information it can get its hands on, an then 
>	   send you a bill - it *is* mandatory that you *pay* (as
>	   opposed to filing) - note: of course if your taxes are
>	   withheld, and you don't want any refund, I'll bet the
>	   IRS would be happy to keep the excess if you don't file

	I think you're wrong - I belive it is mandatory to file a return,
but that's not why I'm posting. This message just reminded me of an 
amusing story that I thought might provide a chuckle or two...

	I know a guy who, for a seven year period, decided that he didn't 
have to file a return. He figured that the IRS was withholding money
from his paycheck, and since they already had his damned money, they had
no business making him file a return - so he didn't. So the IRS finally
decides that this is not a situation of which they are fond, so they
audited him. The funny part is - the audit showed that over those
seven years he had *overpaid* $11,000. (and this is a lower-middle
class guy living in the poor part of town - $11,000 is a BIG chunk of
money to him) 

	His big problem was that he filled out his W-4 form claiming two
kids as deductions. Over the next several years there came another 4
kids (his wife was pregnant as long as I knew her), but he never bothered
to update his exemptions.

	The kicker is - because of statutes of limitations, he could only
collect about $3,000 of that 11,000. I hope he learned something from
all of this, but I doubt it.

	--MKR