Tag Archives: irs

Where the Money Comes From

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As the tax filing deadline approaches, Money Magazine has offered some interesting statistics on our annual ritual.  In the early months, the IRS says that roughly 83% of all returns have resulted in refunds, with an average refund of $2,893 per return.  In all, roughly eight out of ten filers qualify for a refund, and this year’s refund is in line with previous year averages.

Meanwhile, the IRS website notes that in the past few years, roughly 47% of Americans were below the threshold where they had to pay income taxes—which is where the famous “47 percenters” phrase came from in the Romney presidential campaign.  However virtually all of those Americans paid FICA taxes.  In all, 185.5 million income tax returns were filed last year, but only 34,000 estate tax returns and just 335,000 gift tax returns.  The government collected $1.64 trillion in individual income taxes, compared with $353 billion in business income taxes.  In aggregate, Californians paid the most taxes, at $369 billion, well ahead of Texas ($265 billion) and New York ($251 billion).  At the other end of the spectrum, the citizens of Vermont paid $4.3 billion and people and companies living in Wyoming paid $4.9 billion,

Finally, there’s an interesting comparison.  The King James Bible totals around 700,000 words, whereas the U.S. Federal Tax Code numbers 3.7 million words.

Sources:

http://money.cnn.com/2015/03/26/pf/taxes/average-tax-refund-irs/index.html?iid=SF_PF_River

http://facts.randomhistory.com/tax-facts.html

http://www.sars.gov.za/AllDocs/Documents/Tax%20Stats/Tax%20Stats%202014/TStats%202014%20Highlights%20WEB.pdf

http://www.irs.gov/uac/SOI-Tax-Stats-IRS-Data-Book

About the Author: Bob Veres has been a commentator, author and consultant in the financial services industry for more than 20 years.  Over his 20-year career in the financial services world, Mr. Veres has worked as editor of Financial Planning magazine; as a contributing editor to the Journal of Financial Planning; as a columnist and editor-at-large of Dow Jones Investment Advisor magazine; and as editor of Morningstar’s advisor web site: MorningstarAdvisor.com.

Mr. Veres has been named one of the most influential people in the financial planning profession by Investment Advisor magazine and Financial Planning magazine, was granted the NAPFA Special Achievement Award by the National Association of Personal Financial Advisors, and most recently the Heart of Financial Planning Distinguished Service Award from the Denver-based Financial Planning Association. 

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IRS Phone Scam – Don’t Fall For It

IRS Phone ScamI finally got the call…the IRS Phone Scam call that is.

I saw a number from Washington, D.C. on my mobile and decided not to answer it, the voicemail that was left made it clear I was in a lot of trouble with the IRS and I need to call them back right away. Fortunately I’m pretty skeptical and up on the latest scams as well as actual IRS procedures, so I knew the voicemail was part of a fraud.

I reported the call, but I have a recording and a transcript that I thought you might be interested in hearing:

Audio

Transcript:

“This is officer Alex Watson calling from the Legal Department off Internal Revenue Service. This is in reference to a criminal lawsuit file against you. Your case number is CH94436. The moment you receive this message I need you or your retained attorney off records to return the call. The issue at hand is extremely time sensitive. My phone number is 202-795-1580. Do not-this(?) this message and do return the call. Now if you don’t return the call and I don’t hear from your attorney either then the only thing I can do is wish you a good luck as the situation unfolds on you.”

For more information on this scam, goto the following website: http://www.treasury.gov/tigta/press/press_tigta-2015-01_home.htm

Scott Dauenhauer, CFP, MPAS, AIF

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