[net.taxes] Not filing, overpayment, and refunds

chris@umcp-cs.UUCP (Chris Torek) (02/19/86)

In article <513@mmm.UUCP> mrgofor@mmm.UUCP writes:

>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.
>
>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.

(Apologies for so much included text; it all seemed relevant.) I
have one point to make in response:  Part of what you pay with
income tax is `potential money': your time.  How much is your time
worth?

Ignoring the question of whether it is mandatory to file---is it
perhaps cheaper not to file, though if you did you might get as
much as a few hundred dollars back?

(Of course, the answer depends on how you value your time.  And
perhaps your health as well [eyestrain, nervous tension, and all
that bad stuff while filling out 1040 forms]. ---And it is also
important not to ignore that primary question after all.)
-- 
In-Real-Life: Chris Torek, Univ of MD Comp Sci Dept (+1 301 454 1415)
UUCP:	seismo!umcp-cs!chris
CSNet:	chris@umcp-cs		ARPA:	chris@mimsy.umd.edu

mrgofor@mmm.UUCP (MKR) (02/23/86)

In article <3272@umcp-cs.UUCP> chris@umcp-cs.UUCP writes:
>In article <513@mmm.UUCP> mrgofor@mmm.UUCP writes:
>
>>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
>
>I have one point to make in response:  Part of what you pay with
>income tax is `potential money': your time.  How much is your time
>worth?
>
>Ignoring the question of whether it is mandatory to file---is it
>perhaps cheaper not to file, though if you did you might get as
>much as a few hundred dollars back?
>
>(Of course, the answer depends on how you value your time.  And
>perhaps your health as well [eyestrain, nervous tension, and all
>that bad stuff while filling out 1040 forms]. ---And it is also
>important not to ignore that primary question after all.)

That's true - but everybody's "time" is not as valuable as ours (we
being high-paid professional types of guys :-)) In this guy's case,
if time is money, he'd have to PAY to sit on a park bench. :-)


-- 
					--MKR
When you ain't got nothin' you got nothin' to lose.  - Dylan