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  • Devastation in Statistics Coming Soon

    Straight off Drudge Report. Tomorrow's headline already up. Article


    WASHINGTON, April 14 (Reuters) - As a deep recession strips Americans of their jobs, homes and investments, the 2009 U.S. tax season promises to see a large uptick in first-time delinquent income taxpayers.
    "Our calls are up 280 percent," said Richard Boggs, founder and chief executive of Los Angeles-based Nationwide Tax Relief, a firm that helps delinquent taxpayers resolve tax issues.
    "We've seen a huge rise in what we call the rookie delinquent taxpayer," he said. "They are incredibly scared, and they have no idea what's going to happen to them because, God bless them, they've never owed before."
    As the weak economy puts job security and a steady flow of income on a slippery slope, many are wary of the U.S. tax man, tax consultants say.
    With household balance sheets under pressure, more U.S. households are having trouble keeping up with their day-to-day bills and struggling to pay their taxes.
    "Folks are not paying their taxes because they are spending it on necessary living expenses," said Kristin Lavieri, an accountant with Weinstein & Anastasio, PC in Hamden, Connecticut.
    She added that more of the self-employed, who are required to pay taxes each quarter, are likely to end up with back taxes. "When there is not enough money for general operating expenses, there most definitely isn't going to be enough for quarterly estimates," Lavieri said.
    Among those not self-employed, many also have to make tough decisions that could carry long-term financial consequences.
    Many withdrew funds from 401k and IRA retirement savings accounts before the permitted time, unaware of the punitive taxes and penalties this would generate, said Larry Walker Jr, president of the financial and tax services firm 4-Serenity Inc in Snellville, Georgia.
    Withdrawals from a retirement account before reaching the age of 59.5 are considered taxable income and generally incur an additional tax of 10 percent of the amount.
    Other taxpayers did not have enough tax withheld from paychecks. As a result, they now owe taxes or will not receive the amount of refund they usually do, Walker said.
    FEAR, SECRECY CAUSE MORE PROBLEMS
    "If we are seeing a nearly threefold increase in people who have tax problems who have never had tax issues, it shows that things are worse than people think right now," Boggs said.
    But tax woes are such a taboo issue that over 40 percent of Boggs' clients have told him nobody knows about their problems, and that often includes their spouses.
    "When they see a tax bill that they know they can't pay, they freeze up," Boggs said. "A very innocent procrastination can get you into a lot of hot water with the IRS."
    The Internal Revenue Service, which collects taxes in the United States, vowed to show its gentler side this year.
    "We recognize the economic realities that are out there," IRS Commissioner Doug Shulman told reporters. "We're available to work with people."
    Critics are skeptical this will happen. The agency collects much of the $3 trillion that funds the government.
    IRS agents were given more flexibility in their collection actions, including the ability to reduce or suspend monthly payments on back taxes so those hit hard by the financial downturn are not forced to default on their tax payments.
    But Boggs said IRS policies are adding to the fear Americans feel for the traditionally secretive agency while outdated guidelines make the prospect of collection action scary.
    National Taxpayer Advocate Nina Olson, head of an independent organization within the IRS that helps taxpayers, seemed to echo this sentiment in an annual report to Congress.
    The report revealed that penalty provisions in the tax code have not been comprehensively reformed since 1989, and the complexity of the tax code is a serious problem.
    An elderly woman in Austin, Texas, who asked not to be named, said her $3,000 debt to the IRS grew to around $60,000 in taxes and penalties over 16 years despite the fact that she paid off the initial debt within six months.
    The 61-year-old is disabled and suffers from multiple health problems. The IRS now takes $133 each month from her Social Security disability check.
    The practice is part of the agency's Federal Payment Levy Program, which allows up to 15 percent of any federal payments a delinquent taxpayer receives to go directly to the IRS until their overdue taxes are paid in full.
    Olson noted that too often this automated levy system withholds Social Security payments to taxpayers with incomes below the poverty line. If these cases had been subject to human review, the report says, many would have been classified by the agency as unable to pay.
    Some wealthier people are also finding themselves overwhelmed by tax burdens. "America's top earners are suffering a new one-two punch," Boggs said.
    "Not only are America's wealthiest suffering the largest losses in nearly a century, but the IRS will be seizing what little resources they do have left in record time," he said.
    "Some of my rich clients are having big problems," said Lance Wallach, CEO and president of Veba Plan LLC, a financial consultancy firm. "Hundreds of them do not have liquid cash to pay bills."


    What my CPA told me today when I was down there signing about 30 documents...


    "You think you got it bad, You ought to see what some of my other clients are going through. Lots of people are going to lose everything in the next 12-18 months because the well is running dry."

    He stated unemployment benefits will be tapped, job losses keep mounting and foreclosures are inevitable, because even the good credit risks out there are having problems making ends meet. The once buyable credit scores are about to show the impact.


    This clean coal act they push through next year? Going to jack the costs of fuel oil and everything else given the fines that are coming.

    Crazy **** coming.
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  • #2
    Re: Devastation in Statistics Coming Soon

    I can't take it any more Dunbar. This moron and his administration are going to drive the country to it's knees. It's TEA PARTY TIME

    Telll me if I'm wrong here. Have any of you guys noticed an increased police presence on the roads? I think as state and local budgets get in trouble, they are sending the cops out to bag as many folks as possible so they can increase revenues. Ain't this a great country?
    sigpic

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    • #3
      Re: Devastation in Statistics Coming Soon

      I agree that there are more local and highway cops making money by ticketing, they are doing their part. I still say this economy is the result of at least thrity years of shipping jobs to the third world, and living beyond our means. I don't see how bailing out failed banks , businesses and stimulus monies as started by President Bush and carried on by President Obama will solve anything. You can take Obama out of the picture along with all the democrates, replace them with republicans and unless you bring back jobs and stop supporting the third world, the economy will remain broken. Twenty million illegals burdening our economy , President Bush did nothing and neither will Obama. We have a society that thinks nothing of buying homes and cars they can't afford, putting anything they want on charge cards they will never pay! Think beyond your hatred for democrats and see the damage done by Both parties over the course of too many years. You want a tea party? Figure out who will replace the bums on both sides of the aisle who got us here!

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      • #4
        Re: Devastation in Statistics Coming Soon

        one problem is the people out there that are smart enough to get us out of the mess are also smart enough to not want to sit in the drivers seat! The image of Obama sweating bullets after speaking with GW about what he was in for is engrained in my mind!

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        • #5
          Re: Devastation in Statistics Coming Soon

          Originally posted by NHMaster3015 View Post
          This moron and his administration are going to drive the country to it's knees.
          I'm not trying to pick a fight, Master, but I'd say that some of the responsibility for the mess we're in belongs on GW's shoulders.

          Originally posted by NHMaster3015 View Post
          Telll me if I'm wrong here. Have any of you guys noticed an increased police presence on the roads? I think as state and local budgets get in trouble, they are sending the cops out to bag as many folks as possible so they can increase revenues.
          Since both my brother and myself have gotten popped in the last 2 week I've been very alert to police activity and I'd have to say you're spot on with that observation. Freekin' parasites.

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          • #6
            Re: Devastation in Statistics Coming Soon

            Originally posted by Plumbus View Post
            Since both my brother and myself have gotten popped in the last 2 week I've been very alert to police activity and I'd have to say you're spot on with that observation. Freekin' parasites.

            Homeland Security on guard for 'right-wing extremists'
            Returning U.S. military veterans singled out as particular threats

            ---------------------------------------------------------------------- ----------
            Posted: April 12, 2009
            9:40 pm Eastern

            © 2009 WorldNetDaily




            WASHINGTON – A newly unclassified Department of Homeland Security report warns against the possibility of violence by unnamed "right-wing extremists" concerned about illegal immigration, increasing federal power, restrictions on firearms, abortion and the loss of U.S. sovereignty and singles out returning war veterans as particular threats.
            In order to understand recursion, one must first understand recursion.

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            • #7
              Re: Devastation in Statistics Coming Soon

              Originally posted by Plumbus View Post
              I'm not trying to pick a fight, Master, but I'd say that some of the responsibility for the mess we're in belongs on GW's shoulders.

              Agreed. And another thing Obama inherited from Bush - a beefed up military which, methinks, he will be very happy about sooner than not.


              Since both my brother and myself have gotten popped in the last 2 week I've been very alert to police activity and I'd have to say you're spot on with that observation. Freekin' parasites.
              Agreed again. My wife got a ticket yesterday and I see them set up all over. Probably looking for pro-life stickers and nra decals so they can identify all the right wing extremists.
              "Man will do many things to get himself loved, he will do all things to get himself envied." Mark Twain

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              • #8
                Re: Devastation in Statistics Coming Soon

                Originally posted by NHMaster3015 View Post
                I can't take it any more Dunbar. This moron and his administration are going to drive the country to it's knees. It's TEA PARTY TIME

                Telll me if I'm wrong here. Have any of you guys noticed an increased police presence on the roads? I think as state and local budgets get in trouble, they are sending the cops out to bag as many folks as possible so they can increase revenues. Ain't this a great country?
                We all b!tch and moan but I can't help but think it's all just bullsh!t.

                People aren't hurting enough yet. Are you willing to give all? Willing to lose that cushy house? Your job? Face possible false imprisonment? Ready to march on Washington and take back the country? Be called a nut?

                Look through history at major changes in different governments. Until a good majority are willing to give all you won't see change and the bitchin' is just therapy.

                50 people complaining and carrying guns are labeled lunatics.

                50,000 doing the exact same thing is a revolution they put in history books for your grandchildren to read about.

                J.C.

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                • #9
                  Re: Devastation in Statistics Coming Soon

                  Good post J.C.. What's the big threat these tea parties pose? They will vote out the democrats next election and any republicans that side with the democrats? Big deal, so the republicans will take their turn and so on and so on. It should be clear by now that real change does not happen by voting for the opposing party since both got us to this point. There has to be more of a threat to get the attention of our legislators. They have us in debt to communist china and buying most of our goods from communist china and the third world! They have both refused to secure our borders or resolve the issues of illegal immigrants and trade deficit. It will take more than written signs and tv interviews.

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                  • #10
                    Re: Devastation in Statistics Coming Soon

                    True, there's blame to go around ! Don't forget Barney Frank and others forced banks to give out loans, that never could be repaid! That idiot started this mess!
                    I can build anything You want , if you draw a picture of it , on the back of a big enough check .

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                    • #11
                      Re: Devastation in Statistics Coming Soon

                      Originally posted by Plumbus View Post
                      ... some of the responsibility for the mess we're in belongs on GW's shoulders.



                      .
                      George Washington did this?????

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                      • #12
                        Re: Devastation in Statistics Coming Soon

                        Originally posted by lovetheUSA View Post
                        George Washington did this?????
                        I guess he started it.

                        Comment


                        • #13
                          Re: Devastation in Statistics Coming Soon

                          Originally posted by toolaholic View Post
                          True, there's blame to go around ! Don't forget Barney Frank and others forced banks to give out loans, that never could be repaid! That idiot started this mess!
                          Tool
                          The banks agreed because they figured the government, through Fannie May and Freddie Mac, would foot the bill when the hit the fan. Then, some low life bankers, arbitragers, hedge funders, and such started trading the worthless notes back and forth, creating and reaping ersatz (yet very negotiable) profits with each pass until the bottom fell out and ....the government (as they figured) was left with massive piles of to clean up.

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                          • #14
                            Re: Devastation in Statistics Coming Soon

                            Economic activity in the United States contracted further or remained weak amid prolonged recession, the Federal Reserve said in its Beige Book report Wednesday.
                            Studies indicate that "overall economic activity contracted further or remained weak" although five of 12 districts surveyed noted a "moderation in the pace of decline," the report said.

                            WASHINGTON (Reuters) - U.S. consumer prices fell unexpectedly in March and recorded their first annual drop since 1955, government data showed on Wednesday, as slumping demand pushed down energy and food costs.

                            LOS ANGELES (AP) — A Los Angeles County coroner official says an autopsy has failed to determine the cause of death for adult film star Marilyn Chambers.

                            All of this, horrible news.
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                            • #15
                              Re: Devastation in Statistics Coming Soon

                              I really don't think it's worthwhile to spend much time debating 'who' is at fault for the current economic crisis. Obama? GW? Clinton? Certainly they all played their roles, but the roots go back much further: Creation of the Federal Reserve; abandoning the gold standard; consumptive, unnecessary wars… Then there was the decision made during Eisenhower's presidency to switch to a consumer-based economy – to facilitate more rapid growth.

                              Discussing solutions to the problems would be more productive. Not the 'hopeful' sorts of solutions – where we hope that the government will do something to fix things. Solutions that would allow us poor peasants to actually do something that will cause the necessary changes. If you're wondering whether or not I have a solution, I do not. I am, however, prepared to support a solution that I can believe in. I do not believe bailing out failed companies is a viable (or fair) solution to the economic crisis.

                              I believe the government has gotten too large and too powerful. I do not believe the government serves the people anymore. I think we are now the worker drones that fuel the continued growth of government – and the gradual loss of freedoms. I do not know anyone who is happy with things right now. That's not the way it's supposed to be.

                              I think our leaders have proven, repeatedly, that they will do whatever they want whenever they want – end of story. This leads me to conclude that the first problem that must be solved is in the base government. The American people need to unite to insist that some things change. Warrantless wiretapping, for example. Revocation of the 'unlimited' presidential powers Bush & Cheney created. Massive – real – cuts in government spending. Recently Gates made headlines because he is cutting back on military spending. Wow! Everyone was so happy. But if you look a little closer, his budget is 4% greater than previously.

                              I don't hang out with folks from Wall Street. But I didn't meet anyone who was happy with the bailouts. So how could they happen? And what about the astronomically high deficits we're now planning? God help our children and grandchildren.

                              I think it's time that our leaders started doing what we have to do – cut back spending. Instead of increasing taxation in its various forms, eliminate unnecessary costs. Me? I'd start with closing our military bases outside of the US. I really don't think Russia will use tanks to attack Germany anymore. Then I'd shut down our ground operations in Iraq and Afghanistan (the new Iraq). Then I'd start trimming away the costs of politicians – starting with their salaries, staffs, cars, etc. I'd cutoff all foreign aid – and give that money to some of the hungry and homeless right here in America. NASA can also get off the teat. This should allow for a healthy reduction of federal income taxes.

                              Okay, enough of my ranting.
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