Skip to main content
I have a tough time giving politicians any slack when they fail to pay their taxes. I'm a honest tax paying citizen of the USA. I have several businesses and I declare all of my income (yes, including cash payments). I carefully account for every sale and source of revenue as well as tracking legitimate expenses. The law states that you do not have to pay more tax than you owe under the law. Law is not about just "word" but also "spirit".

The article that follows is in regards to a politician owing taxes on expenses she (or more likely, her financial advisers) claimed as "Per Diem". Anyone with any understanding of the concept of Per Diem can see that these payments do not qualify for this classification but, instead, fall under the category of income. The spirit of the law was violated. But who violated it?

Was she an innocent in this situation? Did some financial adviser steer her down a slippery slope? Could be. If your employer sends you a W-2 or other tax statement showing the income you must declare, you trust their knowledge of the matter, right? Perhaps someone on her financial advisory staff told her that her expenses while living at her home could be considered travel expenses for work. If they did, they need to be sanctioned and fired pronto!

Unfortunately, ignorance is no excuse under the law. Let this story serve as a lesson to you...You need to know as much if not more than your advisers. You need to give everything they say the "gut test". If it seems too good to be true, it probably is.

http://politicalticker.blogs.cnn.com/2009/02/18/palin-told-to-pay-back-taxes/

Comments

Popular posts from this blog

Get Organized to Save Money

How "Being Organized" can save you money... Taking a small amount of time up front to get organized can save you time and money.  Here are a few simply steps you can take today to keep more money in your pocket.
Set up autopilot for your bills -  Take advantage of your bank's online bill pay service to automatically send payments for your monthly recurring charges.  Set it and forget it!  Taking a few minutes to set up auto bill pay will pay off by preventing late charges and finance charges due to missed payments.Take inventory - You can avoid buying duplicate items when you know what you and have and where it is located.  Take a quick inventory  your pantry, the medicine cabinet, laundry room, and your office before shopping (online or brick-and-mortar).Stock up on consumables - You will always need shampoo, toothpaste, laundry soap, etc. so buy these items that get used up in bulk when on sale.  Of course, don't go overboard.  Buy what you can store …

Why should I get my credit report annually?

Under the Fair Credit Reporting Act you are entitled to a free copy of your credit report once every 12 months from each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion. If you want to order your free annual credit report online, there is only one authorized website, www.annualcreditreport.com. The Federal Trade Commission has a link on their website (click here to access the FTC section on free credit reports).

So why should you get your credit reports annually?
To detect identity theft - Your report will show you any new accounts opened in your name as well as who has been checking your credit. If an account appears on the report that you did not open or if a company (especially a retail store where you have not applied for financing) inquires into your creditworthiness, you can take action to prevent potential identity theft from taking place or at least minimize the impact.
Uncover errors - The reporting agencies make mistakes, trust me! Equi…

Career Shift Budgeting (Part 1): Finding Your Next Career

Are you dissatisfied with your career and want to make a change?  Did you recently lose your job due to a layoff and want to pursue a new career? The first step to making such a shift is to identify potential careers to pursue. There are many resources available to assist you with this process, including working with a career development professional.  For you do-it-yourself types, here are a few of my favorite resources for finding a fulfilling career: Do What You Are: Discover the Perfect Career for You Through the Secrets of Personality Type What Color Is Your Parachute? 2011: A Practical Manual for Job-Hunters and Career-ChangersOccupational Outlook Handbook (online version) I Could Do Anything if I Only Knew What It Was: How to Discover What You Really Want and How to Get ItCareer BriefsOnce you've narrowed in on a few potential careers, you will want to explore the following:  Nature of the work - What does the day in the life of a person doing…