MyWikiBiz, Author Your Legacy — Monday November 11, 2024
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| footnotes = '''IRS Help''' is [[Client Description:=an internet resource for IRS related topics and relief]] and client of [[Client Of::Directory:Page Creations|Page Creations]] | | footnotes = '''IRS Help''' is [[Client Description:=an internet resource for IRS related topics and relief]] and client of [[Client Of::Directory:Page Creations|Page Creations]] |
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Revision as of 21:10, 28 April 2007
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Libertarian filmmaker Aaron Russo made the documentary America: From Freedom to Fascism showing the Sixteenth Amendment to the constitution requiring you to pay federal income tax is not constitutional and was struck down by several supreme court decisions.
Reclassification
IRS reclassification as an employee occurs where persons claimed as (or claiming to be) independent contractors are recategorized by the Internal Revenue Service (IRS), or by state tax authorities, as W-2 employees. The reclassification can result in the imposition of fines, penalties, and back-taxes for which the employer is generally liable. These amounts could cost a business large sums of money. The U.S. Government Accountability Office (GAO) (formerly known as the General Accounting Office) reports that the IRS claims to lose millions of dollars in uncollected taxes because of misclassification of independent contractors by taxpayers. According to IRS Commissioner Mark W. Everson in a statement made November 3, 2005, IRS audits of small business organized as corporations increased from 7,294 in 2004 to 17,867 in 2005.
Those Exempt
A 527 group is a type of tax-exempt organization named after a section of the United States tax code, created primarily to influence the nomination, election, appointment or defeat of candidates for public office. Although candidate committees and political action committees are also created under Section 527 of the Internal Revenue Code, the term is generally used to refer to political organizations which are not regulated by the Federal Election Commission or a state elections commission and not subject to the same contribution limits as PACs.
501(c) is a provision of the United States Internal Revenue Code (26 U.S.C. § 501(c)), listing twenty-eight types of non-profit organizations exempt from some Federal income taxes. Sections 503 through 505 list the requirements for attaining such exemptions. Many states reference Section 501(c) for definitions of organizations exempt from state taxation as well.
The most common 501(c) organizations include:
- 501(c)(1) - Corporations organized under acts of Congress such as Federal Credit Unions
- 501(c)(2) - Title holding corporations for exempt organizations
- 501(c)(3) - Various charitable, non-profit, religious, and educational organizations (see below)
- 501(c)(4) - Various political education organizations (see below)
- 501(c)(5) - Labor Unions and Agriculture
- 501(c)(6) - Business league and chamber of commerce organizations (see below)
- 501(c)(7) - Recreational club organizations
- 501(c)(8) - Fraternal beneficiary societies
- 501(c)(9) - Voluntary employee beneficiary associations
- 501(c)(10) - Fraternal lodge societies
- 501(c)(14) - Credit Unions
- 501(c)(19) or (23) - U.S. Veterans' posts and auxiliaries
Tax Collections
Summary of Collections before Refunds by Type of Return, Fiscal Year 2003:
Type of Return |
Number of Returns |
Gross Collections (Millions of US$)
|
Individual Income Tax |
130,728,360 |
987,209
|
Corporate Income Tax |
5,890,821 |
194,146
|
Employment Taxes |
29,916,033 |
695,976
|
Gift Tax |
287,456 |
1,939
|
Excise Taxes |
812,483 |
52,771
|
Estate Tax |
91,679 |
20,888
|
In fiscal year 2004, the IRS collected $43.1 billion in enforcement revenue. This is an increase of $5.5 billion (15 percent) from fiscal year 2003.
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