Let's Talk Taxes. My Daughter was a Graduate Student.

[maxrandb]

She attended Post Grad school out of state. The state where she attended school has no Income Tax, our state does.

We stupidly assumed that since she earned NO income in our state, she had no requirement to file and pay taxes here.

Boy, we're we wrong, and did the taxman come after her? You bet your sweet ass they did.

Shortly after she renewed her state drivers license in our state, and registered to vote, she began receiving letters detailing the back taxes and FINES and PENALTIES she owed .

She called us frantically, convinced that she was going to go to jail.

We tried to console her and explained that it was an honest mistake, and began the work to prepare three years of state taxes, file them and get the issue resolved.

The folks we worked with at our state were extremely nice and helpful, BUT...

- They didn't care that it was a mistake.

- They didn't care how much sales taxes, property taxes, or fees she paid in the state she attended Grad School.

- They didn't care that there was no malicious intent.

They nicely, BUT firmly wanted the owed taxes and penalties paid.

After some back and forth, our state waived two of the three years of penalties, we helped our daughter complete and file the three years of taxes, and she changed her legal residency to the state she was attending school.

I tell this story, because I'm sure that there are literally millions of middle class and working poor Americans that have similar stories.

I tell this story because it illustrates how some Americans can get ruined for life and labled a criminal taxcheat, risk jail and punitive fines, and potentially have their lives destroyed, while others can skate away and become the most powerful person in America.

I fucking DARE the IRS to try to collect taxes from ANYONE if this orange asspickles tax fraud is swept under the table.

I fucking DARE THEM!

[Sherman A1]

1. As has been reported publicly

The IRS doesn’t like to go after the big dawgs as it is too complicated and requires too many resources. It’s easier to pick on the middle and lower classes as it is simply easier to do.

[Yeehah]

4. The same with your typical police department

"Let's bust the old veteran with PTSD with a few pot plants in his closet rather than going after those cartel drug runners."

[PoindexterOglethorpe]

2. Alas, your basic problem was in assuming

that because she earned no income in your state she had no requirement to file and pay taxes there. A basic lesson in why you need to find out exactly what is required. Where was it she earned money? Why did she renew her driver's license in that state and not the other? The lesson here is to learn exactly what is required in each state, and not to assume anything.

Honestly, it really is up to you to figure this out.

[maxrandb]

5. I get that it's a personal responsibility.

My daughter's plan was to return to our state after grad school, so she saw no need to change residency and driver's license to the state she was temporarily attending school.

We made a terrible assumption that since she earned not one single penny from work in our state, that she had no state income here.

The state she attended school does not have an income tax, but they do have sale's and property taxes.

The point of my post is NOT to absolve us of any mistake or wrongdoing.

The point of my post was to illustrate how the tax folks will come after someone like my daughter with the full force and power of the law, but will look the other way when it comes to the rich and powerful.

Yes, we learned a valuable and costly lesson.

My concern is not the message being sent to taxpayers like me. Trust me. I get the message.

It would be nice if that same lesson was taught to the president.

I get that we made a mistake and we fixed it.

The unfairness in how tax laws are enforced, and who the tax folks decide to go after with the full force of law ought to concern us all.

I think it was Bob Dylan who wrote "steal a little and they throw you in jail, steal a lot and they make you King".

Maybe it's past due to truly be able to say; "the times, they are a-changing"

[MaryMagdaline]

7. Exactly. Your point is totally clear. Honest people make mistakes and must pay up

Big time criminals get away with tax evasion for decades

The IRS has admitted that it’s just easier to go after little people than to take on the big guys, so that’s what they do.

[COL Mustard]

14. When My Son Was In College In California

We always filed tax returns there and for Virginia, our home state. Never had a problem, never had to pay Virginia on what he earned in California. TurboTax does it all for me. If you don't use them I'd strongly recommend it.

[trixie2]

17. That's why most students change their address during college, if they go out of state

My daughter's plan was to return to our state after grad school, so she saw no need to change residency and driver's license to the state she was temporarily attending school.

Usually your local library will have a "New to college" program to explain the ins and outs of paperwork.

Right on your taxes; they ask if you worked out of state.


When I was in grad school I worked in state as a waitress. I noticed the employer had an ad running for tax free carryouts. I did save that ad and when they disputed my earnings I figured they wrapped their carrouts into our tip claiming. I had all my records and the ad. They did revert back to my original filing. I did have to pay for the tax attorney

For the next 10 years I had to be very diligent and then wait for my refund as I was flagged, even though it was not my fault.

[dsc]

6. My guess is she was getting a stipend for being a TA

also the waiving of tuition may be income (it was in a bill in the 1980's but that may have been recinded).

[llmart]

12. I'm fairly certain that wasn't the point of his original post.

His point is that the IRS goes after millions of people for small dollar amounts and yet they allowed this to get swept under the rug for years.

I remember in the early 80's when my brother forgot to claim his few months of unemployment checks. He had never been unemployed in his life. In no time he got notice from the IRS that he was being audited. He was so nervous about the whole thing it actually affected his mental health. It didn't matter that it was an honest mistake and that he was barely making ends meet on unemployment. He had to pay a stiff penalty.

This was probably at the same time as trump was not paying any taxes at all.

[AnnaLee]

3. I moved to a no income state WA from an income state MD

I immediately went to the DMV and changed driver licenses to WA, thus establishing my residence and voting location. I was able to ask MD to return to me all state taxes withheld from my last paycheck and my retirement payout because both were income paid to me after I established my new residence. The key, at least in my case, is where was your official residence at the time you received the income and not where was your official residence when you did the work.

[Chicago1980]

8. Asspickle...

lol... that's funny.

[Dios Mio]

9. What

has the IRS been doing for the last 10 years with regards to trumps manipulations of tax laws?

[llmart]

10. That's the biggest question of this whole thing.

We need to know who in the IRS let this shit go on for years.

[uponit7771]

11. K&R, This has to be part of America's "Hard Talk" series; why the NAKED inequality in enforcement.

[Laf.La.Dem.]

13. Your daughter is one of the "little people"

Leona Helmsley - “Only the little people pay taxes.”

[Rebl2]

19. Kind of

like trump saying only stupid people pay taxes. Guess majority of us are stupid then, including the people who voted for him.

[DeminPennswoods]

15. This is about state, not federal (IRS) taxes

In PA, you can claim part-time residency and only have to pay taxes on income earned during the time you were in the state.

[forgotmylogin]

16. The IRS just wants you to pay your taxes.

The worst thing you can do is not let them know you're aware you owe taxes because they will garnish any income they're aware of if they can't do it any other way.

My neighbor hadn't paid taxes in 2-3 years and was afraid to talk to them. She opened a bank account, had her wages direct deposited and shloop-the IRS garnished the entire first check she was intending to pay her rent with.

I made her call them to at least ask if they'd garnish her at a lower amount. She talked to someone, ended up paying $50 more and they cleared a portion of her debt. But she had to call and work with them.

The IRS will work with you. They will set up a payment plan, and they will give you one month's grace ONE TIME.

[DFW]

18. Dealing with an uncaring bureaucracy is usually never rewarding or painless

Just ask ANY European.

But we weren't immune in the States, either. When my elder daughter was 7 years old and living in Germany, we got some threatening letter from the IRS that must have concerned some bank account gift set up for her in the USA by my parents. It was over something like $6.50.

I wrote to one of my Republican Senators in Washington. At the time, they weren't yet into helping only those Texans who vote Democratic. I said I thought it was a little low, not to mention a waste of their time, for them to harass a 7 year old who couldn't yet understand the text of their threatening letters. The Senator's office actually interceded with the IRS, who finally looked at the age of the taxpayer they were harassing, and dropped the matter altogether.

[Javaman]

20. the basic difference between you and the rich (or supposedly rich) is...

you can't hire a battery of lawyers to delay, defend and other wise pay off who needs to be paid off so you don't have to pay your taxes.

the poor, lower and middle class are the easy targets for the IRS, everyone else, (the rich) they do get audited, but unless it's some truly gross case of maleficence, they get a slap and only pay a small percentage of what is owed.

[Bluepinky]

21. I wish the IRS would go after people who hide their assets in offshore accounts.