Income-tax

I like this book a lot, because it gave me great ideas about how to structure my finances to take advantage of the tax deductions the government provides.

While the book makes it easy to read and understand your tax return, it fails in its efforts to make complicated tax issues simple. In many cases, I found more questions than answers, particularly in the parts that talk about the section 179 deduction and the modifications made after September 11, 2001.

If you are looking to be able to read and understand your tax return and to identify the tax deductions that are available, this is a great book. Even after reading it, however, you'll probably need a professional tax preparer to make sure you're doing it all correctly.

The U.S. Income Tax is a great way to introduce yourself to tax policy in the united states. It does a great job at showing the issues of why the system must be reformed. Also it show how political tax reform gets inside congress, and how this causes reform to stall. In the end it shows several diffrent, and inovative, ideas for tax reform. One of the key strengths of this book is it takes a totally non-partisan look at tax reform. Something that is rather difficult to do.

The problems with this book come in being way to verbose. It could have easily been shortened.

Overall a great book for anyone intersted in knowing more about tax policy!

Seidman presents a useful introduction to one of the current proposals to replace the existing income tax. He demonstrates that the 'consumption tax' is clearly superior to the existing income tax on both a practical and conceptual basis. However, he should have emphasized the practical case for the consumption tax, because judgements on the conceptual merits of income taxation vs. consumption taxation will always be subjective. I.e., advocates of the consumption tax cannot 'win' the argument solely on conceptual grounds.

The main difficulties with the income tax are that it is difficult to comply with (even when you're honest); avoidance schemes (legal ways to minimize tax); and evasion (cheating). No alternative to the income tax will eradicate cheating, but the author is correct that the consumption tax would police cheating better than the current system does. Perhaps he should have emphasized this more.

Avoidance schemes under the income tax (sometimes called 'tax planning' by their creators) are rampant and a cause of significant complexity, as the Revenue Service and Congress try to deal with each scheme on an ad hoc basis. Because the consumption tax is much simpler n concept than an income tax, the opportunities for avoidance schemes would be reduced. Additionally, the 'garden variety' avoidance schemes that would be expected to crop up under a consumption tax have been identified and could be dealt with up front in the implementing legislation

For those who desire more information on what's wrong with the current system, read Michael Graetz's recent book on that topi

Unbridled Power is the inside story of the supposedly unlawful practices occurring within the IRS. It is written by Shelley Davis, a former historian with the IRS. Ms. Davis was hired to give an account of IRS activity for posterity's sake. When she began to uncover certain illegal or unethical practices that were happening at the IRS, she became a bit of an outcast.

Most of the activities that she exposes deal with the treatment of IRS employees who have become whistle blowers. Apparently the IRS has a wall much like the police blue wall.

Many of the accusations that Ms. Davis makes are neither unknown nor shocking. Most Americans have come to accept, with or without proof, the bad behavior of the IRS. If you have buried your head in the sand for the last 40 years, then this book may help to enlighten you regarding the abusive nature of our government's tax collecting agency. If you are familiar with the agency, or have been a victim of it, this book will only tell you of specific cases that you may not have been aware of.

Unbridled Power is a book written by an IRS insider which seeks to expose the evil inner workings of the IRS. The book does document a few cases of abuse of power or outright illegal activity by members of the IRS; but, these cases are generally known by the public. Most Americans have suspected this kind of behavior was occurring at the IRS for years. There were not any great exposes on criminality at the IRS or on criminial behavior being an ingrained culture at the IRS.

What we get instead is the picture of a typical government agency. The lifetime beauracrats are corrupt and the temporary political apointees designated to clean up the mess do not have the spine to stand up to a girl scout. What this book really does is argue the case for a renewal of the spoils system which was prevalent in the early years of the republic. Instead of having lifetime beauracrats separating themselves from the masses, the positions would be up for grabs after each new president is elected. This may reduce the creation of the out of touch government employee.

All in all, it was not a book that really brought anything new to the table. I must commend Ms. Davis for her courage in stepping forward and speaking out against the IRS. Too many of her fellow beauracrats have been too content to turn their head so as not to ruin their future prospects of advancement.

Before I read this book, I assumed that it was the story of a single individual's plight inside of the IRS. I thought it could be a questionable account, perhaps based on unsubstantiable facts. In fact, the book's subject matter is much broader than only Shelley Davis' experience. Ms. Davis, in true historical form, describes as reality an organization that should only exist in the minds of science-fiction writers. Even if only a fraction of her allegations are true, this work represents an irrecoverably scathing indictment on an admittedly powerful government agency. Although she never makes the connection, she paints a picture of official organized crime, a government body out of control, operating in the underworld of power and intimidation, where the law is openly despised. It is clear that the IRS requires immediate and extensive reform, in order that it might be made accountable to the people of the United States

I bought this book when it first came out and while Schiff gives a lot of information on the subject of federal income taxes, he missed some very important information.

1) The United States (i.e. Federal Government) has limited jurisdiction. As stated in Article 1, Section 8, Clause 17 of the Constitution for the United States of America:

"To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, byCession of particular States, and the Acceptance of Congress, become the Seat of the Government of the United States, and to exercise like Authority over all Places purchased by the Consent of the Legislature of the State in which the Same shall be, for the Erection of Forts, Magazines, Arsenals, dock-Yards, and other needful Buildings;"

In other words the United States Congress can only pass laws that apply within the above defined areas. Since Schiff is big on case law here's one that he missed:

"The power of the United States to tax is limited to persons, property, and business within their jurisdiction, as much as that of a state is limited to the same subjects within its jurisdiction."

- United States v. Erie Ry. Co., 106 U.S. 327, 333, 1 S.Ct. 223 (1882)

26 USC § 7701(9) defines the "United States" as the District of Columbia and the several states. At § 7701(10) the term "State" is defined as the "District of Columbia". Did you get that or did you miss it? The 50 union states aren't included in those definitions. See 26 USC §§ 5272(b), 5362(c)(9), 6103(b)(5), and 7462 for code sections that include the union states.

Jurisdiction should have been his MAIN argument.

The "Dixieland Law Journal" some excellent information on the subject of federal jurisdiction. Do a web search with those key words.

2) The Internal Revenue Service is NOT a agency on the United States! Look at 31 USC §§ 301 thru 310. Every agency of the Department of the Treasury is listed therein. Notice that the IRS, BATF, and Secret Service are NOT listed!!!

For the most detailed information about the origin of the IRS search the web for the document "THE BIGGEST HEIST IN HISTORY" by William Cooper.

3) ON the subject of wage withholding he never informs the reader about the following points:

a) 26 USC § 3402(p) which clearly states that the W-4 form is voluntary. Read it for yourself. If it's voluntary why does he advise you to fill it out and claim "exempt"?

b) He never informs the reader of the legal definition of employee as defined in 26 USC § 3401(c). He never discusses the legal meaning of the word "includes" as used in the code. It is meant to be used in a restrictive manner. In other words "employee" includes only the definitions in that code section! If it's not included it's not a part of the definition! Are you an "employee"? If you're not why does he advise you to claim "exempt" on a W-4?

c) He missed the definition of "Withholding Agent" at § 7701(16). That is very important. That definition contains the withholding requirements in the IRC. Look them up and see if you are subject to it.

4) He never researched the Code of Federal Regulations (CFR's). The CFR's have more detailed information than the IRC. If you carefully study the sections that apply to Subtitle A, you'll notice that the sections that define "United States" don't include the 50 union states!

I could go on but I won't. Irwin Schiff has done a great deal of research on this subject and I thank him for it. Because of him I've saved a lot of cash. However, If you think that by reading this book (or any of his other books) that you'll know every thing about the US income tax, you are mistaken. There is a lot of valuable information out there that Schiff has NEVER covered. Get on your favorite search engine and start looking for it! I've found it and so can you!

Here's a list of some documents that will help you figure out this complex subject. Search the web for them.

1) "PUBLIC JUDICIAL NOTICE" by William Cooper. There are 3 parts of this document. Read them all! Very good information in these!

2) "AN INVESTIGATION INTO THE MEANING OF THE TERM UNITED STATES", by unknown. This is a long and detailed document that is a must read!

I would also suggest that you purchase the book "GOOD-BYE APRIL 15TH!", BY Boston T. Party. I would recommend this book over any of Schiff's books. Read it!

Good luck.

This is a great book (although the examples of how numerous judges simply ignore the constitution and the law are infuriating). I gave it a 4 instead of a 5 because some of the legal arguments are difficult to follow (and the government has purposely obfiscated things enough to make it this way). The review by Mr. Trader100 indicates to me that he is the kind of person who would discourage the Boston Tea Party and urge everyone to "work within the system" and beg your English colonial governor for reform. Each man has to decide for himself where to draw the line.

I think Irwin is fantastic!! Everyone of his books are worth getting!!! Get this book now....you will save tons of money and really get an education as to how you are getting screwed by your government misapplying the law!

The law says you don't have to pay....so stop paying now!!

Buy this book and Irwin's other books (ESPECIALLY The Federal Mafia) to find out how.....I've followed Irwin's procedures for 3 years now...He's the best...forget the rest....I've researched this for over 5 years now....more people use Irwin's method's than any other and that's for good reason....

Authoritatively written by a Certified Public Accountant Norm Ray who draws from his more thirty-five years of professional experience, Smart Tax Write-Offs is now in an updated fourth edition and presents the reader with a straightforward collection of advantageous guidelines and suggestions which small business owners can utilize to save money. Thirty pages of this brief yet practical guide are devoted to an extensive checklist of common items that can be considered business supplies and deducted to save money. A highly recommended "must-read" for home-based businesses, independent contractors, freelance entrepreneurs, and small business owners, Smart Tax Write-Offs will prove to be one of the best financial investments any taxpayer can make in today's economically stressed times.

Concentrate on net not gross; what is important is how much you keep. Every business needs all the deductions it is entitled to. If you are self-employed or run a small business, searching for deductions is fun. And it is your money.

This 128-page book lists and explains over 700 deductions a business owner is legally entitled to. For coverage, click on Table of Contents in the left-hand column of this page.

When I was just starting out in the business world, working for someone else, I vowed to learn about deductions. Each year, I wrote down every cent I spent, including each penny in the parking meter. At the end of the year, I totaled my expenses and send the totals to a tax preparer. I was amazed at how much money I got back from the IRS. That taught me some lessons: Keep (accurate) records, use a tax preparer and get your money back.

Norm Ray is a CPA and an experienced home-based business owner. He has been in your trench and is well-equipped to advise you on financial matters.

As a (self-employed) author of 113 books (including revisions and foreign-language editions) and over 500 magazine articles and a consultant to the publishing industry, I recommend this book to writers, publishers, the self-employed and small business owners. DanPoynter@ParaPublishing.com.

From deductions for home-based businesses to independent contractors and equipment purchases, Smart Tax Write-Offs combines a checklist of possibilities with chapters outlining hundreds of tax deduction possibilities for entrepreneurs in this newly revised third edition for 1999 and 2000..

It should bother any thinking person that such an elaborate guide is needed just to go on living with some degree of assurance that the IRS isn't going to knock down your door and destroy your life.

You cannot learn all you need to know to master the tax code, for it cannot be mastered. The IRS doesn't understand it either, they depend on force to extract 1.7 trillion dollars from a public suffering from fear and ignorance.

If you want to really learn something, study the new book by Sheldon Richman "Your Money Or Your Life." It's revolutionary!

The American Express Tax Guide 1999 makes sense of the 1999 tax code, with clear, practical suggestions. I filled my copy with penciled notes and sticky tabs. It will definitely be my reference when I sit down to do my taxes. Plus, the price of the book itself is tax deductible, according to "Commonly Overlooked Deductions" # 47, page 642! ("Tax preparation fees [are deductible] including the cost of this book in the year that you bought it.")

This American Express tax guide is the best 1998 tax guide yet for "do it yourself" tax preparers. I find it easy to locate the help I need. The little tips and good ideas on each page really help. It's well worth the low price to get the forms and the explanations.

Tax laws may have changed, some of the main actors are serving jail time, but it doesn't matter. This is the best case study of congressional decision making available. I still use this in courses because there is no better example of the tension between political horse trading and genuine reformist impulses available.

Is it detailed? Of course it is: the back and forth in the Ways and Means committee, for example, illustrates the kind of negotiaions that are the bread and butter of policy making.

Is there material that is "in the encyclopedia?" That is silly. There is little there that is basic review. In fact, anyone who found this boring probably does not know the basics of congressional procedures -- that is not the goal of this book -- or has a professor or teacher who does not know how to link a journalistic case study like this with the textbook or scholarly treatment of Congress.

A classic.

While this book may not appeal to students in search of the CliffNotes version of the political process, this exhaustive account of the1986 tax reform bill gets a complicated story just about right. Especially when it concerns the tax code, the devil is in the details, and while B&M sometimes go a little overboard in describing the small print of oil depletion allowances and the like, the fact is that Congressmen think that way -- and voters had better know it. All in all, a solid addition to the 'how a bill becomes a law' ouevre. Plus, it makes you like an odd array of people: Ronald Reagan, Bill Bradley, and even Bob Packwood. Where are they now?... END

the best book I was ever required to read for a class

I bought TaxCut software, then read this book, I end up with a tax professional to do my 2001 tax. I am glad I read this book though, I avoided making mistakes and I followed carefully to my tax attorney's advice. This book is informative and insightful.

Now available in a revised and updated eighth edition, What The IRS Doesn't Want You To Know: A CPA Reveals The Tricks Of The Trade is a compendium of solid, up-to-date tax advice for 2002. Chapters survey such topics as what the latest IRS targets are; ten ground rules one must never break to win with the IRS; the thirty-four greatest taxpayer misconceptions; commonly overlooked credits and deductions; what forms should never be filled out; new tax laws enabling an innocent spouse to get out of debt; how to plan IRA and pension plans; the latest taxpayer rights; and what IRS people are really like and how to work with them. What The IRS Doesn't Want You To Know is a highly practical book and strongly recommended reading for every taxpayer!

My annual salary grew steadily each year since graduating from college in 1994. However, there was hardly any money to pay off my credit card bills and forget about nice vacations or investing! I'd had enough. I heard of IT jobs that paid $50/hr. (or more). One day I had a conversation with an IT contractor with 7 years experience. This man had incorporated his own business and suggested that I did for the tax benefits. However, he was not very articulate as to EXACTLY what benefits there were to incorporating. I had to know. So I purchased Marty Kaplan's 3rd edition in late 1997. On May 20, 1998 I paid a law firm $300 to formally incorporate my very own company. I was instanly a President!(I still get a kick out of my title!) I have been contracting ever since. I think that I would have been contracting whether I purchased this book or not. However, Marty Kaplan's book provided a detailed comparsion between the different types of businesses. (i.e. sole proprietorship, partnership, Limited Liability Company, C-Corporations, & S-Corporations) Marty explained the financial realities, that precious few people understand. These truths showed me the pros and cons to each business model. All the financial decisions that I made were based on the information I gleened from this book. I assure you that I am infintely better off today than I would be if I were still at my 1998 job. But, what's more is that I'm better off today than I would be if I had contracted as a "W2 employee." (which is much easier in the beginning!) It was Marty's text that enlightened me! Also, Marty speaks plainly about being audited - "...it may happen and don't panic." Marty is completely ethical. His text simply shows readers how to prevent raising red flags. (i.e. certain IRS forms have been found to be guaranteed red flags and Marty advises how to legitamately report those same expenses on the "right" forms) Marty provides excellent anecdotes that will help readers predict the IRS's behavior and steer clear of its wrath. Marty spends the remainder of the book showing you how to maximize your legitimate deductions while minimizing your tax liabity. This book paid for itself in a split second. Thank you Marty!

The major portion of the book confirms our suspicions of the massive tax avoidance and evasion that is extant in the U.S. today. I found much of the material to be revealing of the methodology used by rich and poor to escape the responsibility of paying ones dues.
The authors lost me in their attack on VAT ( National Sales Tax ) which has worked successfully in tne United Kingdom and in Canada. These countries are way ahead of us in Social Services. Any tax plan will have its defects, but this is one way to avoid the off shore plans, and the refusal to even submit the 1040 form.
The final chapter devoted to the authors' solution to the problem is a joke. If you take one suggestion after another it is clear that our economy will not tolerate their badly constructed cure. I think that they were just in a hurry to close out the book and had really ill considered, ( or no ), advice from seasoned economists. These two chapters left me with a feeling of let down and disappointment. I had hoped to find some well constructed answers to a pernicious problem. But they offered none.

Before I read the book, I had the (mistaken) belief that all income tax evaders had an equal chance of an IRS Audit. I now see that the IRS is set-up to audit citizens that can't afford lawyers--the book has good evidence for that, the kind you can find for yourself.

Unfortunately, the book isn't totally solid. It rightly points out that the current tax system is unfair for the un-wealthy, and I think the authors provide fairly good evidence that this unfairness is largely due to a congress that has created a behemoth tax code while simultaneously stripping the IRS of its ability to enforce it. Unfortunately, though, there were times that some claims went un-referenced (e.g., past tax code), which left me wondering about what was "factual."

The book is biased towards blaming the wealthy for lobbying congress while dumping billions into tax shelters (this bias, nonetheless, seems well supported), but the book isn't about wealth bashing--it is about the notion that in our country, to some extent, we are all our neighbor's helper, and to cheat taxes is morally incomprehensible and consequential. They point to the ills of society fostering an environment for cheaters of all kinds...from tax evaders to cheating college freshman, as evidence for the cheater's mentality. In this regard, the book has a pessimistic view of a human nature that always reduces itself to the "lowest common denominator" (i.e., if the wealthy cheat on taxes, why shouldn't I?). The authors pose good arguments against flat taxes and sales taxes, while supporting a progressive tax such as our current tax structure. They argue that the current tax code is too complicated and should be simplified. This complication is largely do to the history of special interest groups successfully lobbying for tax loopholes. Overall, I know more about taxes (and tax evasion) than I had before the book.

While there are some short-comings with this book, the overall general idea rings true, and their evidence supports the claim. The book does not aim to be a fix-all for the numerous troubles that ail american democracy. Rather, it simply aims to expose yet another example of class preference in American society.

Like the legal system, the tax code works more to one's advantage the more money one has. That is the simple premise of the book - not government gridlock, not class jealousy, and certainly not socialism. The authors argue from the simple point of showing how wealthy individuals take great advantage of our tax code. And while it does suggest a certain conclusion, I would argue that it is common sense and logic that they use to arrive at the fact that this is but one more way the wealthy absolve themselves of any responsibility in society.

In the end, it is an informative read, but should not be taken by itself. It should be read in conjunction with other works on the tax code, gov't spending, and other problems that plague American society and allow the wealthy to keep distancing themselves, and avoid responsibility.