Deciding When To File A Tax Return

Deciding when to​ File a​ Tax Return?
April 15th – the​ Day of​ Reckoning! Every year,​ millions of​ Americans get ready to​ pay taxes to​ Uncle Sam,​ or​ get ready to​ collect a​ tax refund from Uncle Sam; when did this become the​ great day that it​ is​ for taxpayers,​ and when are we actually required to​ file a​ income tax return? Let’s take a​ look at​ the​ beginnings of​ the​ income tax date of​ April 15 and why it​ was chosen?
The first known income tax that Americans were legally required to​ pay was enacted during the​ early 1860s,​ and the​ Presidency of​ Abraham Lincoln .​
the​ Civil War was proving very costly to​ finance,​ and the​ President and Congress created the​ Commissioner of​ Internal Revenue and enacted a​ law requiring citizens to​ pay federal income tax .​
This could be considered the​ start of​ our modern day income tax .​
This income tax was based on​ principles of​ graduated or​ progressive taxation and of​ withholding income at​ the​ source .​
the​ commissioner was given authority to​ assess,​ levy and collect federal income taxes .​
the​ authority to​ enforce tax laws by seizure of​ property and income and by prosecution.

Originally,​ the​ deadline for completing and filing your individual income tax was not April 15th .​
in​ the​ beginning,​ it​ was first set for March 1st .​
Then,​ during 1918,​ Congress pushed the​ date out to​ March 15th .​
Then,​ in​ the​ great overhaul of​ 1954,​ the​ date was once again moved forward to​ April 15th,​ and this is​ where it​ remains today .​
Why April 15th? the​ main thought from most scholars say the​ reasoning is​ that the​ date gives the​ IRS more time to​ handle the​ work load and more time to​ hang on​ to​ your money before offering a​ tax refund .​
This date has only been set this way for a​ little over 50 years .​
That’s not very long,​ in​ historical terms,​ and it​ could possibly be changed again.

If you​ are an​ individual taxpayer,​ you​ are required to​ file either a​ return or​ an​ extension of​ time to​ file (Form 4868) by April 15th .​
Corporate and other legal entities are required to​ file their federal income tax return by March 15th,​ and if​ not,​ they also must file an​ extension of​ time to​ file .​
What this extension does not do,​ is​ to​ extend the​ amount of​ time you​ have to​ pay any taxes due the​ government .​
So,​ if​ you​ are unable to​ ready your personal or​ business financial information in​ a​ timely manner,​ and have no reasonable estimate as​ to​ the​ amount of​ tax you​ may owe,​ you​ can expect to​ pay some form of​ penalty.

In the​ years following WWII,​ the​ burden of​ tax responsibility was shared fairly equally by the​ corporate world and the​ individual taxpayer .​
Today,​ however,​ the​ shift has been toward more responsibility on​ the​ part of​ the​ individual,​ and less on​ the​ business backs .​
to​ demonstrate how special interests have begu​n to​ overtake American politics,​ during 1867,​ public opinion was so strong,​ and the​ outcry of​ the​ general public so loud,​ that the​ President and Congress abolished the​ income tax law in​ 1872,​ and from 1872 until 1913 almost all of​ the​ revenue for government operation came from the​ sale of​ liquor,​ beer,​ wine,​ and tobacco .​
Although the​ income tax did make a​ small come back in​ 1894,​ it​ was found unconstitutional in​ 1895 by the​ U.S .​
Supreme Court because it​ was not apportioned among the​ states in​ conformity with the​ Constitution.
An interesting time during the​ formation and eventual taxation of​ America occurred during 1918 .​
Until that point in​ time,​ the​ vast majority of​ tax revenue for government funding came from alcoholic beverage sales and high tariffs .​
in​ 1919,​ Congress passed an​ amendment to​ the​ Constitution that made it​ illegal to​ manufacture or​ sell alcohol; what would replace the​ revenue? American federal income tax was the​ proposed solution,​ and we’ve been paying since .​
Although during the​ great years known as​ Prohibition,​ many revenue agents spent their days tracking down moon shiners not tax evaders,​ the​ American citizen,​ the​ individual taxpayer took on​ the​ heavy burden of​ supporting government revenue,​ and it​ has become heavier with each passing year .​
on​ a​ side note,​ although moon shining was illegal,​ the​ moon shiners still had to​ pay taxes on​ the​ moon shine so they were incarcerated for tax evasion and not moon shining .​
Taxes seem to​ always come into play when looking for a​ way to​ prosecute someone .​
Then,​ during 1942,​ the​ Revenue Act of​ 1942 was passed and the​ New Deal era was begun .​
Since that point in​ time,​ government control,​ power,​ and expenditures has continued to​ increase at​ a​ phenomenal rate,​ and today the​ American taxpayer supports a​ trillion dollar giant known as​ the​ United States government .​
This ravenous beast consumes more than 10% of​ our earned income each year,​ and if​ the​ Social Security Administration has their way,​ will continue to​ consume even more of​ our weekly earnings .​
We can foresee no other relief in​ sight.

Currently,​ all the​ tax regulations for this country are the​ responsibility of​ the​ Internal Revenue Service,​ and there are four major divisions of​ this government office: the​ Wage and Investment,​ Small/Business Self-Employed,​ the​ Large and Midsize Business and the​ Tax Exempt and Government Entities .​
Each division has responsibilities as​ they pertain to​ their individual specialty.
There continues to​ be talk on​ the​ hill to​ change the​ way taxes are calculated and collected .​
the​ most common themes are the​ flat tax and the​ national sales tax .​
Until Congress actually has the​ courage to​ step up to​ the​ plate and change it,​ taxes will remain as​ cumbersome as​ always.

You Might Also Like:

Powered by Blogger.