April 15th (April 18th this year) — just the mention of the date causes many adults to react with distaste, if not outright disgust. However, once you read these seven terrifying but true facts about Tax Day, you might be even more dismayed (or possibly just impressed) by Americans’ curious and emotionally fraught relationship with taxes.
Fact One: First U.S. Income Tax
The federal government funded the Civil War with income taxes via the Revenue Act of 1861. Ironically, the Civil War itself was more about the issue of taxation than it was about the issue of slavery.
Fact Two: Staggering Numbers
The Internal Revenue Service has 3,321 tax forms, and you can download 1,132 forms or related information from the agency’s website.
Fact Three: A Genius’ Confusion
Albert Einstein once observed, “The hardest thing in the world to understand is the income tax.” Although he developed the special and general theories of relativity, even the most famous brainiac of all time failed to grasp taxation.
Fact Four: Seeking Help
In 2007, nearly 100 million taxpayers called, wrote or went to an IRS office for tax assistance. That’s equivalent to about one-third of all Americans. However, that same year, about 40 percent of Americans did not owe taxes. By 2012, that number increased to about 47 percent. In 2009, about 131.5 million people submitted individual tax returns.
Fact Five: Comparing Word Counts
The number of words in the Bible is about 700,000, while the Federal Tax Code has about 3.7 million words. That’s more than the total number of words in five Bibles.
Fact Six: Corporate Loopholes
The federal tax rate for a corporation is 35 percent, but many companies pay just a fraction of that amount due to subsidies and loopholes. For example, Bank of America earned $4.4 billion in 2009 but paid nothing in taxes. And that company is not alone. General Electric made more than $4 billion in 2010 and also paid no taxes.
Fact Seven: Notorious Tax Evasion Case
Walter Anderson, a telecommunications executive, has the notorious honor of the largest tax evasion case in U.S. history. The U.S. Tax Court ordered him to pay nearly $250 million in delinquencies and penalties on March 7, 2011. He served about six years in prison as well. The assessments were upheld on appeal.
Tax Resolution in Denver
If you cannot pay your taxes on April 18th, 2016, talk to our qualified professionals to see whether you might have other options. We can provide you with competent assistance. Call 720-398-6088 for suggestions on how to proceed.