Income tax a use tax?

rushpat · #1 05-16-2004, 08:13 AM

I've just added this to the links section, but it might take a few days to show up. Here's a very interesting article on the income tax and how one might be made liable (not what you think):

http://www.atgpress.com/inform/ba034.htm

#2 05-16-2004, 09:01 AM

Oh, this is one the IRS& has made too simple to understand.

http://www.irs.gov/pub/irs-pdf/i1040.pdf

That link will take you to the instructions for Form 1040. Scroll to page 86:

"The activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity."

From the Internal Revenue Manual:

Part 5. Collection Process
Chapter 19. Collection Liability
Section 1. Balance Due (Cont. 1)
5.19.1.5.4.7 (12-15-2002)
Combo Cases
1. An IMF account and related BMF account can be included in one installment agreement, and IDRS monitored. Whenever you receive a request for an installment agreement that either involves an EIN and SSN (Sole Proprietor) or two SSN's (some years filed joint and some single), process as follows….

If The cross-reference agreement is acceptable according to set guidelines and dollar criteria (IRM 5.19.1.5.4.1), and you have determined the primary account. Then…Always transfer the IMF account to the BMF campus database. [bold in original, underline added]

Filing a Form 1040 creates an Individual Master File, right? Reporting income on that form "proves" to the IRS you're engaged in a "business activity," and with a wave of their magic wand, you become a "Business Master File."& And, of course, according to the Code, the IRS does indeed have the legal authority to assess and collect "income taxes" on a business.

Oh, yeah. Ain't this fun?

Have I mentioned that I hate those bastards?

Randy