Another technical question...
Mar 28, 2006 08:09 PST
As I mentioned in my earlier email about the 1/2-self-employment-tax deduction,
I've been practicing income tax resistance by keeping my income low and using
legitimate deductions and credits. I've been careful to do everything by-the-book
I'm considering resisting FICA also, which I can't do legally,
so I expect that the IRS will eventually try to collect if I do.
I've got a technical question about the tax treatment of payments to and reimbursements
from WTR-related escrow accounts and penalty funds.
If I were to send my
quarterly self-employment tax to a WTR escrow account instead of to the U.S.
Treasury, and then I were to withdraw that money again if the IRS collects,
how would I declare this transaction on my returns - assuming I wanted to
do this by-the-book?
When I put money in the WTR escrow account is this
a gift or a donation or an expenditure? When I ask for the money from the
account to reimburse me for what the IRS seized, am I supposed to declare
it as income? What if I apply for money from the WTR Penalty Fund - do I
need to include that money in my income for the year?
Because I must regulate
my income very carefully to do my method of income tax resistance, I have
to beware of anything that might add to my declarable income by surprise.
-- Dave Gross
http://sniggle.net/Experiment/ - The Picket Line