The IRS has a site that offers a lot more information, including a list of all the stuff that’s for sale and some photographs. You can inspect the items on the afternoon of March 4. The auction is March 5. Registration of bidders begins at 8:30 a.m., and the auction kicks off at 9 a.m.

Some of the items clearly are more valuable than others. It’s up to the bidders to separate the trash from the treasure.

Don Mecoy
Business Writer

An annual survey of taxpayers finds that the vast majority — nearly nine out of 10 — believe that no amount of cheating on one’s income taxes is acceptable. Interestingly, the survey respondents have grown less tolerant of cheating over the past several years.

In 2003, 12 percent of respondents thought it was OK to cheat “a little here and there,” while 5 percent thought it acceptable to cheat “as much as possible.” In the most recent poll, those numbers fell to 6 percent and 3 percent, respectively.

In that same period, the percentage of people opposed to any cheating whatsoever grew  to 89 percent from 81 percent. The survey of 1,000 people was conducted by the IRS Oversight Board. It has a margin of error of plus or minus 3 percent.

The vast majority of Americans, 81 percent, say that their personal integrity has a “great deal of influence” on whether they report and pay their taxes honestly – far more than their fear of an audit (36 percent) or information reporting to the IRS by third parties (40 percent).

In addition, most Americans support the IRS’ efforts to make sure that all taxpayers honestly pay what they owe. More than 90 percent of those surveyed feel it is either “very important” or “somewhat important” that the IRS ensures that those across the economic spectrum pay their taxes—corporations (98 percent), high-income taxpayers (96 percent), small businesses (95 percent), and low-income taxpayers (91 percent).

Don Mecoy
Business Week

From the agency:

Are you facing a lot of different tax questions this year?

IRS experts have pulled together an overview of common tax issues in one convenient place — Publication 17, Your Federal Income Tax. This publication, available on the IRS.gov, contains helpful information for individual taxpayers.

This year for the first time, the IRS will issue a Spanish language version of this popular publication.
 
The on-line version of Publication 17 contains electronic links that make finding your answer simple.  Both the downloadable PDF and on-line 2008 Publication 17 have over 900 hyperlinks.  These hyperlinks allow users to immediately go to other parts of the publication, reducing searches to just a few clicks.

From stock sales to student loans, this nearly 300-page publication holds the answers to many of your questions:

• Need help with a Roth IRA? Try Chapter 17 for Individual Retirement Arrangements.
• Do you have a new child in the house? See Chapter 34 for the Child Tax Credit.
• Are you selling stock for the first time? Check Chapter 16 for reporting capital gains. If you’re unloading losers, reporting capital losses is there, too.
• Do you need to report the profit on your home sale? See Chapter 15 for some good news. Generally, if you qualify you only need to report the sale of your home if your gain is more than $250,000 ($500,000 if married filing a joint return).

And the best part about Publication 17? It’s free. To get a copy, visit the IRS Web site at IRS.gov or call 800-TAX-FORM (800-829-3676).

Don Mecoy
Business News

There are two easy and convenient options for obtaining free copies of your federal tax return information — tax return transcripts and tax account transcripts — by phone or by mail.

A tax return transcript shows most line items from the tax return (Form 1040, 1040A or 1040EZ) as it was originally filed, including any accompanying forms and schedules.  It does not reflect any changes you, your representative or the IRS made after the return was filed. In many cases, a return transcript will meet the requirements of lending institutions such as those offering mortgages and student loans. You should receive your tax return transcript within 10 working days from the time the IRS receives your request.

A tax account transcript shows any later adjustments either you or the IRS made after the tax return was filed. This transcript shows basic data, including marital status, type of return filed, adjusted gross income and taxable income. The IRS does not charge a fee for transcripts, which are available for the current and past three years.  Allow 30 calendar days for delivery of a tax account transcript.               

To request either transcript:     

• Phone: Call 800-829-1040 and follow the prompts in the recorded message.
• Mail: Complete IRS Form 4506-T, Request for Transcript of Tax Return.

If you still need an actual copy of a previously processed tax return, it will cost $57 per tax year and take much longer.  Complete Form 4506, Request for Copy of Tax Form, and mail it to the IRS address listed on the form for your area.  Please allow 60 days for actual copies of your return.  Copies are generally available for the current and past six years.
 
Forms 4506-T and 4506 can be found on the IRS Web site at IRS.gov or by calling the IRS forms and publications order line at 800-TAX-FORM (800-829-3676).

A printable .pdf form to request a transcript is available here. A form to request a copy of a past tax return can be found here.

Don Mecoy
Business News

Such as

U.S. personal wealth in 2004: In 2004, an estimated 2.7 million adults with gross assets of $1.5 million or more owned nearly $11.1 trillion in assets.  With a combined net worth of more than $10.2 trillion, where net worth is defined as gross asset value less debts and mortgages, these top wealth holders made up only about 1.2 percent of the total U.S. adult population, although they held 20.3 percent of the total U.S. net worth in 2004.    

and

Information returns filed by tax-exempt organizations: Nonprofit charitable organizations exempt from income tax filed more than 286,000 information returns for tax year 2005, an increase of 4 percent from tax year 2004.  These organizations held more than $2.2 trillion in assets, an increase of 9 percent from the previous tax year.  Information returns for tax year 2005 were filed with the IRS in calendar years 2006 and 2007.

and

Growth in the number of partnerships and total partnership net income between 2005 and 2006: The number of partnerships increased 6.6 percent, from more than 2.7 million in tax year 2005 to more than 2.9 million in tax year 2006.  Total partnership net income (loss) increased by 22.1 percent between the two years, from $546.2 billion to $666.7 billion.

Don Mecoy
Business Writer

However, Oct. 15 also is the filing deadline for about 110,000 Oklahomans who received extensions to file their 2007 federal income tax returns. The agency isn’t as concerned about these taxpayers failing to file because they already have indicated their awareness of the need to file by obtaining an extension.

But the numbers of folks who haven’t yet received their stimulus checks does raise the question of whether we might see another small boost to the economy when these late filers receive their payments.

More information from the IRS here.

Don Mecoy
Business Writer

Welcome to America! Here’s your bill.

The Internal Revenue Service this week released a report (link to .pdf file) showing major growth in U.S. companies owned by foreigners. The report also showed that those foreign-controlled domestic corporations, as the IRS refers to them, are paying a growing share of corporate taxes.

There were 61,820 domestic corporations controlled by a foreign person for Tax Year 2005, the agency said. Those foreign-controlled domestic corporations accounted for just 1.1 percent of all U.S. corporations. However, those corporations generated $3.5 trillion of total receipts with $9.2 trillion of total assets, accounting for 13.7 percent of the receipts and 13.9 percent of the assets reported on all U.S. corporation income tax returns.

Other tidbits in the latest Statistics of Income Bulletin (all following links to .pdf files):

– Foreign corporations controlled by U.S. multinational corporations: For tax year 2004, these controlled foreign corporations held $9.2 trillion in assets and reported $3.8 trillion in receipts.
– Corporations that claimed the foreign tax credit on their U.S. tax returns: For tax year 2004, corporations claimed foreign tax credits worth $56.6 billion, representing an all-time high and a 13.2 percent increase over the previous high amount in 2003.  Use of this credit reduced their U.S. tax on worldwide income by 30.2 percent, from $187.5 billion to $130.9 billion.

– Growth trends in the number of partnership and sole proprietorship returns:  While the number of partnership returns filed between 2002 and 2005 increased by 23 percent, the number of sole proprietorship returns increased by 1.9 percent.

– Federal gift tax returns filed for gifts given in 2005: Americans reported $38.5 billion in cash and other asset transfers.  Almost 3 percent of gift tax returns were taxable with $1.7 billion in reported tax liability.

– Use of business credit for research activities: Corporations claimed almost $6.4 billion in these credits for tax year 2005, and corporations in the manufacturing industries claimed more than 70 percent of this amount.

Don Mecoy
Business Writer

If it seems like we’ve got a lot of Wal-Marts in Oklahoma, it’s because we do. After the company was founded in Arkansas, Oklahoma was one of the first states it built in. Now data analyst Nathan Yau has produced a fascinating look at the explosive growth of the world’s largest retailer.

Like Kudzu, the growth is concentrated in the South.

Other than its native Arkansas, Wal-Mart may be most closely aligned with Oklahoma.

Wal-Mart built its first Sam’s Club in Midwest City. The company employs more than 33,000 Oklahomans as associates. The average wage for Wal-Mart’s regular, full-time hourly associates in the Sooner state is $10.31. The company operates 71 Supercenters; 14 discount stores; 16 neighborhood markets, eight Sam’s Clubs and two distribution centers in Oklahoma.

In it’s most recent fiscal year, Wal-Mart spent more than $655 million on merchandise and services with Oklahoma suppliers. In that same period, the company collected more than $483 million in sales taxes in Oklahoma, and paid more than $23.1 million in state and local taxes in Oklahoma.

I would add that despite the thousands of Oklahoma associates, only about 5 percent of the cash registers seem to be in operation at any Wal-Mart I visit even during the busiest shopping times.

Don Mecoy
Business Writer

The Internal Revenue Service is fielding a lot of questions about the economic stimulus payments that have or soon will arrive in the mailboxes and bank accounts of 140 million Americans. Here are some of the most popular questions the agency is fielding:

Q. When will I get my payment?
A. Payments are going out now for those returns processed by April 15 and will continue on a weekly schedule through mid-July. See the payment schedule for both direct deposit and paper checks for further information. Payments will continue through 2008 for returns filed after April 15.

Q. I filed after April 15 and the payment date for my Social Security number has passed. How long will it take for me to get my stimulus payment?
A. It will generally take a minimum of six weeks after you file your return to get your stimulus payment.

Q. I filed my return on time, but I haven’t received my stimulus payment, even though the payment date listed for my Social Security number has passed. Why?

A. In general, the payment schedule only applies if your return was received and the IRS finished processing it before April 15. If you filed your return on time, but close to the April 15 deadline, the IRS may not have finished processing it before April 15.
Processing times for tax returns and stimulus payments vary. If you are getting a regular income-tax refund, the IRS will send you that refund first. Normally, your stimulus payment will follow one to two weeks later.

If you are not expecting a regular tax refund, your stimulus payment generally should arrive a minimum of six weeks after you file.

Also, if you chose direct deposit and requested a Refund Anticipation Loan (RAL) or had your refund deposited into more than one account, you will receive a paper check based on the distribution schedule for paper checks.

Q. I received my stimulus payment, but it was less than what my friends and neighbors received. Why?
A. Your economic stimulus payment is based on information provided on your 2007 income tax return.

Many but not all taxpayers qualify for the maximum basic payment of $600 for singles or $1,200 for married couples. Many parents are also receiving an additional $300 for each qualifying child, born after Dec. 31, 1990.

Your payment may be less than the maximum for one or more of the following reasons:

You are single and your net income tax liability is less than $600. If you file Form 1040 net income tax liability is the amount shown on Line 57, plus the amount on Line 52.
You are married and your net income tax liability is less than $1,200.
You are single and your adjusted gross income (AGI) is more than $75,000. On Form 1040, AGI is the amount on Line 37.
You are married filing a joint return and your AGI is more than $150,000.
You owe back taxes that reduced your payment.
You have non-tax federal debts such as unpaid student loans or child-support obligations that reduced your payment.
Around the time you receive your payment, you will also receive a notice from the IRS explaining how your payment was calculated. It is important to keep this notice as a record of your economic stimulus payment. In addition, you’ll get a separate notice if you owe back taxes or non-tax debts that were offset or deducted from your stimulus payment.

The Economic Stimulus Payments FAQs section has more details on how the payments are calculated. A schedule showing when you can expect your payment also can be found on the IRS site.
 
Don Mecoy
Business Writer

Buffett, the world’s wealthiest person, last year said he paid a lower tax rate than his own receptionist. Buffett said last year he was taxed at 17.7 percent on his taxable income of more than $46 million. His receptionist was taxed at about 30 percent.

Buffett said that was despite the fact that he was not trying to avoid paying higher taxes. “I don’t have a tax shelter,” he said.

Further, he issued a challenge to his fellow billionaires:

I’ll bet a million dollars against any member of the Forbes 400 who challenges me that the average (federal tax rate including income and payroll taxes) for the Forbes 400 will be less than the average of their receptionists.

Kaiser, chairman of Kaiser-Francis Oil Co. and BOK Financial Corp., agreed with Buffett in an email he sent to Forbes magazine.

I agree wholeheartedly that our tax system is insufficiently progressive. I also agree that the estate tax at levels above $10 million should be retained. Higher tax rates for higher levels of income (up to at least 50%, maybe higher) not only are socially responsible but also would encourage more charitable giving.

Billionaire Dallas Mavericks owner Mark Cuban also believes the ultra-wealthy are undertaxed.

Don Mecoy
Business Writer