Tuesday, February 21, 2012

My fair share

While the company does our taxes for us, we still have to fill out a bunch of questions and forms.  This year the IRS has added a new form in which you have to declare how much you have in your bank accounts in foreign countries. 

These are part of the instructions on form 8938:

Refer to the Form 8938 instructions for information on how to determine the total value of your specified foreign financial assets.

Reporting specified foreign financial assets on other forms filed with the IRS.

If you are required to file a Form 8938 and you have a specified foreign financial asset reported on Form 3520, Form 3520-A, Form 5471, Form 8621, Form 8865, or Form 8891, you do not need to report the asset on Form 8938.  However, you must identify on Part IV of your Form 8938 which and how many of these form(s) report the specified foreign financial assets. 

Even if a specified foreign financial asset is reported on a form listed above, you must still include the value of the asset in determining whether the aggregate value of your specified foreign financial assets is more than the reporting threshold that applies to you.

 
What the hell is wrong here?  Do you understand it?  I don't hate the fact that I have to pay taxes.  I get that.  I hate the fact that it is SO complicated. 

The people in the US are complaining about the fact that so many people get out of paying, their "fair share".  But what is the fair share?  Why should I try to get ahead in life when the gov't is going to take 40% of what I make?   Why do people get refunds when they don't pay taxes? 

I am really liking the fair tax plan more and more.  When you shop, tax it.  Everyone pays some into a system that they use.  Why is this so complicated? 




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