Sharp as a Marble - I owe, I owe, it's off to work I go

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Looks like my plan to ensure I owe taxes at the end of the year was a good move

Individuals who don’t purchase health insurance may lose their tax refunds according to IRS Commissioner Doug Shulman. After acknowledging the recently passed health-care bill limits the agency’s options for enforcing the individual mandate, Shulman told reporters that the most likely way to penalize individuals that don’t comply is by reducing or confiscating their tax refunds.

Civil disobedience is required here. When hundreds of thousands of Americans simply refuse to fill out that section, the IRS cannot put that many boots on that many necks. Heck, a million would stop them dead in their tracks. And it's a peaceful way for free men and women to voice their displeasure at being forced to purchase a product they may not wish to at the barrel of a gun.

I changed my tax withholdings to put me in the negative. I was tired of giving the government a sizable interest free loan every year and I honestly believe that a federal "We're sorry, but tax refunds may be delayed a few months" kind of thing is on the horizon. There's simply not enough money to bail out auto firms, banks, provide health control, Social Security, and the million other socialist programs to make me feel that Uncle Sam is going to have the dough to pay me back.

And this way, they have even less leverage.

posted @ 4/6/2010 10:20:03 AM

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Comments

Robert says:

on 4/6/2010 11:12:31 AM

I've made sure that my tax return is very rarely more than $20. It was far more this year, but that was the result of a mistake that will not be repeated.

cybrus says:

on 4/6/2010 11:27:16 PM

Robb - did you just use the IRS exemption calculator or something else?

Robb Allen says:

on 4/7/2010 6:59:15 AM

Cybrus, yes...ish.

I used the calculator as well as just had my HR lady keep bumping up my exemptions until the dollar amount per pay check gained was *just* slightly less than the average refund divided by 26. The calculator agreed, so I went with it.

Molon Labe says:

on 4/7/2010 10:18:32 AM

I tried that last year and ended up paying in $1000. Although I cringe at the thought of Big Daddy Gubberment getting an interest-free loan on my coin, I cringe more when Turbo Tax tells me I have to come up with a rather sizable lump sum payment which was meant to go towards rebuilding my deck or buying ammo.

And I'm still convinced that those who will be affected by the "failure to purchase MessiahCare penalty" are usually the ones who aren't getting a refund anyway.

Robb Allen says:

on 4/7/2010 10:24:48 AM

ML, alas, you have the money. Simply set it aside. Earn interest on it. You LOSE money by letting Uncle Sam have it interest free all year long.

DJ says:

on 4/7/2010 5:33:54 PM

Been there, doing that, for a long time.

I use a spreadsheet to compute my taxes. Each year, I update it per the changes in the required forms and schedules, fill in the .pdf forms the IRS provides, and send it in. During the following year, I update it per that year's numbers and use it to pay quarterly estimated taxes, both federal and state.

It takes a bit of self-discipline, but it works quite well. If you have employer withholdings, you could under-withhold, then make up the difference during the year with quarterly estimated payments. That way, your final esimated payment can be juggled as needed and you'll owe a bit, but never get a refund, and never owe a penalty.

Tastes awful, but less filling.

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