| A.
R. Kakhsaz Company
an accountancy corporation
Member
American Institute of
Certified Public Accountants
International associates:
Tavana & Co.
Chartered Accountants
Toronto, Canada
Tel.416-229-2221
|
WHO PAYS THE
U.S. INDIVIDUAL INCOME TAXES? Ranked by total gross income reported on
their income-tax returns, the top 1% pays 36% of total federal income
taxes. To be included in this group, you must report gross income of
more than $305,000. This group receives 20% of aggregated gross
income of all taxpayers. The top 5% pays 56% of total personal
income taxes and receives 34% of aggregated gross income of all U.S. tax
filers. To qualify for this group, you must report gross income of
more than $126,000. The top 10% pays 67% of the taxes and reports gross
income of more than $92,000. And the top 50% pays 96% of the
aggregated total federal income taxes. REMEMBER YOUR TAX-REBATE
CHECK? How do Americans feel about the effect of the 2001
tax-cut package on the economy?
| 6% |
Very
beneficial |
| 38 |
Somewhat
beneficial |
| 32 |
No effect |
| 16 |
Somewhat
harmful |
| 6 |
Very harmful |
| 2 |
No comment |
| 100% |
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ORLESTER
JONES, 25, IS A MAN OF PATIENCE. He is a cook for a barbeque place.
He stokes the fire, adds hickory and oak, and moves the ribs and brisket
around a large, hot grill. Mr. Jones has no complaint about the
smoke. He says: "You're going to get the flavor in your
clothes, true enough, but it makes hungry when you leave
here."
the
Generalist,
a one-page monthly publication of the accounting firm of A.
R. Kakhsaz Company, is in its seventh year of publication.
TAX
SLANG: "STEALTH or BACKDOOR" TAX increases are well-disguised ways of
raising taxes without increasing the tax rates. Voters, generally,
do not like tax-rate increases. Stealth tax hit upper-income
taxpayers by imposing limits on itemized deductions and requiring a
phase-out of personal exemptions for taxpayers whose incomes exceed
certain levels. For instance, limiting itemized deductions
affected 5.5 million individual income-tax returns for 1999, up 13% from
the prior year.
AVOID
TAX-AUDITS. They
are costly and annoying: Using the same information and tax forms, it's
quite normal to prepare and present an income-tax return that would bear
much less chances of being selected for an audit, while resulting in
much less taxes. A tax-accountant has such an expertise and
experience!
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THREE CALIFORNIA DOCTORS WERE AMONG 45 recent cases of
criminal convictions for income tax fraud. They "routed
income through bank accounts" in the names of U.S. and foreign
thrusts in order to conceal it from the IRS.
HOW ENRON SCANDAL HAS CHANGED AN expression. Or, has
it really? People used to say: "It's the economy,
stupid." Remember? Now they say: "It's the
accounting, stupid."
PRESIDENT BUSH ASKED THE CONGRESS to approve a record IRS
budget of more than $10.4 billion for 2003.
U.S. CHARITABLE CONTRIBUTIONS SURGED 15%
to $126 billion for the year 1999, marking the fourth consecutive
year of double-digit growth.
HAVE YOU VISITED OUR WEBSITE LATELY?
Go to: www.ARKCPA.com
WANTED: TAX CHEATS FOR TOP DOLLARS: Last
year, the IRS paid a record $10.8 million to informants, up from $8
million the year before, for reporting on 382 tax cheats, down from
517 the prior year. The rewards program helped the IRS to
collect an additional $267 million in the year 2000, up from $168
million the previous year. All such rewards are subject to
federal and state income-taxes to the recipients.
A FINE IS A TAX for doing something wrong. A
tax is a fine for doing something right.
ONLY ABOUT ONE-THIRD OF ALL INDIVIDUAL income-tax returns
report itemized deductions. It's interesting to note that
among those who do not itemize are 9% of the individuals who
report gross income of more than $1 million on their
returns. Why not? The IRS doesn't say, but we suspect
it's because those rich people simply do not have any deductions to
itemize. That is, their homes must have been paid for, their
medical insurance policies pays for all medical expenses, they do
not pay state income taxes because they live in a no tax state such
as Nevada, and they're so frugal that they do not give to
charities.
TO CONTACT ALI KAKHSAZ e-mail ali@arkcpa.com
WE SEE
MORE IN NUMBERS than just numbers… We see opportunities for you.
Ali R. Kakhsaz, CPA, MAcc
www.arkpca.com
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