Charitable contributions over $250 are supposed to include an acknowledgment letter from the charity in order for a deduction to be taken. Out of 49 charitable contributions made, three letters couldn't be found.
_Sebelius and her husband took deductions for mortgage interest that they weren't entitled to. The couple sold their home in 2006 for less than what they owed on the mortgage. They continued to make payments on the mortgage, including interest. But since they no longer owned the home they weren't entitled to take deductions for the interest. The same thing happened with a home improvement loan. Sebelius said they "mistakenly believed" the payments were still deductible.
_Insufficient documentation was found for some business expense deductions.
Her tax problems are yet another reminder of several problems. The confirmation process is brutal, exposing political disagreements and peccadilloes but not incompetence or character flaws. It seems mostly a game of political gotcha. The tax code is incredibly complex, and nobody understands it, not even employees of the IRS. Finally, and most importantly, taxes are so high that even people with means who favor them attempt to minimize their tax burden to the point of taking deductions that are questionable.
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I do believe that taxes are to high for everyone. I think people need to wait and be patient because presidents have no control over the economy but can influence the economy with plans and stimulus package
ReplyDeleteI agree with this. I believe that our economy is well structured but is difficult to understand. Some things get messed up. It happens. Most people blaim these people for our economic strife, but I disagree. I believe that in this day in time, more people liquidifing our money is causing our economy to falter. This causes the banks to have problems and the mountain just builds up from there.
ReplyDelete-Warren Burns