It’s tax season again here in the USA and it’s time for me to rant about tax payers. What’s that you say? Why am I ranting about tax payers and not paying taxes? Because it is more humorous and too many people already rant about taxes.
I present to you my top 8 list of idiotic tax payers!
1. People who pay someone to fill out their 1040EZ form.
There is a reason they call it the “EZ” form and not the “HARD” form. The “EZ” stands for “EASY”!!! Why in the world would you pay someone to fill out a form that takes all of five minutes to fill in? The most complicated part of the 1040EZ form is figuring out how many dependants you have. No, your dog is not a dependant.
2. People who pay for a “Rapid Refund”.
If you e-file your taxes and go with direct deposit your money will be in the bank in less than two weeks. Why would you want to take out a loan just to get your money a few days early? It makes no sense at all to me. Look at the interest rate on that loan, it’s a lot higher than the 0% loan you just gave the government.
3. People who file on April 15th when they are due a refund.
Everyone should do their taxes as soon as all of their forms are in. If you have a refund due to you send those forms in ASAP! If you are going to owe money then you want to wait until April 15th. Better yet, file for an extension!
4. People who file in February when they owe taxes.
Like number three above, why would you pay that bill any earlier than you have too? You have all of February, March and half of April to take the money you owe and drop it in a CD or other short term low risk investment. Don’t send that check in early!
5. People who think the refund is a savings plan.
I know far too many people that get very happy when they get a big fat refund check. This boggles my mind! Say you get back $1,300 from the government. With 52 weeks in a year this means you gave the government an extra $25 every week of the year as a 0% loan! When was the last time anyone gave you a 0% loan?
The refund check is money you should have never sent to the government in the first place! Besides, since when is a 0% savings account a worthwhile investment?
6. People who get angry when they owe tax money.
Like number five above, these people are looking at it the wrong way. When you owe money at tax time you were able to benefit from having that money! This is the only way you can get a 0% loan out of the government.
The best tax year I ever had was when I did my taxes and owed the government $13. I was so happy to write that check (on April 15th)! My wife was mad though, she was looking forward to that refund check. I guess we don’t see eye-to-eye?
7. People who file before February 1st.
Believe it or not, companies have until February first to get you your tax documents. All those 1099 forms and W2’s do not have to be in your hands until then. So, why would you file before that date when you know at least one more document is likely to show up?
I have a friend who did his daughter’s taxes for her and was then shocked when another W2 showed up in the mail with sizable numbers on it! Now he has to file an amended return…
8. People who don’t understand that tax money is their money
So many tax problems could be solved if we did away with the automatic deductions via payroll and Americans had to send in a check every quarter. The self-employed do this.
That’s the end of my list.
For those who do not know, taxes were not always automatically withheld from your check. If you are self-employed you have to make estimated payments every quarter. If all tax payers had to do this, rather than have the money deducted before they ever see it, we might just see a tax revolution in the USA.
This greatly eased the collection of the tax for both the taxpayer and the Bureau of Internal Revenue. However, it also greatly reduced the taxpayer’s awareness of the amount of tax being collected, i.e. it reduced the transparency of the tax, which made it easier to raise taxes in the future.
source
Further Reading
It’s time once again to look over one of those amazing stock offers I have received in my email box. This time we will be looking at MGOA or Megola Inc.
Get MGOA on Monday, Its going to explode!
Trading Date: Monday, Febuary 05, 2007
Company: MEGOLA INC
Symbol: MGOA
Current Price: $0.05
Short Term Target: $0.50
Rating: 10/10
Recommendation: BUY NOW
CORUNNA, ON — (MARKET WIRE) — 02/02/07 Megola Inc. (PKSHEETS: MGOA), a leading environmental solution provider, announced today that it has placed its first order for Hartindo Anti-Fire products, which will be used for product demonstrations and obtaining the required industry approvals. The shipment is set to arrive from Malaysia by the end of February, early March.
This company is going to break into the dollar market yielding MASSIVE returns. Take advantage, get in NOW, make massive returns! This is an ACTIVE and GROWING company.
Get in with MGOA before its over 0.50!
First we take a look at our old standby, Yahoo Finance. Hmmm… It is currently trading at $0.05 per share with a few shares having traded hands on Friday Feb 2, 2007. We have a problem though as there is not enough data available for the Yahoo charts to work.
The news story quoted in the email does appear to be valid so we can take a moment to look it over… Hmmm, they are moving forward with business BUT, this is not a confirmation of success but a confirmation that they are working towards a goal of being approved by various agencies.
If you go to the website for Megola Inc. you can get more information, including some very bad news about their financial status:
Dear Shareholder:
Please accept this brief message explaining the reasoning why we have not filed our year end financials ending July 31, 2006.
Although the financial statements for fiscal year ended July 31, 2006 are not finalized, we anticipate no significant variation in revenue results from the fiscal year ended July 31, 2005.
Megola is currently attempting to complete a large private funding placement which was anticipated to be finalized prior to our required filing period due date. Although we are confident we will secure this funding in the very near future, there is no assurance that we will do so. One factor leading to the late filing is that, due to the aforementioned circumstances, Megola could not meet our financial obligation to our SEC accountant Malone and Bailey LLC. This has resulted in our company’s financials not being immediately addressed and subsequently not being completed in due time.
We apologize for this situation and expect full completion of our financials to be forthcoming.
A complete structured outline of Megola events will be addressed in our SEC filing and future shareholder communications.
Sincerely,
Joel Gardner
I do not know if this email was sent out by a corporate officer hoping to dump some stock or an investor or even someone with an axe to grind. I do not believe this is the time to buy this stock.
If we take a quick look over at money.cnn.com we see some very interesting information about recent trading of this stock. We see that on February second 2007 about 200K shares changed hands and the stock price went from $0.04 to $0.05. This stock has been trading for less than $0.10 for most of the year. Even with the bad news reported by the company in regards to their SEC filing the stock price has not budged much. The only high point for this stock was back in April 2006 when there was a lot of trading and the stock spiked over $0.20.
It looks to me that this bit of good news caused the spike in share price for late March into early April:
Megola’s financial year runs from August 1 to July 31. Megola’s audited 2006 second quarter financials, ending January 31, 2006, show a 784.55% increase in revenue, to $274,616 from $31,046, as compared to the second quarter financials of 2005. Megola’s audited 2006 first quarter financials, ending October 31, 2005, increased 333.54% to $202,187 from $46,636 as compared to the first quarter financials of 2005.
In 2005, Megola’s total revenues increased 220.81% to $713,135 from $222,294 in 2004.
I don’t see anything big happening after that date to indicate why the stock dropped so hard before the end of April, but it did.
If you want to take a chance on this one you might be able to make a few pennies but, more than likely, you will be stuck with a stock no one wants and you can’t sell.
Be warned, don’t buy MGOA!!!
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