How much would WE be charged in fines and late charges if this was our situation?
http://www.nytimes.com/2008/09/05/nyregi…
Rangel Failed to Report $75,000 in Income
By DAVID KOCIENIEWSKI
Published: September 5, 2008
Representative Charles B. Rangel has earned more than $75,000 in rental income from a villa he has owned in the Dominican Republic since 1988, but never reported it on his federal or state tax returns, according to a lawyer for the congressman and documents from the resort.
Mr. Rangel, chairman of the House Ways and Means Committee, which writes the federal tax code, bought the beachfront villa at the Punta Cana Yacht Club and has received twice-yearly payments from the resort, which rents the property for $500 or more per night.
None of this would be an issue under the FairTax, would it?
,,Do we need a Rangel Rule? ,When Ted Kennedy got sick, did he stand in line at a public health clinic? ,Did Ted Kennedy stand in line at a public health clinic when he got sick? ,Is it fair that Charlie Rangel and Tim Geithner don’t have to pay IRS penalties? ,Is it fair that Charlie Rangel and Tim Geithner don’t have to pay IRS penalties? ,Tags: charged, charges, fines, late, Much, situation, this, Would
Comments (4)
Hold on.
$75,000 / 20 years / $500 a night is less than 10 nights per year. Under US tax rules, 14 nights or less isn’t considered taxable income.
Of course, there will be some blips–that is years that rented for more than 14 nights. (I can’t tell from the article what the $75K represents. Eg, all years before the 14 day rule, or only the years that 14 days were met. Rangel of course is pleading ignorance, saying he didn’t know if the villa was ever rented or not because the statements were in Spanish and he didn’t read spanish and didn’t ask someone who did to translate for him.)
A lot! Interest and late fees for the 10 years and for him there should be an extra fine. Ignorance is no excuse, as they say, especially for someone writing the tax code. I want to add that people who agreed to shaky home loans are suffering and the help is sketchy but not for Lehman Bros. who were also responsible for these bad loans.(Maybe, the CEO and company officers should be foreclosed on and their credit should go in the dump). Double standard again?!!! Two more reasons the gov’t needs to have a shake down.
What the papers don’t tell you is how much in expenses are going to be written off against the gross income. When that is figured in, it is not going that big a deal. If he files amended returns he will have to pay tax and interest. If he was audited, he might have to add a 20% accuracy penalty.
there are many things that would not be a issue under the FairTax. It’s amazing That people do not fully embrace the concept. How many jobs do we have to lose to countries with lower tax bases or consumption tax programs for us to realize this is the way we need to go?