I got a letter from the Wisconsin Dept of Revenue a couple years ago auditing my sales/use tax from 2007. They knew I had some direct wine purchases in 2007, which is when wineries had to agree to start providing that data in exchange for a shipping permit, but I did not pay any sales/use tax in 2007 (I have since 2008).
The kicker was that I did not start using CellarTracker, etc., until 2008 either, and my documentation for 2007 was less than optimal. Anyway, luckily, reviewing what I did have, it looked like I payed for 2007 purchases (there weren’t many yet) in 2008, probably because the bulk upload I did when I started using CellarTracker in 2008 was my starting point. There was not a lot of money at stake to say the least and there was never an actual audit.
Anyway, frankly, I think part of the reason I got the letter is because I started paying sales/use later–no good deed, etc., but that’s my experience.
Full List of All Taxes in ObamaCare / All Taxes in the Affordable Care Act
The following list of new ObamaCare taxes collectively raise over $800 billion by 2022. Here is a complete list of new fees and taxes contained within ObamaCare:
Corporate:
• 2.3% Tax on Medical Device Manufacturers 2014
• 10% Tax on Indoor Tanning Services 2014
• Blue Cross/Blue Shield Tax Hike
• Excise Tax on Charitable Hospitals which fail to comply with the requirements of ObamaCare
• Tax on Brand Name Drugs
• Tax on Health Insurers
• $500,000 Annual Executive Compensation Limit for Health Insurance Executives
• Elimination of tax deduction for employer-provided retirement Rx drug coverage in coordination with Medicare Part D
• Employer Mandate on business with over 50 full-time equivalent employees to provide health insurance to full-time employees. $2000 per employee $3000 if employee uses tax credits to buy insurance on the exchange (marketplace). (pushed back to 2015)
• An annual $63 fee levied by ObamaCare on all plans (decreased each year until 2017 when pre-existing conditions are eliminated) to help pay for insurance companies covering the costs of high-risk pools.
Individual: • Medicare Tax on Investment Income 3.8% over $200k/$250k
• Medicare Part A Tax increase of .9% over $200k/$250k
• 40% Excise Tax “Cadillac” on high-end Premium Health Insurance Plans 2018
• Medicine Cabinet Tax
Over the counter medicines no longer qualified as medical expenses for flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), health savings accounts (HSAs), and Archer Medical Saving accounts (MSAs).
• Additional Tax on HSA/MSA Distributions
Health savings account or an Archer medical savings account, penalties for spending money on non-qualified medical expenses. 10% to 20% in the case of a HSA and from 15% to 20% in the case of a MSA.
• Flexible Spending Account Cap 2013
Contributions to FSAs are reduced to $2,500 from $5,000.
• Medical Deduction Threshold tax increase 2013
Threshold to deduct medical expenses as an itemized deduction increases to 10% from 7.5%.
• Individual Mandate (the tax for not purchasing insurance if you can afford it) 2014
Starting in 2014, anyone not buying “qualifying” health insurance must pay an income tax surtax at a rate of 1% or $95 in 2014 to 2.5% in 2016 on profitable income above the tax threshold. The total penalty amount cannot exceed the national average of the annual premiums of a “bronze level” health insurance plan on ObamaCare exchanges.
Sure, the AMT folks can’t use 1040EZ, but not sure many of them would would want to use it because the standard deduction is smaller than their itemized deductions for most of these folks. The AMT calculation effectively reduces their deductions, but not down to the standard deduction. I think George’s point was that 1040 gathers a lot of data, crunches the numbers, then throws the result away to be replaced by a rather simple calculation of the tax owed (plus a few recent supplements).
