And because of losses in the US, they paid no taxes for 2009.

"GE had plenty of earnings last year — just not in the United States. For tax purposes, the company’s U.S. operations lost 8 million, while its international businesses netted a .8 billion profit.

That left GE (GE, Fortune 500) with no U.S. profit left for Uncle Sam to tax. Corporations typically face a 35% federal income tax on their earnings. Thanks to its deductions and adjustments, GE reported an actual U.S. federal income tax rate of negative 10.5%. It got to add a "tax benefit" of .1 billion back into its reported earnings."

http://money.cnn.com/2010/04/16/news/companies/ge_7000_tax_returns/index.htm?cnn=yes&hpt=T2

Regarding the GE Bailout: http://www.washingtonpost.com/wp-dyn/content/article/2009/06/28/AR2009062802955.html?hpid=topnews&sid=ST2009062803183

Ten people illegally in the United States pleaded guilty for their involvement in a four-year, million fraud against the Internal Revenue Service, acting U.S. Attorney Kevin F. McDonald said Thursday.
Nine defendants pleaded guilty to conspiracy to commit mail fraud and for entering the United States without authorization, Assistant U.S. Attorney David C. Stephens told The Greenville News .
The 10th defendant pleaded guilty to mail fraud and illegal entry, Stephens said. Senior U.S. District Judge G. Ross Anderson Jr. accepted the pleas and will sentence the defendants later.
“This is the largest tax fraud case that I’m aware of ever occurring in the district of South Carolina,” Stephens said. “This is an extraordinarily serious, large case.”
McDonald said that between 2006 and November 2009, two tax preparation businesses, Seguros Internacionales, operating in Spartanburg and Forest City, N.C., and Poz Servicios Para Hispanos, operating in Boiling Springs, along with affiliated individuals filed more than 10,000 federal income tax returns claiming more than million in refunds.
The IRS paid approximately million in refunds before criminal investigators discovered most of the returns filed were fraudulent, McDonald said.
Seguros Internacionales and Poz Servicios Para Hispanos have been shut down, he said.
Agents estimate at least 20 people were involved in operating the scheme in which tax preparers knowingly claimed tax credits or deductions to which filers weren’t entitled, McDonald said.
One tax credit improperly claimed on a majority of the false returns was for child care expenses, prosecutors said. The credit can result in a refund even if no taxes were paid, prosecutors said.
Of the 10 people pleading guilty Thursday, nine were “runners” who solicited others to have their returns falsely prepared and then assisted them in getting their refund checks cashed, Stephens said.
McDonald identified them as Edgar Carrillo-Borjas, Miguel Angel Carrillo-Borjas, David Hernandez-Juarez, Ariana Canseco-Orozco, Maribel Juan-Orozco, Cristina Sanchez-Perez, Juan Carlos Carrillo-Roy, Carlos Carrillo-Rodriguez, all of Mexico, and Luis Gerardo Mora-Vargas, of Costa Rica.
(2 of 2)

The 10th person, Omar Maldonado-Cardenas, of Mexico, had an active role running the day-to-day operations at Seguros Internacionales for two years, McDonald said.

He said two other people in the case pleaded guilty in federal court earlier this year to obstruction of justice.
Juan Manuel Galban Ortega and Rodolfo Magana Escoto, both of Mexico, admitted burning documents and records associated with Seguros Internacionales, according to McDonald and federal court records.
On Nov. 17, approximately 100 law enforcement agents served search warrants and conducted interviews at various locations throughout the Upstate in connection with the investigation, McDonald said.
According to prosecutors, the 12 people who were convicted remain in federal custody and are awaiting sentencing. They face maximum penalties ranging from five to 20 years. All will be deported after completing their sentences, prosecutors said.
In connection with the case, five more people were arrested this week and charged with conspiring to defraud the United States, according prosecutors and court records.
Those arrested included Yolanda Poz of Boiling Springs, Lisa Mendoza of Spartanburg, Teresa Bravo of Pacolet, and Ashley Moore of Forest City, according to McDonald and court records. A fifth person was arrested Thursday, Stephens said.
None could be reached for comment.
The investigation is ongoing, and more charges are likely, McDonald said.
He said the case is being investigated by agents from the IRS, the United States Postal Inspection Service, and U.S. Immigration and Customs Enforcement.

http://www.greenvilleonline.com/article/20100402/NEWS/304020019/10-illegal-aliens-in-S.C.-admit-to-bilking-IRS-out-of-13-million

How many other illegals do you believe are committing tax fraud and getting back returns from IRS they do not deserve?
Is this a good reason that e-verify should be used in tax preparation?
So you believe illegals have paid this much in taxes to get a return?
Is this why our government has no money for services that Americans need, such as education for our children etc…?
_________________________________________________________________________________________________________________________________________________________________________

10 illegal aliens in S.C. admit to bilking IRS out of million

By David Dykes • Staff writer • April 2, 2010

Comments (14) Recommend (1)

Ten people illegally in the United States pleaded guilty for their involvement in a four-year, million fraud against the Internal Revenue Service, acting U.S. Attorney Kevin F. McDonald said Thursday.

Nine defendants pleaded guilty to conspiracy to commit mail fraud and for entering the United States without authorization, Assistant U.S. Attorney David C. Stephens told The Greenville News .

The 10th defendant pleaded guilty to mail fraud and illegal entry, Stephens said. Senior U.S. District Judge G. Ross Anderson Jr. accepted the pleas and will sentence the defendants later.

“This is the largest tax fraud case that I’m aware of ever occurring in the district of South Carolina,” Stephens said. “This is an extraordinarily serious, large case.”

McDonald said that between 2006 and November 2009, two tax preparation businesses, Seguros Internacionales, operating in Spartanburg and Forest City, N.C., and Poz Servicios Para Hispanos, operating in Boiling Springs, along with affiliated individuals filed more than 10,000 federal income tax returns claiming more than million in refunds.

The IRS paid approximately million in refunds before criminal investigators discovered most of the returns filed were fraudulent, McDonald said.
Seguros Internacionales and Poz Servicios Para Hispanos have been shut down, he said.

Agents estimate at least 20 people were involved in operating the scheme in which tax preparers knowingly claimed tax credits or deductions to which filers weren’t entitled, McDonald said.

One tax credit improperly claimed on a majority of the false returns was for child care expenses, prosecutors said. The credit can result in a refund even if no taxes were paid, prosecutors said.

Of the 10 people pleading guilty Thursday, nine were “runners” who solicited others to have their returns falsely prepared and then assisted them in getting their refund checks cashed, Stephens said.

McDonald identified them as Edgar Carrillo-Borjas, Miguel Angel Carrillo-Borjas, David Hernandez-Juarez, Ariana Canseco-Orozco, Maribel Juan-Orozco, Cristina Sanchez-Perez, Juan Carlos Carrillo-Roy, Carlos Carrillo-Rodriguez, all of Mexico, and Luis Gerardo Mora-Vargas, of Costa Rica.

The 10th person, Omar Maldonado-Cardenas, of Mexico, had an active role running the day-to-day operations at Seguros Internacionales for two years, McDonald said.

He said two other people in the case pleaded guilty in federal court earlier this year to obstruction of justice.

Juan Manuel Galban Ortega and Rodolfo Magana Escoto, both of Mexico, admitted burning documents and records associated with Seguros Internacionales, according to McDonald and federal court records.

On Nov. 17, approximately 100 law enforcement agents served search warrants and conducted interviews at various locations throughout the Upstate in connection with the investigation, McDonald said.

According to prosecutors, the 12 people who were convicted remain in federal custody and are awaiting sentencing. They face maximum penalties ranging from five to 20 years. All will be deported after completing their sentences, prosecutors said.

In connection with the case, five more people were arrested this week and charged with conspiring to defraud the United States, according prosecutors and court records.

Those arrested included Yolanda Poz of Boiling Springs, Lisa Mendoza of Spartanburg, Teresa Bravo of Pacolet, and Ashley Moore of Forest City, according to McDonald and court records. A fifth person was arrested Thursday, Stephens said.

None could be reached for comment.

The investigation is ongoing, and more charges are likely, McDonald said.

He said the case is being investigated by agents from the IRS, the United States Postal Inspection Service, and U.S. Immigration and Customs Enforcement.

http://www.greenvilleonline.com/article/20100402/NEWS/304020019/1004/NEWS01/10-illegal-aliens-in-S.C.-admit-to-bilking-IRS-out-of–13-million

Assume I owned a business:
Ronda’s Crporation,( a calendar year, accrual basis taxpayer) had the following transactions during 2006, its second year of operation.
Taxable Incom-320,000
Federal Income Tax Liability-108,050
Interest Income from tax-exempt payors-4,000
Meals and Entertainment expenses-2,000
Premiums paid on key employee life insurance-2,500
Increase in cash surrender value attributable to life insurance-600
Proceeds from key employee life insurance policy-120,000
Cash surrender value of life insurance-15,000
Excess of capital losses over capital gains-11,000
MACRS deductions-24,000
Straight 179 expense elected during 2005-90,000
Organizational expenses incurred in 2005-12,000
Dividends received from domestic corporations(less than 20% owned)-20,000

I will use the LIFO inventory method and its LIFO recapture amount increased by
9,000 during 2006. I also sold property on installent during 2005.. The property was sold for 30,000 and had as adjusted basis at sale of 22,000. During 2006 , I received a 10,000
Payment on the installment sale. I elected to amoritize its qualified organizational expenses in 2005. Please help me to compute Ronda’s Corporation current Earnings and Profit.

We formed on Mar. 1st this year, we received a note with our EIN saying we are to file a 1065 by May 15th. However, when I checked the IRS website, it states:

"A partnership is not considered to engage in a trade or business, and is not required to file a Form 1065, for any tax year in which it neither receives income nor pays or incurs any expenses treated as deductions or credits for federal income tax purposes."

I also see a lot of people on here saying we still have to file. So, which is it?

Why on the BIG issues that were put before him in office, did he choose NOT TO VOTE. But he voted and pushed for little meaningless things like "Congradulating the White sox on winning the World Series??"

Examples:

2/28/08 Vote 35: On the Cloture Motion: Motion to Invoke Cloture on the Motion to Proceed to H.R.3221; New Direction for Energy Independence, National Security, and Consumer Protection Act and the Renewable Energy and Energy Conservation Tax Act of 2007 : NOT VOTING

2/26/08 Vote 33: On the Cloture Motion: Motion to Invoke Cloture on the Motion to Proceed to Consider S. 2633; A bill to provide for the safe redeployment of United States troops from Iraq. NOT VOTING

2/7/08 Vote 10: H R 5140: H.R. 5140 As Amended; Recovery Rebates and Economic Stimulus for the American People Act of 2008 : NOT VOTING

4/10/08 Vote 95: H R 3221: Ensign Amdt. No. 4419; To amend the Internal Revenue Code of 1986 to provide for the limited continuation of clean energy production incentives and incentives to improve energy efficiency in order to prevent a downturn in these sectors that would result from a lapse in the tax law. NOT VOTING

4/4/08 Vote 91: H R 3221: Voinovich Amdt. No. 4406 As Modified; To protect families most vulnerable to foreclosure due to a sudden loss of income by extending the depreciation incentive to loss companies that have accumulated alternative minimum tax and research and development tax credits. NOT VOTING

4/3/08 Vote 87: S RES 501: S. Res. 501; A resolution honoring the sacrifice of the members of the United States Armed Forces who have been killed in Iraq and Afghanistan. NOT VOTING

Yet he did vote inbetween all those votes for things like:

3/14/08 Vote 82: S CON RES 70: DeMint Amdt. No. 4339; To provide for a deficit-neutral reserve fund for providing an above the line Federal income tax deduction for individuals purchasing health insurance outside the workplace. VOTED NO

3/13/08 Vote 77: S CON RES 70: Kyl Amdt. No. 4372; To protect small businesses, family ranches and farms from the Death Tax by providing a million exemption, a low rate for smaller estates and a maximum rate no higher than 35% VOTED NO

Im confused, if he is so for or against these like he says, why didnt he vote? And if he is for small falmilies and those needing insurance, why did he vote against them?? Any help ??

1) The proverbial Wall Street capitalists believe that, with new federal income tax rates, the removal of FICA ceilings, increases in capital gains rates, decreases in deductions, and simultaneous tax raises, not only will Obama remove incentives for innovation and productivity, but that he does not seem to care about—or perhaps appreciate—the consequences?

On the spending side, investors see too many subsidies and entitlements that may Europeanize the populace and erode incentives, while creating so much debt that in the next decade, should interest rates rise, the federal budget will be consumed with servicing borrowing and entitlement obligations. A redistributive economy in which government ensures an equality of result is Wall Street’s worst nightmare. Debt can only be paid back by floating more foreign debt, issuing more US bonds at home, raising taxes, or printing money—all bad options in the mind of the investor.

3) Too many are beginning to think Obama is, well, a naïf—and hence dangerous. He chest-thumps speeches Geithner cannot deliver. He says we are near the Great Depression—but then, after the stimulus package passes, suddenly hypes future growth rates to suggest that we will be out a recession, soon after all? Add in all the talk of high-tax, Al-Gorist cap-in-trade, wind and solar, socialized medicine in the midst of a financial crisis, and at best Obama comes across as confused and herky-jerky, and at worse, clueless on the economy—as if a Chicago organizer is organizing a multi-trillion-dollar economy. Talking about ‘gyrations’ and confusion about profits and earnings, and offering ad hoc advice about investing do not restore authority.

`4) Given the amount of debt the US is incurring (and the decades needed to pay it off), given the loose talk about the ‘rich’, and given the rumors about nationalization, investors are unsure whether the United States will remain a safe haven for investment, or even offer a climate for profit-making, since it would either be taxed to the point of seizure, or its beneficiaries would be culturally and socially demonized. Ultimately perhaps some will accept that as the price of doing business in a socialist US, but for now it creates doubt. This is not a defense of Wall Street (a year ago Richard Fuld and Robert Rubin were our Zeuses on Olympus who strutted like gods), simply a warning that we are going from excess to stasis, and the cure will be as bad as or worse than the disease.

IMO, this man is the most thoughtful thinker in the world today:

http://pajamasmedia.com/victordavishanson/

Calvin: one can’t change the facts can they?
obamaBot: what history book are you reading?
When I placed this question in another place on YA, my stalker "badboyinheat" reported me… only been reported by one person – 8 times! so read while you can!!
actually, I have 2 stalkers who love to report others to YA … "bob" is on duty when "badboyinheat" is sleeping LOL

I am single, claiming 0, no business expenses or deductions, nothing but a very basic tax form is needed for me to file. Every single year prior to this year I’ve received a full refund of the amount withheld of both federal and state income tax (CA–so much for that one this year I guess) .. In 2007 I only worked about half the year, made a little over k, and received my full refund of around 0. In 2008, I worked the entire year, made a little over k, and federal income tax withheld almost 00. But when I tried to e-file (using turbo tax free edition) it showed a refund amount of only . What circumstances have caused such a drastic drop in my refund? If I am not entitled to a full amount refunded, I understand I guess, but why such a tiny fraction? I haven’t actually filed yet because I’m hoping I missed something on my return and will at least get more than back. My status hasn’t changed from 2007 to 2008–same company, same W4, no changes–why this drastic decrease? Can anyone explain?

http://articles.moneycentral.msn.com/Common/Taxes/2007TaxBrackets.aspx

I’m still in the same tax bracket according to this (???)

Why on the BIG issues that were put before him in office, did he choose NOT TO VOTE. But he voted and pushed for little meaningless things like "Congratulating the White sox on winning the World Series??"

Examples:

2/28/08 Vote 35: On the Cloture Motion: Motion to Invoke Cloture on the Motion to Proceed to H.R.3221; New Direction for Energy Independence, National Security, and Consumer Protection Act and the Renewable Energy and Energy Conservation Tax Act of 2007 : NOT VOTING

2/26/08 Vote 33: On the Cloture Motion: Motion to Invoke Cloture on the Motion to Proceed to Consider S. 2633; A bill to provide for the safe redeployment of United States troops from Iraq. NOT VOTING

2/7/08 Vote 10: H R 5140: H.R. 5140 As Amended; Recovery Rebates and Economic Stimulus for the American People Act of 2008 : NOT VOTING

4/10/08 Vote 95: H R 3221: Ensign Amdt. No. 4419; To amend the Internal Revenue Code of 1986 to provide for the limited continuation of clean energy production incentives and incentives to improve energy efficiency in order to prevent a downturn in these sectors that would result from a lapse in the tax law. NOT VOTING

4/4/08 Vote 91: H R 3221: Voinovich Amdt. No. 4406 As Modified; To protect families most vulnerable to foreclosure due to a sudden loss of income by extending the depreciation incentive to loss companies that have accumulated alternative minimum tax and research and development tax credits. NOT VOTING

4/3/08 Vote 87: S RES 501: S. Res. 501; A resolution honoring the sacrifice of the members of the United States Armed Forces who have been killed in Iraq and Afghanistan. NOT VOTING

Yet he did vote in between all those votes for things like:

3/14/08 Vote 82: S CON RES 70: DeMint Amdt. No. 4339; To provide for a deficit-neutral reserve fund for providing an above the line Federal income tax deduction for individuals purchasing health insurance outside the workplace. VOTED NO

3/13/08 Vote 77: S CON RES 70: Kyl Amdt. No. 4372; To protect small businesses, family ranches and farms from the Death Tax by providing a million exemption, a low rate for smaller estates and a maximum rate no higher than 35% VOTED NO

Im confused, if he is so for or against these like he says, why didnt he vote? And if he is for small business and families and those needing insurance, why did he vote against them?? Any help ??

I am a college student and I own my own business doing videography. I know that the minimum to file federal tax is ,450 after all deductions have been accounted for (cameras, computers, etc).

What I do not understand is, if I make ,451, would I pay tax on all of the money or only what exceeded the minimum of 8,450?
Update: I am referring to federal Income tax. I understand that If i make 3 that I must file for business tax (social security etc)