No later than April 15th the people in this country will file and send in to the IRS form 1040 U.S. Individual Income Tax Return. They will pay the tax that they owe and some "lucky" ones will get a refund. However, not one of then have ever read the instructions for IRS form 1040. I even doubt that the "professional" tax preparers have even read the instructions. So let us review the instructions contained in the booklet for the 2004 form 1040, U.S. Individual Income Tax Return.
But first let's take a closer look at IRS form 1040. It is separated into 9 categories with instructions for filling each line in those categories.
Each of those categories are separated by heavy lines on the form.
It's the 3rd category that we're going to examine closer.
Go to page 19 of the 2004 booklet and in big heavy type you will see the following:
We find a heading of Income followed by a sub-heading of Foreign-Earned Income with no other sub-heading of Domestic Source Income! Did you get that or did you miss it? Lines 7 thru 22 on the form are only for Foreign-Earned Income! If there there is no sub-heading for Domestic Earned Income why are people (like Irwin Schiff) prosecuted and imprisoned for failing to file if they've never worked out side of this country?
Do you have any Foreign-Earned Income that is required to be entered on line 7 of form 1040? What about Foreign-Earned Interest, Dividends? Are you going to file simply because you're afraid of being prosecuted for not lying on form 1040 about your Foreign-Source Income?
Now that you know the truth about IRS form 1040 U.S. Individual Income Tax Return I'll let you deal with your conscience about what you're going to do no later than April 15th!
Unfortunately, I know what most of you will do.