Wednesday, March 18, 2009

Tax Loophole a Day

Using Form 1041 Rather Than 1040
Although most people use the typical 1040 form, form 1041 is actually 1 easier than the old 1040, and is in general 1 better.


Cheating
The IRS has a little known loophole in many of its tax documents. Most of the blank spaces in a typical IRS tax document have instructions on how to calculate the number to insert into the relevant space. However, the paper will actually accept any number written into any blank space on the document. The fact that fact-checking is not built in to the forms means that anything that can be written there is fine.


Exemption for Exceptionally Gory Death
Should you undergo an exceptionally gory death you may be able to count up to 15% of your income as tax-exempt. An exceptionally gory death is defined by the IRS as any death in which blood is spread over more than a 5 foot radius, it is featured on the "lighter side" portion of the local news, or more than 2 onlookers utter the words "cool."

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