Income Tax Returns

Democratic presidential candidate Al Gore and his wife Tipper contributed about $15,000 to charities in 1999--the same as in the previous year--two years after Gore earned the sobriquet of "Vice President Scrooge" for his meager giving of $353.

A music industry business manager who has acknowledged failing to file income tax returns for the Black Eyed Peas and other clients has filed for bankruptcy. In a petition Sunday seeking Chapter 7 protection in the U.S. Bankruptcy Court in Los Angeles, a lawyer for Sean Larkin estimated his debts at $500,000 to $1 million. The Peas stopped working with Larkin, 41, after learning that he had not filed state and federal returns for years. He is being sued by the group's guitarist and another client, a television executive, for breach of contract.

This month and in March, volunteers from the Recreation and Community Services Department and the American Assn. of Retired Persons will help prepare and file income tax returns for senior citizens and low-income families. The service is available on Wednesday mornings at the Community Center, at 10911 Oak St. For more information, call (310) 430-1073.

Presumptive GOP presidential nominee Mitt Romney asked for an extension Friday to file his 2011 tax return. The former Massachusetts governor and his wife Ann expect not to owe any further taxes, having estimated $3.2 million in liability and made $3.4 million in payments, according the documents filed. Romney will file his return prior to the November election, according to a spokeswoman. Romney's taxes have been a continual cause of controversy in the 2012 presidential campaign because of his reluctance to release details.

Now, while many of the nation's taxpayers are preparing their annual tax returns, it might be helpful to know that the tax forms you send to the IRS get "scored." The result of that score will largely determine whether or not you get audited. The IRS shoots the 114 million tax returns it gets each year through a computer and gives each return what they call a "DIF" score. DIF stands for Discriminate Function, says Nancy McCurley, an IRS spokeswoman.

Challenging his Democratic opponent to do the same thing, U.S. Sen. Pete Wilson released his 1987 tax return Thursday, a voluntary gesture showing that Wilson and his wife continue to draw income well in excess of his $87,483 salary. Wilson's opponent, Lt. Gov. Leo T. McCarthy, has not released his returns, and aides said Thursday that he will make them public as soon as they are completed.

Two Orange County men have pleaded guilty to charges that they illegally used electronic tax returns to obtain $22,000 in loans. David D. Smyers, 51, of Garden Grove pleaded guilty Wednesday to conspiracy and making a false claim. John H. Wyatt, 45, of Stanton pleaded guilty last week to similar charges. The Internal Revenue Service said the two men forged W-2 income statements, submitted them to the agency for a refund and then got bank loans using the expected refunds as collateral.

Come tax time, schoolteachers, military reservists, landlords and performing artists all have at least one thing in common -- they can claim special tax deductions without bothering to itemize. They're members of a growing club. People who buy fuel- efficient cars, employees who contribute to health savings accounts and indebted former students all warrant so-called above-the-line deductions.

A music industry business manager who has acknowledged failing to file income tax returns for the Black Eyed Peas and other clients has filed for bankruptcy. In a petition Sunday seeking Chapter 7 protection in the U.S. Bankruptcy Court in Los Angeles, a lawyer for Sean Larkin estimated his debts at $500,000 to $1 million. The Peas stopped working with Larkin, 41, after learning that he had not filed state and federal returns for years. He is being sued by the group's guitarist and another client, a television executive, for breach of contract.

Two Southern California men have been indicted by a federal grand jury on 21 counts of filing false income tax returns and mail fraud. The indictment alleges that John R. Speidel, 56, of Pomona and McDonald J. Jackson, 45, of Los Angeles were partners in a scheme in which they filed 101 fictitious income tax returns seeking refunds in excess of $129,000, none of which was ever received by the defendants.

Actor Wesley Snipes was ordered Wednesday to voluntarily surrender at a federal prison in Pennsylvania next week to start his three-year sentence for failing to pay taxes. The U.S. Marshal's Office ordered Snipes to report to the Federal Correctional Institution McKean in Lewis Run, Pa., by noon Dec. 9. Snipes had tried to remain free on bail while appealing his conviction to the U.S. Supreme Court. The 48-year-old star of the "Blade" trilogy was convicted in 2008 of willful failure to file income tax returns.

Question: As a shareholder in Medco Health Solutions Inc., I'm disappointed in its stock and wonder if things are going to get any better. Answer: Being a profitable industry leader doesn't make a healthcare company immune from competitive pressures. The nation's biggest stand-alone pharmacy benefit manager, providing drug benefits to about one-fifth of the U.S. population, is receiving a boost from the large number of patent expirations now taking place. This helps it lower prescription costs by encouraging its members to switch to less expensive drugs such as generics.

Brisk book sales lifted President Obama's income to $5.5 million in his first year in office, an amount that dwarfs that of his recent predecessors while in power and reflects the public's continued willingness to pay to read his writings. On tax day, the White House released 2009 returns showing that the Obamas' income more than doubled from the year before. They collected $2.7 million in 2008, and $4.2 million in 2007. Obama paid nearly $1.8 million in federal taxes and $163,000 in Illinois state taxes.

Don't wait to tackle taxes this year, or your small business may miss out on credits that would lower your 2009 tax bill or face a delay in getting much-needed cash from a refund. California's new hiring tax credit, for example, awards as much as $3,000 per qualified new employee to small businesses that ended 2009 with more full-time workers than they started. But the $400-million program ends when the money runs out. And although the federal government -- and, as it stands for now, California -- won't run out of money for tax refunds, why wait to get the cash?

The Internal Revenue Service for the first time will require the nation's roughly 1 million tax preparers to register with the federal government, with a large percentage of them having to pass competency tests and stay up to date on tax laws by taking 15 hours of classes a year. The rules, announced Monday, come after a six-month study by the IRS that found a need for greater protection for the estimated 87 million people -- about 80% of all filers -- who hire a preparer or use tax preparation software to file their taxes.

A federal judge in Los Angeles sentenced "Girls Gone Wild" founder Joe Francis to 301 days already served and a year of probation after the soft-porn mogul's guilty plea to filing false income tax returns and bribing Nevada jail workers. Francis also must pay nearly $250,000 in restitution to the Internal Revenue Service as part of Friday's sentencing by U.S. District Judge S. James Otero. Otero accepted the plea bargain involving misdemeanor charges after a key witness withheld information from prosecutors.

Today is the deadline to pay your taxes. What if you don't have the cash? As tempting as it would be to ignore the tax bill and hope the Internal Revenue Service won't notice, experts say that's the worst thing you can do. "Eventually, they are going to catch up to you and send you notices, asking, 'Where is your tax return?' " said Maureen McGetrick, a tax partner with BDO Seidman in New York. A wiser course if you're having trouble coming up with the money is to be proactive.