Wait! You mean we have to pay taxes if we receive cash? When the hell did this happen? What if you’re part of the “self-reliant nonconformists who don’t pay much heed to everyday rules and regulations” community? Does that earn you a pass?
The AP reported on some workers on the Gulf Coast who are simply not aware of the notion of income taxes and would very much like to keep it that way:
Out-of-work Gulf Coast shrimper Todd Pellegal spent his first $2,500 check from BP quickly, paying off bills and buying groceries for his family.
He never even considered putting some of it away for taxes.
Now he’s among the people up and down the Gulf Coast reeling from the oil spill disaster who are surprised — and frustrated — to find out the Internal Revenue Service may take a chunk of the payments BP PLC is providing to help them stay afloat.
Many were already angry about how long the oil giant took to cut the checks. So when they got the money — generally about a few thousand dollars each so far — they spent it fast.
“If they’re going to pay you a lump sum, like for a year, then bam, take the taxes out of the check,” said Pellegal, of Boothville, La. “But a little bit at a time, they shouldn’t.”
Right, because withholding taxes from a paycheck isn’t how it works for every other person in the country who pays income taxes. Whoever heard of “net pay”?? But don’t bother suggesting planning for such a phenomenon as being paid by check:
“They should do a projection of their taxable income and determine if there is going to be a tax liability and have enough to cover that,” said Crystal Faulkner, a partner in the Cincinnati-based accounting firm of Cooney Faulkner & Stevens LLC.
That doesn’t sit well with Cherie Edwards, who is now only working one day a week at her job booking charter fishing trips at Zeke’s Landing in Orange Beach, Ala. The lost hours due to the oil spill are costing her about $270 week.
She said she got her claim number from BP on Thursday and plans to file an application in the coming day. So far, she said, no one has mentioned to her about a potential tax liability.
“I haven’t even thought about taxes. Wow. That makes me mad,” said Edwards, who has one child in college and another in high school. “I’m already losing money, and now I’ve got to figure out how to hold back money to pay taxes?”
Jesus lady, you’re right. Getting used to the $0 tax liability and then all of a sudden learning that you are required by law to pay them would piss off just about anyone.
IRS May Tax Payments to Gulf Coast Victims [AP via Tax Lawyer’s Blog]
No one likes it when firms trim their fat, but it’s their own prerogative. With the softening of our economy it serves everyone to work hard and be thankful to have a job.
dang those boots you’ve been licking must taste good
This seems to be part of a larger trend in the industry—cutting domestic roles while expanding offshore capabilities. I’d be curious to see how this shift impacts quality control and client relationships long term.
Rumor has it that approx. 200 tax people below partner level were let go. These people were invited to a WebEx call, led by a partner who told the participants that if they’re on the call, they’re getting laid off. They could stay through 5/15 and perhaps there was a little severance in it for them. All other participant names were blocked on the call, so you couldn’t see who else was getting axed. Efficient!
They sure love those WebEx layoff conferences.
“Rumor has it” equals “Let’s make up some lies.
We got rid of losers. No one will be missed. Many are called, few are chosen.
Guarantee this comment will age like milk. I hope you sing the same tune when something happens to you.
The Webex comment was true
Is it just me or is that, like, super tacky?