I am in the process of filing for an income tax return for the US IRS.
I am shocked to find out that it is stupid and cruel.
You will be taxed even if your income is only US$5 for the whole year.
Worse, although you do not have any tax, you still need to submit a return, at least in order to get your ITIN, which is for foreigners.
Initially, we were told to submit letters from the publishers or employers certifying not only the income but also that the cincome is from them and meant for the me. The form 1042-S is not sufficient. But when I submitted the letter together with the form, I was told to submit the income tax return form without specifying which form.
There was also another reason for rejection in that I was supposed to be claimed as a dependent. What this means is that someone else in claiming tax credits using my name. This is bloody theft and corruption. It may be stupidy but inexcuseable. I wonder why I cannot pay tax despite being called a dependent by someone else. The fault is on those who used my name as the defendent. Fine the person, not me, who is trying to pay tax. By rejecting my application for ITIN so that I can comply with my duties to pay taxes on stupid grounds the IRS officers are unjust and acting cruelly and stupidly.
I presume that I need to submit income tax returns despite not having any tax to be paid. Smashwords mentioned that I shall be taxed at 30% whiich is paid by them directly to IRS as reported using form 1042-S. I thought there was no need to pay any tax any more or fill any form and the 1042-S form was sufficient. In fact, I submitted that form 1042-S together with a covering letter from Smashwords. They were ignored completely and worse, these documents were not returned to me, although I have scanned these documents in case of problems with IRS in future.
Because I thought that I had to submit returns even for zero amount, I start filling in the forms to the years that I had some income. Now, I realise that I need to submit even for years where I do not have any income at all.
When I started looking for the forms and filling them in, I realise that teven with incomes of US$5 you are still taxed 1US$. This is the stingiest government that I have ever known. Worse, it costs US$100 to fill in the forms which are so complicated. It may not cost me that much, but the market rate for income tax preparers, even online is at least US$100. My costs is not free because I need to print and use my personal computers as well as time taken to read all the complicated and convulated instructions. One sheet refering to other sheets.
It means that homeless people, must fill in their income tax returns and I am sure many of them need to pay huge amounts of penalties. I only checked the surface of the penalties which are complex and not transparent. I expect penalties now because despite the IRS owing money to me, which I intend to claim back, I was late in submitting the income tax return forms by many years. The IRS never bothered giving any warning despite receiving the withholding tax from me via the publishers, SMASHWORDS.
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