Wednesday, December 9, 2009

Help With Taxes - What Can You Do Yourself?

Author: Manuel Davis Jr.

Source: ezinearticles.com



Do I need help with taxes, or can I handle things on my own? This is a question that many people struggle with. Are you one of them? When it comes to getting help with taxes you need to know where to turn, what you can do on your own, and whether or not you are taking a risk and asking for more trouble. Do it yourself work is not a bad thing, but only if you are confident in your ability to move forward without making any mistakes.

Do not flatter yourself. You only know so much about taxes, and you need to draw the line where applicable. For instance, you may feel comfortable filing your own tax return every year. This is a good thing, and millions of people do this. But if you are not capable of anything in addition to this, you should not push the limits. For instance, if you currently owe the IRS and are looking at an Offer In Compromise as a form of settlement it may not be in your best interest to attempt to file an Offer In Compromise or Installment Agreement yourself if you are not sure of how to do this. In this case, hiring a tax professional would be in your best interest because they normally lead to better outcomes.

In general here are some things you should look to work with a professional such as a CPA, Tax Attorney, Enrolled Agent, former IRS agents or other experts:

1) Tax Audit - typically you want representation and expert help here in dealing with the IRS in this situation

2) Offer In Compromise - this form of settling for less is rarely accepted by the IRS and a professional can help increase those odds

3) Partial Payment Installment Agreement - requires clear financial disclosure which a professional can assist with

4) Penalty Abatement - Reducing penalties or Interest is not easy

5) IRS Installment Agreements Over $25k - If you owe over $25k in taxes, a professional is best to work with here

6) Wage Garnishment - often times you can resolve this problem yourself, but if you want to do it quickly it is best to work with a professional

7) Other Levies - this would include things like a bank levy, or a levy on wages (wage garnishment)

Can I learn to do everything myself? It all depends on how much time you are willing to put in. A lot of people take the time to learn about everything that has to do with their taxes as well as the IRS code. The more you learn the less professional help you will need. There are a lot of books and online resources that can teach you about taxes, the IRS.gov, TaxDebtHelp.com, and others. But remember, the statistics show that a professional will usually provide you with better results than if you tried to take on your State Tax Collector or an IRS agent yourself.





Stop by backtaxeshelp.com to receive help with taxes whether you want to try to solve your tax problem yourself or by using a tax professional. We are a site dedicated to helping individuals resolve their tax issues. Connect with an IRS tax professional and read lots of useful information about specific tax debt problems and the best way to solve these problems.




Monday, December 7, 2009

Personal Income Tax: All about the Tax Regime

Author: Article Expert

Source: articlesbase.com



Personal income tax is a kind of tax system that is imposed on the personal earnings of an individual. A person pays his/her income tax on the basis of his annual payment he/she used to get as the salary or wage. In a general sense, an income tax is a tax imposed on the financial income of an individual, people or other legal entities. A personal or individual income tax is levied on gross annual income of the individual with some permitted deductions. Personal income tax usually collected on the end of every year with small or no amendments in tax structure.Most income of an individual in UK is subject to income tax deduction under the PAYE scheme that's an expedient personal income tax collection process for the Government. If you have interest received, your tax is usually deducted by the payer. PAYE method of tax payment allows your tax payments to be made automatically from your salary package if you are in job sector, thus dropping the hassle of excessive individual involvement in taxation process. However, in a case if you are self employed you need to fill out a self-assessment tax return at the end of each taxation period.In case if your tax is overpaid you may get the benefits of huge tax rebates however you may also opt for other allowances which you may be entitled for, to save a considerable amount of money in income tax payments. Income taxes are paid by persons of UK on the basis of the annual income. Taxes money is spent in the development of the country in each and every field. Hence every person like as business man or employee pays their taxes to the government.In UK, taxable personal income of an individual is not the same as his/her total income lies since all the taxpayers are permitted to enjoy a definite amount of tax-free income sometimes called a personal allowance and some are entitled to various additional allowances as well. The amount of personal income tax levied on an individual depends upon your earnings and your monetary status as well as the type of income he or she is receiving.On the completion of your Personal Income Tax period, State income tax Office contacts your employer to arrange that you need to pay. In some cases tax could be deducted directly from your earned income after the completion of taxation period.



ATC Solution is a fast growing, dynamic firm providing professional and discrete financial services, Director Services UK and corporate income taxes. We are providing Personal Income Tax planning and corporate services to the customers.




Saturday, December 5, 2009

Bailiffs & Council Tax - Knowing What To Do

Author: Michael Sherriff

Source: articleage.com



This article is about bailiffs who may call trying to collect Council Tax or Community Charge (Poll Tax) arrears. If a bailiff has contacted you to collect another sort of debt the law might be different.
Council Tax and Poll Tax are usually collected by private firms of bailiffs on behalf of your local council. They try to take your goods away and sell them, usually at auction, to raise money to pay the debt. The process they have to follow to say they want your goods is called 'distraining' or 'levying'.
From October 1998 bailiffs who call must be "certificated". This means they must have a certificate from the County Court allowing them to act as bailiffs. You can complain to the County Court about a certificated bailiff.
From April 1998 you should get a letter from the Council telling you how much you owe and warning you that a bailiff will call if you do not pay the debt within 14 days. It will also tell you who to contact at the council if you have a query. Contact the council and try to make an arrangement to pay what you can afford immediately. If the council agrees then they can stop bailiffs calling out and save you extra fees.
DO I HAVE TO LET THE BAILIFFS IN?
IF THE BAILIFFS HAVE NOT BEEN INTO YOUR HOME BEFORE TO COLLECT THIS DEBT, THEY HAVE NO RIGHT TO COME IN. THEY CANNOT BREAK IN. YOU CAN CHOOSE NOT TO LET THEM IN.
* DON'T open the door to them as they may try to push past you. If they get inside, they have a right to enter again and may break in to take your goods.
* DON'T leave windows open or doors unlocked - bailiffs can legally get in through these. Bailiffs CANNOT get the police to help them break in.
* BEWARE! Some bailiffs may leave you a phone number, and arrange to come round to 'have a chat'. Don't let them in, even if they say it's only to use the toilet or make a phone call.
* Bailiffs MAY try to break into sheds, garages, greenhouses etc., even though this is illegal. KEEP VALUABLES SAFE! They may be able to take cars, motor-bikes and other vehicles parked near your home.
* Politely but firmly refuse to let the bailiffs in. Offer what you can afford to pay. If the bailiffs accept your offer, ask them to return to their car, and go out and pay them. Make sure you get a receipt.
DON'T SIGN ANYTHING! If the bailiff leaves papers for you to sign and return, you do not have to do this. You don't have to sign agreements posted through your door either.
THE BAILIFFS HAVE ALREADY BEEN INSIDE MY HOME
THIS IS MORE SERIOUS. If you have let them in before, then bailiffs have the right to return to you home and if you don't let them in, they are allowed to break in.
* Contact the bailiffs straight away and make an offer to pay the debt in instalments. Show them a copy of your personal budget so they can see you are offering as much as you can afford. You will need to treat this as a priority debt as bailiffs could come back and take any goods they have listed if you don't pay. Get a receipt for any payments you make.
* Contact you council and ask them to take the debt back. Ask your local Councillor for help.
WHAT THINGS ARE THE BAILIFFS ALLOWED TO TAKE?
There are some things that the bailiffs are not allowed to take at all; such as goods that are rented or hired. The regulations also say that the following items are exempt and can't be taken:
* "Such tools, books, vehicles and other items of equipment as are necessary for use personally in employment, business or vocation"
* "Such clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying basic domestic needs of the person and family".
* This list is not very specific so you may find that bailiffs have a different idea of what items are necessary for you to keep and what can be taken. You can complain about what the bailiffs take if you feel the items should have been exempt.
CAN THE BAILIFFS TAKE THINGS WHICH ARE NOT MINE?
The bailiffs can only take things which belong to you and/or goods which are jointly owned by you and your partner. If they want to take goods that belong to someone else (your children, partner, lodgers etc.) explain that the goods do not belong to you. If you can, show a receipt or note as proof. The owner of the goods may have to provide a sworn statement in the form of a "statutory declaration" to say this is the case. They cannot take goods which are rented or hired. This includes goods on hire purchase agreements. Show them a copy of your credit agreement if you can.
WHAT IF I HIDE THINGS OR GIVE THEM AWAY?
If the bailiffs haven't yet been in, you can hide things or take them somewhere else. If the bailiffs have already been in, you are committing an offence if you remove goods that they have said they will take. You can hide them on your premises but the bailiffs can search for them.
BAILIFFS PROCEDURES
If the bailiffs are distraining for Poll Tax or Council Tax, there are certain procedures that they have to follow. They must have with them:-
* written authorisation from the council for them to call. They should show you this if you ask.
They must leave you a copy of:-
* the law setting out their powers and what they can and cannot do. These are the "Enforcement Regulations".
* the charges the bailiffs are allowed to make for each visit. You should check they have not added too much on to your debt. See the schedule at the end of this fact sheet.
* any agreement you have actually signed. This will be called a "Walking Possession" agreement and includes a list of goods the bailiffs have warned you they may take.
HOW DO I STOP THE BAILIFFS?
* You can try to make an arrangement to pay the debt back at a rate that you can afford. You can offer the money directly to the bailiffs, although it is easier to get them to accept your offer if they have never been into your home. Always get a receipt for any money you pay.
* Bailiffs cannot send you to prison. If the bailiffs have never been into your home and they will not accept your offer, all they can do is to pass your debt back to the council. It is important to make an arrangement to pay the council, or they may try other ways of recovering the money, such as taking money out of your wages or your benefit.
* If the bailiffs refuse your offer it is important to put the money you have offered aside so you can pay it to the council as soon as the debt is passed back to them. Write to the bailiffs and the council telling them you are saving the money up as the bailiffs have refused to take your payments.
* If you are on Income Support, Pension Credit or Job Seekers Allowance, some councils' have a policy for not using bailiffs and will accept an offer from you or agree to accept direct payments from your benefits. Ask your council if they are willing to take the debt back from the bailiffs so you can pay them directly.
* If the council won't help then contact your local councillor and ask them to take it up with the council for you. Explain what hardship you will be in if the bailiffs come to your home and take your belongings.
HOW DO I COMPLAIN?
The Lord Chancellors Department has issued National Standards for Enforcement Agents. These good practice guidelines set out general rules for how bailiffs should behave and what procedures they should follow. You can mention these standards in your complaint but the standards are not enforceable by law. We can give you details of the standards or they may be found at the Department for Constitutional Affairs website www.dca. gov.uk/enforcement/agents02.htm
GET ADVICE FIRST. Bailiffs law is very complex, and even if you think that what they have done is unfair, they may still be acting within the law.
* From October 1998 bailiffs have to have a certificate granted by a court to collect Council Tax. A complaint from you can help get the certificate withdrawn. Ask your local County court if they have a form for making a complaint. If not, write in to the Court Manager with details. The Court will hold a hearing and can cancel the bailiff's certificate, order compensation and order return of the goods. A bailiff can be fined for collecting without a certificate.
* You can complain to the Magistrates Court, and there have been cases recently where the debt has, in effect, been written off when it has been proved that bailiffs have acted illegally. This is done by making a complaint and asking for a hearing. The court can order return of the goods or compensation.
* You should complain to the council as the bailiffs are acting as their agent. They can ask the bailiffs to look at your complaint and change their procedures. If the council won't help you could talk to your local councillor who may be prepared to take your complaint up with the council.
* You can ask the local Government Ombudsman to look at your complaint if the Council refuse to help you.
BAILIFFS CHARGES
You may be able to complain about bailiffs charges. The amounts they are allowed to charge for council tax and poll tax are set out in the schedule on page 5. The amounts they are allowed to charge for council tax are set out on the next page in the schedule. There are lower fees for poll tax collection. These are shown in italics. If you feel you have been charged too much you can complain in writing to the Council and the bailiffs. You may be able to ask the County Court to look at the charges for you see below. Phone us for advice.
You can find out what is 'reasonable' by making enquiries on a local basis. For example, if you have been charged ฃ80 for attendance with a van, and local enquires indicate you could hire a van for a morning for ฃ40 this is clearly unreasonable, especially as it is likely that bailiffs will be visiting several properties at once, and many companies own their own vans.
In the first instance, complain to the bailiffs themselves. You can tell them you know their charges are excessive and that you will be taking further action if the charges are not reduced to the levels shown in the schedule.
* You can then complain to the council as the bailiffs are acting as agents of the Council. There have been recent cases that have been taken back in front of the Magistrates Court over these issues, with the result that the councils have been forbidden to take any further recovery action, or in other words, the debt has been written off. So it IS worth complaining.
* You can apply to the County Court for the costs to be checked. This is called "Taxation". The court can look at a complaint within 12 months. They will decide if the charges are excessive or not. There is a fee to pay to the court for this application. If the court decides not reduce the bill at least 20% you can be liable for the bailiffs firm's court costs. You need legal advice first.
USEFUL LINKS
The Secretary
Association of Civil Enforcement Agencies
Kensington House
33 Imperial Square
Cheltenam
Glos
Tel: 01242 241456
Website: www.acea.org.uk
The Secretary
Enforcement Services Association (ENSAS)
(formally The Certificated Bailiffs Association) Ridgefield House
14 John Dalton Street Manchester M2 6JR Tel: 0161 839 7225
Website: www.bailiffs.org.uk
Local Government Ombudsman (England)
Millbank Tower
Milbank
London SW1P 4QP
Advice Line: 0845 602 1983
Monday to Friday 9.00 am - 4.30 pm. Website: www.lgo.org.uk
There are 3 Local Government Ombudsman offices for England. Please contact the advice line to check where to send any complaint.
Local Government Ombudsman (Wales)
Derwen House Court Road Bridgend
CF31 1BN
Tel: 01656 661 325
Website: www.ombudsman-wales.org
Author: Michael Sherriff
After writing 100's of articles relating to UK Credit and finance Michael has also written a book that blows away the myths surrounding UK credit repair. A number one seller in the UK called "UK Credit Secrets 2005 Edition". This book can be found at UK Credit Secrets






Friday, December 4, 2009

What Is Financial Aid When It Comes To College Education Loans?

Author: Donald Saunders

Source: articledashboard.com



Just like everything else the cost of college education has risen considerably. Increases in tuition of more than 6% a year are commonplace nowadays. For instance, back in 1973 the price to register at The University of California (UCLA) was approximately $200 a quarter and today it is more than $2,000 a quarter.

That tenfold increase is not too abnormal and lots of things cost ten times more than they did 25 years ago. Wages, by contrast have increased approximately threefold in this same time period from in the region of $15,000 - $30,000 a year to around $39,000 - $42,000 a year. The numbers vary according to age, gender and more although as a guide a three times increase is just about right.

But it is not all gloom and doom. There are a lot more types of financial help available nowadays to parents and students than there has ever been. Financial assistance, as the name implies, is money that parents and students receive from grants, scholarships and loans granted by Federal and private lenders to help students to pay for their college education.

Formerly, students could depend almost totally on Stafford loans and Pell grants to finance their education costs and college living expenses. Today Pell grants are still issued although they are needs based and represent a very small percentage of the education cost today. Stafford loans are also needs based but can range from 25% to 40% of the average cost of financing school nowadays. Another type of aid is Perkins loans which are similar to Stafford loans but which are issued only to the lowest income families.

Happily, PLUS loans (Parent Loans for Undergraduate Students) are also available now and these were not an option a few years ago. These are loans provided for parents and not students to help parents in paying for their child's college education. Interest rates for PLUS loans are average and there are some restrictions and fees levied but they often form an important part of the student's overall package of college funding.

A word to the wise on fees. A lot of loans are for a specific amount of money like $6,000 a year disbursed in several payments (often once each semester). But it's common for fees of up to 4% to be deducted from the loan amount before the funds are disbursed. That 4% fee on your $6,000 equals $240 which you will not see but which you must repay. If you are searching for a loan ensure that you do your homework and look for a low-fee or no-fee loan.

Despite the fact that Federal loan programs like the subsidized Stafford loan program have low fees and interest is paid by the government, they are certainly not the only form of financial assistance nowadays and are not necessarily the best option.

Funding the cost of college nowadays is a complicated operation and the majority of students will have to put together a funding package which includes scholarships, grants, government loans and private financing.

Fortunately, there are now a lot more more funding options available than we have seen for a very long time and competition in the open market between private financial institutions especially means that it is possible to find funds at a price which will not necessarily break the bank.

You are also lucky to be living in an age where finding the information which you need to make wise decisions about the options open to you is also relatively easy.








How To Legally Save Thousands of Dollars a Year in Taxes

Author: Roberto Neuberger

Source: free-articles



How To Legally Save Thousands of Dollars a Year in Taxes


By Alex Goumakos


Someone once remarked, โ€œNext to being shot at and missed, nothing is quite so satisfying as an income tax refund.โ€ There's no question that saving money in taxes is high on everybody's list of financial priorities, especially self-employed business owners.


However, unlike individuals who work as employees for an employer, business owners actually have the โ€œluxuryโ€ of choosing how much in taxes they pay each year by picking one form of business entity (sole proprietorship, partnership, corporation, etc.) over another. Unfortunately, the majority of business owners choose a business entity once (usually when starting out) then keep the same entity for the life of the business. This isn't necessarily the smart thing to do.


While some companies can get away with sticking with the same form of business throughout the life of the business, countless others are just simply throwing money out the window by overpaying their taxes. For some small business owners, this โ€œfinancial nonchalanceโ€ can actually cost an extra several thousand dollars in unnecessary and avoidable taxes each year.


If you are a business owner concerned about reducing your tax liability, here's a way you can dodge the tax bullet by utilizing what's known as a Subchapter S corporation:


First some background: When starting a new business most business owners focus on simplicity: that is, the less paperwork and regulations to contend with the better. What this means is that most new businesses start out as โ€œunincorporatedโ€ entities such as sole proprietorships (73%) and partnerships (6%). While management and administrative costs of running the business might be easier and less expensive initially, the tax burden, especially the self-employment tax, can be anything but.


For many business owners who wait till year-end to do their tax planning (or no tax planning at all), the self-employment tax is an unwelcome surpriseโ€ฆand a very large expense. Newly self-employed individuals are shocked even more once they realize that they are responsible for the self-employment tax all on their own. That's because when they worked as an employee their employer was responsible for paying one half of the self-employment tax.


The self-employment tax is simply a version of the same Social Security and Medicare taxes you pay as an employee. However, instead of paying 7.65% as you do when you're an employee, as a self-employed business owner you have to pay double: 15.3%.


In 2002, the Social Security portion (12.4%) is levied on the first $84,900 of net profits. There is no limit to the Medicare portion (2.9%). Self-employed individuals are also entitled to a one half-credit of the tax. As an example, a self-employed individual with $100,000 in net profits in 2002 would be required to pay $12,400 in self-employment tax. This tax is in addition to federal, state and local taxes!


Here's what you can do to save money on the self-employment tax:

Incorporate and elect Subchapter S status. You can elect Subchapter S status even if you have a pre-existing C corporation too. Operating your business as an S corporation is one of the very few four leaf clovers still left in the tax code. The reason for this is simple: The net income from an S corporation is NOT subject to the self-employment tax.


If structured and implemented properly, an S corporation could save you thousands of tax dollars per year. As an employee-shareholder of your S corporation, you pay yourself wages just like you would any other employee. But instead of taking profits out through payroll, you take cash distributions called โ€œnontaxable dividendsโ€.


Nontaxable dividends are called nontaxable, because they aren't double taxed like the dividends paid to shareholders in a regular C corporation. You're still paying taxes on the net income of your S corporation when you file your personal tax return, but the tax is federal tax and not the self-employment tax.


For the sake of simplicity, if an S corporation with $100,000 of net profits pays its owner a reasonable salary of say $50,000 and non-taxable dividends of $25,000, the tax would be $7,650. This is a whopping $4,750 savings in tax! Even if you factor in additional costs such as workman's comp insurance, incorporation costs, professional fees and incidentals, the savings is still more than adequate.


The key to the whole scenario is that your salary must be reasonable under the circumstances surrounding your business. It's also much better for salary justification purposes if your business is not limited to the delivery of personal services by you. Nevertheless, incorporating and electing Subchapter S status is an excellent way to reduce your overall tax burden.


Here's more good news: If you happen to already own a regular C corporation and you live in a state that has a high corporate income tax rate, you'll come out ahead even more if you elect S status. Additionally, if you have children aged 14 or older, you can save even more taxes by giving them shares in your S corporation and having them pay the tax at their lower tax rates. By giving away shares you also reduce your estate tax obligation.


So you see, there are plenty of good reasons to incorporate and elect S status. I've only touched on a few minor points. There are many, many other valid reasons to incorporate. Just keep in mind that you should always consult with your tax advisor for your particular needs and circumstances before making any important business or financial decisions. Besides taxes, there are many legal and financial issues to contend with as well. Always look before you leap.


When it comes to your business, you should make it a point to assess the validity of your type of business structure on a yearly basis. Incorporating is definitely not just for startups. There are plenty of unincorporated businesses that are missing the boat when it comes to saving money. Don't be one of them. It pays to find out more.


Alex Goumakos is a CPA, business advisor and guest consultant of Active Filings LLC, a company that provides incorporation services in all US. (http://www.activefilings.com). Alex can be reached by email at mailto:alex@activefilings.com


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Thursday, December 3, 2009

IRS Payment Plans - How They Work

Author: Nik Giancana

Source: ezinearticles.com



If you owe debt to the IRS and cannot pay in abounding a transaction plan or IRS chapter acceding may be negotiated. While this may be a acceptable advantage for you to abstain allowance garnishment, tax levies, etc., about the faster you pay off the debt the beneath fees and penalties you will be subjected to. Absorption on these affairs is usually 8% to 10% per year. If you owe $25,000 or less, you should be able to get an chapter plan for 60 months, no questions asked. If you owe added than $25,000, you will accept to accommodate with the IRS to get an chapter plan.

Negotiating an Chapter Acceding With the IRS

If you do Owe added than $25,000 the negotiating will activate with an IRS beneficiary allegory your Collection Advice Statement on Anatomy 433-A. This anatomy will be acclimated to actuate the bulk you are acceptable to pay. When you ample out the anatomy you should never accede to pay added than you can allow just to get your plan approved. When negotiating, you should action to pay the bulk of your assets bare your all-important active expenses. If the IRS approves an chapter agreement, it may yield several months to acquaint you, but it is a acceptable abstraction to forward a aboriginal transaction ( and 2nd and 3rd and so on) until the IRS notifies you of its decision. If your action was refused, the payments will still go to your active tax debt.

If the IRS did debris your offer, it is apparently because they don't accede all of your active costs necessary. Not that you should accord up everything, but try and be a little adjustable here. Also, if the advice you provided on anatomy 433-A was inaccurate or you bootless on a altered chapter acceding you may aswell be banned your transaction plan. If your aboriginal action was rejected, for whatever reason, you may abide to negotiate. The bulk you action is up to you, but be realistic. If you get the chapter plan accustomed there are a few things that can accept it revoked such as:

You abort to book your tax returns
You absence a transaction (if you do absence a transaction you should acquaint the IRS ASAP)
It is apparent that your chapter acceding was filed beneath apocryphal pretenses

IRS Fees Associated With IRS Acceding Plans

The user fee for new chapter agreements is $105 and $52 for agreements area payments are deducted anon from your coffer account. Taxpayers with assets at or beneath accustomed levels, can administer for a bargain fee of $43. Advice about requesting the bargain user fee will be included in chapter acceding accepting letter beatific to individuals.

There is aswell a user fee of $45 for reinstating defaulted agreements or restructuring absolute agreements. If you already accept an accustomed chapter acceding from a antecedent tax debt and your banking bearings has changed, we may be able to adapt or restructure your chapter acceding to cover added amounts owed into one agreement.

Professional Advice With IRS Transaction Plans

If you don't feel adequate negotiating a debt transaction plan with the IRS or aren't' abiding if it is the best advantage for you you should acquaintance a tax advocate who has acquaintance ambidextrous with IRS. A advocate with this acquaintance can be accessible in the attention of alive absolutely what accomplish you should yield because of your alone situation. They may be able to advice you abstain a abundant accord of altercation and may advice abstain added fines and interest, or even such penalties that you may not be answerable to serve in the aboriginal place.





Nik Giancana is a blogger- http://www.taxlitigation.net




Tuesday, December 1, 2009

The World History of Taxation

Author: Roni Deutch

Source: ezinearticles.com



Egyptian Taxes

The first known taxation system was in ancient Egypt. The Pharaoh would collect taxes twice a year from the Egyptians. One of the most commonly taxed items in the ancient world was cooking oil, which was actually taxed throughout Egyptian history because of shortages. Egyptian taxes eventually became so widely known that they were even mentioned in the bible, "when the crop comes in, give a fifth of it to Pharaoh."

Athens, Greece

To the Athenians in Greece, war was a lifestyle, and a pricey one at that. As such, Athenians taxed their citizens for war costs with a tax they called "eisphora." The most historic factor of this tax was that it exempted no one, which many consider the first democratic taxation system, as after the wars the money was often refunded to the people. There is also some documentation of a tax put on foreigners (or any individual without an Athenian mother and father), called "metoikion."

Salt Tax in India

Salt has been taxed in India for centuries. However, in 1835 the British East India Company raised the import taxes drastically after they began to impose rule over Indian provinces. The salt tax was raised and lowered by multiple leaders and events, and was not repealed until 1946.

Rome and Caesar

Taxes called "portoria" were first levied in Rome on imports and exports to the city. Caesar Augustus, who is now considered a genius tax strategist of his time, gave individual cities the job of collecting taxes. He also raised sales taxes on slaves from 1% to 4%, and created a tax to raise retirement funds for soldiers of the army.

Great Britain

The occupation of the Roman Empire may have sparked the flame for first taxes in England. During the 11th century Lady Godiva's husband, Leofric, Earl of Mercia, said he would lower taxes were she to ride through the streets naked on a horse. Lady Godiva made the now famous ride and lowered taxes for her people.

The French Revolution

Before the French Revolution, civil unrest laid heavily on the shoulders of high taxes for lower classes. While clergymen and nobles were exempt to taxes, peasants and regular wage earning workers were not. The tax gap also left lower class citizens unable to pay court fees, making justice unaffordable except by those wealthy enough to afford it. While the true cause of the French Revolution is still being debated today, many Historians feel these high and unfair taxes were a large contributing factor to the civil unrest.





The Tax Lady Roni Deutch and her law firm Roni Lynn Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced IRS tax attorney who will fight the IRS on your behalf.