You thought the Internal Revenue Service was persistent. U.S. tax collectors can't hold a candle to their French counterparts.
France's Centre for Public Finances sent a tax bill to a grave.
To be fair, the French tax officials first sent the demand for tax payment to the taxpayer's home,
in the Ile-de-France region outside Paris. It was returned to the Centre marked "Deceased."
That didn't deter the tax office.
The Local website reports that a tax staffer in the agency's Vincennes
office tracked the late taxpayer to his last known address, the cemetery in the village of Autheuil.
The original returned envelope was re-addressed by hand, according to Ouest-France, and sent to:
Autheuil Cemetery Tomb 19 61190 Autheuil
So how did those of us still on this mortal coil find out about the collection letter?
No, his ghost didn't respond to the French tax authorities. The dunning notice was redirected to Béatrice Devedjian, mayor of Autheuil.
Devedjian told France's RTL radio she was shocked at the
French tax collector's decision to "harass a person until his final resting place."
Autheuil officials, however, plan to track down the deceased man's family and deliver the tax bill to them.
This event was created 43 years ago in large part as a response to the 1969 oil
spill in Santa Barbara, Calif. The idea was to designate a day on which the American public could focus on air and water pollution and how to mitigate or prevent their damage to our environment.
It has grown into a global movement.
Heck, even the Internal Revenue Service and tax collectors at other governmental levels are involved, thanks to the many laws that offer tax breaks for environmental actions.
Here are some environmentally-related tax savings to think about today and as your work on your taxes or make moves this year that could affect a future tax bill.
Improve your home:
The Energy Policy Act of 2005 created tax credits for homeowners who made certain energy efficient improvements to their residences. The original tax breaks have changed over the years, including a generous expansion and extension in the 2009 stimulus act and a reversion to smaller tax credits in 2011.
The good news, though, is that this tax break is still around. And some folks might be able to get a tax credit -- which is a dollar-for-dollar reduction of your tax bill -- of up to $500 for making changes to their homes. The common upgrades include installation of energy-efficient
windows, insulation, doors, roofs and heating and cooling equipment and are available through the 2013 tax year.
If you want to go beyond basic, relatively cheap, home energy upgrades, you can get a bigger tax break. Purchase and installation of solar electric systems, solar hot water heaters, geothermal
heat pumps and wind turbines will get you a tax credit of up to 30 percent of your costs with no limit on the amount.
Don't have the bucks to make such energy upgrades now? You've got time. The tax credit for these more
extensive and expensive home energy upgrades are available as long as
the systems are in place by the end of 2016.
Details on the home energy efficiency tax credits can be found at the Energy Star Web page.
Drive home tax breaks:
A few years ago when gas prices were holding near the $4 per gallon mark, hybrid vehicles were all the rage.
As a bonus, many purchasers of these energy efficient autos got a tax credit. Unfortunately, the hybrid tax credit is no longer available.
But if you decide to go for an electric car, or as they are known in tax-speak a plug-in electric drive vehicle, Uncle Sam might help out.
The tax credits, depending on your vehicle's specifications, range from $2,500 to a maximum of $7,500. The IRS maintains a page with the available vehicle tax credits by manufacturer.
To get the credit, you must buy a new electric vehicle, not lease it. And the qualified credit will phase out based on how many of the vehicles a manufacturer sells.
Wait! You don't have to rush to your electric car dealership. The phase out doesn't start until a car maker sells at least
200,000 qualifying vehicles in the United States. And that's not going to happen for quite a while.
Examine eco investments: If your idea of green is making more money, you can do that in an environmentally conscious way.
You can buy individual shares of or mutual
funds that include "green" companies. These are businesses with an
environmental focus, such as conservation programs or organic food
manufacturers or retailers.
Even corporations that are not directly involved in ecological activities also might be worthwhile environmental investments. Many companies in recent years have taken steps to make their operations more Earth friendly, such as converting offices to solar
power or converting open space on their corporate campuses to open space to create a wilderness oasis.
As with all investments, do your homework and find an eco-friendly fund that meshes with your
personal philosophies and financial goals.
And the tax angle? If you sell an asset that you hold
for more than a year, regardless of its environmental actions, then you'll pay lower capital gains tax rates -- 15 percent for most of us; 20 percent for higher earners; zero for folks in the 10 percent and 15 percent tax brackets -- on the profit.
Give to environmental groups: If your favorite environmental organization is on the IRS list of registered nonprofits (you can check via the agency's online search tool), then your donation to the group can be deducted on your tax return if you itemize.
Some states also allow you to make
donations to charities, including many with an environmental focus, directly on
your state income tax return via check-off boxes. Check with your state tax department about these programs.
Check out state tax breaks: In addition to finding out about checkoff programs on your state tax return, you should check out other more local environmental tax breaks.
And since Earth Day is global, Canadians should check out the Office of Energy Efficiency at Natural Resources Canada, which keeps an online inventory of programs that promote the efficient use or
conservation of energy and the use of
alternative energy. The list covers national programs, as well as those offered by provincial and territorial governments, major
Canadian municipalities and major electric and gas utilities and
companies.
Earth Day fun: While Earth Day is educational, it should be fun, too, as we celebrate our planet and ways to make it better for ourselves and future generations. So here are a couple of Earth Day diversions.
Regardless of what you think about Google as a corporate entity and its pervasiveness in our lives, you've got to appreciate the talent of folks who come with its special home page images and illustrations, known as doodles.
For Earth Day 2013 the search engine home page has posted an interactive doodle where you can experience, in animated form, much of what nature
has to offer. You can change the seasons, weather, moon and more.
So that you don't miss anything, Google has created a checklist for today's Earth Day doodle.
You also can check out just what you know about the third rock from the sun with Space.com's Earth quiz.
Click on the image above to go to the website where you can take the quiz.
It's no secret that the United States desperately wants money from taxpayers who have tried to shield their taxable income by putting it into foreign accounts.
First, the Internal Revenue Service used information provided by a UBS whistleblower to obtain information about U.S. money hidden in secret Swiss bank accounts.
Then the American tax agency continued its offshore
voluntary disclosure program, what you and I call a tax amnesty, which has brought in more than $5 billion in previously uncollected taxes.
And now Switzerland and the United States reportedly are close to a deal that would end the international
dispute over Swiss financial institutions accused of helping wealthy Americans
evade their home country's taxes.
Global efforts to end offshore accounts: But these two countries aren't alone in the battle to collect money hidden in tax havens worldwide.
And on April 19, following a meeting in Washington, D.C., the Group of 20, also known as the G-20, announced its support for an automatic exchange of tax-relevant
bank information to be used as a global standard to fight offshore account abuse.
Because of that call for tax transparency issued by finance ministers and central bank governors from 20 major global economies, 20 is this week's By the Numbers honoree.
G-20 members' flags/chairs clockwise, starting at 12 o'clock, are the United States, Saudi Arabia, China, France, Canada, the European Union, Mexico, Argentina, the United Kingdom, Germany, South Korea, India, Turkey, Brazil, Russia, Indonesia, Australia, Italy, Japan and South Africa. (Image courtesy DCC Advocacy)
The automatic exchange of tax data, which the United States has
pushed, would be a major shift among other nations. Countries currently provide such information only on request.
With an automatic exchange, however, governments would routinely transfer all
foreign taxpayers' data to their home governments. This would essentially make it impossible for such account holders to hide assets from their home nations' tax collection agencies.
Growing global tax concerns: The increased interest in stopping global tax evasion has been given new urgency for several reasons.
France's former top tax collector resigned his post and admitted that he had held an undeclared bank account, first
in Switzerland and then in Singapore. Subsequently, French President Francois Hollande published the personal financial details of government ministers on France's official government website.
The Organization for Economic Cooperation and Development, or OECD, released a report (also on April 19) that found growing public outcry over international tax evasion and the perceived unfairness of the international tax system "to levels not seen since the G-20 called for increased transparency and exchange of information in 2008."
And, of course, there's the financial reason. Countries worldwide are facing increased revenue needs.
Government leaders in every country realize that politically it is always better to get tax money from residents who are trying to avoid paying up rather than to ask other taxpayers to pony up more or to give up government-supported programs.
The Internet Movie Database listing for the independent British film describes it as a crime thriller
about a Gulf War veteran seeking justice for a murdered combat comrade.
The movie went straight to DVD in 2011, but it did have some U.S. fans. It won a Silver Ace award at the 2012 Las Vegas Film Festival.
United Kingdom tax officials, however, gave it a much harsher review.
British tax collectors say the movie was a fake production, hastily cobbled together while the faux filmmakers were out on bail as a way to avoid tax fraud charges.
The movie started as a sham, said prosecutors
and tax authorities, as a way to claim almost
£1.5 million in goods and services tax for work that had not been
done, as well as £1.3 million pounds under a government program that
allows filmmakers to claim back up to 25 percent of their expenditure
as tax relief.
When Her Majesty's Revenue and Customs officials (the U.K.'s version of our Internal Revenue Service) became suspicious, the group threw together the fake movie they had used to claim the tax breaks.
While it was enough for the Nevada film festival judges, it didn't impress the British legal system.
The tax fraud producers perpetrators, were found guilty of conspiracy to deceive the public revenue. They are first people
convicted of defrauding the British Film Commission's tax relief
program.
Bashar Al-Issa, 34, from London; Aoife Madden, 31, from
Northern Ireland; Tariq Hassan, 52, from Essex; and Ian Sherwood, 53, and
Osama Al Baghdady, 42, both from Manchester, are scheduled to be sentenced on March 25.
Currently, the United Kingdom taxes all professional athletes on not only their appearance fees and winnings, but also their global sponsorship
and endorsement earnings.
But what about the Olympics?
They're special, not just from a competitive standpoint, but also when it comes to taxes.
Cities that host the international sporting event agree to waive tax collections. So Bolt could represent his homeland in London without worrying about the financial cost.
Bolt is just the latest high profile athlete to complain about Great Britain's taxes.
Well, England has decided to stay calm and make an exception.
Bolt and other international athletes will be able to compete tax-free in this year's London Grand Prix, a collection of 14 invitational track and field meets featuring some of the same athletes who competed in the 2012 Games.
The Diamond League event was moved from Crystal Palace to the Olympic Stadium to coincide with the one-year anniversary of the 2012 London Olympics opening ceremony.
That connection prompted the special one-off tax amnesty for this year's event.
"The government is determined to do everything possible to secure the
Olympic legacy and I am delighted to grant this exemption," Chancellor George Osborne told the Daily Telegraph.
Now I know United Kingdom officials say it's a one-time tax deal tied to use of the Olympic Stadium. But you can bet other international athletes and their representatives will latch on to the London Grand Prix decision.
Now that golf is an Olympic sport, the linksters will no doubt add that status to their arsenal of arguments against the United Kingdom's taxation of athletes, especially since the 2014 Ryder Cup will be played on a Scottish course.
And if a non-UK team is part of the Champions League football (soccer to us Yanks) final at Wembley Stadium this year, the tax will be waived for those players, too.
Hmmm. With all these exceptions, perhaps British lawmakers might want to reconsider their athletes' tax.
Sure the Pope gets a lot of attention thanks to the annual Christmas services at the Holy See.
But just as important to some is the world's smallest sovereign state's duty-free shopping opportunity.
The Vatican's St. Peter's Basilica, courtesy Wikimedia Commons
The Associated Press reports that The Vatican's duty-free department store offers bargains on flat-screen televisions, a variety of Samsonite luggage, custom shoes, luxury watches and a variety of other high-end items.
Got a golfer on your list? Then there's a leather-bound travel trunk from Florence's "The Bridge" leather works that comes with a matching leather golf club bag.
I'm told it's a steal, so to speak, at At €5,900; that's $7,775 U.S.
The Vatican's tax-free shop is authorized by the Lateran Treaty, the 1929 pact that regulates the Vatican's relations with Italy.
But there's one major drawback.
No, I'm not talking about, for North Americans, having to make a transatlantic trip.
The Vatican's duty-free store is not open to the public.
The only shoppers allowed are Vatican citizens,
employees and their dependents, as well as diplomats accredited to the Holy See.
The limited customer base also is part of the Lateran Treaty. The restrictions are Italy's way of making sure the whole country, particularly the area around Rome, doesn't abandon its other shopkeepers.
Of course, says the AP, friends have been known to unofficially pop into the store to pick up a few things.
So between now and next Christmas, you might want to make friends with a Vatican resident.
This year, though, you'll just have to be content to hit the U.S. chain stores for last-minute Christmas gifts.
Gérard Depardieu was so great that I made it a point to see every movie he made. Heck, I even dragged the hubby to Green Card.
Crazy fans like me have made the actor a very rich man. So rich, in fact, that he recently decided it was time to leave his native France for a nearby tax haven.
And by nearby, I mean nearby.
Depardieu has settled in Nechin, Belgium, a village just 800 yards from the French border.
The newspaper reports that Depardieu now lives on a street known as Millionaire's Row where many of his neighbors are other wealthy French expatriates. They all left before the country starts collecting in 2013 a 75 percent tax on all earnings of more than one million euros (about £850,000 or $1.3 million).
Depardieu isn't discussing his move but Nechin's mayor is.
"He has moved in already and he is very welcome here," Daniel Senesael, the village's top executive, told The Daily Mail. "He enjoys our countryside and our easygoing, rural way of life. And of course he also enjoys our lower taxes."
Escaping U.S. taxes: Tax expatriation was a hot topic in the United States earlier this year when it was revealed that Facebook co-founder Eduardo Saverin renounced his naturalized U.S. citizenship
and moved to Singapore.
The relocation was estimated to save Saverin $67 million in U.S. taxes on the $4 billion he made off the social media site's initial public offering.
With higher taxes possible if lawmakers can't reach a fiscal cliff solution, there's been speculation that more rich Americans soon could become ex-Americans for tax purposes.
Domenico Dolce and Stefano Gabbana, founders of luxe Italian fashion
house Dolce & Gabbana, are scheduled to go on trial in December for tax evasion.
The designers allegedly avoided Italian taxes when they sold their business
in 2004 to a Luxembourg-based holding company, Gado Srl, that tax officials contend they created specifically for tax evasion purposes.
Meanwhile, the fashion houses of Hugo Boss and Valentino also are tax trouble.
This isn't the castle seized in connection with the Boss/Valentino alleged tax evasion case, but isn't it gorgeous? It's Neuschwanstein Castle in Bavaria. Photo courtesy European Castles Tours.
The assets, say tax officials, are from 13 people "linked to one of Italy's most
important families in the fashion and textile sector" and who are reportedly under investigation are suspected of not having filed tax returns.
These two high-profile forays into the allegedly illegal tax dealings of haute couture darlings is the latest effort by Italy to avoid becoming the next Greece. To prevent a similar fiscal meltdown as its Mediterranean neighbor, Italian leaders are looking at ways to catch tax evaders.
For the last few years, Italian officials have been cracking down on yacht owners whom they believe bought the luxury boats with money they didn't report to the national tax office.
And even the Catholic Church, whose independent Vatican City is located within Rome, is not immune to scrutiny by Italian tax officials. They've also explored ways to collect taxes on not the church's vast property holdings that are not directly related to religious endeavors.
Americans are, as they should be, focusing on the presidential election that's just over two weeks away.
The winner of the White House could determine what income tax rates we'll pay.
But some wealthy Americans who might consider moving based on the Nov. 6 election results also should keep an eye on the electorate in Switzerland.
That Alpine nation, long known as a tax haven for the wealthy from the United States and Europe, might be making tax changes that could lessen its appeal to foreign expatriates.
Passport stamps by hjl via Flickr Creative Commons
Swiss residents who say they've had "enough with tax privileges for millionaires," reportedly have collected the 100,000 signatures required to put a proposal to end some tax breaks to a national vote.
Domestic efforts to limit tax breaks: Last year, the Internal Revenue Service was successful in putting a stop to the hiding of taxable income by thousands of U.S. residents in offshore accounts.
Some members of Congress also have introduced bills, prompted by a Facebook co-founder's move to Singapore, that could cost U.S. citizens if they choose to move to another country in order to pay lower taxes.
None of those measures has so far advanced in the current Congress, which will wrap up its business at the end of the year.
Swiss tax break targets, too: But tax disincentives are now being threatened from Switzerland, a popular destination for many seeking to escape high taxes in their home countries.
At issue in the possible Swiss referendum is a system in which rich expatriates get tax
deals based on the rental value of their property rather than their
actual income or wealth as long as they don't work in the country.
More than 5,000 wealthy foreigners have taken advantage of the system, say the tax break opponents, including Formula One driver Michael Schumacher, pop music star Phil Collins, American songstress Tina Turner and IKEA founder Ingvar
Kamprad.
Despite growing opposition from the Swiss citizenry to tax breaks for foreigners, the Swiss parliament last month rejected a proposal by some of its members to eliminate the favorable tax treatment of its wealthy newer residents.
But the national referendum might just take care of that.
We Americans aren't the only ones watching opposing political parties duke it out over the tax burdens and responsibilities of wealthier citizens.
In Great Britain, liberal and conservative politicians are having the same fight.
The latest across the pond tax volley was fired by Deputy Prime Minster Nick Clegg, leader of the Liberal-Democrat Party,
who has proposed a one-time emergency tax on the wealth, rather than the incomes, of
rich Britons.
George Osborne, Chancellor of the Exchequer (roughly the United Kingdom's Treasury Department Secretary; that's him pictured there to the right), quickly torpedoed the idea, saying such a tax would cause Britain's wealthy residents to leave the country and make economic recovery
even worse.
Or, as the chair of the House of Commons' public
administration committee so colorfully characterized it, a wealth tax even on a short-term basis could strangle the golden geese of Britain.
Sounds like the same arguments we've been hearing in the United States ever since the Bush tax cuts' original 2010 expiration date passed.
Legal, but 'morally repugnant:' But while Osborne doesn't want to add a new tax on wealthy Britons, he is not pleased that so many of them take advantage of the U.K. tax code to dramatically lower their tax bills.
In many cases, according to data from Her Majesty's Revenue and Customs (England's Internal Revenue Service), these rich individuals reduced their income tax rate to an average of 10 percent, less than half the level paid by the average Briton.
Sounds very much like tax inequity complaints made in the United States and the ensuing discussions now underway on Capitol Hill and campaign headquarters on ways to revise our tax code, doesn't it?
In his budget speech, Osborne lashed out at such tax techniques:
Most wealthy people pay their taxes, and without them we could not begin to afford the public services on which the country depends. But under the last Government, it was the boast of some high earners that, with the help of their accountants, they were paying less in tax than their cleaners. I regard tax evasion and indeed aggressive tax avoidance as morally repugnant.
In this regard, it looks like Osborne at least has the hearts of most of his countrymen and women when it comes to enforcing taxes.
A recent survey by Christian Aid, a London-based church network that focuses on anti-poverty efforts, found that 56 percent of British adults believe that tax avoidance by multinational companies, while a technically legal way of reducing what they owe the taxman, is morally wrong.
That percentage also is this week's By the Numbers figure.
And almost as many (74 percent) of those polled by Christian Aid said U.K. Prime Minister David Cameron should be
demanding international action to tackle tax evasion and avoidance.
But most poll respondents don't believe that
Osborne's strong denunciation of legal tax avoidance strategies will
lead to concrete tax changes.
Only 38 percent of the Christian Aid survey takers believe their government
is sincere in its avowed desire to combat the loss of tax money via legal loopholes.
Hmmm. So Brits join us Yanks in thinking that our politicians and elected leaders often say things they don't actually intend to do.
I also find it very interesting that the country America fought for independence from in large part because of taxes is, some 236 years later, internally waging so many of the same tax battles that we've having here on this side of the Atlantic.
Maybe George Bernard Shaw's oft-quoted phrase should be revised to say England and Americas are two countries separated by a common language, but still united in their continuing tax travails.
Allowable early IRA withdrawals -- You've done a good job saving for your retirement, but sometimes life just happens. And that could mean that you need to pull some money out of your IRA. But because of the tax advantages afforded these accounts, both traditional and Roth accounts, you need to be careful. The good news is that sometimes it's OK to tap your IRA. Two key instances when IRA withdrawals aren't penalized involve using the retirement funds to pay some schooling costs or to buy a first-home. There also are hardship situations where early IRA distributions are allowed. Remember, though, that even if you don't have to pay a 10 percent penalty for taking out your retirement money before you turn 59½, you still could face tax on withdrawal amounts where the tax was deferred. (May 15, 2013)
Check out all of the 2013 post-April 15 hints at Weekly Tax Tips.
You also can get a refresher of the Daily Tax Tips posted earlier this year on their respective monthly collection pages: January, February, March and April.
Sponsored Links
Time for Tax Tasks
May 1: Happy May Day! This international holiday celebrating workers is a perfect time for employers of household help to review their tax responsibilities. You don't want to end up with facing nanny tax trouble!
May 10: Does your job include tips? If so and you received $20 in tips in April, use Form 4070 to report them today to your employer.
May 12: Happy Mother's Day! Make sure today is a special one for your mom. And if you're a mother, or about to be, be sure to check out the tax joys of parenthood.
May 16: With the arrival of warmer spring weather come home improvement projects, such as the planting of May flowers and bird-friendly plants.
May 22:Improving your home's energy efficiency also could get you up to $500 in dollar-for-dollar tax credit savings. Tax credits for a variety of relatively easy improvements were extended through 2013. More extensive (and expensive) upgrades employing solar, wind energy and geothermal systems could provide even more tax savings.
May 27: If you're hitting the road on the Memorial Day holiday to kick off summer, be on the lookout for bargain gasoline. State, local and federal fuel excise taxes can really ramp up pump prices.
Regardless of how you travel, if part of your trip is business related, Uncle Sam might be willing to pick up some of those costs when you file your tax return.
May 31: Was this the last filing season you want to go it alone at tax time? Then start searching for a tax professional now. You have more time to thoroughly investigate and pick the perfect tax pro.
If you filed for an extension, he or she could help you finish up this 2012 tax year task. And hiring a tax pro now will definitely help you get a head start on your 2013 return.
Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.
State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.
Looking for something in particular? Start with the Table of Contents. Or check out the Archives, where you can review posts by month and category. Or enter specific keywords in the box below to search Don't Mess With Taxes.
Search
The Truth About Paying Fewer Taxes
Are you a tax geek? Got tax geek friends? Do you or they just want to make sure you don't overpay the IRS? Then my book, "The Truth About Paying Fewer Taxes," is for all y'all.
It's no wonder Uncle Sam is not very happy here. His vault is empty. Don't Mess With Taxes aims to keep him cranky by providing tax and personal finance tips and advice that will put more money in your bank account, not the government treasury.
DMWT Mobile
Don't Mess With Taxes is now optimized for readers on the go. You don't even need an app. Just type dontmesswithtaxes.typepad.com into your smartphone or other mobile device and it will load in a format for smaller browsers.
I gotta tell ya ...
AKA Disclaimer:
I am a professional journalist who has been covering tax issues since 1999. I am not a professional tax preparer. The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation or endorsement of any company or product. I strongly suggest that when it comes to filing your taxes, you get additional, professional, paid-for guidance from your accountant and other financial advisers who are familiar with your individual circumstances. In other words, don't blame me!
Note 1: Some of the links on this site are affiliate links. That means that if you click through from a Don't Mess With Taxes link and then buy the product, I receive a commission.
Note 2: Links to outside content might become inactive due to changes at the content's originating Web page. If you discover dead links, please e-mail me the details. Thanks.
