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The tax advisor had just read the story of Cinderella to his four-year-old daughter for the first time. The little girl was fascinated by the story, especially the part where the pumpkin turns into a golden coach. Suddenly she piped up, "Daddy, when the pumpkin turned into a golden coach, would that be classed as income or a long-term capital gain?"
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The difference between the short and long income tax forms is simple. If you use the short form, the government gets your money. If you use the long form, the tax advisor gets your money.
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A couple of weeks after hearing a sermon on Psalms 51:2-4 (knowing my own hidden secrets) and Psalm 52:3-4 (lies and deceit), a man wrote the following letter to the IRS:
"I have been unable to sleep, knowing that I have cheated on my income tax. I understated my taxable income, and have enclosed a check for $150.
If I still can't sleep, I will send the rest."
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What is the difference between tax avoidance and tax evasion? The jail walls.
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What\'s the difference between a taxidermist and a tax collector?
The taxidermist only takes the skin.
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Why won't sharks attack tax inspectors? Professional courtesy.
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"How have you managed to buy such a luxurious villa while your income is so low?" asked the IRS auditor.
"Well," the taxpayer answered, "while fishing last summer I have caught a large golden fish. When I took it off the hook, the fish opened his mouth and said, 'I am a magical fish. Throw me back to the sea and I'll give you the most luxurious villa you have ever seen'. I threw the fish back to the sea, and got the villa."
"How can you prove such an unbelievable story?"
"Well, you can see the villa, can't you?"
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For every tax problem there is a solution which is straightforward, uncomplicated and wrong.
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How do you know you've met a good tax accountant?
He has a loophole named after him.
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A nervous taxpayer was unhappily conversing with the IRS auditor who had come to review his records. At one point the auditor exclaimed, "We feel it is a great privilege to be allowed to live and work in the USA. As a citizen you have an obligation to pay taxes, and we expect you to eagerly pay them with a smile."
"Thank God," returned the taxpayer. "I thought you were going to want cash."
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The kid had swallowed a coin and it got stuck in his throat, and so his mother ran out in the street yelling for help. A man passing by took the boy by his shoulders and hit him with a few strong strokes on the back, and so he coughed the coin out.
"I don't know how to thank you, doc...", his mother started.
"I'm not a doctor", the man replied, "I'm from the IRS".
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The local bar was so sure that its bartender was the strongest man around that they offered a standing $1000 bet: The bartender would squeeze a lemon until all the juice ran into a glass, and hand the lemon to a patron. Anyone who could squeeze one more drop of juice out would win the money. Many people had tried over time but nobody could do it.
One day this scrawny little man came into the bar, wearing thick glasses and a polyester suit, and said in a tiny squeaky voice " I'd like to try the bet."
After the laughter had died down, the bartender said OK, grabbed a lemon, and squeezed away. Then he handed the wrinkled remains of the rind to the little man. The crowd's laughter turned to total silence as the man clenched his fist around the lemon and six drops fell into the glass.
As the crowd cheered, the bartender paid the $1000, and asked the little man "What do you do for a living? Are you a lumberjack, a weight-lifter, or what?"
The man replied, "I work for the IRS."
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Psychiatrist to Internal Revenue agent on couch: "Nonsense! No way does everyone in the world hate you -- everyone in the US perhaps, but certainly not everyone in the world."
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A man, about to enter hospital, saw two white coated doctors searching through the flower beds. "Excuse me," he said, "have you lost something?"
"No," replied one of the doctors. "We're doing a heart transplant for an income-tax inspector and want to find a suitable stone."
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The trouble with the profession of income-tax inspectors is that 90% of its members give the rest a bad name.
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A taxpayer is someone who works for the federal government but who doesn't have to take a civil service examination.
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All the big corporations depreciate their possessions, and you can, too, provided you use them for business purposes. For example, if you subscribe to the Wall Street Journal, a business-related newspaper, you can deduct the cost of your house, because, in the words of U.S. Supreme Court Chief Justice Warren Burger in a landmark 1979 tax decision: "Where else are you going to read the paper? Outside? What if it rains?"
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A fine is a tax for doing something wrong.
A tax is a fine for doing something right.
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Where there's a will, there's an Inheritance Tax.
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A visitor from Holland was chatting with his American friend and was jokingly explaining about the red, white and blue in the Netherlands flag. "Our flag symbolizes our taxes," he said. "We get red when we talk about them, white when we get our tax bill, and blue after we pay them."
"That's the same with us," the American said, "only we see stars, too."
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