Tax Question...

[svetz]

With Tax day looming many of us need to start figuring out taxes.

So, here's a question for you Whovian IRS agents (you know who you are).

If I go back in time and make income, do I need to submit a revised tax form for the year of the work, or apply it to the year of divergence? How do you handle the inflation value when paid with items (e.g., gems, gold, chickens) that are brought back to the current time?

 

[Danke]

Just give them 19 and keep 1

 

[Ampster]

If I go back in time and make income....

Careful how you do that. It may open up older returns to audit which may have passed the time for review by IRS. Get details from code or a tax professional.

 

[Rocketman]

You are a cash based taxpayer. So the taxes are due in the year you receive the cash (or other units of value).

If you discover you didn’t report income/deductions on your taxes in the last three years you should do an amended tax return - the statute of limitations expires after three years.

If the unreported income is larger than 25% of your income (if I remember correctly) then the statute of limitations does NOT expire because the IRS considers it fraud.

This is an area you don’t want to guess. Get with a VERY competent tax professional and go over all the details. ( I say VERY competent professional because this is a complicated part of tax law, you don’t just want a tax preparer).

 

[svetz]

So, IRS TT714.15 says if you're capable of time travel you can't file for an extension because you can go back in time and send them before they are due. I'm fine with that. But, section 503 says I can deduct all reasonable charges related to the preparation of taxes and that includes travel expenses. So, if there's a billion in costs due to singularity degradation, that's fine to deduct, right?

 

[svetz]

You are a cash based taxpayer...

Yeah, the year I tried to pay in chickens and eggs it didn't go over well.

... you should do an amended tax return - the statute of limitations expires after three years. ...

The forms only go back to 1776, what do you do for income before then? I suspect for income on the north eastern seaboard it would go to England and before the 1500s it probably depends on the tribe that controlled the land.... which is problematic as some don't exist anymore.
I guess I wouldn't have to report that as income?

 

[Danke]

The forms only go back to 1776, what do you do for income before then?

Should five percent appear too small
Be thankful, [We] don't take it all

 

[Hedges]

If the unreported income is larger than 25% of your income (if I remember correctly) then the statute of limitations does NOT expire because the IRS considers it fraud.

Since you're playing the straight man in the humor column,

The answer is "6". Six years.

Gross income omissions and the 6-year tax assessment period

How taxpayers can guard against doubling the statute-of-limitation period for the IRS to assess tax.

www.journalofaccountancy.com

I've personally had the state (CA) go back 10 years. Not auditing returns from back then, but requesting I submit copies to substantiate a credit (for solar, therefore on-topic for the forum) accrued back then but not used to offset taxable income until much later. More commonly known is that you need records from eons ago to substantiate basis of real estate eventually sold.

 

[timselectric]

The secret to time travel investing is the seven year rule.
They can't audit you after seven years.

 

[Hedges]

But is it fraud to change your income, after you've filed it accurately?

 

[timselectric]

The best option is to convert everything into gold.
Then bury it in the back yard of your future house.
Then come back and "find" it.

 

[NCislander]

I almost prefer the Chickens & Eggs answer. I can eat and live on those. Gold and Paper Currency, not so much.

 

[svetz]

It's a lot easier in the future. Turns out all the R&D into defeating climate change ushers in singularity early and money (and taxes) are done away with. Time becomes the new "currency" because while there is no cost to anything, it still takes time to make things. Cryptotime is allocated based on a complex algorithm for decades until people realize they don't need so much crap (that and new stuff is built more reliably and durably since there's no profit in replacing it), then there's excess manufacturing and the value of cryptotime plumets. Good thing no one believes this or I'd be in trouble with the TEC (Time Exchange Commission and those AIs don't mess around). (Image is from an AI, "can you draw me an image of a time traveler meeting with the irs")

 

[Supervstech]

So, IRS TT714.15 says if you're capable of time travel you can't file for an extension because you can go back in time and send them before they are due. I'm fine with that. But, section 503 says I can deduct all reasonable charges related to the preparation of taxes and that includes travel expenses. So, if there's a billion in costs due to singularity degradation, that's fine to deduct, right?

Unwise, as altering the timeline can result is breaking fixed a point. So, while capable of paying prior to late fee interest, avoiding a time war and becoming locked in an all time schism isnt worth the risk, so fees would indeed be required.