Yet you keep digging a deeper hole for yourself. The distinction between those who actually pay taxes on trading profit and those who hope they might pay taxes someday is obvious in this thread. If you had ever been faced with estimated taxes you would display more knowledge on the subject. Or perhaps you do not understand the meaning of the word "penalty". I am guessing both.
isnt it nice how you start a thread on elite about taxes and when people try to educate you you end up threatening them. i wonder why people even try to help people like you. there are provisions in the tax code for people who have irregular income not having to pay quarterly taxes. people who fall in this catagory would be farmers,seasonal fishermen,seasonal construction owners ect. while traders are not specifically mentioned it could be argued that they also have irregular income.
I am not threatening anyone, but trying to help you guys out. When I started this thread, I did not expect for people to be admitting how they avoided certain taxes within the thread so I thought I might cut it off right there before it went any further. I'm a bit older then you think and have my own experiences with the IRS. There were times where I was investigated, but did nothing wrong. There were simple mistakes on the return that could be justified, but it took quite a while to sort the mess out with lawyers involved. I tried to handle it myself at first and made the situation worse. Back a very long time ago when I was in my 20s, I knew a revenue agent in his 20s who was very aggressive and only seemed to care about getting people into trouble. Back further then that, I remember revenue agents coming to my parents house to go over irregularities in their taxes. It was a rude awakening to see how these guys really work. I thank you for the education, but I had to cut you guys off before you open your mouths and get yourself into more trouble then what you bargained for. I have my own experiences with the IRS and once knew people that worked for them. I would never tell anyone how I do my taxes or admit to purposely not doing something I was supposed to do on a public message board. I know the results of such actions and it is time consuming and costly. I would never mess around with such matters as serious as that.
Retaildaytrader, believe me, I'm very aware of what I say (and how I say it) on public forums. It sounds like your past experience with the IRS has hampered your ability to think clearly. Let me try to help you out here. The purpose of the IRS' reward program is to capture large (I think $2 million+) tax EVADERS. The reward is offered because the IRS stands to recover a large sum of back taxes. Because I pay my taxes each and every year--with interest--there are NO back taxes to recover and nothing whatsoever to be gained by the IRS coming after me. Therefore, if you were to "turn me in" (impossible without good evidence, BTW), your only reward would likely be extended silence followed by a loud "click." Knock yourself out. Here's another dirty little secret: I usually file for an extension. :eek:
1) You can try to "underpay" taxes for the first, second and third quarters and then "overpay" during the fourth quarter to balance things out and then even-up when you complete your final return. 2) You could trade in a normal/taxable account until you've earned enough living expenses for the year and then trade in an IRA account for the rest of the year as a means of reducing taxable income and boosting your retirement account.