Quote:
Quote by: Technosoul  Loan Default Warning. "the unpaid balance of your loan plus the interest due will be reported to the IRS as taxable income".
Apparently we have a law that if you pay back a loan on time it will not be taxed as income but if you are late making the loan payment it can be concidered as income (because you kept the money instead or repaying it). And a loan company is mandated under law to report such income so that it can be taxed (interest included). Once the report is made you will be taxed for that income even if you make good on the loan later on.
You would be taxed only on what is past due, not the amount of the whole loan. News to me.
This seems odd to me because if a person does not repay a loan that is like stealing money. It is basically unlawful for a person to violate such a contract. So now the IRS is collecting money for unlawful income? What's up with that? Is stealing now a business that can be lawfully taxed like any other buisness or "worker income"? It seems that this makes the occupation of stealing money for an income an "acceptable" kind of work in the eyes of the Federal Government. Or am I just imagining something here that is not true?
Any comments? |
The IRS can estimate income also because a lot of people get paid under the table and put their assetts in other people's names which the IRS can disallow. Drugs dealers that are living in fancy homes, have fancy cars etc. can be taxed because they are getting "income" from somewhere. Income is income and it's taxable. Martha Stewart, those Enron guys, were probably doing some hiding of assets, so they get tagged. The government has to operate, so legal or illegal you have to pay up. This doesn't make it acceptable to the government, but people are people and they're dishonest. Just a fact of life.