hypocritexposer
Well-known member
IRS to assess imputed income tax on breast milk
Posted by Sisyphus on Aug 4th, 2009 and filed under National News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
WASHINGTON – In an effort to counter a projected 18% decrease in tax revenue this year, the IRS today announced it would be assessing imputed income taxes against breast milk produced and used by nursing mothers.
The projected decrease in tax receipts would be the largest since 1932, when the country was in the throes of the Great Depression, and the IRS has been ratcheting up efforts to reverse the shortfall, especially in light of the record$1.8 trillion federal deficit that is also plaguing the country’s balance sheet.
“Look, we’re giving people free houses, we’re giving them free cars, we’re giving them free cable converter boxes and we’re fixing [sic] to give them free health care on top of all of that,” said Clarified Burden, a spokesperson for the IRS. “When you create a new free ride, you often have to take away somebody’s existing free ride, and nursing mothers quite frankly have been enjoying a free ride for long enough.”
Under the rule changes, which take effect retroactively to the beginning of 1996, breast milk will be classified as “non-cash compensation subject to inclusion in a taxpayer’s taxable wages.” Nursing mothers will have to complete a new form, the TETA series, with their annual filings.
“The logic behind this is simple,” said Burden. “The government allows you to claim your offspring as a deduction, which is fine.”
“But where we run into problems,” he continued, “is when mothers try to double dip. Instead of using that deduction as it was intended – to offset the cost of feeding the child with formula – some mothers will actually breast feed instead, pocketing the difference. That difference is now rightfully subject to income tax. The days of milking the IRS are over.”
Burden said the IRS had concluded that infant formula, on average, costs $1,800 per year, in “round numbers.” Therefore, women who exclusively breast feed will have to declare $1,800 in imputed income, using the TETA28AA form.
Women who claim to only nurse part time and use formula as a supplement and women who claim to not nurse at all will have to complete the long-form TETA46DDD, which consists of 231 pages and requires supplementary photo exhibits, feeding schedules and formula receipts to support the filer’s claims.
Any woman or couple filing jointly with a dependant under the age of six will have to complete the TETA forms.
Since the treasury is so short on cash and since “we’ve overlooked this gaping gap for so long” all women who have given birth since 1995 will have to file retroactive TETA forms, regardless of whether they claim to have used formula exclusively or not, the IRS announced.
“But we’re cutting them a break,” said Burden. “We’re not going to assess late charges if they file by the end of August.”
A spokesman for the Obama administration praised the plan, saying “People should know there’s only one teat that people should suckle – the government’s. Plus, it will create jobs in the formula industry.”
http://wineandexcrement.com/irs-to-assess-imputed-income-tax-on-breast-milk/1575/