Truth in taxation. We’re so , so afraid of the IRS.

The Constitution says the Government can levy an income tax (see the Amendment) and the passing of the tax code gives them the mechinism to deduct it directly, when any income is earned. That section of the code says “when a return is required”. To determine that the government hast to return your money, you have to file a return where you do the calculations. So, you pay by law and file to prove you didn’t owe.

So are we liable for taxes or not? The answer lies in the 60,000 pages of Tax Code.

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After reviewing the 2010 federal tax return Gingrich released last week, the tax experts said he may have left himself open to an IRS challenge.

“That could be the type of return that would be flagged for an audit,” said one of the experts, Robert McKenzie, a tax attorney at the Arnstein & Lehr law firm in Chicago.

The experts, who also included Bryan Skarlatos, of Kostelanetz & Fink in New York, and Martin Press, of the Gunster law firm in Fort Lauderdale, said it would be difficult to pinpoint the amount of Medicare tax that went unpaid without additional financial detail. But they estimated it could amount to tens of thousands of dollars.

In a written response to questions on Monday, Gingrich’s campaign spokesman Joe DeSantis said “the salary and distribution were handled properly and legally.”

He declined to allow an interview with Gingrich’s tax preparer.

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Tax time is here, and State Treasurer John Kennedy reminds taxpayers to check to see if the IRS owes them old federal income tax refunds. “Over $1.3 million is owed to 1,362 Louisiana taxpayers whose federal income tax refund checks were undeliverable,” said Treasurer Kennedy.

The Louisiana Department of the Treasury has posted the IRS undelivered refund list on its Facebook page located at http://www.facebook.com/LouisianaTreasury. Anyone who sees his or her name should then proceed to the “Where’s My Refund” online service of the IRS at www.IRS.gov or by calling 1-800-829-1954.

“One of the main reasons a federal income tax refund can’t be delivered is because of an old address,” says Treasurer Kennedy. “When a taxpayer moves without notifying the IRS or the post office, the refund check that was sent to the individual’s old address is returned to the IRS.”

The “Where’s My Refund” tool on www.IRS.gov will provide taxpayers with the status of their refunds and will provide information on how to resolve delivery problems. To use the tool, a taxpayer must submit a Social Security Number, filing status and amount of the refund showed on his or her return. Taxpayers can claim their refund checks as soon as they update their addresses with the IRS.

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Many Northeast Arkansans could overlook a special federal tax credit because they don’t know about it. As a result, they could miss out on up to $5,751 extra in their federal income tax refunds through the Earned Income Tax Credit, or EITC.

Last year, on average, the credit boosted refunds for eligible Arkansas workers by $2,366, according to IRS representatives. In Northeast Arkansas alone, approximately $4 million in EITCs are not claimed.

Some local agencies, such as United Way of Northeast Arkansas and East Arkansas Area Agency on Aging (EAAAA), are offering free assistance to help qualifying individuals complete their tax returns and find out how to claim this credit.

“EITC is a financial boost for working folks at any time, but especially now, and allows more funds to flow into our local economy,” said Paula Robertson, community impact coordinator, United Way of Northeast Arkansas.

Anyone earning $49,078 or less from wages, self-employment or farming in 2011 should see if they qualify. Eligible workers must file federal income tax returns, even if they are not required to file, and specifically must claim the credit to get it. “This money can make a real difference to workers struggling in this recovering economy,” said Lauren Isbell, director of the EAAAA’s Retired Senior Volunteer Program (RSVP).

Many people will qualify for the first time this year due to economic changes in their income or changes in their marital or parental status, according to the IRS. The agency estimates four out of five eligible workers currently claim their EITC.

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