Tax Horror Stories

A Taxpayer's Plea

Dear Sirs: I am responding to your letter denying the deduction for two of the three dependents I claimed on my 1994 Federal Tax return. Thank you. I have questioned whether these are my children or not for years. They are evil and expensive..

Featured Articles

Connecticut’s sales tax on "Computer and data processing" service

Connecticut has a sales tax on any service that the state deems as "computer and data processing", for e.g. it could be a magazine subscription you got off the Internet or your groceries, it’s all the same to them. Under the Internet Tax Freedom Act, such taxation is prohibited until October 2001...more

Tacoma, Washington’s "dumb" idea

The Seattle Times famously called the plans of the local authorities based in Tacoma, Washington, to tax ISPs as phone companies on top of the telecommunication taxes that they were already paying, a "dumb" idea...more

Vermont taxing "Electronic Mall"

According to the State of Vermont, any "electronic mall" located on the superhighway of the Internet located outside the state has an obligation to the state for collecting taxes owed on sale of products or services to the residents of Vermont...more

Wisconsin’s "Double Tax"

Wisconsin is collecting a 5% sales tax on access to the Internet. Their justification of taxation on Internet access is derived from it being seen as the same thing as telephone and telecommunication services.