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He also recommended that taxes be collected from corporations with incomes greater than $5,000. Congress started the wheels turning and in 1913, the amendment was ratified and income tax became law.
Tax rates have risen and fallen over the years, affected by Prohibition, the Depression, and most steeply by the World Wars. The Internal Revenue Service was given its official name and changed to an opera- tion conducted by paid, professional employees in the 1950s. Now, the IRS Commissioner and the Chief Counsel are the only IRS offices appointed by the President and confirmed by the Senate.
Finding the Right Tax Preparer
Unfortunately, there is the occasional tax preparer who uses clients' vulnerability for his or her own financial gain. Be really careful when you pick someone to trust your income tax returns with. If the IRS finds a problem with your return, you're the one who pays the addi- tional taxes and interest. You may end up paying penalties as well.
In 2005, more than 110 tax preparers were convicted of tax crimes. The IRS provides the following suggestions for choosing your tax preparer:
• Watch out for preparers who claim they can get you a bigger refund than the others.
• Don't use a preparer who charges a percentage of your refund as the fee.
• Use an established tax preparer or company who will sign your return and give you copies of everything.
• Think about whether or not the preparer is likely to be around the next few years to answer questions about your return.
• Read your return carefully and ask your preparer questions about any entry you don't understand.
• Never sign your return until it is completely filled out. You are ultimately responsible for all the information on it.
April or Not—It's Always Tax Time