|
Videos
August 24, 2010 By Karen Wilkinson
Philadelphia city officials are adamant that they're not singling out bloggers -- just those who reported business income to the IRS, but didn't follow proper procedure with the city.
Through an "information sharing agreement" with the IRS, Philadelphia recently identified 32,000 people who earned (or lost) business income last year, but failed to inform the city of such dollars and obtain the required "business privilege license." It's unclear how many bloggers received letters from the city when they were sent out in May, as such specifics aren't required on tax forms, but city officials estimate it's a low number.
Regardless, the cash-strapped city's stepped-up enforcement and its impact on bloggers came as a shock as Philadelphia is the first known city in the U.S. to do so. As well, most bloggers don't make a living from their online writings, which is more often a hobby than a source of revenue. The Philadelphia City Paper recently cited the example of blogger Marilyn Bess, who makes about $50 a year from what she considers a hobby. With a price tag of $50 a year or $300 for a lifetime license, bloggers may end up paying more in taxes than they earn from typically meager ad sales.
But city officials say it doesn't matter how individuals earn the money -- or how much -- just the fact that they earn any makes them subject to its business license requirements.
"We are using data from the IRS and being aggressively proactive about going after any and all businesses," said Philadelphia Revenue Commissioner Keith J. Richardson. "And we want a level playing field to make sure everyone is paying their fair share. Citizens and taxpayers understand we're not going after one specific group of taxpayers or businesses."
You may use or reference this story with attribution and a link to
http://www.govtech.com/featured/102484534.html
Collaborative Justice: Transforming Criminal Justice Services Through Unified Collaboration
Cloud-Based Services Accelerate Public Sector Adoption of Video Collaboration
This, unfortunately, is a "micro" example of the challenges that unrestrained bureaucratic rules and regulations inhibit the growth of free enterprise. Many of these 'fledgling' young blogentrepeneurs could eventually develop significant businesses, but many, under the threat of ridiculous tax rules and threat of IRS seizures, will never crack the egg and truly spread their wings to fly. And if they don't fly, they don't employ others in the future. Which, I guess is ok, I hear the federal government needs another 1600 IRS agents or so...(this year, anyway)!
This, unfortunately, is a "micro" example of the challenges that unrestrained bureaucratic rules and regulations inhibit the growth of free enterprise. Many of these 'fledgling' young blogentrepeneurs could eventually develop significant businesses, but many, under the threat of ridiculous tax rules and threat of IRS seizures, will never crack the egg and truly spread their wings to fly. And if they don't fly, they don't employ others in the future. Which, I guess is ok, I hear the federal government needs another 1600 IRS agents or so...(this year, anyway)!
This, unfortunately, is a "micro" example of the challenges that unrestrained bureaucratic rules and regulations inhibit the growth of free enterprise. Many of these 'fledgling' young blogentrepeneurs could eventually develop significant businesses, but many, under the threat of ridiculous tax rules and threat of IRS seizures, will never crack the egg and truly spread their wings to fly. And if they don't fly, they don't employ others in the future. Which, I guess is ok, I hear the federal government needs another 1600 IRS agents or so...(this year, anyway)!