John Kerry Fails to Pay Any Estimated Income Tax for 2003

Kerry Tax Return via Tax History Org ^ | 4/16/04 | self

[Too_Bad]

Not only did John Kerry improperly classify a gain on the sale of a painting as a regular capital gain rather than a gain on a collectable which is subject to the higher [28%] tax rate[ see Kerry Files Amended Tax Return]; this error was caught by a Texas CPA [Texas CPA Claims Kerry Owes Extra $12,000 in Capital Gains Tax], but he also failed to pay any estimated income taxes for the entire year of 2003 [see Kerry 2003 tax return]. He sold the painting on March 23, 2003 which means he should have paid quarterly estimated taxes on 4/15/03, 6/15/03, 9/15/03 and 1/15/04 based on the gain on the sale. The minimum estimated taxes he should have paid on a quarterly basis based on his prior year's income was $32,941. This payment was not made until the final return was filed. Kerry is also subject to penalty and interest for failure to make timely quarterly estimated income tax payments.

[binger]

[Hillary's Lovely Legs]

Why do you call him John Sienfeld?

[goldstategop]

Every day that goes by, you see more and more how the guy's an empty suit. He stands for *nothing* and this extends even to what he owes the government.

[Hillary's Lovely Legs]

I don't think it's a good analogy.

Jerry Sienfeld is a self accomplished man who people tend to like who has made all his millions by his own merit.

If you call him John Sienfeld people just think "hey, John's not funny."

[sandbar]

No wonder Kerry is opposed to tax relief, he doesn't pay any so what's it to him?

[goldstategop]

You just hit upon the reason why is its a good analogy. Jerry Seinfeld makes people laugh. Have you seen John F. stir up a crowd? I don't think so and when the Democrats have to drag out Howard Dean and Terry McAwful the Punk Kid, you know the more you see the other Seinfeld in action, the less people like him. He doesn't make them feel good about him.

[litany_of_lies]

If you look at his 2002 return, Kerry's total tax bill was $29,946.

I know for sure that he is NOT required to make quarterly payments if his withholdings are at least the amount of last year's tax. His 2003 withholdings of $27,277 happen to be almost exactly 90% of his 2002 tax, so I'm guessing that paying in 90% is actually the rule for avoiding penalty and interest. You still have to fill out the Form 2210 to prove that you don't owe penalty and interest, but it appears that he doesn't.

As to the capital gain issue, I don't think the CPA is correct. I believe all Kerry would have to do is argue that the painting is held as an investment and that he is not in the business of collectibles (i.e., he isn't a dealer), and capital gains treatment is OK.

I don't think there is a problem here, despite initial appearances.

I would even go so far as to suggest that the Admin Moderator pull this thread if I am indeed correct.

[litany_of_lies]

I am virtually certain there is nothing wrong with Kerry's return. See #27.

[Too_Bad]

On form 2210, line 6 is less than line 9, no box in Part II applied, and Box B, C and D didn't apply ; therefore, according to Form 2210, the IRS will figure the penalty although Kerry may figure the penalty if so inclined.

[litany_of_lies]

I believe there will be no penalty, but I did notice that the 2210 shows a required annual pay-in that is greater than last year's tax.

This means that he may have amended the 2002 return after he released the original.

Regardless, the amounts involved for potential penalty and interest are pretty small--I'd say perhaps a few hundred bucks, tops. To say there are bigger issues with John Kerry as president is a big understatement.

[FrogMom]

Kerry's total tax bill was $29,946.

FrogDad and I paid $25,614 in federal taxes last year. We have one HELL of a lot less than the Kerrys. I want his accountant.

[SGCOS]

Do you think Kerry even cares?

[Steven W.]

you'd at least think he'd have returned his ill-gotten tax cut & dividend adjustments

[njmaugbill]

Kerry's total tax bill was $29,946.

No, his tax bill was 90, 656.

He had 5956 dollars of AMT to pay.

ha ha ha ha

bill from Nutley

[Too_Bad]

I believe there will be no penalty, but I did notice that the 2210 shows a required annual pay-in that is greater than last year's tax. This means that he may have amended the 2002 return after he released the original.

Since he is married filing separately and 2002 AGI exceeded $75,000, his minimum payment for 2003 is 110% of his 2002 tax liability or 32,941.

[litany_of_lies]

Geez, I didn't know about the 110% rule for Married separate. I guess the taxable income threshhold is probably double that for joint returns, which is why I didn't know.

[P-Marlowe]

Not paying estimated taxes is not a crime. It merely subjects you to a penalty. And often the penalty is less than the amount of return on investment that you could get by investing the money rather than giving it to the IRS to draw interest on for a year.

I support Kerry's decision to refuse to send in estimated taxes. Now his mis-classification of the capital gains could get him into a lot of trouble if the IRS determines the painting proceeds were fraudulently misclassified. That's cheating.

[Too_Bad]

Geez, I didn't know about the 110% rule for Married separate. I guess the taxable income threshhold is probably double that for joint returns, which is why I didn't know.

For all others the threshhold is $150,000 unless you are a farmer or fisherman. [Line 14b Estimated Tax Worksheet for 2004]

[TheLion]

Well, this may be the second time I agree with you. I used to not pay the estimated payments either and settled up at the end of the year. You are right, it is no crime.

[P-Marlowe]

I didn't pay estimateds this last year. I was supposed to send in about $500 per quarter but I didn't. I owed about $2200 over and above my witholdings. The penalty was $7.00. There was no interest due, since it is not payable until April 15. You only pay interest if you fail to pay it by April 15 and then (if I am correct) you owe interest from January 1. Bummer.

At any rate if I had just put the estimateds in an interest bearing checking account I would have earned about $40 over the course of the year. So at a minimum I saved $33 by not sending in my estimateds.

I'm supposed to send in $500 per quater again this year. Do you think I should? Or should I invest that $500 per quarter in an S&P fund?