2007-07-29 15:23:02 · 5 answers · asked by then_bi_said 1 in Business & Finance ➔ Taxes ➔ United States
What exactly do you mean by tax-exempt? Do you mean by not having anything withheld from your paychecks? You can get away with it for your first year, but you will owe a ton of money on 4/15 of the following year, and risk not being to pay it to the IRS. If you mean trying to get yourself declared as a non-profit and not having to pay any taxes, then it'll be whenever the irs catches up to you. I wouldn't advise trying to short-change the IRS, it will catch up with you.
2007-07-29 16:31:55 · answer #1 · answered by Anonymous · 0⤊ 1⤋
It depends on how much you expect to make for the year. If you do not expect to have any tax liability for the year, and didn't have any the previous year, then you can claim exempt on your W-4. Otherwise, it's a VERY bad idea, since you not only will owe taxes at the end of the year, but will also risk a $500 fine for falsely claiming exempt.
2007-07-29 23:02:42 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
You will go as far as your first income tax return. There is a penalty for underwithholding.
This ignores the other criminal facets of your scheme.
2007-07-29 23:06:07 · answer #3 · answered by Tom K 6 · 0⤊ 0⤋
You mean on your paychecks? I would not want to do it and hope that I had saved up enough to pay my taxes when tax time rolls around.
2007-07-29 22:27:14 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You have heard the saying - pay me now or pay me later - later includes penalties...
2007-07-29 22:27:41 · answer #5 · answered by galfromcal 4 · 0⤊ 0⤋