Russ B
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My best guess is that when it first started it was a job to give to a Brother-in-Law or some other family member that you didn't like.
However, now it actually has a bearing on your return. The IRS has done many studies to determine the norm of many professions. They use this to compare this with the industry norm. Don't worry if they haven't got to your occupation they will, sooner or later.
There are many tax laws that most people even some professionals don't know about. One of them is that it has to be a common practice in the industry. If it isn't you have to be able to show a business reason for this transaction or it is void for tax purposes. Just to throw this one in (doesn't apply here, I hope) anything done to simply avoid taxation is null and/or void.
The IRS is getting more complex. And they are using these studies to zero in on the people that are cheating.
At this point it will not change your taxes...it might or might not raise your chances of an audit. But, once they have completed the entire study...I see a future with different tax rates depending on your profession (the IRS will argue that they have to spend XXX amount of dollars to police this industry). And, the worst part is I think they will win in the courts.
And, for the tax professionals...don't laugh yet. I was right about the IRS charging for payment agreements. I predicted that 14 years ago.
Anyway, I hope this helps answer your question. It is just my opinion...but, I am good at these things. |
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Judy1
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Certain occupations are more liable to be audited. |
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wireman1979
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If you are a CEO you probably make millions. If you are a worker at McDonald's chances are you don't. The purpose of the classification of OCCUPATION is THE MAN'S way of keeping tabs on you and how much you should theoretically be making in your listed occupation. Gotta love that big government. |
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llol
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so they know how much other people who have the same job as you make |
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naughtykitty94
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The government loves statistics. It tells them there are "x" number of employees in a certain field. |
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trebor2
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To see if your job matches your income
there's no way a dishwasher can make
the same as a CEO - Red Flag goes up |
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babariley
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So the IRS knows where to look for you to arrest you. Not really, it is just our government keeping tabs on us. Answer the question with 'laborer.' Unless you are a rocket scientist it should work. |
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jxt299
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I think the IRS wants it so they can see if your income makes sense. If you claim to be a used furniture salesman but your income runs $100 million or so (like Al Capone) they know something is lets say just not Kosher. |
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Suzianne
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The question is there for statistical purposes. Many departments and agencies of the government rely on demographic information in connection with government programs. They do not expect the information provided to be 100% accurate. Nobody is required to identify themselves as hookers, drug dealers or burglars, for example. |
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ms.meanie22
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certain jobs get certain benefits. if u leave it black u will not be able to efile |
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moonhermitman
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It doesn't matter...neither does the rest of the form.... |
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Rotovia, PhD
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Many government's prepare a "Who Earns What in (country)" reports that rely on this data. They are also likely to be suspicious is an anesthesiologist claims to be making $30,000 pa. |
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kittenwithwings
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different things apply to different jobs....like if ur in the military or work for the government. |
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