Recently IRS came out with this press release:

IRS Increases Interest/Dividend Threshold Source: Associated Press Publication date: 2002-09-26

WASHINGTON (AP) - More than 15 million taxpayers will be able to skip filing a separate IRS form for interest and dividend income next year under a move announced by tax agency Thursday. Beginning with 2002 returns due next April, most taxpayers won't have to file separate schedule with their 1040 forms if their interest and dividend income is $1,500 or less. That replaces current threshold of $400, which has been in place since 1974.

Taxpayers who file 1040 forms use Schedule B to list interest and dividend payments. Under new rules, millions of taxpayers will simply report their interest and dividend income without filing separate forms.

Charles Rossotti, Internal Revenue Service commissioner, estimated that 15 million taxpayers will be no longer have to file extra form.

"We will continue our efforts to reduce burden on taxpayers and simplify tax code," said Pam Olson, acting assistant Treasury secretary for tax policy. END OF PRESS RELEASE

Now, aren't you just thrilled to hear that IRS, in it's infinite wisdom and undying compassion for American taxpayer, has decided to make life easier for you by changing rules regarding filing requirements for one tax form know as Schedule B? Give me a break!

In case you were just dying to know, Schedule B is a form that you must file with your personal tax return if your total interest and/or dividend income exceeds $400. Now, you only have to file Schedule B if your investment income exceeds $1,500.

By way, no matter how much investment income you have, ALL taxable investment income must be reported on your tax return. The issue here is whether or not you have to provide a detailed itemized listing of your investment income.

Example: Let's say you have $1,000 of interest income. Under new rules, you can just put $1,000 right on Page 1 of Form 1040. And that's it.

But if you have $2,000 of interest income, you have to complete a separate form (Schedule B) and list each source of that interest income, i.e. name of each bank account or other financial institution and how much interest or dividend income you earned from each source.

So because of this simple rule change, about 15 million people will not have to file Schedule B.

By Stephen Bucaro

You can PAY for home insurance, but don't try to actually USE your home insurance or you may be blacklisted by insurance companies. The home insurance companies only want to TAKE in money, not PAY OUT any money. On Jan. 2, 2003 CBS Evening News exposed a scheme by home insurance companies to blacklist customers who file claims.

According to CBS Evening News report, insurance industry uses a secret system called CLUE (Comprehensive Loss Underwriting Exchange) to blacklist customers who actually try to use their insurance. The system was originally set up to help companies detect fraud, But now it's being used in a scheme to blacklist customers who use their home insurance.