Strap on your seat belts, the perfect storm is coming. Tax storm that is! With the current Congress not giving any indication of extending the tax cuts of President Bush from 2001, we are in for a day of reckoning. The U.S. budget shortfall in 2011 is estimated in the range of $127 billion.

When Home Depot and Dell are on the radar screen for private equity buyouts, you know that the landscape is primed for mega deals.

Furthermore, perhaps your situation worsens even further when you realize that you can’t pay the amount due Uncle Sam per your 1040 tax return.

According to my calculations, the market capitalization of Home Depot increased by approximately $1.86 billion on Wednesday, the day the company announced the abrupt resignation of CEO, Bob Nardelli. Subsequently, Nardelli is leaving with a sweatheart severance package of a cool $210 million.

Back in my prior post, eBay Transactions – Tax Implications, I listed some of the decision points in determining the tax status of your transactions. Subsequently, the IRS now has an article, Tax Responsibilities for Online Auction Sellers, dedicated to related tax issues. If you are a frequent seller, it is worth a read to determine if your activity triggers a tax impact.