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Tax Frustration Directed at President; Fiat/Chrysler Alliance; New Pirate Attack: U.S. Ship Liberty Sun Damaged, But Crew Unhurt; Maersk Crew Heads Home, Captain Aboard Bainbridge Escorting Liberty Su; IRS Tax Audit Formula; No Divorce for 8-Year-Old Girl in Saudi Arabia

Aired April 15, 2009 - 10:59   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Wednesday, April 15th, Tax Day. And here are the top stories for you in the CNN NEWSROOM.

It's tea time, but the IRS isn't invited to the party. Tax protesters rallying in hundreds of cities right now.

Pirate attack a second American cargo ship off Africa. The Liberty Sun hit by bullets and grenades before a hasty escape.

This man, boss of the border. The Obama administration is expected to name a border czar today to target illegal immigration and the Mexican drug trade.

Good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

Taxed Enough Already, TEA, that is the rallying cry for protesters holding Tax Day tea parties across the country. They are using today's IRS filing deadline to tap into the frustration over high taxes and government spending. The anger has been brewing for months.

This was the sentiment at a tax protest in February.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We are paying money we don't have on social programs we don't need to fix problems that you have caused.

(END VIDEO CLIP)

HARRIS: OK. We are covering the protest on several fronts. Demonstrators have called for recreating the spirit of the 1773 Boston Tea Party. A map from the Web site teapartyday.com shows the cities where protests are planned today.

So let's begin our CNN coverage of your taxes, the real deal, in Boston, home of the original tea party. CNN's Mary Snow is in Boston Common, the city's main park.

Mary, good to see you. If you would, set the scene for us.

MARY SNOW, CNN CORRESPONDENT: Well, good morning, Tony. And here's the scene.

A rally is set to get under way right now, and we're seeing several dozen people showing up right across the street from the state house. And three women organized today's event.

They describe themselves as stay-at-home moms, two students. They say they got together on the Internet organizing this. And just walking around in the crowd asking people about their backgrounds, why they're here, many people describe themselves as Libertarians, Independents, Republicans, saying they are here to send the message that there is too much government spending, and some telling me they're not really pointing the finger at any particular political party, but they feel the government has just gotten too big.

And interestingly, Tony, a number of people here today are also saying that this is the first time that they have shown up at a protest. Not really sure what to expect.

There are a number of speakers expected to be here throughout the day. And then later today, you may have seen some of the signs, some of the colonial costumes that people are wearing. One sign read, "Party like it's 1773." That is of course the date of the original Boston Tea Party, and later today, there's going to be a reenactment that is going to be hosted by a radio show -- Tony.

HARRIS: OK. Mary, let us know when these -- when the protest starts to pop a little bit.

Mary Snow, Boston Common for us.

Mary, good to see you.

Much of the frustration seemingly is directed at President Obama. He is also talking taxes today. We expect to hear from him within the hour on revising the tax code and providing relief to working families.

Kate Bolduan live from the White House with a preview.

And Kate, let me try this one on for you. Isn't this pure politics from the president today? The president doesn't want this day to be dominated by loud tax rallies across the country. Come on.

KATE BOLDUAN, CNN CORRESPONDENT: Well, you definitely won't hear that from the White House, but there's no question that the president does not want the day everyone is filing for taxes to be dominated by tea parties and people railing against taxes and talking about Obama's budget and things like that. But the president today -- it is Tax Day; the president is talking taxes, and he's using this opportunity to do kind of what you were alluding to.

He's going to be highlighting what the administration is doing to help working class families, Americans in general, to lessen the tax burden on people. His remarks are expected just a little -- maybe about less than an hour from now. And during -- before his remarks, he's going to be meeting with some families that the White House says are real world examples of people benefiting from the efforts put forth by the administration.

What efforts, are you asking? Well, they're going to highlight the stimulus package, or specifically the tax cuts in the stimulus package. You know, everything ranging from individual tax cuts, to tax cuts for first-time home buyers, and really saying, today might not be a great day, if you're having to file -- when you're filing for taxes, the administration is out there, and we're fighting for you, and help is on the way, that kind of thing.

HARRIS: Got you. You know, I wonder -- and maybe I'm asking the same question, only in a different way, but with a little graphic support. We've got the graphics, so we may as well use them. I wonder to what extent the pictures we're going to see today from these rallies really reflect a greater America's feelings about taxes.

And you see what we have up now. A recent CNN poll suggests 62 percent of Americans approve of the way the president is handling taxes, and certainly the president is aware of this number as well.

BOLDUAN: Well, I think the White House would be very happy to hold up that -- hold up those polling numbers. But we do expect the president, while coming out today to say, you know, these are the efforts that the administration is putting forth to help you pay for your taxes, lessen the burden, there's no doubt he's going to acknowledge the fact that right now, in this recession, in this difficult time, people are having a hard time having to pay for their taxes. But we expect him to also look long term, like you're talking about.

We're expecting him to talk about tax reform, simplifying the tax code, increasing enforcement, getting people to pay their taxes. So we'll hear -- we're going to hear kind of a range, short term and long term.

HARRIS: Very nice. I mean, very good point. He's always trying to strike this balance.

Kate Bolduan at the White House for us.

Kate, appreciate it. Thank you.

BOLDUAN: Of course.

HARRIS: Of course we will bring you President Obama's remarks on tax relief and tax reform. We expect to hear from the president around 11:55 a.m. Eastern Time. Live coverage for you right here in the CNN NEWSROOM.

The federal spending machine is running on borrowed billions. States are struggling with shortfalls. Eventually, you're going to pay with higher taxes.

Christine Romans reports.

(BEGIN VIDEOTAPE) CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT (voice-over): What do pole dancing, fishing licenses, car registrations and a state park pass have in common? They all could get more expensive as states slap on taxes and fees in a scramble to raise money.

Colorado wants a fee for background checks for new gun owners. The price of a Michigan State park pass may rise. In Nevada, lawmakers are considering a tax on legal brothels and an increase in Vegas hotel taxes. And in California, there's even a proposal to tax marijuana, another to put a sales tax on porn.

States are scraping for every penny.

BERT WAISANEN, NATIONAL CONFERENCE OF STATE LEGISLATURES: What they're doing first is they're cutting spending. They're cutting back on programs, they're delaying projects, they're putting in hiring freezes.

ROMANS: And they still have to raise more money. Sin taxes are a perennial recession favorite, like taxes on tobacco.

DONALD BOYD, NELSON A. ROCKEFELLER INST.: This time around, wealth looks like it's the new tobacco. We're seeing quite a few states that are at least considering income tax increases on upper- income earners. We've seen it in New York and California already.

ROMANS: Simply put, the math doesn't add up. States are bringing in less at a time when their recession-wary citizens need more services. Fees on hunting licenses and taxes on gentlemen's clubs can't close the gap alone.

BOYD: You'll see significant increases in what I would call the go-to taxes, the income tax and the sales tax. And if you want to raise significant amounts of money, that's where states are likely to go.

(END VIDEOTAPE)

ROMANS: Donald Boyd, that gentleman there, says raising taxes is the last thing states do in a crunch, Tony. It's politically dangerous for politicians.

HARRIS: Yes.

ROMANS: But he says, you know, he expects widespread tax increases at the state level starting next year, just as the recovery is taking hold. But he says look for those to be temporary -- Tony.

HARRIS: I saw something yesterday, that the state you live in, New York State, is considering a tax on soda pop. Are you kidding me? Soda pop.

So, Christine...

ROMANS: Look, I thought it was a very good point he made, that wealth is the new tobacco. HARRIS: Yes.

ROMANS: That, you know, people aren't complaining about rich guys these days, so you could look for some states to be following suit, New York and other places, where they're considering taxes on people who make $250,000 or more a year.

HARRIS: Yes. So inflation took a bit of a vacation in March. Share the numbers with us.

ROMANS: Inflation took a little bit of a vacation in March, and really has over the past whole year, Tony. Let's look at the Consumer Price Index.

This is what you pay, your kitchen table inflation. Consumer prices down 0.1 percent in March. Core prices, that's if you take out food and energy. But you know what? I don't live my life without food and energy, and neither do you, so let's just talk about the first number.

And then when you look at that, Tony, for the whole year, it's actually the first time you've seen it decline, down 0.4 percent, the biggest decline in inflation since 1955. That's a sign of a weak economy. It's good for you because you're paying less, but it's a sign of a weak economy.

HARRIS: Yes. Got you. Christine, see you next hour. Thank you.

ROMANS: OK. Bye.

HARRIS: It is Wednesday. That means our Chief Business Correspondent Ali Velshi is on CNN Radio.

Let's drop in with a question or two.

Ali, are you there? Can you talk to us? Did I get...

ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Absolutely.

HARRIS: Oh. Sometimes I come to you when you're in the middle of a call, and I hate interrupting that. I'd rather listen to you...

VELSHI: No, no.

HARRIS: ... and the exchange with the callers.

But let me ask you, first of all, the president, in his comments yesterday, talked about glimmers of hope in the economy. I know you blogged on this, and let me go to a couple of pointed areas here.

Do you give the president and his policies any credit for the thawing, some of the thawing that we're seeing in the credit markets?

VELSHI: Well, in fairness, we've got to give some credit to this administration, some credit to the previous administration, under whom the bailout first came out. A lot of people will tell you, I don't think it worked, it was wasted money, but we don't know how much worse it might have been if it hadn't been there.

The fact is, I remember those days during the credit thaw when no major company could raise money. Caterpillar was one of those companies I used as an example, one of the few companies that was able to raise money. They struggled to do it, and then in January, they ended up laying off 20,000 people. This was one of the healthiest companies in America.

So we cannot underestimate how serious that credit freeze was and how serious it continues to be. So, you know, Tony, I always say there are four things that matter right now -- your job, the value of your house, the value of your retirement income, which is the stock market, and what is going on with these banks. Until we get these banks moving again, we cannot get this country back on track.

HARRIS: Nice.

The markets, you mentioned the markets a moment ago. A rally five weeks in, although the first couple of days of this week so far have been a bit down.

What does the recent rally suggests to you about investor sentiments right now?

VELSHI: Well, we're still down from the beginning of the year, from January, but about March 9th, it looks like we may have hit something of a bottom. It doesn't mean we won't do it again, but around close to 6,500 on the Dow.

It's now back up around the 8,000 mark, so we're up substantially since then, and that's the five weeks we're talking about. It's been five back-to-back weeks of gains. We haven't seen that since October of 2007. So that's hopeful, but there are rallies in bear markets.

So what sometimes happens, let's say we get up to the 8,000 level, a little higher than that. You find people pulling back.

The other thing is, Tony, we've got a lot of mixed news. We used to have only bad news, you know, in the last few months, so now we've got mixed news. When that mixed news is a little bit good, people buy stocks, when it's a little bit bad, you see them pulling back. But I'll take mixed news over all bad news any day.

HARRIS: Yes. Ali, one more quick one here.

Challenges -- the president talked about some of the challenges, and I wonder which of these challenges is most concerning to you -- jobs, 8.5 percent unemployment now, retail spending slumping a bit again, and personal incomes continue to slide.

VELSHI: Yes. Well, you know, when you and I talk about this, one thing Christine always says and I always say is, we don't want to take one month as a trend. So let's take retail sales. We had two up months and then one down month. So, again, it's broken the trend, but it's not a trend either way. But we know that this country depends on retail sales, so that's a problem. If people don't buy things, companies lay people off.

The job issue is the single most important issue in this economy -- 8.5 percent -- that's a 25-year high. It was 4.9 percent when we got into this recession, and even the best estimates suggest we don't get back down to that 4.9 or 5 percent until some time in 2013 -- Tony.

HARRIS: Wow.

VELSHI: So, jobs, jobs, jobs. That is the most important thing.

If you are out of one, you need to think about retraining, going back to school or moving. Don't expect that your job is coming back to you, particularly if you are in the manufacturing sector in this country.

HARRIS: Boy, that question hit you in your wheelhouse. You knocked that one out of the park, my friend.

VELSHI: Well, it's an important issue. That's the one that we have to worry about.

HARRIS: Yes. Hey, good talking to you, as always. Thanks, Ali. See you next week.

VELSHI: Hey, can I put in a pitch for the show?

HARRIS: Yes, please.

VELSHI: 877-266-4189. Give us a call. We'll be happy to take your questions.

HARRIS: Hey, do it again because I think I clipped you a bit. What's the number again?

VELSHI: OK. The number is 877-266-4189.

HARRIS: There he is, Ali Velshi.

VELSHI: Looking forward to taking your calls.

HARRIS: Good to talk to you, my friend. Thanks much.

VELSHI: Thank you.

HARRIS: And still ahead, with two weeks to the government- imposed deadline for Fiat and Chrysler to be able to come to some kind of deal, what's holding up that deal? Will union demands get in the way?

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: Fiat to Chrysler: Cut union paychecks or we walk. Chrysler has two weeks left on a government deadline. It must form an alliance with Fiat or face certain bankruptcy.

Let's talk to Peter Valdes-Dapena in New York. He is a senior writer for CNNMoney.com.

Peter, good to see you again.

Boy, you were all over this a couple of weeks ago when we had the breaking news and made a big deal about it saying that a deal had been reached between Fiat and Chrysler. You said, hold on, wait a minute, and all of your reservations spot on.

What is happening with this deal?

PETER VALDES-DAPENA, SR. WRITER, CNNMONEY.COM: Well, they're in negotiations. And part of that is you have to get some recalcitrant parties who don't want to, to come to the table and make some changes. And I think part of what's going on here is that Fiat is telling the North American unions, the Canadian auto workers and the United Auto Workers in the U.S., that, look, I am not going to go through with this unless it looks like we have a good chance of succeeding. I'm not going to go through with it unless you guys agree to some serious cost cuts and things like that.

And I think that this is, in large part, part of the negotiating. It's a scary part of the negotiating, but I think it's somewhat part of the negotiations going on.

HARRIS: Well, let's drive home on this. On the 100 scale, 100 means the deal gets done, what do you believe here? What are the chances of this alliance happening in, say, the next two, three weeks?

VALDES-DAPENA: Well, Marchionne, himself, the CEO of Fiat, has given it 50/50. So my gut tells me it's probably a little bit better than 50/50, because it would be in his interest to overstate the fear factor here that this might not happen. So I would give it a 70.

HARRIS: Seventy percent?

VALDES-DAPENA: Maybe 60.

HARRIS: So if the government -- I'm just wondering, what might help this process along? And we talked about it a little earlier.

If the government ponies up the $6 billion it has on standby to Chrysler, if the deal gets done -- that's the condition, the deal gets done. If it ponies up the money ahead of the deal, does that improve the chances of getting the deal done? Peter, what do you think?

VALDES-DAPENA: I don't think it would, because the Treasury has already said if this deal gets done, we will give you the $6 billion. So what would the point be of risking the $6 billion if Treasury clearly feels that Chrysler does not have a chance of viability without the deal?

You know, it's already there. It's already on the table. I think the $6 billion is in the game. I don't think offering to pony it up first really helps things.

HARRIS: Yes. Got you. What happens if Fiat walks?

VALDES-DAPENA: Things don't look good. There's a lot of unknowns even with the Fiat deal. It's not entirely clear that Chrysler will survive even with that deal. Without it, things become even harder.

Chrysler's viability plan clearly shows Fiat products being part of the future product line. Chrysler needs those more fuel-efficient cars and small cars that Fiat can offer them. So I don't see where Chrysler goes without that.

HARRIS: All right, Peter. Appreciate it. Thanks again. Thanks for the update.

On Wall Street, a new report shows consumer prices dropped over the past year. That sounds like good news for shoppers, but is it really?

(BUSINESS REPORT)

HARRIS: You've got just, what, a few hours to get those taxes filed? And if you're still sweating over how to get it done, our Gerri Willis has some tips just ahead.

(COMMERCIAL BREAK)

HARRIS: Hurry up. Come on, come on, get a move on! You've got just a few hours to file your 1040.

Gerri Willis, your personal finance editor, has tips to help you make the deadline.

Gerri, e-filing -- hey, look, I did this. This is terrific.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: I know. It's fantastic.

HARRIS: It sounds like the way to go.

WILLIS: It is the way to go, particularly if you haven't filed yet. It's about the only way to go. OK? We're looking at T minus 12.5 hours. OK? You've got to get them in by midnight.

OK, so 77 million people out there have filed electronically so far. That's according to the IRS. It's going to break records this year. Here's why it's such a great idea, filing online -- e-filing is faster, the software programs can check for math errors, which you may not get. You get your return a lot more quickly if you electronically file.

But you know, Tony, a lot of people worry, if I press that "send" button at midnight, will the IRS really get my 1040? So you know what we did? We put that question to the IRS commissioner, and he answered.

(BEGIN VIDEO CLIP)

DOUGLAS SHULMAN, IRS COMMISSIONER: Our systems are going to be able to accept all the tax returns that come in. April 15th is a busy day for us. We know it's one of the biggest financial transactions a lot of Americans have every year, paying their taxes, and we're ready to take them.

(END VIDEO CLIP)

WILLIS: So you heard that, we'll take them. The IRS is ready to take your money. Give yourself peace of mind here, though. You know, you may want to hit the send button a little bit before midnight, maybe 11:30, maybe 11:00 p.m. Try to get it in a little earlier than midnight.

HARRIS: Nice. Yes. Come on, no need to wait until the very last minute, although it's hard to release those funds if you owe.

Hey, what are the most common errors last-minute filers tend to make here, Gerri?

WILLIS: Well, and who has not done this? I mean, you make a math error. Simple adding and subtracting, it results in a 1040 that's not right.

Incorrect Social Security numbers, very common. Not signing your return, forgetting to sign the check, that's like one of those little things in the back of your mind, you really don't want to pay, so you don't sign.

Remember, these errors can delay any refund you're entitled to. So you really want to check that before you stick it in the mail or before you hit the "send" button.

HARRIS: So, my understanding is there will be people at the post office at midnight with some helpful hints, some advice for those late filers?

WILLIS: Yes. You should see it here in New York. There's a great big post office downtown, and people just jam there all day today and into the wee hours.

But you have to know if your local post office is open or not. There's an easy way to find out.

Go to usps.com, and you can find out which local post office is going to be open late, which won't, so that you've got to get that tax return stamped. You need that little postmark that says, hey, I turned this in on April 15th. But don't, don't pay for certified mail or some kind of quick delivery. You don't need to do that.

But Tony, we found out something interesting today from the Turbo Tax people. Who do you think are the biggest procrastinators in the country when it comes to their taxes? The people -- the city that files late the most? Who is not done yet?

I'll give you a hint. It's not Atlanta.

HARRIS: My guess would be -- it's not Atlanta. New York, somewhere in the Northeast?

WILLIS: New York is way up there on the list.

HARRIS: Yes. What's number one?

WILLIS: Number one, San Francisco.

HARRIS: San Francisco. Sure.

WILLIS: That's right, yes.

HARRIS: Slow and easy, laid back, part of the reason we love the West Coast.

WILLIS: Feeling their pain today. Feeling their pain today.

HARRIS: Feeling their pain.

Good stuff, Gerri, as always. Thank you, lady.

WILLIS: My pleasure. Good to see you.

HARRIS: Yes, good to see you.

Check out our special report, "America's Money Crisis." It's at CNNMoney.com. We update this page all the time.

Yet another pirate attack off the coast of Somalia. This time, it's a U.S. ship carrying food and aid. We will have the latest just ahead.

(COMMERCIAL BREAK)

HARRIS: Another harrowing encounter with pirates on the high seas. This time, they fired rocket propelled grenades and automatic weapons at a U.S. cargo ship off the coast of east Africa. The Liberty Sun, but none of the 20-member American crew was injured. Good news there.

The USS Bainbridge moved in to help. However, the pirates escaped before the ship arrived. The Bainbridge is the missile destroyer that helped rescue the captain of the Maersk Alabama. The Navy ship is now escorting the Liberty Sun. One of the crew members aboard the Liberty Sun sent a chilling e- mail to his mother as his ship was attacked. Katy Urbik described that moment to CNN's "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

KATY URBIK, SON'S U.S. SHIP FIRED ON BY PIRATES: My heart started pounding. I had this, you know, "Is this really happening?" kind of moment. I really thought he might have -- I was waiting for the next line to say, "just kidding" or "LOL," or something like that because that's kind of his sense of humor. So it was just one of those, you know, hit you between the eye moments of this is reality right smack in my face.

(END VIDEO CLIP)

HARRIS: Boy. Urbik's son, Thomas, and the other crew members barricaded themselves in the engine room during the attack.

The incident prevents the captain of the Maersk Alabama from reuniting with his crew today. Captain Richard Phillips is aboard the USS Bainbridge, escorting the Liberty Sun. His crew, heading home from Kenya.

Our David McKenzie is live, joining us from Mombasa.

And David, we were very much looking forward to this reunion. It'll certainly happen at a later date. Has the crew of the Maersk Alabama actually left Mombasa?

DAVID MCKENZIE, CNN CORRESPONDENT: Well, that's right. They have left Mombasa.

Hey, Tony.

Basically, what happened was that the crew was all set to have this big reunion with captain - with the captain of their ship. They had told us this was going to happen. We all were set to cover that live.

What basically happened is that this captain was caught yet again in the issue of piracy. He was on that USS Bainbridge, as you said. And that ship was essentially scrambled to the scene of another piracy hijacking attempt. And those sailors got away safely, thank goodness for them.

But the crew had to leave Mombasa. They're on the way, in the air right now going back to the States, most likely landing at Andrews Air Force Base and then going to their families. So certainly, very happy that they were able to go see their families, but a number of them expressed that they really wanted to see their captain before they left - Tony.

HARRIS: And David, a quick pivot here. The French Navy says it has captured several pirates. What can you tell us about that? MCKENZIE: Well, that's right. The French Navy is saying that they captured 11 pirates today, earlier this morning. What had happened essentially is that a French frigate was called in from a distress signal from the Safmarine Asia, a cargo ship that was being attached by pirates. The French steamed in and actually sent a helicopter onto the scene.

They then tracked the pirates, according to them, towards the coast of Kenya. And then, earlier this morning, they managed to capture those pirates and have them in custody.

So certainly the French and American Navy, both taking a more aggressive approach with this issue of piracy. And Tony, and perhaps they're making a dent on it. But certainly within the last two or three days they've had more than four or five ships attacked and four of them taken hostage. So it's not necessarily stopping the issue, but it is, at least making a strong signal that the navies won't just sit back and watch.

HARRIS: David McKenzie for us in Mombasa, Kenya. David, good to see you. Thank you.

Homeland Security Secretary Janet Napolitano expected to name a border czar today. Sources tell CNN it is Alan Bersin. Bersin is a former Justice Department official who held a similar position in the Clinton administration. Among his new responsibilities, dealing with illegal immigration, drug cartels and the surge in drug-related violence near the U.S./Mexican border.

President Obama has promised to help Mexico fight that violence and the cartels behind it. Congress has set aside $700 million to help, and the U.S. has also committed more than 500 federal agents to patrol the area.

Recently, I spoke with a drug enforcement official about what it's going to take to win this war.

(BEGIN VIDEO CLIP)

RALPH REYES, U.S. DRUG ENFORCEMENT ADMINISTRATION: You have to move forward, have you to be aggressive. Have you to attempt to break that power and impunity that these cartels have always operated under. You're seeing dramatic, historic seizures that reflect those particular initiative that have been instituted by the government of Mexico. We need to support that, we need to continue. We need to bring the fight to the cartels and we need to win this. Bottom line.

(END VIDEO CLIP)

HARRIS: Tomorrow, President Obama flies to Mexico to meet with President Felipe Calderon. This will be Mr. Obama's first visit there since taking office.

And a reminder, we will bring you President Obama's remarks on tax relief and tax reform. We expect to hear from the president around 11:55 a.m. Eastern time, about 20 minutes or so. I hate the math. Live coverage, 20 minutes from now, inside 20 minutes, in the CNN NEWSROOM.

So, you sweat over the numbers, sign the bottom line on your 1040, then write the big check or file for your refund. You're done, right? Not if you're one of the unlucky people who gets audited. What are your chances? Our Josh Levs has been looking into that.

Good to see you, Josh.

JOSH LEVS, CNN CORRESPONDENT: That's why this show has me doing so much math. I just figured out the secret.

HARRIS: So I don't have to.

LEVS: Josh, go crunch the numbers.

HARRIS: We have you do it, so I don't have to.

LEVS: Finally got it.

Hey, Tony, you want to know the answer to who gets audited? This is it, right here, according to the IRS -- Coca-Cola. How's that for a surprising first line, huh?

HARRIS: Yes, that is.

LEVS: I just called it a tease.

I called them yesterday. I said, how does it get determined who is audited? And they said it's like the Coke formula, we'll never tell. It's top secret.

That said, I actually can tell you some information, because there are groups out there that analyze it.

We'll going to go straight to a graphic here. First, of all, this much we know is directly from the IRS. Overall, it's one percent of tax returns that are being audited. And the higher you are in the income brackets, the more likely you are to be audited.

Let's look at the next screen. I just pulled out a few income brackets as examples. Check it out, Tony. Of the people who make between $25,000 and $50,000, less than one percent; 200,000 to 500,000, two percent, pretty much. People making more than $10 million, 10 percent of them are audited.

So that's part of it, but that's not the whole thing. There are some factors that the IRS doesn't say out loud that have been studied by this group here, which is the NAEA, National Association of Enrolled Agents. They have looked at who has been audited. And I'm going to show you on a graphic now, a few of them, what some factors are that have led to some people being audited.

If you have avoidable mistakes, like forgetting to sign, leaving out some income, that's one. Next one, is if you're preparer doesn't sign or forgets to include a license number. Also, if you're late or you extend within your filings, you're more likely to be audited based on history.

Two more here you should look at. If you receive cash, a lot of cash for your work, the types of projects you do. Also, if you have a lost big deductions. Those are things that the computer system, it's a computer system, at the IRS picks up on and make it's more likely that you will get audited.

HARRIS: OK. I hope your monitor is better than mine. I could barely see those. I trust that...

LEVS: I think it's ours. They tell us that ours are too bright.

HARRIS: OK, but the folks at home?

LEVS: I think you all got it. You'll write us if you didn't.

HARRIS: Won't they.

All right, Josh, appreciate it. Thank you.

Taxes, that's what's on the mind of many of our iReporters this morning, and some of it has to do with today's tea parties we've been telling you about. So let's turn to CNN.com's iReport Desk and check in - oh, he is back from vacation.

Hello, sunshine. Welcome back. Tyson Wheatley. "Tyson's Corner." Good to see you, sir.

TYSON WHEATLEY, CNN.COM PRODUCER: Oh, man, great to be seen. Great to be back.

HARRIS: Yes, yes. So, share with us some of these fascinating, these intriguing, these wonderful iReports from folks on Tax Day.

WHEATLEY: All right, well, you know, I mean - you know, these - we're talking about these tax parties today on iReport.com. And you know, organizers of these are basically hoping that these gatherings are going to draw some attention and send a message to republican and democrats on Capitol Hill that the president's spending plans are putting this country on a potentially ruinous economic path.

You know, we've been hearing from iReporters all across the country. And let's start in Washington, where Hilary Ohm talked to a woman there who is planning on attending a tea party there later today. Check out - listen to what she had to say.

(BEGIN VIDEO CLIP, IREPORT FROM HILARY OHM)

STACEY LIDEN, TEA PARTY ATTENDEE: Well, we're getting together, it doesn't matter what political party you belong to, if you're religious, not, just getting back to the principals and values the country was founded on. Less government, helping the market grow through business, helping small businesses, helping just the people. Getting back to the foundation that the country was based upon. Government is a little out of control. The people aren't having much of a voice anymore, so we just want to get back and have people learn about their country, where it came from.

(END VIDEO CLIP)

WHEATLEY: Now, Tony, we've been hearing some really strong opinions from iReporters today, particularly those who are actually opposed to these tea parties. I want to play a couple for you.

There's one that says, basically it's time to stop whining after eight years of tax breaks. Another who says, these tea parties are nothing more than a conservative stunt.

Let's go ahead and take a listen to these.

(BEGIN VIDEO CLIP)

EGBERTO WIILIES, CNN IREPORTER: It is un-American for those who have so benefited from the tax code to want a tax credit this time. Most Americans that complain about too many taxes like to pay very little taxes themselves. Our roads, bridges and other infrastructure are crumbling. Our health care system is a disaster. Do you think this can be fixed with less money into the government coffers?

DAVID SEAMAN, CNN IREPORTER: You know, the conservatives haven't been very graceful losers in my opinion. If I wanted to stand around all day long, sipping tea and listening to conservative republicans whining and lying about how Bush's eight years in office were this time of unprecedented economic prosperity, this absolutely fantasy time that never actually existed in reality, I would probably just turn on Fox News or listen to some good old-fashioned, crazy right wing radio.

(END VIDEO CLIP)

WHEATLEY: All right, Tony. Yes, pretty powerful. Now, we hope that our viewers today are going to share their thoughts with us today on Tax Day. Particularly, if you're planning on attending one of these tea parties. If you are, send us some photos, send us some video. You know where to go, iReport.com.

HARRIS: So , a great segment, as always, Tyson. But I'm a little distracted here. You go on vacation, you come back and you're in a jacket? What happened to the sweaters? Have the consultants gotten to you, the style consultants?

WHEATLEY: Well, eventually, they get to everyone, right? So, yes, what do you think? Maybe some highlights later?

HARRIS: Well, forget about what I think. I think we should send this out to the viewers, CNNNewsroom@CNN.com, what's your preference here? Tyson in the sweaters or Tyson in the sports jacket, the blazer - CNNNewsroom@CNN.com. Let's get some iReports on that.

Good to see you, Tyson, welcome back.

WHEATLEY: All right, take care, Tony. Thanks.

HARRIS: You probably won't show up tomorrow.

She shocked Simon and the world. The incredible story of a British reality TV contestant - have you seen this? - who is now a YouTube sensation.

(COMMERCIAL BREAK)

HARRIS: All right. Pictures just a moment ago of President Obama, I think -- let's roll these in. President Obama on his way to the Eisenhower Executive Office building. The president, of course, with us this morning delivering remarks about restoring fairness to the tax code and providing tax relief to working families. Again, the president making his way to the Eisenhower Executive Office building, which means we're probably minutes away from the president's remarks, scheduled for 11:55 Eastern time.

She is the newest and maybe the most unlikely star of the music world. People all over the world are talking about her and she is the top video - is this true? - at CNN.com. Who is this lady? Josh Levs is here to tell the story.

LEVS: And Tony, you haven't gotten to see all it yet, right?

HARRIS: I've seen just bits of it. No. No.

LEVS: This is why virile video is a good thing. It's amazing. We're going to get right to it, so happy for her. Take a look.

(BEGIN VIDEO CLIP, "A STAR IS BORN")

SIMON COWELL, JUDGE: All right. So what's your name, darling?

SUSAN BOYLE, CONTESTANT, "A STAR IS BORN": My name is Susan Boyle.

COWELL: And how old are you, Susan?

BOYLE: I am 47. I'm trying to be a professional singer.

COWELL: And why hasn't it worked out so far, Susan?

BOYLE: Well, I haven't been given the chance before, but here's hoping it will change.

BOYLE (singing): I dream the dream of time gone by. I dream of love that never dies.

(END VIDEO CLIP)

HARRIS: Wow. Wow. Wow.

LEVS: All right, yes, well, anyway, this - you can tell. She amazed absolutely everyone in the world. No one saw that coming, no one expected it to have that kind of power. And yet, she came out with that kind of power. And now, of course, all of a sudden she is a superstar and people will be watching her for weeks, months. HARRIS: That is awesome.

LEVS: Buying up her - and take a look at her headline, if we can here, "Never-kissed woman wows Cowell, becomes YouTube sensation." A 47-year-old woman who says she has never been kissed who is a charity worker and now you never know what kind of talent somebody's got.

HARRIS: It says a dream deferred doesn't have to die, doesn't have to shrivel up and die like a raisin in the sun. That's awesome! How about that?

LEVS: And the moments like that justify the shows, too. You know, it's like, OK, that is why a show like that should be out there.

HARRIS: Why don't we just crown her now? The world would crown her now.

LEVS: Well, I haven't seen the other contestants. That's not fair.

HARRIS: Oh, please. It's over. They don't stand a chance. It's done.

Josh, great to see you.

LEVS: Tony called it.

HARRIS: All right, we're back in a moment with more CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: We will update our big stories in the next hour of CNN NEWSROOM.

Frustration over high taxes and government spending. Demonstrators taking to the streets on this Tax Day. The latest on tea party protest. President Obama on taxes, our Money Team will break down the president's plans for working class tax relief and reforming the tax system.

Drugs and gangs, a deadly combination. The street gangs of Juarez, Mexico are a recruiting ground for drug cartels. We will take you to the streets of Mexico's most dangerous city in an exclusive report.

Western advocates for women and children are outraged. For the second time, a Saudi judge refused to let an 8-year-old girl - an 8- year-old girl divorce her 47-year-old husband. Some hard-line Islamists claim child brides are the province of the Quran.

CNN's Mohammed Jamjoon has the story.

(BEGIN VIDEOTAPE)

MOHAMMED JAMJOON, CNN CORRESPONDENT (voice-over): An 8-year-old girl is denied a divorce from a 47-year-old man, for the second time. In the deeply conservative kingdom of Saudi Arabia where women must cover and religious police are constantly on patrol, this latest verdict has shocked many. None more so than women's rights activists.

WAJEHA AL-HUWAIDER, WOMEN'S RIGHTS ACTIVIST: This makes me really sad, you know? Why do we have to go through all this hassle to make something - to correct something that was wrong from the beginning?

JAMJOON: Details of the case emerged in December, when a judge in the city of Oniza first refused to annul the marriage on a technicality. Since the girl's mother is not considered her legal guardian, she didn't have the authority to petition the court. According to the mother's lawyer, the girl is living with her mother and still doesn't know she's married. What's more, the girl's mother only found out about the marriage by accident saying it was arranged by another family member.

A court of appeals then took up the case, rejected the initial verdict, and asked the judge to reconsider his ruling. This week, the original judge reviewed the case once more and refused to grant a divorce, again.

CNN tried unsuccessfully to reach out to both the girl's father and the judge in this case.

Child marriages have recently become a hot button issue in Saudi Arabia. On one side of the debate are the moderates who want a law passed specifying a minimum age for marriage. On the other side are the hard line conservatives like the top cleric who was quoted in the Saudi press as saying it was OK for girls as young as 10 years old to marry.

Rights groups are outraged. UNICEF has issued a statement of concern in this case and says child marriages should not be allowed under any circumstance.

ANN VENEMAN, EXECUTIVE DIRECTOR, UNICEF: It is a violation of these children's rights, and it's a violation of what is good for children all the way around, and it should not be tolerated anywhere.

JAMJOON: Meanwhile, the new Saudi minister of justice, considered more liberal than the man he replaced in February, told a Saudi newspaper that he is preparing a new child marriage law and it will be enacted soon.

It's unclear if a new law would help in this case. A close relative tells CNN that the court of appeals will hear the case in the next few weeks, again.

Mohammed Jamjoon, CNN, Atlanta.

(END VIDEOTAPE)

HARRIS: President Obama on restoring fairness to the tax code and providing tax relief to working families. The president's remarks in minutes in the CNN NEWSROOM.