I’m letting everyone know right now! I’m cheating on my income tax this tax season – and you know why? I need the money.

The IRS won’t know that I’m cheating.  I’ll report more charitable contributions than I really did. I’ll claim deductions for the 10 new suits I bought, deduct the mileage for the 100,000 miles I drove, and claim depreciation on my home office equipment, all related to my fake home business.  Heck, I plan on claiming old Aunt Julie as a dependent too!

Just think, the additional few hundred bucks I get will come in handy when I have to pay a tax attorney to keep me out of jail.

That’s if I get caught?

Of course I am only kidding about cheating the IRS.  I would never consider defrauding them in any way. It’s just not worth it!  And I strongly suggest to all you taxpayers, don’t even think about cheating on your taxes.  Here’s why…

The Internal Revenue Service has stepped up it’s compliance with state of the art computer software, and they aren’t targeting the wealthiest taxpayers anymore.  Not only that, as more and more tax returns are filed electronically, the IRS has more time to poke around and review tax returns that deviate from normal computer tax models.  Another great reason not to cheat on your taxes is that the IRS has experienced significant revenue shortfalls over the last few years.  They are putting an emphasis on recovering past due tax debts and squeezing every penny out of taxpayers.

So avoid inflating tax deductions even a little bit, the last thing you want is a tax audit.  If the IRS accuses you of tax fraud, the consequences could be extreme.  If you are found guilty you will have to pay the amount, plus penalties, plus possible interest charges too.  In serious cases, you can be put in jail.  If you’re smart, you’ll want a tax attorney to represent you. You don’t want to know how much that will cost you.

Do yourself a favor, and avoid the temptation to cheat on your tax return.  Better yet, pay for a reputable tax preparer to calculate your tax return for you.  It’s best if the IRS doesn’t know your name!

Expecting a income tax refund this tax year? Do you want your refund sent by check, Direct Deposit or Bonds? That’s right, taxpayers have the option of receiving their federal income tax refund in the form of U.S. Series 1 Savings Bonds.

In order for taxpayers to receive their income tax refund in Savings Bonds, Tax Form 8888, Allocation of Refund (Including Savings Bond Purchases) must be completed.

Here are the guidelines and rules taxpayers should know when contemplating a tax refund in the form of U.S. Savings Bonds:

• Taxpayers must complete and attach Tax Form 8888 Allocation of Refund (Including Savings Bond Purchases).
• Taxpayers can allocate all or a portion of their tax return in the form of bonds.
• Allocation must be made in multiples of $50.
• The maximum dollar amount that can be used to buy Savings Bonds is $5000.
• You can buy bonds for yourself (and your spouse, if filing jointly).
• You can buy bonds for someone other than yourself.
• You can buy bonds for yourself, your spouse and someone else.
• You can indicate a co-owner or beneficiary on the bond registration.
• The bonds will be registered in the name shown in the appropriate lines of tax form 8888.

Taxpayers may not the requested Savings Bond Allocation if:

• Any information on your Tax Form 8888 is crossed off or whited out, the IRS will reject your allocation of refund and savings bond purchases, and send you a check instead.
• The bond request amounts are not in mulitples of $50
• The total amount of all bond allocations is over $5,000.
• Your refund is decreased because of a math error (you will receive a check instead).
• Your refund is offset for any reason (ex: part of your refund amount is deducted to pay past-due Federal Tax amounts).

If you make a math error that increases your tax return amount, the difference will be paid in the form of a check.

So now that you know more about income tax refunds, would you like your income tax refund in Savings Bonds?

Computer software changes by the IRS will cause refund delays for early tax filers.  According to the Internal Revenue Service, early tax filers can expect at least a one week delay in receiving their tax refunds this tax season.

The delay was caused by new safeguards installed in IRS computer systems to prevent refund fraud, IRS spokesman Michelle Eldridge says.  Taxpayers who filed their federal income tax return before January 26, 2012 can expect the delay in receiving their income tax return; those filing returns after January 27 will not be affected.

Even with the delay, taxpayers will still receive their refunds “in line with historic refund delivery times,” Eldridge says. Taxpayers who e-file their tax returns and arrange for direct deposit typically receive their refunds within 10 to 21 days.

The IRS provides a “Where’s My Refund” tool that provides an update on the status of taxpayers’ refunds, but the IRS notes that the dates are estimates and subject to revision. For that reason, taxpayers shouldn’t automatically assume they’ll receive their refunds on the projected date, says Judy Strauss , an enrolled agent in Cobleskill, NY.

sources: usatoday, irs.gov