Money Blog » Tax Filing

Rewards for reporting tax cheats

Jacob — Wed, 03 Mar 2010 01:30:37 +0000

Looking to make a few bucks? Drop the dime on tax cheats and get paid.

With the government facing a deficit, the IRS is really looking to maximize the opportunity to collect internal revenue that offering rewards for those who’d be turning in tax cheats is still part of the IRS’ program. Now’s your time to get revenge on that tax evading boss or ex.

The informant program has been around for almost a century and a half. Snitches can get up to 15% of the amount underpaid up to $10 million. So if you know a multi-million tax cheat, fess up and be a millionaire.

This is why if you’re doing anything illegal, best let no one know about it. Not your best friend. Not your wife. And not even some random stranger you meet in some weird place. Sometimes these things would just come around and bit you in the butt. Best option still is not to do anything illegal at all.

If you want to rat someone out, the information is available on the IRS Web site, or call the IRS tip line at 1-800-829-0433.

Source: CNN

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Pros and cons: Filing your tax early

Jacob — Mon, 08 Feb 2010 23:34:27 +0000

It’s always been my philosophy to be the early bird. When it comes to filing stuff, I find it best to get things over and done with as quickly as possible. Especially when it comes to taxes. MSNBC, however, points out the pros and cons of filing early. And there are cons. Really.

Pros:

1. Refund arrives faster
2. Getting it over with
3. Avoiding the April rush
4. Avoiding being late and the fines
5. Avoiding making mistakes
6. Avoiding loans

Cons:

1. Missing out on interest
2. Avoiding amendments
3. Tax form updates
4. Decrease chances of being audited

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October 15 deadline for tax filing extension

Jacob — Tue, 13 Oct 2009 22:53:13 +0000

I know some people who like to avoid the April tax rush by working on their returns on New Year’s Eve while everyone else’s trying to get wasted.

The thing is, even if you mix it up with the rest of the pack in April, you can still file for a six-month extension. For those who have done so last April, well Thursday (October 15) means it’s the deadliest deadline for your tax return.

The IRS stated that there are 11 million people who filed for the extension. Not filing by the 15th mean that you will be slapped penalties by the IRS.

Quick advice: file even if you don’t pay. If you owe the IRS less than $25,000, you may opt for a payment plan. Things to take note of – deductions, tax credits, medical costs, contributions to charity, and inevestment losses.

Source: MSNBC

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