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

It’s February and April’s near. Are you readying your tax forms yet? Not everyone’s spending is the same so there might be a chance that you’re doing any one of these activities that can actually be considered tax breaks.

Hire someone while working nonprofit. If you hire a babysitter to take over your parental duties when working for someone else pro bono, then the money you spend on your babysitter can be tax deductible. How cool is that? But then again, it’d only work if you do have charity work. Seems pointless to spend on a babysitter and work pro bono just for a tax break.

Charge your “vacation” expense. Caveat: If you decide to take your family on your business trip, only your expenses will be counted as tax deductible. So even if you get a hotel suite for the family, you can only subtract the expense for a single room.

Deduct work-relocated moving expenses. Need to move out to another locale for that new job that you’ve just landed? Since your move will be work-related, you can possibly deduct your moving expenses from your tax filing.

Pamper yourself (on doctor’s orders). The whole zen and relaxation thing has been acknowledge by many doctors to aid your healing. Medical expenses are tax deductible so your monthly massages that help improve your circulation might just warrant a bit of discount in the taxes.

While these tax breaks are typically available, always check with a tax professional before filing your return on which you applied any of these.

Source: MSNBC