do you lie on your tax return?

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esp charitable contributions and business expenses. is this something "everybody" does?

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True. My AGI was about $15,000 this past year, and I got pretty much everything I gave the Feds & most of what I gave th... (more)

mahlax (Feb. 18, 2009 @ 10:14a) |

Yes. I mean no.

Only about my chauffeur?

guruganesha (Feb. 18, 2009 @ 11:01a) |

I would think part of the reason why they are not correcting it is because she keeps submitting returns with incorrect d... (more)

lampy2k4 (Feb. 18, 2009 @ 11:07a) |

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No. Why would we lie?
perfectsilence said: esp charitable contributions and business expenses. is this something "everybody" does?

It is just not worth it to lie to the IRS.

No, because I don't want to be a Cabinet member or Congressman.

tax return? what is that? i dont have any income to report, let alone deductions!

REPORTED!

I get 10% of any back taxes they collect from turning you in.

Having been audited in the past, hell no. Definitely NOT worth it.

Xnarg said: No, because I don't want to be a Cabinet member or Congressman.

That should be the other way around. We always knew that you have political aspirations.

Taxes are hard enough without trying to keep a story straight because you lied, but good luck with your new boyfriend in jail.

I always did my own taxes and didn't understand why anyone would pay a tax accountant $100-200 to do a return. but a tax accountant would know more about the IRS tax rules and loop holes than I do. they would know for example how much you can get away with charitable contributions and business expenses. (pretty easy to fake charitable contributions for small amounts since the charity does not keep track of each small donation) and if you get an audit, would have "receipts" to back them up. therefore $100-200 for such an accountant would be very worthwhile?

No, I'm more likely to omit small charitable contributions, like the books we contributed to the library bookstore but forgot to count and don't know how much to value them at.

PorStaker said: Taxes are hard enough without trying to keep a story straight because you lied, but good luck with your new boyfriend in jail.

pics?

Don't make up charitable contributions out of thin air, but there are definite gray areas like the use of computer for your home business and eating out to discuss your business. I know people who slap a bumper sticker on their car with their business contact info and deduct every mile driven as "advertising".

Make sure you have documents supporting everything in case you're audited. Even if they don't hold up, you have to at least prove that you tried to file correctly to avoid criminal penalties.

pmkm said: No. Why would we lie?
perfectsilence said: esp charitable contributions and business expenses. is this something "everybody" does?
Simple. Unfortunately, the US tax system encourage lying by taxpayers. The honest taxpayer pays more taxes than if she/he were dishonest.

Even in the best of circumstances, the tax code is so complicated that it is difficult for a financially savvy individual to correctly file his/her tax return. Even the honest taxpayer can easily significantly over or understate income.

random side question: Do you know anyone who has ever voluntarily paid use tax in his/her state for online purchases made during the year where the seller does not collect use tax on their behalf?

Coincidentally, my first free issue of Forbes Magazine just came in the mail (about 1 minute after my above post) and right on the front cover in red & blue on white is the title of an article TAXES: How to Cheat Like a Pro!

Do you know anyone who has ever voluntarily paid use tax in his/her state for online purchases made during the year where the seller does not collect use tax on their behalf?

I do.

"Do you know anyone who has ever voluntarily paid use tax in his/her state for online purchases made during the year where the seller does not collect use tax on their behalf?"

I pay it to the state on ALL purchases for things for the business - toner cartridges, etc which are bought from mail order / internet.

Should I ever be audited, I want to make sure (obvious) things like that are taken care of. I don't worry about audits, and feel confident they would end up owing me money.

The only downfall of a potential audit would be the waste of my personal time.

If you are paying too much in taxes, there are legitimate solutions ( earn less, spend less, live MORE), real estate, etc.

theman2 said: random side question: Do you know anyone who has ever voluntarily paid use tax in his/her state for online purchases made during the year where the seller does not collect use tax on their behalf?

Some (most?) states offer a use tax table for online purchases under a fixed $ amount so you don't have to tabulate all of your online purchases.

perfectsilence said: esp charitable contributions and business expenses. is this something "everybody" does?

At the beginning of each year I calculate my AMT tax for that year and use that as a baseline for how close I can get to it by altering behavior, collecting legit documentation and fabricating other documentation. I never try to hit it exactly but if I can get close I consider that a good year. My tracks are sufficiently covered that even in the event of an audit I'd be fine.

"Only the little people pay taxes." -Leona Helmsley

Those who think this isn't fair should examine the nature of the tax code itself and all the value judgements that are contained therein. That isn't fair, IMO.

I lie about my age. They never take me seriously if I don't.


"Only the little people pay taxes." -Leona Helmsley

March 18, 1992 in History

Event:
Leona Helmsley sentenced to 4 years for tax evasion

The judge had a sense of humor and ordered her to report to prison to begin serving her sentence on April 15th.

LeveragedSpeculator said: ..."Only the little people pay taxes." -Leona Helmsley...Not according to the statistics.

The really little people (income-wise) get Earned Income Credit up to ~$4,800 and the amount is going up for next year.

Cheat, no.
Take a deduction that maybe questionable but possibly argued and supported during an audit?, yes.

on my 1040 I put even my name misspelled and never use my real SSN

I never lie on my taxes, and if anything, I over-report my income with an eye to future borrowing. But I do take aggressive deductions. Not made up deductions, but stuff like an extended trip that was for job search purposes.

I've found a number of good paying jobs while sitting on the beach in exotic far off lands and sipping banana daiquiris. OK, gulping them down. Be picky.

A social security data clerk put in wrong month thirty years ago, and therefore my girlfriend has to lie about her age on her taxes or the IRS will reject the e-file.

WalStMonky said: I've found a number of good paying jobs while sitting on the beach in exotic far off lands and sipping banana daiquiris. OK, gulping them down. Be picky.

Today is your lucky day. I found a job exactly you are looking for.
World's best job!

oopsz said: A social security data clerk put in wrong month thirty years ago, and therefore my girlfriend has to lie about her age on her taxes or the IRS will reject the e-file.Has she tried to get the SSA to fix it?

perfectsilence said: I always did my own taxes and didn't understand why anyone would pay a tax accountant $100-200 to do a return. but a tax accountant would know more about the IRS tax rules and loop holes than I do. they would know for example how much you can get away with charitable contributions and business expenses. (pretty easy to fake charitable contributions for small amounts since the charity does not keep track of each small donation) and if you get an audit, would have "receipts" to back them up. therefore $100-200 for such an accountant would be very worthwhile?

That couple hundred could actually be COSTING you thousands. Especially the more unique your tax situation becomes.

Case in point, I run a few businesses, and my wife does one as well. We have a fairly confusing tax situation and never know what to expect at year end as things change all the time. We withhold a reasonable amount of taxes based on our pay. But lo and behold, my CPA just gave me the final numbers yesterday.. over $23,000 in this years refund. I couldn't have fathomed it would be that big. I would never want to do my own taxes as he had sooooo many writeoff's, and specific structuring for our pays, among other "tricks" (which are 100% fully legal) but just in the end.. saved us money.

Never cheat but take every single legal exemption possible

robby69 said: Cheat, no.
Take a deduction that maybe questionable but possibly argued and supported during an audit?, yes.
Same here. Srupulously honest on tax returns, but also aggressive in taking deductions where they can be reasonably argued. There's really no reason to lie or cheat - there's lots of ways to shelter money and legitimately avoid paying taxes. Save the lying for the H&B....

Xnarg said: oopsz said: A social security data clerk put in wrong month thirty years ago, and therefore my girlfriend has to lie about her age on her taxes or the IRS will reject the e-file.Has she tried to get the SSA to fix it?

Basically every year since she turned 18. It still hasn't been fixed. It's only one month off, and the correct date is listed on her passport and drivers license. State e-files go through with the real date, only federal e-files get rejected. So we kind of gave up on it- I think the only downside is she has to wait an extra month to get benefits from SSA.

no

Xnarg said: LeveragedSpeculator said: ..."Only the little people pay taxes." -Leona Helmsley...Not according to the statistics.

The really little people (income-wise) get Earned Income Credit up to ~$4,800 and the amount is going up for next year.
True. My AGI was about $15,000 this past year, and I got pretty much everything I gave the Feds & most of what I gave the state back.

Yes. I mean no.

Only about my chauffeur?

oopsz said: So we kind of gave up on it- I think the only downside is she has to wait an extra month to get benefits from SSA.
I would think part of the reason why they are not correcting it is because she keeps submitting returns with incorrect date with her signature below declaring that it is correct under penalties of perjury.



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