Posted in Filing Taxes, Tax

Paying taxes stinks, but most of us realize that we have obligations to our country that must be fulfilled, and so we pay them.

For some people, however, it's simply too painful to part with their money, and they try to cheat the government out of what they fully owe. Some are smart about it, and some...aren't.

In fact, they're stupid about it. From claiming absurd deductions to embracing bizarre theories on why they don't have to pay taxes to begin with, people who try to avoid paying income taxes (the ones who get caught, that is) end up spending far more than they would have if they'd just played it straight.

Go Banking Rates highlights a few of these tales of taxation tomfoolery:

bible-and-taxes

God Doesn't Pay a Living Wage

In 2002, Kent Hovind and his wife Jo were arrested on 58 federal charges, 12 of which included tax fraud.

Hovind's excuse? As a minister, he worked for God, and hence had no income. While it's disillusioning to hear that God pays so little - we assume no health insurance benefits, either - it's not clear where Hovind got the $431,000 he withdrew from his bank when he realized he was under investigation. In 2006, Hovind was sentenced to 12 years in prison.

Money in the Mattress

Those aren't tips, they're just savings

Minnesota stripper Stephanie Antes hid $80,000 in tip income from the IRS. She got busted by an anonymous caller, and when the IRS examined her bank records it showed balances far in excess of what she'd claimed on her tax returns. What's more, she had claimed her kids as dependents - getting a big state refund - even though their father had already claimed them.

The moral of the story? Be nice to everyone, bury your money in the backyard and don't claim your kids as dependents if you can't.

pot-and-money

Pot and Taxes

Santa Cruz, Calif. pot-grower and dealer Ed Hoey got busted with 100 pounds of pot in his house and $500,000 in a storage locker.

Hoey had been mailing his cash crop to friends around the country - through the mail. Selling green on the black market may be lucrative, but if you're caught, you've now got tax issues to deal with as well. Talk about a buzz killer.

locked-in

Bar the Doors, the Tax Man is Coming

Although not technically scammers - Ed and Elaine Brown basically just refused to pay taxes - their story is too awesome to exclude.

The feisty Browns, both in their 70s, got a lot of media attention when they refused to come out of their New Hampshire home and face the tax man's music. On June 7, 2007 SWAT teams and other people you don't mess with surrounded their home. They didn't emerge until October 4.

the-rich

The Rich

"Let me tell you about the very rich. They are different from you and me," wrote F. Scott Fitzgerald, and one big difference is that many of them like to hide their money in incredibly complicated off-shore tax havens.

The Feds have long been wise to this - it doesn't take a tax expert to know the whole set-up reeked - but now they're finally doing something about it with the Global High Wealth Industry Group.

Thinking about Scamming on Your Taxes??

Maybe you should try using Turbotax, our recommended tax preparation software.

They'll find deductions and credits for you that will save you cash and are actually legal.


TurboTax - Choose Easy


Posted in Financial News

Barely a week after the 7.0-magnitude earthquake hit Haiti, Americans have poured in support to the financial tune of over $200 million. What's even more astounding is that the giving has occurred at a time when Americans are suffering through their own bout with financial turmoil.

America is Recovering but Hasn't Recovered

After the financial crisis of 2008 left millions without jobs or homes in the United States, some are just now getting back on their feet. But there are still millions without work and many who still don't have homes of their own to live in. The unemployment rate at last count was resting at 10 percent and the job front wasn't looking up until the middle or end of 2010.

However, on Jan. 12, 2010, a devastating event occurred in Haiti and within seconds destroyed a country. Thousands were dead and millions homeless. After this occurred, it seems that Americans forgot their own struggles and saw others with the more devastating loss of family, food, water, medical attention and shelter. In that moment, many realized we still had much to be thankful for.

Giving is Priority #1

According to the Chronicle of Philanthropy, as of Monday, Americans have raised over $200 million in donations, showing that giving has been a major priority in the states. This estimate is based on a survey that looked at 25 charities contributing the largest amounts to the relief effort in Haiti.

Here is a breakdown of some of the dollar amounts raised by top organizations:

  • American Red Cross - $103 million as of Sunday
  • UNICEF - $18.2 million as of Monday afternoon
  • Catholic Relief Services - $13.1 million as of Monday
  • Oxfam America, World Vision U.S. and Save the Children USA - $7 million as of Monday

Many charities have noted that text and online contributions have resulted in an increase in giving becausemaking them isfast and easy. However, many others have still given over the phone, include those who watched CNN's Larry King Live donation special Monday night,where injust two hours, people gave nearly $5 million to UNICEF and the American Red Cross.

Companies and CelebritiesAlso Giving

According to the U.S. Chamber of Commerce, corporations have also pledged large amounts to help the relief effort, including General Electric, Amgen, Microsoft and Coca-Cola, which have each pledged $1million or more. Additionally, celebrities have given personal dollars andauctioned off personal items (Larry King auctioned numerous pairs of his famous suspenders and Sean "P. Diddy" Combs auction his sunglasses on Monday night) to raise money.

Celebrities also plan to host fund-raising events, including the "Hope for Haiti" telethon that will air on MTV Friday with donations going to Oxfam America, Partners in Health, Red Cross, UNICEF and the Yele Haiti Foundation. Also, former presidents Bill Clinton and George Bush plan to work together to raise money.

How Can I Give?

If you want to contribute to this important cause, in addition to participating in fund-raising events, you can give on your own (see story: Helping Haiti). Also, if you don't have the money right away and would rather give as you purchase other items, you could consider charging your contribution.

Sometimes we don't know that our contributions makea difference, but they do (did you know that justone pennypurchases a purification tablet that can clean 5 gallons of water?). So if you want to give, despite your own financial struggles, there's no greater time than now to do so.


Posted in Tax, Tax Deductions

No one actually enjoys paying taxes , but most of us are resigned to paying what we have to. Some people, however, really hate it, and they devote a lot of imagination and brainstorming to find ways to pay less.

One extremely popular method for lowering a final tax bill is to claim income tax...



Read Full Article: Tempting (But Illegal) Tax Deductions

New data from RealtyTrac, an online marketer of foreclosed homes, showed that almost 3 million homeowners received at least one foreclosure filing in 2009.

According to the marketer, this sets a new record for the number of people falling behind on their mortgage payments in one year.

Data from...



Read Full Article: U.S. Saw Record Foreclosures in 2009

Posted in Infographics, Personal Finance

Managing your money with pen and paper seems so...old school. With programs and online tools, you don't have to do the math for your budget anymore. Several sites have popped up in recent years, all claiming to manage your finances simply. They help you find better credit cards and create...



Read Full Article: Our Guide to Online Personal Finance Managers

Posted in Economy, Financial News

Just when we were starting to feel comfortable that Congress was making a strong effort to protect us, reports reveal that Senate is thinking of dropping the Consumer Finance Protection Agency. This agency, originally proposed by President Barack Obama, was a main component of the new financial...



Read Full Article: Senate May Drop Consumer Protection Agency

Posted in Filing Taxes, Tax, Tax Credits

personal finance blogger

It's that dreaded time of year again - tax time! To help you work on your New Year's resolution of not procrastinating, we have compiled a collection of the best tax articles we've seen around the financial blogosphere to motivate you into working on your taxes early.

Tax Information Checklist:...



Read Full Article: Helpful Tax Tips from Personal Finance Bloggers

Posted in Credit Card Rates

new credit card laws in 2010

Your credit card company has probably been sending you a bunch of pamphlets with account changes in tiny print lately.

Why?

The Credit CARD Act , which was approved last year, is not in effect - well, partially. This act was created in response to some credit card companies using sneaky tactics...



Read Full Article: What You Need to Know About the 2010 Credit Card Laws

Posted in Credit Card Debt, Credit Scores, Debt, Financial News

A new report from CreditKarma.com of San Francisco says that credit card debt increased 18 percent nationally in Oct. 2009 from July. According to the website, the increase in debt may have been due to the high unemployment rate.

The Data

In addition to nationwide data, the website provided a...



Read Full Article: Credit Karma Says Credit Card Debt Has Increased

Posted in Financial News

The country of Haiti is facing one of its most devastating tragedies in history after a 7.0-magnitude earthquake hit it on Tuesday. So far, over 100,000 people are feared dead and approximately three million are in need of help. It is now our turn to make a difference.

(Worried about how to help...



Read Full Article: Helping Haiti: How to Donate Without Getting Scammed

 
 

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