Do you exaggerate your taxes?

[Charade]

I think it's everyone's duty to cheat on their taxes.

 

[CookieGVB]

I've never itemized. No cheating here.

 

[Barbossa]

I don't cheat on my taxes, but being self-employed in the tech field, there's a lot of latitude for business expenses. In addition to office and computer equipment, I've written off digital cameras, GPS units, etc. All are used in the business (I use portable GPS units when I travel on business, for example). The IRS could question some of these expenses, but I'm confident that I'd convince them that they were necessary items.

 

[Mrs.Toad]

I will never forget the time an acquaintance showed me her prior year's return, which had been prepared by a well-known nationwide tax preparation company who shall remain nameless.

She had worked part of the year in an office where they paid her as an independant contractor (even though she should have been treated as an employee, but that's a whole 'nother story). They withheld nothing and gave her a 1099 for the earnings.

So her return shows income from this job of about $9,000, mileage of about $12, supplies of about $37, and postage expense of exactly $2,000. When I asked her about the postage being so large in relation to the income and other expenses, she said "they just made that up so I wouldn't have to pay as much."

Sheesh! If you're going to cheat, at least try not to be so obvious!

As for me, back in the far recesses of my mind, I think I remember earning some cash that I didn't claim on my tax return back when I was young and rebellious, though I can't even remember exactly what it was for and I don't think it was more than $100 total.

I'd never cheat now, and not when I was working. So not worth it when you could lose your CPA license for it.

I've also refused to prepare returns for clients who admitted that they had income they weren't planning to report.

 

[mickeyfan2]

One year, when we had it set up to do electronic deposit of a refund but we were going to send in the check if we owed, I screwed up. I meant to tell the accountant, it was in writing so I know I was wrong, to do both electronically. Well we owed money, got the return from the accountant and went on our way. I moved the money over to pay the amount we owed the IRS and the state. Time passed and the money was still there after 4/15/XX. After a little time I called the accountant to ask when they would be taking the money and that is when I found out I was to send in the check.....oops! I asked the accountant to write a letter explaining how I had messed up, wanted his letter head, and I would be there the next day with checks in had. I got the letters went right to the USPS and expressed them off. The accountant explained that I would owe interest but I might get out of the penalties since I found the error first. The checks arrived and a few days later I got a letter from the IRS that I owed that money plus penalties and interest. I send the difference back to them with a letter saying I had already send in the taxes. A few days later I got a letter that they got the money and not to send in any more. They returned to me the penalty money. The state also wanted the interest and penalty, but did not wave the penatly. In total the mess up cost me $75. So I was fine with that.

Believe me I did not do that again!!!!

 

[jenm2878]

Have you seen the new Turbo Tax ad? It shows you getting a $14.00 deduction for donating jeans Is that true?

I wondered about that too. I'm a CPA and the general rule of thumb for a BAG of clothes is $10-$20. The only time we put more down is if the person kept immaculate records of exactly what they donated, the condition, etc. We generally use the Salvation Army chart for everything else.

 

[Disney Doll]

I enjoy living in this country.
I have no problem paying the taxes I honestly owe.
I have no desire to go to jail or pay thousands of dollars in fines.
It is much easier to be honest...then there's nothing to worry about.

 

[boomhauer]

Heck no!

My Dad's an accountant, and I witnessed a 4+ week audit of one of his business clients firsthand. If you fudge on your taxes, pray you never get audited. It's not pretty, and you will have to produce proof of everything you claim.

That's why some people do it. You have almost as much chance of being audited even if you don't cheat. You STILL have to produce proof of everything.

 

[EthansMom]

I'm scrupuously honest on my federal taxes.

When I was doing last year's taxes, though, I looked back at some taxes from a few years ago and noticed one deduction that I had erroneously taken too much. It wasn't a big difference $-wise, but was in the IRS's favor. DH and I discussed it and decided not to go back and tell the IRS since it would probably be more trouble (cost fees and interest & possibly inspire them to take a look at all of our recent taxes). If they find the error and send a letter wanting the money, I'll send it then.

I don't generally pay state use taxes (you know state tax on stuff ordered over the internet). The state hasn't done anything to "earn" that money... the product didn't come from here in the state and the state hasn't done anything of it's accord to collect the tax. But they want me to save all of my receipts and fork over the money? IMO, if the state wants that tax, then they need to set up a system to collect it.

 

[Pin Wizard]

No way..not ever! May the cheaters get caught!!!

 

[Charade]

No way..not ever! May the cheaters get caught!!!

Spoil sport...

 

[Pin Wizard]

Spoil sport...

LOL! I'm not spoiling it. It's up to each person how much risky behavior they like.

 

[Bob Slydell]

So I was not willing to risk my career for assisting a client to cheat on a tax return.

Nor are my wife or I willing to risk our CPA licenses for cheating on our own taxes.

 

[DanceRC28]

OMG no, I would be way too scared that I would be audited!!! I do know a girl at work though who claims everything "under her husband's business" and always gets a hefty return. Those are the people you hope and pray will get audited and never do!!!