Two women consult with a volunteer tax preparer. (ZUMAPress)By MANDI WOODRUFF
Not to be pessimistic, but it's safe to assume that not every taxpayer is 100 percent truthful when it comes time to fill out their tax returns.
In a 2011 IRS report, twice as many Americans (8%) said a little fibbing on tax returns is fine compared to the same survey issued in 2010.
And although it's true that the IRS doesn't exactly go after "small potatoes" taxpayers for fibs (generally, you'd need at least $1 million in assets to interest their auditors), even a few missing details could put your refund in jeopardy.
Whether you're going solo or working with a tax professional this year, transparency is the key to getting the maximum refund –– and keeping auditors off your tail.
Here are seven "confessions" we recommend making soon if you haven't already:
Now that you've bought six extra months by filing an income tax extension, you might be wondering what you need to do between now and October 15, 2013 when your 2012 tax return is due. We've addressed some of the most common questions below.
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Can't afford to pay your income taxes? You may be able to qualify for an installment plan with the Internal Revenue Service. The minimum monthly payment for your plan depends on how much you owe.
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The Internal Revenue Service allows taxpayers to file for a six-month extension if they need more time to prepare their tax return. You can obtain a tax extension for any reason; the IRS grants them automatically as long as you complete the proper form on time. Check your state tax laws; some states accept IRS extensions while others require you to file a separate state extension form.
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The Internal Revenue Service recognizes the fact that members of the United States armed forces are often deployed outside of the U.S. at tax time and gives many military and support personnel an extension on their tax deadlines.
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In general, you can deduct interest paid on money you borrow to invest, although there are restrictions on how much you can deduct and which investments actually qualify you for the deduction.
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