This is no small matter—there are hundreds of millions of dollars at stake.

So far this year, United States airlines have taken in more than $3 billion in fees. If all those fees were subject to the same 7.5 percent excise taxes as fares, then the government would have at least $225 million more to distribute to airports for improvements and expansions.

Won't someone please think of the airports?

For their part, airlines insist that they're just trying to find new revenue sources without raising fares, at a time when revenues are down.

The airlines counter that the recession has forced them to think up new revenue streams. This fall, for example, they began adding a surcharge on tickets booked during the most popular travel days during Thanksgiving, Christmas and spring break.

"We have been aggressive and creative," John Tague, president of United Airlines, told analysts last month. And it has paid off: United collects about $13 in fees per passenger, or 30 percent more than the industry average.

Both higher fees and higher fares are passed on to consumers...as are the additional taxes that would come with higher fares. As a consumer, would you rather pay a higher fare or additional fees?

"Neither" is not an option.

Worried About Losing Tax Revenue, Congress to Investigate Airlines' Fees [NY Times](Thanks, Andrew!)

(Photo: Chris Rief aka Spodie Odie)

The key, of course, is that the newly purchased home needs to be a primary residence—no rental properties or vacation homes, thank you. Current homeowners within the income guidelines can receive a $6,500 credit after purchasing a new home—new homeowners will still receive $8,000.

Expanded First-Time Home Buyer Tax Credit Becomes Law [U.S. News & World Report]

(Photo: nicolas.boullosa)

Boost your 401k contributions
Make the most of your flexible spending account
Buy a house
Buy a car
Sell losing investments
Maximize your tax credits and deductions
Pay college bills
Give to a charity
Max out tax breaks for the self-employed
Keep track of medical expenses

Ok, we didn't say they were ten good suggestions. Anytime you have to spend a few hundred thousand dollars (like to buy a house) to get an $8,000 tax credit, it's probably not a good deal. Then again, if it's a question of buying now or a few weeks from now, get a move on and save yourself eight grand!

To give them credit, there are several that make good sense — many people can benefit from boosting their 401k contributions, making the most of flexible spending accounts, selling losing investments (anyone out there have any?), and giving to a charity. Pretty basic ideas, but if nothing else, this piece reminds us that the year is ending soon and any appropriate tax-reducing measures we want to take need to happen quickly.

10 ways to lower your 2009 taxes now [MSN Money]

— FREE MONEY FINANCE (Photo: The Consumerist)

Mint founder Aaron Patzer, who is now the new vice president and general manager of Intuit's Personal Finance Group, told TechCrunch, "Over the next 6 to 9 months we will end-of-life Quicken Online and their customer's data will be migrated over to Mint." Patzer also talked a little about what Mint might look like in the future, as Intuit weaves products like Turbo Tax into the service:

Patzer has other ideas for connecting Mint and TurboTax as well: "What I want to do is to take your stock transactions and everything you've tagged in Mint as a medical expense or business expense and push that over to see if you should itemize deductions. If we pull in your 1099s and deductions, we have done half your taxes for you. We could reduce the time it takes you to do your taxes to 20 minutes or less."

"Mint's Aaron Patzer: "We Will End-Of-Life Quicken Online" In Six to Nine Months" [TechCrunch]

Here's another idea. What if we use the money generated by fast food purchases to subsidize the prices of healthy food, like fruits, vegetables and fresh fish? Right now, fast food is generally cheaper than a healthy meal, and much easier to come by. There are fast food restaurants everywhere, but the healthy, cheap and easily accessible options are much more scarce. By channeling the money from junk food to good food, we are not preventing anyone from eating a burger...we're just making it way more easy to buy a similarly-priced healthy alternative.

I would argue that calling the tax what it is—perhaps a "junk food tax"—is better than saying "fat tax." No one calls tobacco taxes "lung cancer taxes."

Would this help create more healthy food options in poor neighborhoods? Probably not. Will people pick up a whole trout instead of a slice of pizza for a quick lunch? Probably not. Slapping a tax on every prepared meal that someone (who?) deems bad for us is an oversimplification, but is this a good idea?

Should There Be a "Fat Tax" on Junk Food? [WiseBread]

(Photo: Paxton Holley)

Sure, you could make friends with a lawyer, invite her to a cookout, then corner her in your kitchen. But this book was co-authored by a lawyer, so it's an even less expensive way to find out some answers—and you don't have to go through the embarrassment of explaining why the relationship didn't work with that ex.

Here are three sample questions:

Q: Hard to believe, but my boyfriend's credit is even worse than mine. If he asks me to become "Mrs. Sucky Credit" does joining in holy matrimony mean I'll be saddled with his debts as well?

A: Ah, romance. Though taking on his debt would be a real sign of true love, luckily for you, debts that were individually incurred before marriage don't become part of your credit history. If you get joint credit cards or joint bank accounts, though, keep in mind that debts accrued during marriage will have your name on them even if you weren't the one who made the purchase. Credit reports are individual, so debt that was brought into the marriage stays on the report of the one who accrued it. But remember you can, even after marriage, continue to get credit cards in your name alone.

At some point you two might want to buy a home or make a big purchase like a car together. To make joint loans possible, you should encourage your mate to regain good credit by paying bills on time and establishing a better record. After all, it would be a shame after getting married to find out that it's till debt do you part.

Q: Uh-oh, after buying that set of fancy cookware I remembered something very important: I can't cook. Now it's sitting there in my kitchen mocking me. Can I just cancel payment and send it back?

A: Anyone who's ever watched late night infomercials knows there's no shortage of truly useless products. And anyone who's ever watched late night infomercials also knows that the later it gets, the better idea these products seem-until you wake up the next day wondering if you really bought it or if it was just a bad dream. While there are protections for consumers against unauthorized charges on your credit card, most people assume you can't dispute a credit card purchase you actually made.

Turns out that's not true. You can dispute a credit card purchase even if you did make it, but before you buy something find out the return policy. Contact the merchant first and put your complaint in writing. If the merchant refuses to take the product back and reverse the charge, then call your credit card company. Often the charge will be removed during the investigation. But if the credit card company ultimately sides with the merchant, you will have to pay the cost and the finance charge.

What you must keep in mind is that there is no legal obligation for a store to take back items you purchased except pursuant to the return policy it has stated. There are, however, a few types of retail contracts that by law you have the right to rescind. If a salesperson comes to your door to sell you a product for more than twenty-five dollars, under federal law you can automatically return it for up to three days after purchase. In many states you also have three days to rescind a health club membership when you realize there's no way you're hauling tail to that gym, and under the law of many states, you have five days to cancel the purchase of a time-share. These are all things to weigh when you're considering making your next purchase, either for that crock of cookery or that unused ab machine now doubling as a towel rack.

Q: I just made a ton of money selling my ex-boyfriend's clothes, stereo, TV, and almost-brand-new video game console on eBay! I don't have to pay taxes on the money I earned, do I? (And please keep in mind, having dated that jerk for a year I really do believe I earned the money.)

A: Interesting question, and it's one that a lot of "creative entrepreneurs" find themselves pondering. As you can well imagine, the IRS is not likely to say, "Oh, you made money on your old junk? Good for you and enjoy your pocket change!" Rather, all income-including gambling earnings; lottery, raffle, and horse and dog race winnings; church bingo payouts; profits from illegal activities (recall Al Capone was put away for tax evasion); and small business profits-is taxable. Your first move is to figure out if you're actually making a profit. If you're just looking to clean out your garage, you are likely selling the items for less than you bought them and so would not be making a profit. But if you are buying goods from a wholesaler and reselling, or if you are producing the goods and selling them like a business for more than the cost of manufacturing, then you are running a profitable business. On eBay, one man's trash may be another man's treasure, but to the IRS, that treasure can and will be taxed.

Our readers seem to be pretty interested in what is and isn't allowed under the law, so we thought you might find it interesting. Here's the website and Amazon page.

So Sue Me official site

Kent's statement was in response to comments by President Barack Obama in the latest issue of Men's Health magazine. When asked about taxing soft drinks, the President answered that ‘‘I actually think it's an idea that we should be exploring There's. no doubt that our kids drink way too much soda."

While the U.S. government has, in fact, told consumers what to eat or drink, through everything from prohibition to agricultural subsidies (not to mention the venerable food pyramid), it seems unlikely that a national soft-drink tax will be enacted any time soon. Even local efforts, such as one proposed earlier this year by New York Governor David Paterson, have faced stiff opposition (in Paterson's case, that included a threat by New York-based Pepsico to leave the state if the tax was passed).

We do understand why Comrade Kent is concerned with Soviet-era food policies. After all, it was a backroom deal between Nixon and Khrushchev that got Pepsi into the Soviet market in the 1970s, forcing Coke to wait until the 1980s to compete. When Coke finally became available in Russia and other parts of Eastern Europe, the cadre of executives that helped bring it to the masses was led by none other than Muhtar Kent. Under the same circumstances, we might grow to resent the policies that allowed the competition to get a foothold so much earlier. Resentment could turn to obsession. And then, well, before you know it, you're scrawling acronyms on scraps of paper and grumbling about fluoridation. And we all know where that leads.

Coca-Cola Chief Says Soda-Tax Idea Is ‘Outrageous' [Bloomberg]
Paterson backs down on 'fat tax' [Newsday]

(Photo: telepathicgeorge)

One expert quoted by The Times says the odds are stacked against States that count on gambling revenue to fill budget gaps:

"The data shows that states take a real chance in depending on gambling because this revenue is not likely to keep pace with growing budgetary needs," said Lucy Dadayan, a senior analyst at the Nelson A. Rockefeller Institute of Government at the State University at Albany. ... "In the absence of new types of gambling, it can become a zero-sum game as states compete for the same pot."

However, adding new gambling options often just raises the ante, as neighboring states rush to create their own "racinos," lotteries and full-scale casinos. And gambling critics contend that the social ills brought on by casinos — including crime rates that jump by 10% and personal bankruptcy rates that go up as much as 42% — outweigh any fiscal benefits brought about through legal gambling.

That's not likely to stop states from holding out for one more hand. States from Colorado to Ohio to Missouri are loosening gambling restrictions and taking their chances with everything from racinos to full-on casinos. Hey, you never know.

States Face Drop in Gambling Revenues [New York Times]

"Take Advantage of These Stimulus Breaks Soon" [Kiplinger]
(Photo: miss karen)

As part of the tax settlement, U.S. tax authorities will file a treaty request with the Swiss government to obtain the data on the American UBS clients, IRS Commissioner Doug Shulman said on a conference call with reporters. The Swiss government will then direct UBS to turn over the account data to the IRS, the agency said.

Mr. Shulman said the legal agreement allowed the IRS to obtain substantially all the information it was interested in.

The methodology used to choose the names has not been disclosed, but there is some speculation that "violations of Swiss law would be a factor." Supposedly, the action doesn't violation Swiss banking secrecy laws.

UBS to Give 4,450 Names to U.S.[WSJ]

Smart Money points to several states that are still offering tax holidays, days where purchases of specific items have the sales taxes on them waived. Products differ by state but include everything from school supplies to sporting goods to Energy Star products. A sampling of some of the offers includes:

*Connecticut: Aug. 16-22, save 6% on clothing and footwear worth $300 or less.

*Texas: Aug. 21-23, save 6.25% on clothing, footwear and backpacks worth $100 or less.

*South Carolina: Aug. 7-9, save 6% on purchases of any price in specific categories, including clothing, footwear, school supplies, computers, software, computer accessories, bed linens, bath towels and pillows, among other items.

Unfortunately, only 16 states offer tax incentives this year. But if your state is one of them, you could get even greater savings since many retailers are "likely going to offer discounts to push prices on qualifying items below state thresholds."

Tax Holidays Still Worth Celebrating [Smart Money]

— FREE MONEY FINANCE (Photo: spinadelic)

It may sound like a waste of money, but compared to the $36,000 a year it costs to house a family in a shelter — the city sees it as a bargain.

Many of them are longtime New Yorkers who have come upon hard times, arrive at the shelter's doorstep and jump at the offer to move at no cost. Others are recent arrivals who are happy to return home after becoming discouraged by the city's noise, the mazelike subway, the difficult job market or the high cost of housing.

"I didn't expect the city to be the way it is," said Hector Correa, who was in a homeless shelter last week and flew home to Puerto Rico on Tuesday. "I was expecting something different, something better."

Apparently, people are always landing in NYC unprepared for the reality of life in the city.

"An adventurous but ultimately unlucky Michigan couple drove to the city in search of jobs and a new life. They got $400 in gas cards to drive back," says the Times.

The program allegedly "works," so far, no homeless people have come back. Critics say the city isn't actually solving the problem, just relocating it.

"The city is engaged in cosmetics," Mr. Cohen said. "What we're doing is passing the problem of homelessness to another city. We're taking people from a shelter bed here to the living room couch of another family. Essentially, this family is still homeless."

City Aids Homeless With One-Way Tickets Home [NYT]
(Photo:Craig)

Examiner spotlighted the now defunct policy:

Unfortunately, according to the Center for American Progress, the structure of the IRS program encourages abuse. Under the program, collectors are awarded as much as 25 cents of every dollar they collect, in addition to a $100 bonus for every account they close. To the Center, there is no difference between these collectors and bounty hunters who hunt for fugitives.

It's good to see the IRS no longer partakes in such shenanigans.

Consumer protection group: "Bounty Hunters" collecting back taxes troubling [Examiner]

The LVRJ originally received a federal grand jury subpoena on June 2 asking for the identities of every single commenter on a particular article posted to the newspaper's website. The article was about a federal tax fraud case against a local business owner, Robert Kahre, and a number of the comments on the story alluded to (or directly described) physical violence against those who might convict Kahre.

"The sad thing is there are 12 dummies on the jury who will convict him. They should be hung along with the feds," reads one comment on the story. Another commenter wagered a bet that one of the prosecutors would not live to see his next birthday. Newer comments, such as one posted today, read "Death to the taxman. Death to the jury.

The Justice Department says the subpoena was sought "out of concern for juror safety."

Despite the clear first amendment violation, we find this perfectly acceptable, and would gladly trade our banhammer for subpoena power. But this is why we don't work for the Justice Department. Oh well!

Feds want paper to cough up identifying data on commenters [Ars Technica]
(Photo: left-hand)

An impending change in North Carolina law would impose taxes on "digital click-throughs," and Amazon is simply ending its relationship with N.C. -based affiliates rather than figuring out the logistics of paying these taxes. Once the law is in place, other affiliate programs may follow suit. Or not.

Amazon warns NC affiliates about tax issue [News-Record] (Thanks, Andrew!)
Amazon Associates to Terminate North Carolina Members [Insight: Makovision] (text of e-mail)

While details of such an approach are still sketchy, it would likely involve employees paying tax on a percentage of their employer-provided health benefits. So if Congress decided that all such premiums in excess of $11,000 for family plans would be taxable income, and your company paid premiums worth $16,000 for your coverage, you'd have to pay taxes on $5,000.

Of course, this is only in the discussion phase right now, and there's nothing definite. It's one option being floated as Congress begins to discuss how to actually make President Obama's proposed health insurance reform package a reality. It's also something John McCain proposed last year, and for which Obama criticized him. And look who else has proposed it:

In 1984, President Ronald Reagan floated the idea of requiring workers to pay taxes on employer contributions to their health insurance exceeding $2,100 a year. A Washington Post editorial the following year called the proposal "surprisingly lucrative yet eminently fair," and speculated that "(it) might have helped hold down health care costs in the bargain." But opposition, especially from labor unions, scuttled the proposal.

"Health insurance ‘haves' to pay for ‘have-nots'?" [MSNBC]
(Photo: PhotoDu.de)

From BusinessWeek:

Buyers who haven't owned a home for three years or longer are eligible for an $8,000 tax credit, thanks to a provision in this winter's stimulus package. Now, under a little-noticed program announced May 29, the Federal Housing Administration will steer the funds to cover closing costs directly-in some cases even offsetting the 3.5% minimum down payment FHA loans require. That's enough to cover most or all of the down payment and fees for homes up to the U.S. median price, now about $169,000.

Of course, some think that the "no money down" lifestyle contributed to the housing bubble, and point out that buyers who receive down payment assistance default at a higher rate than those who don't need it.

Will you take advantage of this program?

FHA Loans: Return to 0% Down [BusinessWeek]
(Photo:coffeego)

1. Graduating from college
2. Getting your first job
3. Getting married
4. Birth of a child
5. Buying your first home
6. Sending your child to college
7. Changing jobs
8. Working at home
9. Selling your home
10. Buying a second home
11. Getting hit with a major illness or injury
12. Getting divorced
13. Retiring
14. Death of a spouse

(Photo: tjean314)

Hey, don't yell at me. These are just the findings of a McClatchy Newspapers story. Reporter Frank Greve sifted through data from the U.S. Bureau of Labor Statistics data and found that the poorest Ameicans — those who make an average of $10,531 — gave the largest percentage of their income (4.3 percent) to charity. Meanwhile, the wealthiest group — which make an average of $158,888 — give only 2.1 percent of what they make.

"The lowest-income fifth (of the population) always give at more than their capacity," said Virginia Hodgkinson, former vice president for research at Independent Sector, a Washington-based association of major nonprofit agencies. "The next two-fifths give at capacity, and those above that are capable of giving two or three times more than they give."

Indeed, the U.S. Bureau of Labor Statistics' latest survey of consumer expenditure found that the poorest fifth of America's households contributed an average of 4.3 percent of their incomes to charitable organizations in 2007. The richest fifth gave at less than half that rate, 2.1 percent.

The figures probably undercount remittances by legal and illegal immigrants to family and friends back home, a multibillion-dollar outlay to which the poor contribute disproportionally.

None of the middle fifths of America's households, in contrast, gave away as much as 3 percent of their incomes.

"As a rule, people who have money don't know people in need," said Tanya Davis, 40, a laid-off security guard and single mother.

You hear that, needy? Just sign up for country club memberships, rub elbows with the moneybags, who will finally have po' folk as a pals, and everyone wins!

America's poor are its most generous givers [McClatchy Newspapers, via Arizona Daily Star>/a>]
(Photo:dooleymtv)

"We found evidence of only 2 instances where IRS personnel conducted visitations to shred/burn facilities in the past 2 fiscal years," the report notes. "Not all Territory Managers were even able to identify the contractor who provided their shred/burn services or where they were located. None of the four contractor sites we visited had ever received a request from the IRS to inspect their facility or onsite records."

In response, the IRS says it will keep close watch on both its dumpsters and contracted employees. Honest!

Increased Management Oversight of the Sensitive but Unclassified Waste Disposal Process Is Needed to Prevent Inadvertent Disclosure of Personally Identifiable Information (Audit # 200830008) (pdf) [Treasury Inspector General For Tax Administration]
Report: IRS Created Dumpster-Diver Swimming Holes [The Washington Post]
(Photo: sonyaseattle)

The insurance policies essentially are informal pension funds for executives: Companies deposit money into the contracts, which are like big, nondeductible IRAs, and allocate the cash among investments that grow tax-free. Over time, employers receive tax-free death benefits when employees, former employees and retirees die.

Update: Here's a bit more information on the practice, since (as Esquire99 points out below) any policies taken out since 2006 require employee consent.

Efforts to rein in the practice largely have been unsuccessful, including the most recent rules Congress enacted in 2006. The rules limit companies to buying life insurance to just the top third of earners, who must provide consent. But the rules don't apply to life-insurance that employers bought before the August 2006 rules, which cover millions of current and former employees.

"WSJ: Banks Using Life Insurance Policies..." [Crooks and Liars] (Thanks to Greg!)

We can't believe people still fall for this crap, but since they do, here's yet another example of what to watch out for. Personally, we like the generic stamps at the bottom. They should have picked up a "CONFIDENTIAL" stamp at the office supply store while they were at it, for added stampy entertainment.

It's a letter with a check enclosed, telling my husband that he's a big winner in the Gaming Association of America. Luckily we're both savvy on this and decided to send this into you, as well as call our local police department. This seems that it is coming from Canada and it's hitting us [in Ohio]. Every bit of Googling I've done on this seems to point that this has only arisen over the last two days.

This is what it says:

Tech City Global Services Inc.
1050 Revenue Avenue
Edmonton, AB T3L 2K4, Canada
Tel: 1-778-863-2655

April 30, 2009
Claim #: TCG/01823478 - 09

Final Notice

We are pleased to advise you that you are one of the winners in the "All American Sweepstakes Drawing" held among randomly selected individuals in North America in a bid to promoting family well-being. This drawing was held on April 24, 2009 (ironically when Chrysler was told to prepare bankruptcy filings) under the auspices of GAMES/ GAMING ASSOCIATION OF NORTH AMERICA.

An Entry Slip with serial number 4816794 attached to your name drew the lucky number winning numbers 11-67-48-55-23.

You are entitled to the sum of US $350,000.00 (Three hundred and fifty thousand dollars).

Payable to you by CERTIFIED CHECK, and will be delivered to you by you by our special courier company. You are advised to contact your Claims Agent:

LOVET FRANKLIN 1-778-863-2655

Monday through Saturday....8am... To....6pm (Pacific Standard Time), for further instructions on how to claim your big winnings.

Enclosed is a check of US $4985.00 to which you will be able to pay the non-government service tax agent (GST), payable to your tax agent by MONEYGRAM as stated below:

Tax agent: Julian Gifton
Block H, 9223 E. Revenue Ave.
Edmonton, AB T3L 8M6, Canada

Tax amount: US Money Gram or Western Union

DO NOT ACT ON THIS LETTER UNTIL YOU SPEAK WITH YOUR CLAIMSAGENT LOVET FRANKLIN who will advise you on the modalities of claiming your winnings.

Accept our congratulations.

James A. Gafield (Promotions Coordinator)
APPROVED (stamped) FINAL NOTICE (stamped)

That's probably because fewer respondents are receiving refunds this year. In 2008, 20.0% said they did not receive a refund, while this year 33.9% said they didn't. It's also probably because 56.74% agreed with the statement, "I have made a concerted effort to cut back in the past few months because of the weakening U.S. economy," compared to doing nothing or saying that they save money regardless.

PriceGrabber also asked those who are spending their refunds just what they plan to spend them on. Here were the responses:

Note: Whenever we post survey stuff like this, a lot of you ask for details about how the survey was constructed. We're one step ahead of you this time—we asked for the same info, and here it is.

2009 Tax Rebate Survey Methodology

For the 2009 PriceGrabber.com Tax Rebate Survey conducted between April 7, 2009 and April 22, 2009, PriceGrabber.com designed and fielded a Web survey to reach each consumer who recently made an online purchase from one of our 13,000 retailers and sellers. After completing an online purchase, each online consumer received an email confirmation, which included the URL to the Web-based survey. Of a total of 359,233 US online consumers invited to take the survey between April 7, 2009 and April 22, 2009, up to 1,574 adequately completed the survey. The online survey was comprised of 7 close-ended questions. Respondents were asked about their plans for their tax refund money, their situation in the current state of the economy, and additional demographic data.

The sample set reflects the online consumer population by age, gender, neighborhood type and total income level over the 15 days the survey was administered. Of the total respondents that opened the survey, 86.5% completed the survey and 13.5% partially completed the survey. The final 1,574 respondents used in this study were controlled for quality. Respondents that incorrectly answered a trick question and/or completed the survey considerably faster than the average respondent speed were removed from the sample set. The maximum sampling error for the survey data based on the sample of 1,574 respondents is +/- 3 percentage points at the 95% confidence level.

(Photo: NickStarr)

Sales taxes, one of the largest source of state tax revenue, dropped 6.1% nationwide since last year. That's the biggest drop in 50 years. And how does the government plan to make up this shortfall? Why, by taxing internet shoppers, of course! (Although, in theory, you're supposed to be paying a "Use Tax" already...)

A bill to be introduced in Congress this week would close the loophole that allows you to avoid paying sales tax when buying online from an out-of-state vendor. The proposal has been kicked back again and again over the past seven years, but it has gained momentum now that most local governments are hurting for cash. And we're talking major cash — losses of about $10 billion a year nationwide due to uncollected sales taxes from Internet and mail order purchases.

But the main reason taxes aren't paid online is that each state has its own convoluted set of tax rules and regulations, and there is no sane way to organize them. Enter the Streamlined Sales Tax Project, a group of tax-loving officials who are devising a uniform tax code to ease collection online. So very sweet of them.

For a fascinating look at your government at work, check out the SSTP website. Sample: Breath mints are food, toothpaste is not. Pumpkins are food, even though "the purchaser may use them for a purpose other than for ingestion or chewing." And: "When is an item sold heated? When it is offered for sale heated. Not sold heated if sold from a refrigerated display case."

Tax-Free Internet Shopping May Be Almost Over [CBS News]

Photo:Kevin Zollman

The Chicago Tribune gives the following example: "For a husband and wife who each earn $75,000, the new tables might mean a cut of $1,228 cut in payroll taxes. But their maximum new tax credit is only $800. So next year, they'd have to pay the extra $428 back."

So, as soon as you're done with last year's taxes, double check the new amount of your withholding here.

Pay close attention to your paycheck [Chicago Tribune]

(Photo: bknittle)

(Photo: stuartpilbrow)

Here are some post offices that are open late in various metropolitan areas. Due to cutbacks, fewer post offices are extending their drop-off hours this year. Don't despair, however, it's easy to search the USPS website for 24 hour "automated postal centers." Good luck, procrastinators!

Chicago: 433 W Harrison ST FL Lbby (Open 24 hours)

New York City: James Farley Post Office 421 Eighth Avenue and 31st Street (Open 24 hours)

Denver: General Mail Facility Center at 53rd and Quebec (Open 24 hours)

LA: Airport Station, 9029 Airport Blvd. (Open Until Midnight)

San Francisco: Airport Branch (660 W. Field Road) (Open Until Midnight)

San Diego: 2535 Midway Drive (Open Until Midnight)

Miami: 2200 NW 72nd Ave. (Open Until Midnight)

Virginia: Hampton Roads General Mail Facility at 600 Church Street in Norfolk (Open Until Midnight)

Austin: 8225 Cross Park Drive (Open Until Midnight)

New Orleans: 701 Loyola Ave. (Open Until Midnight)

Tampa Bay: St. Petersburg Main Post Office 3135 1st Avenue S., St. Petersburg Drive (Open Until Midnight)

Indiana: Gary Post Office, 1499 Martin Luther King Drive (Open Until Midnight)

DC: 2 MASSACHUSETTS AVE NE (Open Until Midnight)

Ohio: 675 Wolf Ledges Parkway, Akron, 2650 Cleveland Ave. N.W., Canton, Cleveland Main Post Office, 2400 Orange Ave. (Open Until Midnight)

St. Louis: 1720 Market Street (Open Until Midnight)

Dallas: Dallas Main Post Office, 401 DFW Turnpike - (Open Until Midnight)

Philadelphia: 3000 CHESTNUT ST (Open Until Midnight)

Seattle: Seattle, Riverton Station, 15250 32nd Ave S. (Open Until Midnight)

Atlanta: 3900 Crown Road SW, 227 Sandy Springs Place, (Open Until Midnight)

Detroit: 1401 W. Fort St, 12245 Beech Daly Road, 200 W. Second St. (Open Until Midnight)

Utah: Ogden Main Post Office 3680 Pacific Ave, Provo East Bay Post Office 936 S. 250 East, Salt Lake Main Post Office 1760 W. 2100 South (Open Until Midnight)

Kansas City: 1700 Cleveland Street (Open Until Midnight)

Arizona: 1501 S. Cherrybell Stravenue, Tucson, 4949 E. Van Buren St., Phoenix (Open Until Midnight)

Minneapolis/St. Paul: Minneapolis Main Post Office 100 S. 1st St, St. Paul Main Post Office 180 E. Kellogg Blvd.,Air Mail Center 5001 Northwest Dr. St. Paul (at MSP International Airport) (Open Until Midnight)

New Mexico: Albuquerque 1135 BROADWAY BLVD, 900 PINETREE RD SE RIO RANCHO, NM (Open Until Midnight)

Keep in mind that some of these post offices are open for drop off only and are not providing regular retail services.

Add your own late night post offices in the comments and help your neighbors get their taxes in on time. Thanks!

(Photo:jenna_belle)

via IRS Press Release:

"Phishing

Phishing is a tactic used by Internet-based scam artists to trick unsuspecting victims into revealing personal or financial information. The criminals use the information to steal the victim's identity, access bank accounts, run up credit card charges or apply for loans in the victim's name.

Phishing scams often take the form of an e-mail that appears to come from a legitimate source, including the IRS. The IRS never initiates unsolicited e-mail contact with taxpayers about their tax issues. Taxpayers who receive unsolicited e-mails that claim to be from the IRS can forward the message to phishing@irs.gov. Further instructions are available at IRS.gov. To date, taxpayers have forwarded scam e-mails reflecting thousands of confirmed IRS phishing sites. If you believe you have been the target of an identity thief, information is available at IRS.gov.

Hiding Income Offshore

Taxpayers have tried to avoid or evade U.S. income tax by hiding income in offshore banks, brokerage accounts or through other entities. Recently, the IRS provided guidance to auditors on how to deal with those hiding income offshore in undisclosed accounts. The IRS draws a clear line between taxpayers with offshore accounts who voluntarily come forward and those who fail to come forward.

Taxpayers also evade taxes by using offshore debit cards, credit cards, wire transfers, foreign trusts, employee-leasing schemes, private annuities or life insurance plans. The IRS has also identified abusive offshore schemes including those that involve use of electronic funds transfer and payment systems, offshore business merchant accounts and private banking relationships.

Filing False or Misleading Forms

The IRS is seeing scam artists file false or misleading returns to claim refunds that they are not entitled to. Frivolous information returns, such as Form 1099-Original Issue Discount (OID), claiming false withholding credits are used to legitimize erroneous refund claims. The new scam has evolved from an earlier phony argument that a "strawman" bank account has been created for each citizen. Under this scheme, taxpayers fabricate an information return, arguing they used their "strawman" account to pay for goods and services and falsely claim the corresponding amount as withholding as a way to seek a tax refund.

Abuse of Charitable Organizations and Deductions

The IRS continues to observe the misuse of tax-exempt organizations. Abuse includes arrangements to improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets or income from donated property. The IRS also continues to investigate various schemes involving the donation of non-cash assets, including easements on property, closely-held corporate stock and real property. Often, the donations are highly overvalued or the organization receiving the donation promises that the donor can purchase the items back at a later date at a price the donor sets. The Pension Protection Act of 2006 imposed increased penalties for inaccurate appraisals and new definitions of qualified appraisals and qualified appraisers for taxpayers claiming charitable contributions.

Return Preparer Fraud

Dishonest return preparers can cause many headaches for taxpayers who fall victim to their ploys. Such preparers derive financial gain by skimming a portion of their clients' refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Taxpayers should choose carefully when hiring a tax preparer. As the saying goes, if it sounds too good to be true, it probably is. No matter who prepares the return, the taxpayer is ultimately responsible for its accuracy. Since 2002, the courts have issued injunctions ordering dozens of individuals to cease preparing returns, and the Department of Justice has filed complaints against dozens of others, which are pending in court.

Frivolous Arguments

Promoters of frivolous schemes encourage people to make unreasonable and unfounded claims to avoid paying the taxes they owe. The IRS has a list of frivolous legal positions that taxpayers should stay away from. Taxpayers who file a tax return or make a submission based on one of the positions on the list are subject to a $5,000 penalty. More information is available on IRS.gov.

False Claims for Refund and Requests for Abatement

This scam involves a request for abatement of previously assessed tax using Form 843, Claim for Refund and Request for Abatement. Many individuals who try this have not previously filed tax returns. The tax they are trying to have abated has been assessed by the IRS through the Substitute for Return Program. The filer uses Form 843 to list reasons for the request. Often, one of the reasons given is "Failed to properly compute and/or calculate Section 83-Property Transferred in Connection with Performance of Service."

Abusive Retirement Plans

The IRS continues to uncover abuses in retirement plan arrangements, including Roth Individual Retirement Arrangements (IRAs). The IRS is looking for transactions that taxpayers are using to avoid the limitations on contributions to IRAs as well as transactions that are not properly reported as early distributions. Taxpayers should be wary of advisers who encourage them to shift appreciated assets into IRAs or companies owned by their IRAs at less than fair market value to circumvent annual contribution limits. Other variations have included the use of limited liability companies to engage in activity which is considered prohibited.

Disguised Corporate Ownership

Some taxpayers form corporations and other entities in certain states for the primary purpose of disguising the ownership of a business or financial activity. Such entities can be used to facilitate underreporting of income, fictitious deductions, non-filing of tax returns, participating in listed transactions, money laundering, financial crimes, and even terrorist financing. The IRS is working with state authorities to identify these entities and to bring the owners of these entities into compliance.

Zero Wages

Filing a phony wage- or income-related information return to replace a legitimate information return has been used as an illegal method to lower the amount of taxes owed. Typically, a Form 4852 (Substitute Form W-2) or a "corrected" Form 1099 is used as a way to improperly reduce taxable income to zero. The taxpayer also may submit a statement rebutting wages and taxes reported by a payer to the IRS. Sometimes fraudsters even include an explanation on their Form 4852 that cites statutory language on the definition of wages or may include some reference to a paying company that refuses to issue a corrected Form W-2 for fear of IRS retaliation. Taxpayers should resist any temptation to participate in any of the variations of this scheme.

Misuse of Trusts

For years, unscrupulous promoters have urged taxpayers to transfer assets into trusts. While there are many legitimate, valid uses of trusts in tax and estate planning, some promoted transactions promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. Such trusts rarely deliver the promised tax benefits and are being used primarily as a means to avoid income tax liability and hide assets from creditors, including the IRS.

The IRS has recently seen an increase in the improper use of private annuity trusts and foreign trusts to divert income and deduct personal expenses. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering into a trust arrangement.

Fuel Tax Credit Scams

The IRS is receiving claims for the fuel tax credit that are unreasonable. Some taxpayers, such as farmers who use fuel for off-highway business purposes, may be eligible for the fuel tax credit. But some individuals are claiming the tax credit for nontaxable uses of fuel when their occupation or income level makes the claim unreasonable. Fraud involving the fuel tax credit is considered a frivolous tax claim, potentially subjecting those who improperly claim the credit to a $5,000 penalty.

How to Report Suspected Tax Fraud Activity

Suspected tax fraud can be reported to the IRS using Form 3949-A, Information Referral. Form 3949-A is available for download from the IRS Web site at IRS.gov. The completed form or a letter detailing the alleged fraudulent activity should be addressed to the Internal Revenue Service, Fresno, CA 93888. The mailing should include specific information about who is being reported, the activity being reported, how the activity became known, when the alleged violation took place, the amount of money involved and any other information that might be helpful in an investigation. The person filing the report is not required to self-identify, although it is helpful to do so. The identity of the person filing the report can be kept confidential.

Whistleblowers also may provide allegations of fraud to the IRS and may be eligible for a reward by filing Form 211, Application for Award for Original Information, and following the procedures outlined in Notice 2008-4, Claims Submitted to the IRS Whistleblower Office under Section 7623."

Beware of IRS' 2009 "Dirty Dozen" Tax Scams [IRS] (Photo: numberstumper)

16. Attach everything you're supposed to, sign where you're supposed to, and use good penmanship. If your return looks sloppy, they're going to think your numbers might be sloppy.

15. Use exact numbers on your non-cash contributions

14. You say it's a business, the IRS says it's a hobby, you deduct big losses from it, and they audit you. And then you cry like a little girl.

13. This is a no-brainer but if you mess it up, it's a big red flag: What you report as income must match the income forms the IRS is getting from the people who gave you the income.

12. Conformity is good. If your deductions are way out of line with the national average, sound the klaxons. For someone earning $50-$100k, that's $5,812 in deductible taxes, $2,703 in charitable gifts, and $8,946 in interest.

11. All your 1099s are belong to them. Report all interest, dividends and miscellaneous income. If you got a 1099, they're getting it too.

10. Round numbers belong in math problems, not on your tax return. Unless it really was a round number. But it probably wasn't. Just use an exact number, and if you can't remember it exactly, make it look like a real number. You should round cents to the nearest dollar. Just don't round your dollars, if you know what I'm saying. Joe Francis, the guy behind "Girls Gone Wild" does not know what I'm saying and that's why the IRS busted him when he claimed $333,333.33 in false expenses.

Here's some more things that might prod the IRS to go jihad on your return:

9. Claiming tax shelter investment losses

8. Claiming complex businesses expenses

7. Your business involves lots of cash and tips

6. Claiming rental expenses

5. You were audited in the past and had to cough up because of it

4. You're a shareholder or partner in a company that got audited

3. Complex tax transactions without much explanation

2. You're just too nice! and claimed large cash contributions to charities compared with how much you make.

1. Someone finked on you.

We could also call this, "16 reasons I use an accountant."

(Photo: azrainman)

Form 4868 [IRS] (Photo: Alberto Cueto)

* The 11 Most Overlooked Tax Deductions — There's no need to pay more taxes than you owe, and this piece will help identify deductions often overlooked. We even found one that could save us some nice coin.

* 5 Hidden Tax Breaks for Homeowners — At least there's some good news on the housing front — being an owner gets you several tax breaks. We especially like the "energy efficient home improvements" tax credits. If you didn't take advantage of them in 2008, you now have another year to do so. And 2009's options are much broader thanks to the recent government stimulus. New windows, anyone?

* 10 Things the IRS Won't Tell You — The most pertinent for those of you still waiting to do your taxes is #8: "April 15 isn't necessarily a hard deadline." Really? Yep. But you still need to file if you want to go past the 15th. One simple form will get an extra six months for those ultra-procrastinators out there.

So, now that we've covered paying our taxes, isn't it about time to discuss the more fun topic of what to do with the refunds we receive?

— FREE MONEY FINANCE (Photo: Alberto Cueto)