Are You 100% Honest When You File Your Taxes?

Question

From my understanding, when it comes to Federal Income Taxes, one must even claim something as little as cash given for a gift. i.e. Christmases, Birthdays, etc.
While it's true that some people rob the system by making millions and paying a fraction of what they really owe, what about "Joe 6 pack"?
He makes 30k a year at his day job. He also has a part time job that pays him "under the table". Then he takes that money to cover his daughters college tuition.
While technically both are one in the same to the Feds, what do you think?

Barbara L:
I was going to ask about that subject that some say (my paraphrasing) taxes are not a mandate of working and living in the U.S.
Thanks for bring it up and for the link!

Answer 1

I would not want to get caught owing or cheating.

HOWEVER, now that I know the Federal Reserve is owned by the Rockefellers and NOT the government, I look at things a little differently and resent being fleeced by greedy corporate beasts.

Did you know paying taxes is not even LEGAL? We are all being bilked by these creatures!

From Freedom to Taxes by Aaron Russo
http://www.youtube.com/watch?v=zsZO6G7dfpI

If I had to cheat to get my kids to college, I would take the risk. I do get tired of these thieves having their hands in my pocket every time I take out $.50 to buy a pack of matches!

Answer 2

I damn sure try to be honest about it.

Gifts you receive are never taxable to you. Gifts given MAY be taxable if you give more than $12,000 in gifts to any one recipient in any year. Unless any gifts exceed the annual exclusion amount, no Gift Tax return is required and no tax is due. There is NO need to track the typical Christmas or birthday gifts.

Joe Six Pack in your example is as guilty as the high dollar tax cheat. Only the amounts may vary. He stands a fair shot at getting caught too. When the tuition bills come in, making a full payment for a year at Harvard will look VERY suspicious on a return with "only" $30k in gross income. So will the rising interest income amounts over the years since those are reported to the IRS as well.

A tax cheat is a tax cheat, whether he lives in a $6 million mansion or an inner-city apartment.

Answer 3

Your understanding is wrong about taxes on gifts, either to the giver or to the recipient, for amounts under $12,000 per person, and my birthday and Christmas gifts are a long way below that, so filing gift tax returns isn't an issue I'm required to worry about.

You are correct that many people have "under the table" income. That's illegal, and they are evading their share of taxes, which means that people who ARE honest about their taxes end up paying more.

Yes, I stay totally honest on my taxes - it's the right thing to do, and also, the penalties for getting caught cheating just aren't worth taking a chance on!

Answer 4

"Gifts" are never income.

Yes, many people have a "cash" job that pays them under the table that they do not report. They should report it, but don't.

If enough red flags are raised on a return, the IRS will audit them and the cash job will be found.

Answer 5

if thats the only way the kid can go to college he should NOT claim it as some lowlife will get a free college education right out of his tax dollars compliments of the good old US government

Answer 6

I do my taxes honestly. I use H & R block. I have been paying taxes for 45 years and have never been audited. I think that's a good thing.

Answer 7

http://www.irs.gov/taxpros/article/0,,id=159853,00.html

Just for your information.

good luck