O.K. so now you have e-filed your Internal Revenue Service (IRS) income tax return and are feeling pretty proud of yourself. But oh no. Oh @#$%! Where is your refund? The Fed claims to issue refunds in 10-12 days but it is now over two weeks and the dough ain’t showing up in your account.

I’m told the Fed’s are standing by to help (of course you wouldn’t need the help if they would have issued your refund check as promised!) Anyway, if there is a problem go to www.irs.gov then type in “refund status” in the search box and you can find an update on your account. For tax year 2011, visit "Where's My Refund?" for details on the IRS refund status.

For those of you now frustrated with the whole hi-tech filing stuff there is a hot line…yes a phone number to call to get answers to your refunds questions 800-829-1954. The Income Tax Refund hot-line hours are 7am to 7pm weekdays. O.K. This is good. Now, time to start thinking of ways to spend that extra cash?!

The Internal Revenue Service has issued its annual “Dirty Dozen” ranking of tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.

The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at any point during the year. But many of these schemes peak during filing season as people prepare their tax returns.

“Taxpayers should be careful and avoid falling into a trap with the Dirty Dozen,” said IRS Commissioner Doug Shulman. “Scam artists will tempt people in-person, on-line and by e-mail with misleading promises about lost refunds and free money. Don’t be fooled by these scams.”

Illegal scams can lead to significant penalties and interest and possible criminal prosecution. The IRS Criminal Investigation Division works closely with the Department of Justice to shutdown scams and prosecute the criminals behind them.

The following is the Dirty Dozen tax scams for 2012:

Why is it that just when you think you can relish the prospects of a new year, a clean slate, and a fresh beginning, you are pulled up short by the realization that before you know it you will have to tackle the ever perplexing, always annoying job of preparing your taxes for the Internal Revenue Service (IRS)? Whose idea was that and what gives our government the right to force us to pay? What exactly are the constitutional parameters allowing our government to tax us?

I found that like so much in our constitution, the guidelines are stated simply, in the vaguest of terms.

• Article 1, Section 8, Clause 1 (commonly referred to as the taxing and spending clause) states: “The Congress shall have the power to lay and collect taxes, duties, imposts and excises to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States.”

So, there you have it…the IRS can do it; but one wonders how such a simple concept has morphed into the behemoth with which we now have to contend on an annual basis.

In 2010, 72.3% of individuals submitting income tax forms to the Internal Revenue Service (IRS) did so electronically. I don’t know about you but that number shocks me. Are there that many people that much more secure in their computer knowledge than I?  Guess so…

Maybe, if you are like me, it is time to force ourselves, though kicking and screaming, to enter the 21st century by getting on the IRS e-filing bandwagon. Why, you might ask? Well, there is no software to purchase. The sites have up-to-date IRS tax laws. Most boast that you can file in less than 20 minutes (Hah, I Say!) and your tax refund (should you be so lucky not to owe) is safe and secure.

Last year, officials said about 49 million people still prefer to make the yearly trip to the post office to mail off their paper tax returns. But the IRS has been trying to encourage you to file electronically. Here are three big benefits of e-filing:

Easier to Prepare -- Some of those paper tax forms can be confusing, but software tools made especially for filing your taxes will walk you through the process, step-by-step. Have all your tax information at hand and it should be rather simple. Just remember to buy NEW software each year so you are sure to have all the new tax laws incorporated. If you simply use the online services of the more reputable preparers, you can count on them having the most up-to-date regulations at hand.

We hear this all the time from fringe groups and radicals. Seriously, if you think you aren't required to pay taxes because the 16th Amendment to the Constitution wasn't ratified and you don't pay your taxes to the IRS, you could find yourself owing large amounts beyond your taxes because of late fees, court fees, IRS audits and numerous penalties. What's more, you could end up in jail.

Oftentimes, individuals or groups will break out this claim whenever they're not particularly happy with a politician or simply don't want to pay their share of the tax burden. They aim to convince you that federal taxes are unconstitutional. Their argument is that federal taxes are unconstitutional because not all fifty states ratified the 16th Amendment to our constitution. What they fail to mention, or simply realize, is that it's not necessary for all fifty states to ratify an Amendment in order to implement it as U.S. law. Some will go as far as advertising and conducting seminars (to make money for themselves, mind you) just to teach others how they can use the 16th Amendment to justify not paying federal income taxes, and people all across the country are falling for it! There are plenty of court rulings throughout the American court system that confirm the amendment was indeed ratified. It takes three-quarters of our fifty states to ratify an amendment to the US Constitution. Most Americans don't know that.

When tax season approaches, gay and lesbian partners may be in for some good news: Some gay couples have a distinct advantage over married couples, at least when it comes to income taxes.

This, of course, in no way should be mistaken to mean to stop fighting for the right to marry. But as long as most states and the federal government refuse to acknowledge gay marriages and partnerships, those couples might as well pay as little tax as possible.

For unmarried couples -- gay or straight -- the key to saving on income taxes is to think of themselves as a unit rather than two single filers, even though they won't be filing a joint return.

Here are some areas that when used cleverly can save on taxes.

Mortgages. When purchasing a house or condo, consider whether one partner's tax bracket is much larger than the other.

For example, suppose Shawn is a high-powered lawyer making $140,000 a year, putting him in the 28 percent federal tax bracket, while his partner, Phil, is Ph.D. student making $20,000 placing him in the 15 percent bracket. It makes sense to have Shawn take out the mortgage, so that he can deduct the mortgage interest on his tax return.

I have a payment agreement with IRS for 2006 back taxes (joint agreement with my husband for our joint back taxes). We are now separated. I filed Head of Household in 2009 and paid those taxes in full. I plan to file that way again for 2010 and, according to my estimates, I may be due a refund. Will the IRS apply that refund to the 2006 back taxes?

Answer: As a condition of your agreement, any refund due you in a future year will be applied against the amount you owe.

• Continue making your installment agreement payments as scheduled because your refund is not considered as a substitute for your regular payment due.
• You may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. You can contact Financial Management Service (FMS) toll-free at 800-304-3107.
• The IRS will automatically apply the refund to the taxes owed.

http://www.irs.gov/faqs/faq/0,,id=199566,00.html

My son turns 19 in April and my ex-husband does not pay child support anymore. My son is now a full-time college student and lives with me. Can I claim him on my tax returns for this year? I have contributed more than 50% of my child’s support and he has always lived with me. Basically, who gets to claim him?

Answer: If there's a child support order, somewhere in that order should be direction as to which parent gets to claim the child and when. Once you determine that, if you claim your son as a dependent on your income tax return, he cannot claim herself on his income tax return.

• If an individual is filing his or her own tax return, and the individual can be claimed as a dependent on someone else's return, the individual cannot claim his or her own personal exemption.

• In this case, your aon should check the box on hia return indicating that someone else can claim him as a dependent.

  Additional Information:
  
  • Publication 501, Exemptions, Standard Deduction, and Filing Information
  • This link offers additional information for deciding who claims the exemption. http://www.irs.gov/faqs/faq/0,,id=199709,00.html

Certain responsibilities come with the rights of citizenship; paying your taxes is one of your most important responsibilities.

You are obligated to file federal, state and local income tax returns as are all residents and citizens of the United States. Like other federal employees, you cannot exclude amounts received from any agency of the United States for services rendered in a foreign country or within U.S. possessions. This means no matter where you are, your basic military pay is taxable by the federal government and your own state and local governments. Special tax breaks apply for military compensation earned in a combat zone or a qualified hazardous duty area (e.g., the Arabian Gulf, Bosnia). Contact your local Volunteer Income Tax Assistance (VITA) center or a legal assistance office for more information.

If your gross income is above certain established levels, you are required to file a federal income tax return.

As with most requirements, there are exceptions, so you should check with the Internal Revenue Service (IRS) or with state/local taxing authorities. You can also contact your VITA tax center or your legal assistance office if you are not sure whether you must file.

You’d think this would be a simple question with a simple answer; however, there are different time periods for different types of conditions. Here are a few:

1) If you owe additional tax, and you’ve followed the law then hang onto everything for 3 years.
2) If your reported income has a discrepancy of more than 25% than keep it all for 6 years.
3) If you file a claim for a loss from worthless securities then save files for 7 years.
4) However, if the IRS believes you filed a fraudulent return, then there is no limit to the time you’d need the documents to defend yourself.

The point is it varies considerably. Best bet is to keep them for as long as possible, just in case. There are many ways to store them in such a way as not to take up too much room. Get creative!

Here is the link for the IRS’s explanation. Scroll down about 3/4 of the way down, and look for “How Long To Keep Records.”

http://www.irs.gov/publications/p552/ar02.html