More Americans think it's OK to cheat on their taxes

[Angio333]

I have no problem using the tax law to every possible credit, deduction, etc. However, purposely not claiming income or purposely cheating on your taxes is wrong.

Render onto Ceaser what is Ceasars, but not a penny more.

[SnoopyCool]

If I say I gave $100 worth of goods to Goodwill, how can the IRS disprove that?

If the IRS questions your tax return in any way, you have to prove to them what you put on there. And they have to agree that your proof is substantial enough to take that deduction on your taxes, or they'll disallow it. I suggest using Deduction Pro or some other software to track your noncash donations, and always keep receipts of those donations. And if you make a substantial donation, such as a car, you need to keep an appraisal letter on that car and fill-out a Form 8323 at tax time.

I doubt that most people on this forum would try to exaggerate their deductions or minimize their earnings. However, working in the tax prep industry, I've seen audits where people were just so flippant about doing a correct tax return that it's almost unbelieveable (disclaimer: we did not prepare those returns!!!). They do it because they think they won't get caught. Really? Be honest on your return.

It is my opinion that the more our government hurts for money, the more they'll hammer taxpayers. Dot your i's and cross your t's.

[disneysteve]

If the IRS questions your tax return in any way, you have to prove to them what you put on there. And they have to agree that your proof is substantial enough to take that deduction on your taxes, or they'll disallow it.

That's what I always hear, but nobody ever seems to know what that means. If you go to Goodwill's website, they have a list of item values for tax purposes. For each item, they give a somewhat broad range of prices. For example, "Sweaters: $5-$15". I always claim the lower end of their range so if ever questioned, I can provide a list of items donated and how I arrived at their values. The problem is I made the list. Goodwill just gives me a receipt that says "1 bag of clothing". It doesn't say what was in the bag. It could have been a bag of designer clothes. It could have been a bag of old sheets and towels. If I tell the IRS the clothing was worth $100 based on my list and Goodwill's value guide, how can the IRS say otherwise? They have absolutely no way to know what I actually donated.

For the record, I'm not saying that I inflate my donation value. I don't. I make an accurate list and use Goodwill's price guide for values (always using the lowest figure in the range). I just see how simple it is to game the system and claim a larger deduction.

[Joan.of.the.Arch]

I try to partly get around the problem of the too-brief Goodwill receipts by taking in donations frequently enough that I can get the items listed on the receipt more accurately. So instead of "one bag clothing, one bag household goods," It can say "4 men's shirts, blender NIB." Then I may be at GW again soon with another donation, "3 women's skirts, 8 pl set china".

Of course, the workers here set up a table and allow me to fill out the list myself if I go on a weekday! But beyond that, I also attach my own handwritten list with fuller description, and price I will claim. I'm very familiar with prices that will go on the items since I shop there, too. I also note on my list that the prices are verified with the online source, and I write down the URL.

But maybe I'll resort to the photo-taking, too. I'd just hate to have to do it. It would mean separating my paper tax info from the photos, as I am not about to print out photos of donations to store it with the GW receipts. I'd store it on computer and have to remember to transfer those files when I get a new computer. Actually for a couple years I did also make a computer file of the donations (but not with photos), but it seemed like overkill.