Is it true that the IRS pays rewards for turning in tax cheaters?

Yes, but you don't get the reward until the IRS collects from the cheater, which is far from a sure thing. The IRS pays about 8% of the first $100,000 it collects and 1% of the balance. Identities of informers are kept secret, but tax cheats usually know who reported them -- mostly ex-spouses or disgruntled business associates.

In a recent year, the IRS paid out a paltry $1.5 million for tips, on $72 million collected. The IRS places low priority on investigating tips and paying rewards. Typically, you will never know what action, if any, is taken on your tip, but if you want to try it, submit IRS Form 211.

What should I do if I don't get my refund?

If you filed your tax return at least eight weeks ago, call the IRS tax refund hotline at 800-829-4477, Monday - Friday, 7:00 a.m. to 11:30 p.m. Or, call the 24-hour assistance number at 800-829-1040 and request assistance from the taxpayer advocate.

If you filed your return on or before April 15 and don't receive your refund until after May 31, the IRS must pay you interest.

If you never get a refund, it may have been intercepted to pay any of the following:

• state or federal taxes you owe
• a defaulted student, SBA, or other federal government loan
• delinquent child support
• a public benefit overpayment (such as HUD, VA, or Social Security).

In these situations, you are supposed to be notified in writing, but don't count on it.

Can the IRS charge me interest if I was incorrectly sent a refund and the IRS now wants it back?

It depends. The Internal Revenue Manual states that "taxpayers should not be held liable for interest on...erroneous refunds if the IRS was clearly at fault...and the taxpayer is cooperative in repaying." However, if you caused the erroneous refund and now can't repay it, the IRS can and will charge interest.

How legitimate are the claims by "tax experts" that you don't have to pay income taxes?

Not at all. These con artists can be convincing, but they are not legit. Constitutional arguments against the tax laws are routinely dismissed by courts, and their proponents are fined or jailed. More sophisticated scams involve multiple family trusts, limited partnerships, and credit cards issued by offshore banks. While these schemes can confuse and slow down the IRS, they are bogus, period.