In Reality, Phony Returns Don't Win

Richard Hatch won $1 million on "Survivor." Now he's in jail. (Stew Milne - AP)

I thought in the last days before the income tax deadline I might share with you some interesting tax facts and tips.

In the category of "this is why you should pay your taxes," Richard Hatch, the first "Survivor" television contestant to win $1 million, is sitting in a jail because he didn't pay his fair share to Uncle Sam.

Hatch is being held until his sentencing this month on the tax-evasion charges. The charges carry a maximum of 13 years in prison. He probably won't get that much time, but hey, any time in jail would be too long for me.

A federal jury in Providence, R.I., found Hatch guilty of failing to report to the Internal Revenue Service the money he won on "Survivor" and $391,000 in income from a half-dozen other sources.

Amazingly, according to evidence submitted during the trial, Hatch asked an accountant to prepare an alternative return for informational purposes only, so he could see what his tax situation would be without his reality-show earnings. He then ignored a warning from the accountant that he should not file that return.

The kicker? Based on that phony return, which he filed anyway, Hatch was due a $4,483 refund. Unbelievable.

Some of you may not be cheating at that level, but you are cheating nonetheless. A poll taken last month by Yahoo found 38 percent of those surveyed have been dishonest on tax returns.

And what are the most popular ways to cheat, according to the Yahoo poll?

Thirty-six percent said they underreported income (no surprise there). Eight percent deducted work expenses previously reimbursed.

If you do cheat on your tax return, consider what U.S. Attorney Robert Clark Corrente said after Hatch was found guilty: "Paying taxes is an ordeal, but it is every citizen's obligation to pay them honestly and fully."

In other words, don't try to outwit, outplay or outlast the IRS. Lying may help you win on a reality show, but when it comes to your taxes, this is not a game.

I hope you know that this year you have an extra two days before your tax return is due. Tax returns are due Monday, April 17. And if you live in Maine, Maryland, Massachusetts, New Hampshire, New York, Vermont or the District, you have until April 18 to file and pay, thanks to the Patriot's Day holiday on April 17 in Massachusetts. Folks in these six states and the District get the extra day because they are served by the Andover, Mass., IRS processing center. To avoid confusion, everyone in these jurisdictions gets the extra day, even if some taxpayers are instructed to send their payments or returns to IRS locations outside Massachusetts.