United Press International

Federal tax rebates designed to pump money into the economy may be redirected to savings accounts and debt reduction, various polls indicate.

Saving is considered a fundamental of healthy personal financing. But, legislators intended a large portion of the one-time tax rebates, headed to millions of homes this year, to circulate through the economy, to retailers, to manufacturers and on to producers of raw materials.

Three polls indicate, however, the money will be used to pay down debt or tucked into savings, USA Today reported Tuesday.

A CCH poll indicates 47 percent would use their rebates to pay off debt, while 32 percent said they would save the money, the report said.

Consumers owe, on average, $16,640 in non-mortgage debt, up 7.8 percent from a year ago, the report said.

Similarly, an H&R Block survey indicates only 16 percent planned to spend the money, while 18 percent indicated they would invest and 21 percent would pay for necessities.

Inflation is cutting into what was supposed to be a windfall.

"It's kind of sad, really," said Barbara VanDoren of Fort Lee, Va. "We're going to be putting the money into the wrong economy -- oil companies that aren't even here."

United Press International

Fame and fortune in the United States offer no immunity to tax problems, various court documents show.

On the eve of the government's April 15 personal auditing deadline, some of the nation's celebrities owe state and federal tax bills that run into millions of dollars, USA Today reported Monday.

Dionne Warwick is $2.7 million behind on her California state taxes and the Internal Revenue Service has placed liens of more than $1 million against singer, who maintains a busy television and concert career, the newspaper reported.

The IRS has filed a $1.5 million lien against Fox News analyst and former presidential adviser Dick Morris, who also owes Connecticut $452,367.

And records show O.J. Simpson owes California $1.5 million, USA Today reported.

"People will do almost anything to make sure friends don't see a change in lifestyle, and that 'anything' includes not paying taxes," said Bart Graham, Georgia's revenue commissioner.

While big names and big money can be involved, prosecution for tax evasion is not that common. The federal government filed 1,423 federal indictments in 2007, compared with 235 million tax returns that were filed, the IRS reports.

IRS Taxpayer Advocate office head Nina Olson told Congress this year that identity theft has become a leading concern for taxpayers. There were 20,782 identity theft complaints involving tax returns in 2007, USA Today reported.

"People create a phony business, phony children, phony working hours and other details to get a very nice refund," says Eduardo Leiseca, a Miami tax agent.

It is reported that some thieves steal identities to cover up criminal pasts or their status as illegal immigrants in order to help them seek employment.

"We've taken steps to ensure that our workforce...understands that when they're dealing with a victim, it's imperative that they provide the assistance that that victim needs, on the first call, and not 10 calls later," said Linda Stiff, IRS services and enforcement deputy commissioner.