Cash strapped or not, it just doesn’t make sense to pay hundreds of dollars to borrow your own money especially when there are a number of free ways that filers can speed up their refund from IRS.

The easiest and least costly method to get your money from IRS is to change your income tax withholding on your W-4 with your employer. Your tax refund is based on money withheld from your pay during year. If you consistently receive a large refund at end of year, you should consider changing your income tax withholding during year so you’ll receive more of your paycheck throughout year. There’s no sense in giving federal government a free loan if you can avoid it.

If you don’t want to change your income tax withholding but would like to get you refund quickly at end of year, file your income tax electronically and have your refund deposited electronically into your checking or savings account -- it usually takes about 10 days. Electronic filing has become easier over years and for many tax payers it’s free.

In 2002, IRS implemented “Free File” program that allows millions of Americans to have their tax returns prepared and filed for free. The IRS partnered with 17 companies to provide service to tax filers. You’ll need to meet certain eligibility criteria and have internet access. For more information visit Free File section of IRS website at http://www.irs.gov or “Google IRS + free file.”

If your income is less than $35,000 you can get free help filing your return from Volunteer Income Tax Assistance program (VITA). VITA provides tax preparation for free throughout nation and many VITA sites can file your return electronically. To find a site near you, call 800-829-1040.

Companies like H&R Block and Jackson Hewitt make millions each tax season from unwitting taxpayers by appealing to their need for money to pay pressing bills. They offer quick money to help working poor, but, in reality, all their doing is fleecing those who can least afford it.

Be money smart and fill your return for free and let IRS deposit your return into your checking or savings account. The wait can save you $200 or more.

Step 4: Fix what's broken. Be diligent in your activity. Do not let blockheadedness of credit company representatives get you down; burden of proof is on you to show that you did not order those goods. Keep calling, emailing, and sending certified letters repeatedly until you get all false information removed from your credit report. If this happens to you, always identify yourself as a victim of identity theft and supply company with a notarized ID Theft Affidavit available at www.ftc.gov. Becoming a criminal reporter will help as you piece together what thief has done by asking as many questions as you can.

Step 5: Recovery. Does anyone truly recover from an ID theft experience? Looking at your credit report from three bureaus at least once a year is important for everybody to do. For a victim of ID theft, it is imperative. Starting December 1, a nationwide system of fraud detection and alerts will create procedural standards CRAs must follow when a consumer reports an incident of identity theft. By September 2005 everyone will be able to request a free credit report once a year. In event that you are ever victim of identity theft, by being proactive you may be able to shorten duration of your recovery. If you are fortunate enough to live in California or Texas, state law allows identity theft victims to freeze their credit reports. This means a bank or creditor has to request permission via a PIN number from you. Credit report attorneys warn against failing to stay vigilant, though. The danger is that negative data can return to your credit report, so do not assume that once fixed, problem will stay fixed for good. Keep checking your credit reports at least once a year just to make past problems do not return to haunt you in future. Fighting to clear your name takes time, effort, and expense on your part. The good news, though, is that you can get all fraudulent accounts closed, black marks removed from your credit report, and resume some semblance of normalcy in your life. There is no guarantee that these actions will work, that depends on your persistence and good fortune. However, not taking these steps will guarantee you many years of misery, excessive interest rates, denied credit and mental anguish.

Roger Sorensen is a Financial Literacy Speaker and Author - his book "You Don't Own Money" is available online at Amazon.com. He is editor of BrighterFutures.Com and publisher of Money Basics - The Newsletter. His work is copyright protected material, so if you copy, print, and reproduce, etc., please give proper credit.