[quote=demonspade64]
What are the penalties for handing in a wanted suspect dead?
[/quote]

Depends greatly on the bounty. The bounty on the individual will say dead or alive depending on why the person had a bounty on their head. For example, if their offence isn't incredibly terrible. It will say wanted alive. While in Cyrus' case, where he was framed for stealing Manium Crystals, Cyrus is currently wanted dead or alive, it does not matter.

So the dead or alive concept of returning a bounty. Would depend on the person who made the bounty. Or your employer.