May 30, 2017
Scams targeting taxpayers

Scams Targeting Taxpayers

IRS-Impersonation Telephone Scams Aggressive and sophisticated phone scams targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, using fake names and bogus IRS identification badge numbers. Scammers tend to know a lot about their targets, and usually alter the caller ID to make it look like the IRS is calling. They tell victims they owe money to the IRS and it to pay immediately. They often insist the payment is with a pre-loaded debit card or wire transfer. The scammers threaten arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. Or, victims may be told they have a refund due too, trying to trick them into sharing private information. If the phone isn’t answered, the scammers often leave an “urgent” callback request. Please See: Consumer Alert: Scammers Change Tactics, Once Again Some con artists have used video relay services (VRS) to try to scam deaf and hard of hearing individuals. Taxpayers are urged not trust calls just because they are made through VRS, as interpreters don’t screen calls for validity. For more details see the IRS YouTube video: Tax […]
May 23, 2017
Tips for Taxpayers Who Owe Taxes

Tips for Taxpayers Who Owe Taxes

Tips for Taxpayers Who Owe Taxes The IRS offers a variety of payment options where taxpayers can pay immediately or arrange to pay in installments. Those who receive a bill from the IRS should not ignore it. A delay may cost more in the end. As more time passes, the more interest and penalties accumulate. Here are some ways to make payments using IRS electronic payment options: Direct Pay. Pay tax bills directly from a checking or savings account free with IRS Direct Pay. Taxpayers receive instant confirmation once they’ve made a payment. With Direct Pay, taxpayers can schedule payments up to 30 days in advance. Change or cancel a payment two business days before the scheduled payment date. Credit or Debit Cards. Taxpayers can also pay their taxes by debit or credit card online, by phone or with a mobile device. A payment processor will process payments.  The IRS does not charge a fee but convenience fees apply and vary by processor.Those wishing to use a mobile device can access the IRS2Go app to pay with either Direct Pay or debit or credit card. IRS2Go is the official mobile app of the IRS. Download IRS2Go from Google Play, the […]
May 16, 2017
tips for disaster preparedness

IRS Offers Tips for Disaster Preparedness

IRS Offers Tips for Disaster Preparedness Hurricane Preparedness Week was May 7-13. Preparing for hurricanes and other natural disasters, before disaster strikes, can reduce stress when it comes time to file claims or rebuild after the catastrophic event. Here are some things to consider: Update Emergency Plans — Because a disaster can strike anytime, be sure to review emergency plans annually. Personal and business situations change over time, as do preparedness needs. Make plans ahead of time and be sure to practice them. Create Electronic Copies of Documents — Taxpayers should keep a duplicate set of key documents. Keep documents including bank statements, tax returns, and insurance policies in a safe place. Doing so is easier now that many financial institutions provide statements and documents electronically, available on the Internet. Even if original documents are available only on paper, scan them into an electronic format and store them on DVD, CD or cloud storage. Document Valuables — It’s a good idea to photograph or videotape the contents of any home, especially items of higher value. Documenting these items ahead of time will make it easier to claim insurance and tax benefits after disaster strikes. The IRS has a disaster loss […]
May 9, 2017

Tax Tips for Cash Intensive Small Businesses

Small business owners that offer goods and services through an online platform may be part of the sharing economy. Some participate part time while others operate full time. Activities such as ride sharing, freelancing, renting a spare bedroom and crowd funding are usually taxable. The IRS has a Sharing Economy Tax Center to help these taxpayers find the information and help they need to meet their tax obligations. Tax Tips for Cash-Intensive Small Businesses Taxes. Sharing economy activity is generally taxable. Payments received in the form of money, goods, property or services may require filing a tax return to report that income to the IRS.Tips. People often conduct sharing-economy activities electronically but tips in cash are still a common occurrence. Tips are generally subject to withholding. Small businesses or self-employed persons should report tips they receive as income on Schedule C or C-EZ. See Publication 334, Tax Guide for Small Business, for more details. Large Cash Amounts. Any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, within 15 days after receiving […]