Tag Archive for: IRS

Phishing for Information | Beware of Fake IRS Site

/in /by



Phising, Fraud, Scam

"If I cast enough lines, I'll catch a big fish..."

On October 25th, the IRS issued a warning regarding a new tax scam. Taxpayers have been receiving solicitations to use web-based products on a fake IRS site. This site is designed to steal your personal information. The real IRS e-Services page is for tax preparers and payers only and is found at www.irs.gov.

If you receive a solicitation sending you to a site ending in .com, .net, .org, etc., it’s not the authentic IRS site. Also, keep in mind that the IRS will never initiate contact with you via email or web channels (like social media). If you do receiving a phishing message, please be sure to report it to the IRS.

If you have questions regarding correspondence from the IRS, please contact your H&S team member today.

photo credit: wit via photopin cc



Phishing for Information | Beware of Fake IRS Site

/in /by




Phising, Fraud, Scam

"If I cast enough lines, I'll catch a big fish..."


On October 25th, the IRS issued a warning regarding a new tax scam. Taxpayers have been receiving solicitations to use web-based products on a fake IRS site. This site is designed to steal your personal information. The real IRS e-Services page is for tax preparers and payers only and is found at www.irs.gov.
If you receive a solicitation sending you to a site ending in .com, .net, .org, etc., it’s not the authentic IRS site. Also, keep in mind that the IRS will never initiate contact with you via email or web channels (like social media). If you do receiving a phishing message, please be sure to report it to the IRS.

If you have questions regarding correspondence from the IRS, please contact your H&S team member today.

photo credit: wit via photopin cc


Another Charitable Contribution Deduction Lost on a Paperwork Technicality

/in , , /by
charitable contributions perks

If you made a charitable contribution and received a ‘perk’ in return, such as a free round of golf, you need to make sure you document it correctly.

Last week, a couple was denied their $18.5 million deduction due to a paperwork technicality, this week there was another case of a taxpayer losing their deduction based on a paperwork problem.

A $25,000 charitable contribution deduction was rejected because the donee organization failed to document whether the donor received any ‘perks’ as a result of the donation.

Why Does This Need To Be Documented?

This needs to be documented because you may only deduct the donation less any perks received. Here are a few examples:

  • You donate $200 to your favorite charity and, as a thank you, they give you two tickets to an MSU football game. The tickets have a fair market value of $100. You may only deduct $100 because of the ‘perk’ you received.
  • Concert tickets go on sale with all proceeds supporting your favorite charity, so you buy them for $50. The concert tickets have a fair market value of $14. You may only deduct $36.
  • You buy tickets to a benefit dinner for $500. The fair market value of the dinner and drinks you receive is $100. You may only deduct $400.
  • At a silent auction you bid $5000 on and win a flat screen TV. The fair market value of the TV is $1000, so you may only deduct $4000.

 

What if I received documentation from the organization I donated to, but they failed to document all the required information?

Contact the organization as soon as possible to receive proper documentation! The IRS has been cracking down on compliance with charitable contribution deductions, so you will want to make sure to keep your paperwork organized and ready for next tax season.

Further Reading + Useful Links
This Tax Season is Almost Over, But Stay Organized for Next!
In the News: Couple Loses $18.5 Million Deduction on Technicality
IRS Publication 561, Determining the Value of Donated Property
IRS Publication 526 (2012) Charitable Contributions
Form 8283, Noncash Charitable Contributions

 

IRS Expands Fresh Start Initiative To Help Taxpayers Struggling to Pay Their Taxes

/in /by



Fresh Start Initiative

The IRS announced that they have made expansions to their penalty relief and payment program to help those struggling to pay their taxes. (Photo Credit: office.microsoft.com)

The IRS announced on March 7, 2012, that they had made expansions to their penalty relief and payment program known as The Fresh Start Initiative. Below is a summary of key expansions:

Penalty Relief
This relief allows for a six-month grace period to allow taxpayers to pay their taxes without being charged the failure-to-pay penalty. Individuals granted this extension will have until 10/15/12 to pay their 2011 tax, interest, and other penalties in full without being charged the penalty.

  • Available to two categories of taxpayers: Those who have been unemployed for 30 consecutive days in 2011 or 2012 (up to the 4/17 tax filing deadline) and self-employed people who have experienced a 25 percent or greater reduction in business income in 2011, due to the economy.
  • If you’re interested in filing for this extension you must complete Form 1127A.


Installment Agreements
Taxpayers who owe $50,000 or less in back taxes have the opportunity to pay their debt over the course of several months or years.

  • The IRS raised the threshold from $25,000 to $50,000 for using installment agreements without having to present financial statements.
  • You must file Form 433-A or Form 433-F.


Offers in Compromise
This part of the relief program aims to help those struggling the most by reducing a taxpayer’s liabilities for less than what is owed.

For the complete details visit the IRS Website.

If you have questions, or would like to discuss whether this relief program is right for you, contact your H&S tax professional today at 1.800.924.6891.

IRS Reverses Credit Card Rule Tax Reg

/in /by

Merchants do not include things like cash refunds, sales tax, and tips in their gross receipts, but payment processors could include those figures on 1099-K forms. (Photo Credit: office.microsoft.com)

The IRS announced on March 1, 2012 that it has decided to reverse its decision to require business owners to reconcile their gross receipts with their 1099-Ks reported by payment processors.

According to the IRS, the original goal of the Tax Reg was to increase voluntary tax compliance, as well as, improve overall compliance, but many small business owners had criticized the rule. Merchants do not include things like cash refunds, sales tax, and tips in their gross receipts, but payment processors could include those figures on 1099-K forms. Small business owners were concerned about the extra administrative time and expense required to reconcile the two numbers.

Payment processors will continue to file Form 1099-K, so don’t let your guard down. The discrepancy between gross receipts and Form 1099-K could still trigger an IRS audit.

CPA's & Business Advisors
Need Help?
Pay your Bill

About Us | Our Services | Forms & Resources | 1-800-924-6891

Remote Desktop Server – Internet Explorer | Remote Desktop Server – Non Internet Explorer | Uniprint Client |

H&S Calendar | Company Store

Copyright © 2024 H&S Companies. Site by CurlyHost.