Tax Preparation Blog

Title: 

Tax Season - Time for Scams

Word Count:

514

Summary:

As tax season draws irresistibly closer, the scam artists are polishing their latest techniques. This article should help you keep an eye out for these nasty individuals.

Keywords:

#Arlington_Tax_Preparation, #Tax_Preparation, #Tx_Tax_prep, #Texas_Tax_Preparation, #Arlington_Tax_Prep, #Arlington_TX, #Tax_Prep, #DFW_Tax_Prep, #Tax_Filing, #Taxes, #Lewisville_Tax_Prep, #Lewisville_Tax_Preparation, #DFW_Tax_Preparation, #Arlington, #Tarrant_County, #Reduce_Taxes, #Tax_Refunds, #Pay_Taxes, #Tax_Help, #Bookkeeping, #DFW_Bookkeeping, #Investing, #tax_bookkeeping, #DFW, #Texas, #North_Texas, #Filing_Taxes, #1099, #W-2, #W-4

Article Body:

As tax season draws irresistibly closer, the scam artists are polishing their latest techniques. This article should help you keep an eye out for these nasty individuals.

Tax Season ñ Time for Scams

In a particularly cheeky move, scam artists have started posing in on form or another as the IRS in an effort to get you to turn over social security numbers and such. Logically, this actually makes sense. Everyone is terrified by the IRS and dread be contacted by the  Agency. Most of us would do anything to resolve any issue raised by an IRS Agent including sending them copies of credit card statements and providing crucial financial information over the phone. Put another way, this is the perfect scenario for a scam artists. 

The goal of scam artists, of course, is to get private information they can use to open credit card accounts and so on. This is loosely known as phishing for the purpose of identity theft. 

Phishing and identify theft can occur through practically any communication method. Here are some recent scams that were successful:

1. One group of scam artists started sending spam emails notifying taxpayers they were eligible for tax refunds. The scam worked because the emails were sent from IRS types of email accounts including the irs letters in the address. Taxpayers were then told to go to click through to a site where they could fill out a form and get their refund. Of course, the email address and web site were fakes. Nobody got a refund, but the scam artists received a bevy of social security numbers, credit card information and so on.  In total, this scam occurred through 12 different web sites in 11 countries. 

2. This one is a classic. Scam artists send bogus IRS letters and Form W-8BEN asking non-residents to provide personal information including bank account numbers, PINs, passport numbers and so on. Form W-8BEN is used by banks, not the IRS, to obtain information from non-residents who are opening bank accounts! Unfortunately, many non-residents fell for this scam and had their identities stolen. 

There are a couple of guidelines you can use when dealing with IRS communications. First, the IRS never, ever sends email to taxpayers. NEVER! If you get an email communication, it is absolutely a scam. Delete it or send it to the IRS so they can take action. 

If you receive mail communications from the IRS, call the agency to verify a letter was really sent to you. With phone call communications, get the persons name and call them back at the IRS. Both methods will stop scam artists in their tracks. Be skeptical of communications you receive from sources you are not expecting. 

Finally, the IRS never asks a taxpayer for passwords or PIN numbers. If the agency desires to seize your bank account, they can just do it. They don’t need to take out $300 a  day until your tax debt is collected!  

Scam artists are highly creative people. If you have doubts about an communication of the IRS, pick up the phone and call the agency.

Title: 

Taxpayer Advocate - Customer Service at the IRS

Word Count:

362

Summary:

Every business has a department that deals with complaints from customers. At the IRS, this department is known as the taxpayer advocate office.

Keywords:

#Arlington_Tax_Preparation, #Tax_Preparation, #Tx_Tax_prep, #Texas_Tax_Preparation, #Arlington_Tax_Prep, #Arlington_TX, #Tax_Prep, #DFW_Tax_Prep, #Tax_Filing, #Taxes, #Lewisville_Tax_Prep, #Lewisville_Tax_Preparation, #DFW_Tax_Preparation, #Arlington, #Tarrant_County, #Reduce_Taxes, #Tax_Refunds, #Pay_Taxes, #Tax_Help, #Bookkeeping, #DFW_Bookkeeping, #Investing, #tax_bookkeeping, #DFW, #Texas, #North_Texas, #Filing_Taxes, #1099, #W-2, #W-4

Article Body:

Every business has a department that deals with complaints from customers. At the IRS, this department is known as the taxpayer advocate office. 

Advocating for You

The purpose of the taxpayer advocate office is to provide taxpayers with a friendly source to handle customer service issues. The office is run independent of the IRS and has offices at every IRS center in the nation. The taxpayer advocate has a stated goal of resolving your problem with the IRS in seven short days. It doesn’t always happen, but it is a nice goal. 

The taxpayer advocate has a surprising amount of power. The advocate agents can rifle through the IRS computers at will, which makes them great at locating filings the IRS claims never occurred. The advocate can also stop collection efforts by the IRS and even release tax liens on your bank account or property. Basically, the advocate office is the place to go when you think you are getting a raw deal from the IRS. 

The taxpayer advocate agents do not take any old case. In general, you have to show the IRS is unresponsive to your problem or causing you a major hardship. For instance, if your correspondence to the IRS is not being responded to, the advocate can crack the whip on your behalf. If the IRS puts a lien on your bank account, but you’re in the hospital, the advocated can release it. The advocate, however, does not give tax advice or fight audits for you. 

If you wish to get the taxpayer advocate involved in your IRS situation, you should write the office in your area. Just search for taxpayer advocate online to get the location. Your letter should include a concise description of the problem, copies of your supporting documents, copies of what the IRS has sent you and a telephone number where you can be reached. In an emergency situation, you can call the taxpayer advocate by contacting the local IRS office. This should only be done in an emergency.

The IRS is undoubtedly a dysfunctional government agency. The taxpayer advocate can help you get things straightened out when dealing with the IRS.

Title: 

The Internet Tax Man Cometh

Word Count:

523

Summary:

Q: I was contacted by the city tax collector to say that my business is scheduled to be audited to see if I owe sales tax on items purchased on the Internet. Can they really make me pay sales tax on internet purchase? I thought you could buy things online tax free? -- Charlie B.

A: Sorry, but your local municipality is well within its rights to audit your business to identify items purchased online. The city can also demand payment of sales tax on those items if sales tax ...

Keywords:

#Arlington_Tax_Preparation, #Tax_Preparation, #Tx_Tax_prep, #Texas_Tax_Preparation, #Arlington_Tax_Prep, #Arlington_TX, #Tax_Prep, #DFW_Tax_Prep, #Tax_Filing, #Taxes, #Lewisville_Tax_Prep, #Lewisville_Tax_Preparation, #DFW_Tax_Preparation, #Arlington, #Tarrant_County, #Reduce_Taxes, #Tax_Refunds, #Pay_Taxes, #Tax_Help, #Bookkeeping, #DFW_Bookkeeping, #Investing, #tax_bookkeeping, #DFW, #Texas, #North_Texas, #Filing_Taxes, #1099, #W-2, #W-4

Article Body:

Q: I was contacted by the city tax collector to say that my business is scheduled to be audited to see if I owe sales tax on items purchased on the Internet. Can they really make me pay sales tax on internet purchase? I thought you could buy things online tax free? -- Charlie B.

A: Sorry, but your local municipality is well within its rights to audit your business to identify items purchased online. The city can also demand payment of sales tax on those items if sales tax was not previously paid. Don’t be surprised if the auditor asks for access to your books and to see purchase receipts and invoices for at least the past year.

One of my companies recently underwent such an audit and it really was not as painful as you might think. Being a software company, the majority of our online purchases were for computer equipment, technical manuals, and software development tools. Since we purchase computers from a large supplier who collects sales tax at the point of sale (ditto for the development tools), the only sales tax we ended up owing was for an inordinate number of technical manuals and books purchased at http://Amazon.com.

If your small business is like most, the majority of your large purchases are made locally from companies that already collect sales tax. Furniture and computer equipment are typically the largest ticket items a small business buys, so unless you bought your desks and computers off of Ebay (which is highly possible these days) you should be OK.

Internet sales taxation has been a topic of contention even before Amazon sold its first book and Priceline booked its first flight. One of the more controversial points is that no one, including our own government, seems to have a clue how to implement a fair and logical Internet taxation process. With over 7,500 different local, county and state taxation systems in the United States, you can understand the controversy.

In 1998, Congress did what it usually does when faced with a potentially explosive issue like Internet tax collection -- it decided to put off making a decision. Congress enacted a three-year moratorium on the collection of taxes to give an appointed advisory board time to come up with an acceptable solution. That moratorium ended in 2002 and opened the door for municipalities to begin collecting sales tax on their own.

Here in Alabama the state sales tax collection department has aired radio spots asking Alabamians to step up to - and toss dollars into - the proverbial collection plate. The commercial kindly suggests that if I have purchased anything from an online retailer, I am honor-bound to proclaim such purchases and submit the appropriate sales tax to the collection department right away. They thank me in advance for my cooperation.

So, Charlie, when the auditor shows up at your door the best thing you can do is smile politely and be totally forthcoming. The sales tax that you pay is a small price for the convenience of shopping online.

Or at least that’s what you should tell yourself as you write the auditor a check

Title: 

The IRS Solution If You Cannot Pay Your Taxes

Word Count:

386

Summary:

The Internal Revenue Service wants you to pay taxes on time. That being said, it understands this is not always possible and has created a program for such situations.

Keywords:

#Arlington_Tax_Preparation, #Tax_Preparation, #Tx_Tax_prep, #Texas_Tax_Preparation, #Arlington_Tax_Prep, #Arlington_TX, #Tax_Prep, #DFW_Tax_Prep, #Tax_Filing, #Taxes, #Lewisville_Tax_Prep, #Lewisville_Tax_Preparation, #DFW_Tax_Preparation, #Arlington, #Tarrant_County, #Reduce_Taxes, #Tax_Refunds, #Pay_Taxes, #Tax_Help, #Bookkeeping, #DFW_Bookkeeping, #Investing, #tax_bookkeeping, #DFW, #Texas, #North_Texas, #Filing_Taxes, #1099, #W-2, #W-4

Article Body:

The Internal Revenue Service wants you to pay taxes on time. That being said, it understands this is not always possible and has created a program for such situations.

The IRS Solution If You Cannot Pay Your Taxes

The Internal Revenue Service is very upfront about its goal in dealing with taxpayers. While it obviously wants to collect all taxes due, it is also focused on keeping you in the system. This attitude is a relatively recent change undertaken in the 1990s. The IRS essentially determined it made better financial sense to have you in the system versus spending hundreds of man hours hunting you down. In practical terms, this means you need not have a panic attack if you do not have sufficient funds to meet your tax obligation. If you panicked this past tax deadline, there was no need. 

The IRS will put you on a payment plan if you cannot pay your taxes on time. The plan calls for monthly payments like a car loan, to wit, they are an equal amount each month so you know what you are obligated to pay. 

You are only eligible for a payment plan if you file a tax return. Once you file, you want to use form 9465 to request the payment plan. It costs $43 to file the application. The IRS will then get back to you on what it is willing to do. The payment plan process is not an audit. Millions of people apply each year and the IRS considers it standard operating procedure. No red flags are raised when you file the application. To the contrary, the IRS tends to view you as an honest tax payer since you are acknowledging the full amount due and trying to find a way to pay. 

Importantly, the payment plan should be viewed as a means to buy time. Making the monthly payments will eventually pay off the debt, but it will take years. Interest on the amount you owe will also continue to accrue. The best strategy for using the plan is to make the monthly payments while saving up money to make a lump sum payment to satisfy the debt.

If you cannot pay the taxes you owe, do not panic. The payment plan option will keep you out of trouble with Uncle Sam.

Title: 

The IRS vs Mother Nature

Word Count:

417

Summary:

The IRS recently met its match in the form of Mother Nature. Yes, the massive flooding in Washington, D.C., took out the IRS headquarters.

Keywords:

#Arlington_Tax_Preparation, #Tax_Preparation, #Tx_Tax_prep, #Texas_Tax_Preparation, #Arlington_Tax_Prep, #Arlington_TX, #Tax_Prep, #DFW_Tax_Prep, #Tax_Filing, #Taxes, #Lewisville_Tax_Prep, #Lewisville_Tax_Preparation, #DFW_Tax_Preparation, #Arlington, #Tarrant_County, #Reduce_Taxes, #Tax_Refunds, #Pay_Taxes, #Tax_Help, #Bookkeeping, #DFW_Bookkeeping, #Investing, #tax_bookkeeping, #DFW, #Texas, #North_Texas, #Filing_Taxes, #1099, #W-2, #W-4

Article Body:

The IRS recently met its match in the form of Mother Nature. Yes, the massive flooding in Washington, D.C., took out the IRS headquarters. 

The IRS vs Mother Nature

As you know, Washington, D.C. suffered through some serious flooding problems recently. The headquarters of the IRS are located at 1111 Constitution Avenue and took a beating. Nobody messes with the IRS and comes out on top, except for Mother Nature. 

The record rainfalls in Washington did a lot of damage. In the case of the headquarters of the IRS, the damage was massive. While the building didn’t fall, the internal systems were more or less wiped out. This includes the loss of electrical systems, the heating system, the cooling systems and much more. 

Apparently ignoring the possibility of water penetration, all major systems were located in the basement of the building. At the height of the flooding, the depth of the water in the basement was roughly 20 FEET. As you can imagine, this was not good for the systems. In fact, we the people will pay tens of millions of dollars to have everything fixed so we can be taxed efficiently. How ironic. 

Alas, the damage caused to the headquarters of the IRS does not impact you and I on a practical scale. As you know from sending in your tax returns to the various odd addresses around the country, tax returns are not processed in Washington. Put in practical terms, this means you still need to file your taxes. IRS computer systems have redundancy, so they still know you are out there and have money they can collect.

No doubt you are worried about our friends at the IRS. No need to fear. They government has big plans to rebuild the IRS headquarters so water can’t consume everything in the basement. In typical government methodology, this will only take six months according to projections. Can you imagine a private business sitting around and twiddling its thumbs for so long?  

In truth, it has been a rough couple of years for the IRS. First, one of their trucks accidentally dropped thousands of tax returns into San Francisco Bay and now this. It would appear the agency has met its match in the form of Mother Nature. Perhaps they can file an extension with her before the next storm! Given the fact that the IRS building was only one of five government buildings in D.C. to be damaged, the extension would probably be denied.