The 2018 IRS Nationwide Tax Forum dates and locations are now available for this annual tax law event featuring education sessions, training, and networking for tax law professionals. Betty Williams will be speaking about "Representing the Taxpayer Without Records: How and When Can a Preparer Use Taxpayer Estimates & Reconstructions to Prepare a Return" during the forum scheduled for August 7 - 9, 2018 in San Diego. To register, click here: https://www.irstaxforum.com/index
The Internal Revenue Service (IRS) and its Security Summit partners have released a warning about a new variation on phone scams by which criminals prey on taxpayers. Scammers are now using telephone numbers that mimic IRS Taxpayer Assistance Centers to try to trick victims into paying non-existent tax bills. Remember that IRS employees at these centers do not make calls to taxpayers to demand payment; such requests are typically initiated through regular mail delivered by the U.S. Postal Service.
On April 18, 2018, Ana Bajo, a California resident, pleaded guilty in the Northern District of California to conspiring to file fraudulent claims for more than $9.7 million in refunds by obtaining the personal information of others and filing more than 2,300 fraudulent income tax returns with her co-conspirators. The Internal Revenue Service (IRS) paid over more than $7.5 million as a result of the scheme. Bajo now faces a maximum of ten years in prison, plus supervised release, restitution, and monetary penalties. Her sentencing is scheduled for September 26, 2018.
On March 5, 2018, a former Internal Revenue Service (IRS) employee, Pamela Pringle, was sentenced in the Eastern District of California for "making opportunities for persons to defraud the United States and for making and subscribing false returns." While employed by the IRS, Pringle prepared and filed income tax returns for other individuals that included false deductions, and in several years she also filed fraudulent tax returns for herself, claiming deductions to which she was not entitled. Pringle entered a guilty plea in November 2017 and will spend 5 months in prison, then 36 months under supervised release, including 5 months of home confinement; she was also ordered to pay $56,857 in restitution.
The Department of Justice has permanently barred a Southern California tax preparer from preparing federal returns for others, following a complaint filed by the government that the tax professional had been filing returns claiming a total of more than $9 million in fraudulent refunds since at least 2009. She agreed to the injunction and pleaded guilty to conspiracy to file false, fictitious, and fraudulent claims, tax evasion, and aggravated identity theft.
The Treasury Inspector General for Tax Administration (TIGTA) released a report providing interim results for the 2018 federal tax filing season. As of March 2, 2018, the Internal Revenue Service (IRS) had received approximately 61 million tax returns and issued over 48 million refunds totaling almost $148 billion.
The Internal Revenue Service (IRS) has updated its online withholding calculator to account for the changes to tax calculations caused by the Tax Cuts and Jobs Act. Taxpayers are encouraged to use the updated calculator tool to ensure the correct amount is withheld from their paychecks. To access the tool and additional information from the IRS, click here.
Virtual currency transactions, such as the purchase or sale of Bitcoin, are reportable transactions on your federal income tax returns, as a recent Internal Revenue Service (IRS) press release states. Failure to report digital currency transactions can lead to audit and possible penalty or interest assessments. The IRS has issued Notice 2014-21 (here) to provide guidance for taxpayers and tax return preparers regarding such transactions. To read the full IRS press release on this topic, click here.
The Internal Revenue Service (IRS) recently released its top-12 list of tax scams to watch for in the current tax year, an annual list called the "Dirty Dozen." Topping the list in 2018 are the perennial telephone and phishing scams, identity theft, and return preparer fraud. Also included are acts such as falsely padding deductions, making improper claims for business credits, and falsifying income. For the complete list and information from the IRS on how to protect yourself from tax scams, click here.
The Internal Revenue Service (IRS) estimates it is holding about $1.1 billion in unclaimed federal income tax refunds for approximately 1 million taxpayers who did not file a 2014 federal tax return. The deadline to file a 2014 return to collect any refund due is this year's tax deadline, Tuesday, April 17, 2018.