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.
The Franchise Tax Board (FTB) recently published its updated list of California's top 500 tax debtors, comprising both individuals and businesses that now collectively owe the state more than $505 million in income tax. Since October 2007, this list is updated twice annually. Taxpayers who receive notice of the FTB's intent to include them on the list and then make arrangements to pay their tax debt are removed from the publication.
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 new California Office of Tax Appeals (OTA) just released its first seven opinions. All seven opinions were decided in the favor of the Franchise Tax Board (FTB); none of the taxpayer-appellants opted for representation by an attorney, although three appellants were represented by an Enrolled Agent or Certified Public Accountant. The first appeals heard by the OTA covered a variety of issues, including penalty and interest assessments, filing status, and ridesharing credits. Six of the opinions are confirmed as "nonprecedential," and one opinion is pending precedential status. To read the opinions in full, click here: https://ota.ca.gov/opinions/
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.
The Internal Revenue Service (IRS) has included phone scams on its "Dirty Dozen" list of common tax scams for the 2018 filing season. Taxpayers should be aware of criminals posing as IRS agents and making threatening or aggressive demands for money through phone calls. According to the IRS, this is the time of year when they see a jump in the number of reports of scam phone calls threatening potential victims with arrest, deportation, or license revocation if payment demands are not met immediately.
The Internal Revenue Service (IRS) is keeping tax-related identity theft on its "Dirty Dozen" list of tax scams to watch for in 2018, despite a significant decline in this type of crime in recent years. Tax-related identity theft is the act of using a stolen taxpayer identification number to file a fraudulent tax return and claim a refund. In 2017, the IRS received 242,000 reports of identity theft, compared to 401,000 reports in 2016. This is due in part to the Security Summit partnership, launched in 2015, which has enacted various safeguards to prevent tax-related crimes. However, identity theft remains on the IRS' list of most common tax-related crimes. To read suggestions to protect yourself and your business from identity theft, click here.