Posted on December 28, 2017
Author Jacque Ryan, WKVI
For most tax payers, December 31st is the last day to take actions that will impact 2017 tax returns, according to the IRS.
For instance, charitable contributions are deductible in the year made. This means donations charged to a credit card before the end of the year count for the 2017 tax even if the bill isn’t paid until 2018 and checks made to a charity count for 2017 as long as they’re mailed by the last day of the year.
Taxpayers are urged to refrain from preparing their tax returns until all necessary forms and documents are received. Needed documentation includes W-2 forms from employers and 1099 forms from banks and other payers. Not having all required documents could cause a return to have an error that delays processing and refund issuing.
Be sure to alert the IRS, employers and the U.S. Postal service of any address changes. Also, if you’ve recently had a name change or if a dependent’s name has changed, notify the Social Security Administration to ensure the new name will match IRS and SSA records. A mismatch between the name shown on your tax return and the SSA records can cause issues with processing and could delay refunds.
Internal Revenue Service representatives say they expect more than 90 percent of all 2017 individual tax returns to be prepared using tax software, with the majority of those being e-filed.
The IRS reports that e-filing remains the safest way to file an accurate income tax return and combining it with direct deposit is the fastest way to receive a refund. IRS statistics indicate that in 2017, more than 88 million refunds worth over $260 billion were directly deposited into taxpayers’ bank accounts. They expect to issue more than nine out of ten refunds in less than 21 days in 2018.
However, by law, the IRS cannot issue refunds prior to mid-February if the return claims the Earned Income Tax Credit or Additional Child Tax Credit. They advise individuals not to count on getting a refund by a certain date, especially when making major purchases or paying other financial obligations. To stay informed you can check the Where’s My Refund tab on IRS.com after January 2nd.
For more information, visit the Internal Revenue Service assistance page.
Showing posts with label Internal Revenue Service. Show all posts
Showing posts with label Internal Revenue Service. Show all posts
Thursday, December 28, 2017
Friday, September 29, 2017
Help Still Available for Taxpayers Filing 2016 Tax Returns
Posted on September 29, 2017
Author Michael Gallenberger, WKVI
Taxpayers who still need to file their 2016 tax returns can still get some help, according to the Internal Revenue Service. October 16 is the filing deadline for many of those granted an extension on their tax returns. The IRS says those individuals can still take advantage of several programs.
Electronic filing is an option for those who buy their own tax software, and it’s required for most tax professionals. Statistically, those who file electronically make fewer mistakes on their tax returns, according to IRS officials.
Additionally, IRS Free File is available to all taxpayers. Brand-name software is available to those making $64,000 or less, while taxpayers at any income level can use the online fillable forms.
On top of that, free face-to-face tax help is still available for those who qualify. Those include people with low-to-moderate incomes, those with disabilities, senior citizens, and people who speak English as a second language.
The IRS also encourages taxpayers to double check whether they’re eligible for certain tax credits, such as the Earned Income Tax Credit, the Savers Credit, and the American Opportunity Tax Credit.
Author Michael Gallenberger, WKVI
Taxpayers who still need to file their 2016 tax returns can still get some help, according to the Internal Revenue Service. October 16 is the filing deadline for many of those granted an extension on their tax returns. The IRS says those individuals can still take advantage of several programs.
Electronic filing is an option for those who buy their own tax software, and it’s required for most tax professionals. Statistically, those who file electronically make fewer mistakes on their tax returns, according to IRS officials.
Additionally, IRS Free File is available to all taxpayers. Brand-name software is available to those making $64,000 or less, while taxpayers at any income level can use the online fillable forms.
On top of that, free face-to-face tax help is still available for those who qualify. Those include people with low-to-moderate incomes, those with disabilities, senior citizens, and people who speak English as a second language.
The IRS also encourages taxpayers to double check whether they’re eligible for certain tax credits, such as the Earned Income Tax Credit, the Savers Credit, and the American Opportunity Tax Credit.
Thursday, April 6, 2017
IRS Turning Seriously Delinquent Accounts Over to Collections
Posted on April 6, 2017
Author Mary Perren, WKVI
The Internal Revenue Service is preparing to turn seriously delinquent accounts over to private-sector collection agencies. The agency notes these are unpaid individual tax obligations that are not currently being worked by IRS collection employees and often were assessed by the tax agency several years ago.
Affected taxpayers will first receive mailings and subsequent telephone calls from the agency advising them of the pending collections. The mailing will contain the contact information for the private collection agency and include a copy of Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency.
IRS officials note only four private groups are participating in the program: CBE Group of Cedar Falls, Iowa; Conserve of Fairport, N.Y.; Performant of Livermore, Calif.; and Pioneer of Horseheads, N.Y. The taxpayer’s account will only be assigned to one of these agencies, never to all four. No other private group is authorized to represent the IRS.
After the IRS letter is sent, the designated private firm will send its own letter to the taxpayer and their representative confirming the account transfer. To protect the taxpayer’s privacy and security, both the IRS letter and the collection firm’s letter will contain information that will help taxpayers identify the tax amount owed and assure taxpayers that future collection agency calls they may receive are legitimate.
The private collectors will be able to identify themselves as contractors of the IRS collecting taxes. Their employees must be courteous, respect taxpayer rights and follow provisions of the Fair Debt Collection Practices Act.
They are authorized to discuss payment options, including setting up payment arrangements with taxpayers. However, payments must be made electronically or by check to the IRS. Payments should never be sent to a private firm or anyone besides the IRS or U.S. Treasury.
Additionally, private firms are not authorized to take enforcement actions against taxpayers. Only IRS employees can file notices of Federal Tax Lien or issue a levy.
Private firms are not authorized to take enforcement actions against taxpayers. Only IRS employees can take these actions, such as filing a notice of Federal Tax Lien or issuing a levy. Visit the Private Debt Collection page on IRS.gov for more information.
IRS officials concede scammers may pose as private collection firms. They remind taxpayers such firms will only be calling about a tax debt a person has had and been aware of for several years. In all cases, the IRS will have contacted the taxpayer previously. If you have paid your taxes and get such a call, it is probably a scam.
Taxpayers who are unsure whether they have an unpaid balance from a previous year can go to www.irs.gov/balancedue. If the account balance says zero, that means nothing is due, and you typically wouldn’t be getting a contact from the IRS or the private firm.
Author Mary Perren, WKVI
The Internal Revenue Service is preparing to turn seriously delinquent accounts over to private-sector collection agencies. The agency notes these are unpaid individual tax obligations that are not currently being worked by IRS collection employees and often were assessed by the tax agency several years ago.
Affected taxpayers will first receive mailings and subsequent telephone calls from the agency advising them of the pending collections. The mailing will contain the contact information for the private collection agency and include a copy of Publication 4518, What You Can Expect When the IRS Assigns Your Account to a Private Collection Agency.
IRS officials note only four private groups are participating in the program: CBE Group of Cedar Falls, Iowa; Conserve of Fairport, N.Y.; Performant of Livermore, Calif.; and Pioneer of Horseheads, N.Y. The taxpayer’s account will only be assigned to one of these agencies, never to all four. No other private group is authorized to represent the IRS.
After the IRS letter is sent, the designated private firm will send its own letter to the taxpayer and their representative confirming the account transfer. To protect the taxpayer’s privacy and security, both the IRS letter and the collection firm’s letter will contain information that will help taxpayers identify the tax amount owed and assure taxpayers that future collection agency calls they may receive are legitimate.
The private collectors will be able to identify themselves as contractors of the IRS collecting taxes. Their employees must be courteous, respect taxpayer rights and follow provisions of the Fair Debt Collection Practices Act.
They are authorized to discuss payment options, including setting up payment arrangements with taxpayers. However, payments must be made electronically or by check to the IRS. Payments should never be sent to a private firm or anyone besides the IRS or U.S. Treasury.
Additionally, private firms are not authorized to take enforcement actions against taxpayers. Only IRS employees can file notices of Federal Tax Lien or issue a levy.
Private firms are not authorized to take enforcement actions against taxpayers. Only IRS employees can take these actions, such as filing a notice of Federal Tax Lien or issuing a levy. Visit the Private Debt Collection page on IRS.gov for more information.
IRS officials concede scammers may pose as private collection firms. They remind taxpayers such firms will only be calling about a tax debt a person has had and been aware of for several years. In all cases, the IRS will have contacted the taxpayer previously. If you have paid your taxes and get such a call, it is probably a scam.
Taxpayers who are unsure whether they have an unpaid balance from a previous year can go to www.irs.gov/balancedue. If the account balance says zero, that means nothing is due, and you typically wouldn’t be getting a contact from the IRS or the private firm.
Wednesday, March 29, 2017
IRS Reminds Seniors to Beware of Scam Phone Calls This Tax Season
Posted on March 29, 2017
Author Michael Gallenberger, WKVI
Senior citizens are reminded to be alert for scam phone calls this tax season. Scammers go to great lengths to sound like they’re from the Internal Revenue Service, but they’re not. For example, they may use fake names or badge numbers, and may also use a fake caller ID number.
The caller may tell victims they owe money to the IRS and have to pay it through a prepaid debit card or wire transfer. The scammer may threaten the victim with arrest if they don’t pay.
On the other hand, they may also tell victims they have a refund due, but they need to share some private information first. IRS officials say the calls can be frightening or intimidating, but that’s not how the IRS does business. They say to avoid getting scammed out of hundreds or thousands of dollars, the best thing to do is just hang up.
Later this spring, four outside agencies will be authorized to contact taxpayers, as part of a new private debt collection program. However, the IRS will provide written notice before transferring someone’s account to a private collection agency. The agency itself will then send a second letter.
The IRS reminds taxpayers that it will never demand immediate payment using a specific payment method like a prepaid debit card, gift card, or wire transfer. The IRS will also never threaten to immediately bring in local police to arrest a taxpayer or ask for credit and debit card numbers over the phone.
Author Michael Gallenberger, WKVI
Senior citizens are reminded to be alert for scam phone calls this tax season. Scammers go to great lengths to sound like they’re from the Internal Revenue Service, but they’re not. For example, they may use fake names or badge numbers, and may also use a fake caller ID number.
The caller may tell victims they owe money to the IRS and have to pay it through a prepaid debit card or wire transfer. The scammer may threaten the victim with arrest if they don’t pay.
On the other hand, they may also tell victims they have a refund due, but they need to share some private information first. IRS officials say the calls can be frightening or intimidating, but that’s not how the IRS does business. They say to avoid getting scammed out of hundreds or thousands of dollars, the best thing to do is just hang up.
Later this spring, four outside agencies will be authorized to contact taxpayers, as part of a new private debt collection program. However, the IRS will provide written notice before transferring someone’s account to a private collection agency. The agency itself will then send a second letter.
The IRS reminds taxpayers that it will never demand immediate payment using a specific payment method like a prepaid debit card, gift card, or wire transfer. The IRS will also never threaten to immediately bring in local police to arrest a taxpayer or ask for credit and debit card numbers over the phone.
Tuesday, March 21, 2017
Taxpayers, Tax Preparers Targeted by Last-Minute Email Scams
Posted on March 21, 2017
Author Michael Gallenberger, WKVI
Tax filing season is heading into its final weeks, and the Internal Revenue Service says to be on the lookout for a few last-minute email scams. IRS officials say this is the time of year when tax-related scams reach their peak.
One thing taxpayers should look out for is emails appearing to be from their tax software provider, bank, or credit card company asking them to update their online accounts. They could be a scam to obtain passwords, Social Security numbers, bank account information, or other sensitive data.
Meanwhile, tax professionals are also being targeted with email scams. According to the IRS, tax preparers have been getting emails which appear to be from their clients. They ask them to make a last-minute change to their refund destination, often to a prepaid debit card. The IRS recommends that tax professionals verbally check with their clients, should they receive such a request by email. Tax professionals are also encouraged to update and strengthen their email passwords to help protect their clients’ data.
The IRS says never open an attachment or link from an unknown source. If you get a suspicious email, forward it to phishing@irs.gov.
More security tips can be found on the IRS website.
Author Michael Gallenberger, WKVI
Tax filing season is heading into its final weeks, and the Internal Revenue Service says to be on the lookout for a few last-minute email scams. IRS officials say this is the time of year when tax-related scams reach their peak.
One thing taxpayers should look out for is emails appearing to be from their tax software provider, bank, or credit card company asking them to update their online accounts. They could be a scam to obtain passwords, Social Security numbers, bank account information, or other sensitive data.
Meanwhile, tax professionals are also being targeted with email scams. According to the IRS, tax preparers have been getting emails which appear to be from their clients. They ask them to make a last-minute change to their refund destination, often to a prepaid debit card. The IRS recommends that tax professionals verbally check with their clients, should they receive such a request by email. Tax professionals are also encouraged to update and strengthen their email passwords to help protect their clients’ data.
The IRS says never open an attachment or link from an unknown source. If you get a suspicious email, forward it to phishing@irs.gov.
More security tips can be found on the IRS website.
Tuesday, February 7, 2017
IRS Warns Taxpayers of Phone Scams this Tax Season
Posted on February 6, 2017
Author Michael Gallenberger, WKVI
The Internal Revenue Service expects phone scams to remain a threat this tax season. Once again, they’ve made the “Dirty Dozen” list of tax scams released each year by the IRS.
The IRS reminds taxpayers that it generally does not initiate contact by phone. Instead, they will mail a bill first.
Additionally, the IRS will never call to demand that people pay immediately using a specific payment method, like a prepaid debit card, gift card, or wire transfer. They will also never threaten to immediately have someone arrested for not paying.
Since October of 2013, more than 10,000 phone scam victims have collectively paid over $54 million, according to the Treasury Inspector General for Tax Administration.
Visit https://www.irs.gov for more information.
Author Michael Gallenberger, WKVI
The Internal Revenue Service expects phone scams to remain a threat this tax season. Once again, they’ve made the “Dirty Dozen” list of tax scams released each year by the IRS.
The IRS reminds taxpayers that it generally does not initiate contact by phone. Instead, they will mail a bill first.
Additionally, the IRS will never call to demand that people pay immediately using a specific payment method, like a prepaid debit card, gift card, or wire transfer. They will also never threaten to immediately have someone arrested for not paying.
Since October of 2013, more than 10,000 phone scam victims have collectively paid over $54 million, according to the Treasury Inspector General for Tax Administration.
Visit https://www.irs.gov for more information.
Wednesday, June 1, 2016
Tax Scammers Now Targeting Students
The Internal Revenue Service is warning taxpayers about another phone scam, this one targeting students. A caller claiming to be from the IRS demands payment for a “Federal Student Tax,” threatening to report students to the police if they don’t wire money immediately. Not only are these scammers not from the IRS, the “Federal Student Tax” doesn’t even exist.
The IRS reminds taxpayers that it will never demand payment without having first mailed a bill. It also won’t threaten to bring in local police to have people arrested for not paying, or require them to use a specific payment method, like a prepaid debit card.
IRS officials ask those who receive these scam telephone calls to report them to the Treasury Inspector General for Tax Administration and the Federal Trade Commission.
Wednesday, March 16, 2016
Tax Scammers Stealing Information While Promising Tax Returns
Scammers are now taking a more polite approach in their efforts to steal personal and financial information. That’s according to the Internal Revenue Service. In the last few weeks, the IRS has been getting reports of a phone scam, in which callers pretend to verify tax return information.
Rather than threatening taxpayers and demanding immediate payment as most scammers do, these callers actually promise to give money to the recipient. Specifically, the scammers call saying they have your tax return, but they need to check a few details before it can be processed. By doing this, scammers hope to make taxpayers reveal their Social Security number, bank numbers, credit card numbers, or other information.
However, the IRS says it will never call unexpectedly and ask you to verify your personal tax information. IRS officials ask those who receive these calls to report them to the Treasury Inspector General for Tax Administration and the Federal Trade Commission.
The IRS reminds taxpayers that if they know they don’t owe taxes, they have no reason to give their financial information to anyone. If you think you may owe taxes, you can call the IRS at 800-829-1040, so IRS workers can help you.
Monday, February 22, 2016
Beware of Income Tax Scams
Tax refund fraud is predicted to soar again this year. The Internal Revenue Service expects it to reach $21 billion. Now that tax filing season is here, Hoosiers and taxpayers across the country are getting calls from scammers claiming to be with the IRS. Mandla Moyo with AARP Indiana says such scammers prey on people’s fears and count on the fact they will take an official-sounding telephone call seriously.
Moyo adds scammers work by intimidation, so it’s important to know the I-R-S never contacts people by telephone like that. Additionally they do not threaten individuals or their family members with jail time due to delinquent taxes.
The best thing to do if you get such a telephone call is to hang up. Do not give any personal information to anyone who contacts you via telephone claiming to be an IRS agent.
To file a tax return electronically, all someone needs is a name, date of birth and a Social Security number. The IRS accepts tax filings starting in January, but employers aren’t required to submit their payroll information to the agency until March. By that time, Moyo says about half of all refunds have been paid – many to people using someone else’s identity.
Steve Vanderver heads up the AARP Foundation’s Tax Aide program in Indiana, which offers free tax-filing assistance. He encourages seniors to file regardless of whether they made any money during the year, as a precaution to help keep their Social Security number secure. He says the Tax Aide program has checks and balances in place to keep personal information safe. He says they don’t keep any documents from the taxpayers they serve. They give everything back and tell people to keep them in a safe place
Tax Aide assistance is open to any low- or middle-income person, not just seniors or AARP members.
Tuesday, January 19, 2016
More American Households Qualify for Free File Tax Services Posted on
The Internal Revenue Service is looking to help more middle income households file their tax returns for free.
This year, the Free File Alliance and the IRS have re-launched the Free File program. For 2016, there are 13 tax software providers that have made their federal tax return products available for free.
Gross income requirements to file a free tax return have been altered from $60-thousand to $62-thousand in 2016. That affects 70-percent of American taxpayers according to information provided by the IRS.
State tax returns work a bit differently. A growing number of states have been working to make preparation and filing free, but the choice to apply a fee is largely left up to the preparation service.
The Free File Alliance says they have also been working to increase the security of tax documentation – with more identity theft safeguards. Information is also provided which allows taxpayers to get information about how to safeguard themselves against identity theft and potential tax fraud.
More than 46-million people have used the Free File service. Free File software may be used immediately to prepare your tax return. More information is available on the IRS website.
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