Blogs

Be the first person to recommend this.
The Internal Revenue Service announced today that the nation’s tax season will begin Monday, Jan. 23, 2017 and reminded taxpayers claiming certain tax credits to expect a longer wait for refunds. The IRS will begin accepting electronic tax returns that day, with more than 153 million individual tax returns expected to be filed in 2017. The IRS again expects more than four out of five tax returns will be prepared electronically using tax return preparation software. Many software companies and tax professionals will be accepting tax returns before Jan. 23 and then will submit the returns when IRS systems open. The IRS will begin processing paper...
0 comments
Be the first person to recommend this.
The Internal Revenue Service and Security Summit partners urged taxpayers to take immediate steps to protect their personal data to strengthen expanded efforts being taken this upcoming tax season by federal, state and tax industry leaders against identity theft and refund fraud. The Security Summit, an unprecedented collaborative effort between the IRS, the states and the nation's tax industry, announced in November plans to improve identity theft and refund fraud protections for individual and business taxpayers for the 2017 filing season. “The collective efforts of the IRS, the states and the tax industry have provided new and important protections...
0 comments
Be the first person to recommend this.
As tax season approaches, the Internal Revenue Service, the states and the tax industry reminded taxpayers to be on the lookout for an array of evolving tax scams related to identity theft and refund fraud. Every tax season, there is an increase in schemes that target innocent taxpayers by email, by phone and on-line. The IRS and Security Summit partners remind taxpayers and tax professionals to be on the lookout for these deceptive schemes. “Whether it's during the holidays or the approach of tax season, scam artists look for ways to use tax agencies and the tax industry to trick and confuse people,” said IRS Commissioner John Koskinen....
0 comments
Be the first person to recommend this.
Tax Professionals: Protect Your Clients; Protect Yourself Due to the sensitive client data held by tax professionals, cybercriminals increasingly target the tax preparation community. Thieves use a variety of tactics, from remote computer takeovers to phishing scams. The IRS and NSA ask for your help to combat identity theft and fraudulent returns. Working in partnership with you, we can make a difference. That’s why we launched a public awareness campaign that we call, “Protect Your Clients; Protect Yourself.” Identity thieves are a formidable enemy. Data breaches are increasing in number and scope. Thieves often use the stolen identity...
0 comments
Be the first person to recommend this.
Protect Your Clients: Security Summit Partners Warn Tax Pros of Cybercriminals, Launch New Awareness Tips The Internal Revenue Service, state tax agencies and the tax industry today warned tax professionals of the continuing threat from cybercriminals and launched a series of security tips to encouraging stronger measures to protect taxpayer data. The Security Summit partners note that cybercriminals worldwide are actively targeting tax professionals in an effort to steal taxpayer information that would allow them to file fraudulent tax returns for refunds. The Summit group, a partnership between the public and private sectors, urged the tax community...
0 comments

Avoid Identity Theft

Be the first person to recommend this.
Avoid Identity Theft, Learn How to Recognize Phishing Scams Simply ask for it. That’s the easiest way for an identity thief to steal your personal information. Each day, people fall victim to phishing scams through emails, texts or phone calls and mistakenly turn over important data. In turn, cyber criminals try to use that data to file fraudulent tax returns or commit other crimes. The IRS, NSA, state tax agencies and the entire tax industry -- all partners in the fight against identity theft -- urge you to learn to recognize and avoid phishing scams. We need your help in the fight against identity theft. That’s why, as part of...
0 comments
Be the first person to recommend this.
The Internal Revenue Service is urging as many qualifying homeowners as possible to contact their mortgage lenders and see if they can modify their mortgage payments to be eligible for a taxable-income exclusion set to expire at the end of the year. The IRS said will accept debt reduction modifications as long as the borrower receives a trial offer by the sunset of the Home Affordable Modification Program, set for Dec. 30, 2016, according to Notice 2016-72. The program was created to encourage banks to lower monthly mortgage payments to help homeowners stave off foreclosure after the subprime mortgage crisis. Congress extended the relief under §108(a)(1)(E)...
0 comments
Be the first person to recommend this.
Next week is National Tax Security Awareness Week As the 2017 tax season approaches, the IRS announced a special “National Tax Security Awareness Week” will take place next week to help taxpayers and the tax community protect sensitive tax and financial data. As part of the Security Summit effort, this joint initiative between the IRS, states and the tax community will share a variety of information throughout the week of Dec. 5-9 to educate taxpayers on steps they can take to protect themselves from identity theft and tax scams as well as protect their valuable financial data. NSA will be sharing valuable information with members...
0 comments
Be the first person to recommend this.
The January 20 swearing-in of Donald Trump as President - and the resulting change in control of the Administration to Republican hands – will result in significant changes in tax policy. What can tax professionals expect as we begin tax season and beyond? IRS Commissioner: IRS Commissioner John Koskinen's term expires one year from now, in November 2017, but he has said on numerous occasions that he would tender his resignation if the President requests it. Given that Republicans have for the past year suggested they would try to impeach Koskinen, what is likely to happen? Tax season will formally begin within a few days of Trump's...
0 comments
Be the first person to recommend this.
The Internal Revenue Service Advisory Council (IRSAC) Annual Report released on November 16 calls on the agency to "remove obsolete language and clarify inconsistent sections," primarily as a result of the decision in Loving v. IRS, 742 F.3d 1013 (D.C. Cir. 2014), which invalidated the IRS Registered Tax Return Preparer designation because it said the agency does not have the authority to regulate tax return preparers. The IRSAC report noted that Circular 230 currently makes more than 50 references to the RTRP designation, even though it has no continuing significance or effect. Steve Whitlock, head of the IRS Office of Professional Responsibility, said...
0 comments
Be the first person to recommend this.
The annual “Giving Tuesday” holiday is coming up on November 29, and many charitable causes will benefit from the generosity of millions of Americans who will give them money. But it’s not all about money – many people choose to donate hard goods ranging from cars to furniture and even real estate. “The end-of-year holidays are a time to celebrate many things in our lives,” says National Society of Accountants (NSA) Executive Vice President John Ams. “Why not make it a time to celebrate some tax savings, too?” But if you’re donating property, what is it worth? The Internal Revenue Service (IRS)...
0 comments
Be the first person to recommend this.
The standard deductions for single taxpayers, heads of households and married individuals will increase slightly in 2017, but the personal exemption is unchanged, the IRS said in an October 25 news release ( IR-2016-139 ). Taxpayers will use the information when filing their returns in 2018, the IRS said. According to the release, the personal exemption in tax year 2017 will be $4,050, just as it was in 2016, although a phase-out begins with adjusted gross incomes of $261,500 ($313,800 for married couples filing jointly). The exemption completely phases out at $384,000 ($436,300 for married couples filing jointly). There will be a $50 increase...
0 comments
Be the first person to recommend this.
The IRS today issued an urgent alert to tax professionals who use IRS e-services to beware of an email asking them to update their accounts and directing them to a fake website. The subject line for the fraudulent email is “Security Awareness for Tax Professionals.” The “From” line is “Your e-Services Team.” It has both an IRS logo and an e-services logo that hyperlinks to a URL verified as a phishing site. The spoofing site poses as an e-services registration page. The scammers are attempting to exploit current IRS efforts to strengthen the e-services authentication process and its ongoing communications with tax...
0 comments
Be the first person to recommend this.
The Internal Revenue Service announced the tax year 2017 annual inflation adjustments for more than 50 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2016-55 provides details about these annual adjustments. The tax year 2017 adjustments generally are used on tax returns filed in 2018. The tax items for tax year 2017 of greatest interest to most taxpayers include the following dollar amounts: The standard deduction for married filing jointly rises to $12,700 for tax year 2017, up $100 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $6,350...
0 comments
Be the first person to recommend this.
The IRS has announced that it has redetermined the user fee it will impose to cover the agency’s cost of overseeing the administration of the Enrolled Agent examination, the EA-SEE. The IRS now proposes to increase the user fee to $81 per part. The current fee per part charged by the IRS for its oversight services is $11 per part. The IRS portion of the examination cost is in addition to the fees charged by the examination contractor. The new IRS announcement states that, “For the May 2016 to February 2017 testing period, the contractor’s fee is $98 for each part of the EA-SEE. For the March 2017 to February 2019 testing periods, the...
0 comments
Be the first person to recommend this.
IRS Regulations Modify Election To Claim Prior-Year Disaster Losses The IRS has issued final and temporary regulations extending the due date for the election to deduct in the prior tax year a loss attributable to a federally-declared disaster, and for revoking such an election, as well as a revenue procedure explaining how to make or revoke the election. Casualty losses are generally allowed as a deduction only for the tax year in which the loss is sustained (disaster year). However, a taxpayer may elect to treat a loss occurring in a federally-declared disaster area as sustained in the tax year immediately prior to the disaster year. Taxpayers...
0 comments
Be the first person to recommend this.
The IRS yesterday issued final regulations that aim to curtail earnings stripping transactions by corporations. The rules set documentation requirements "for certain related-party interests in a corporation to be treated as indebtedness for federal tax purposes, and treat as stock certain related-party interests that otherwise would be treated as indebtedness for federal tax purposes," the IRS explains. A copy of the 518-page regulations is available here. A major revision in the final 518-page rule eliminates the "bifurcation rule," which would have given the IRS broad discretion to treat certain interests in a corporation as debt in part and stock...
0 comments
Be the first person to recommend this.
Double Check ACA Information on Your Return If you received an extension of time to file your 2015 federal tax return, you have until Oct. 17 to double check your return and information on it that is related to the Affordable Care Act. The health care law includes the individual shared responsibility provision and the premium tax credit that may affect your return. Many people already have minimum essential coverage. If this applies to you, you'll simply report your coverage when you file your tax return by checking a box on your Form 1040, 1040A or 1040EZ. Most taxpayers simply need to check a box on their tax return to indicate you had health...
0 comments
Be the first person to recommend this.
IRS will begin emailing all PTIN holders beginning October 17 advising them their PTINs expire on December 31, 2016 and that open season is underway for renewing for 2017. The renewal fee is $50. Get started at www.IRS.gov/ptin . There will also be an "early bird" renewal for about 70,000 PTIN holders who have renewed early the past two or three years. The IRS will email those individuals separately giving them the opportunity to renew their PTIN before the season opens to the general public. The early bird email will provide instruction for these individuals to renew early through Oct. 14. These individuals can still renew your PTIN during renewal season...
0 comments
Be the first person to recommend this.
With another school year now in full swing, the Internal Revenue Service today reminded parents and students that now is a good time to see if they qualify for either of two college tax credits or other education-related tax benefits when they file their 2016 federal income tax returns next year. In general, the American Opportunity Tax Credit or Lifetime Learning Credit is available to taxpayers who pay qualifying expenses for an eligible student. Eligible students include the taxpayer, spouse and dependents. The American Opportunity Tax Credit provides a credit for each eligible student, while the Lifetime Learning Credit provides a maximum credit per...
0 comments

Blog Categories