Avoiding And Reporting Tax Scams

How to Avoid the “Dirty Dozen” Tax Scams

In the past few years, the IRS has seen a considerable rise in identity theft and refund fraud, as scammers attempt to get your personal information in a fraudulent email, where they claim to be someone from the IRS or the makers of TurboTax Software. In the email, they claim that they need a greater amount of personal information, which according to the Better Business Bureau is a red flag.

People should not answer these sorts of emails, call any phone numbers listed or click on any links provided in the letter. … Read the rest

How Does The IRS Choose Who To Audit?

Quick Facts About the IRS Audit

Getting a letter from the Internal Revenue Service stating you’ve been selected for audit is a taxpayer’s worst nightmare and can create a lot of anxiety.

Sometimes these notices are simple, such as you forgot to sign a document or you made a math error. The more ominous possibilities, however, will question your income, deduction claims, and more.

The IRS definition of an audit states that is simple a review of a taxpayer’s return used to verify the tax amount paid and reported is correct. If you happen to be selected for an audit, … Read the rest

Simple Tips To Help You When Determining Your Filing Status

Eight Tips to Help You Determine Your Filing Status

Before you file your federal income tax returns, you must first determine you filing status. There are 5 filing statuses: Married Filing Jointly, Single, Married Filing Separately, Qualifying Widow or Widower with Dependent Child and Head of Household. Your filing status is normally used to determine your standard deductions, filing requirements, eligibility for certain deductions and credits. It also helps in computing correct taxes.

It is important to note that some people may have more than one status. The following are 8 tips to help you when filing your returns. … Read the rest

The Effects Of Budget Cuts In The IRS

Budget Cuts Have Affected The Performance Of The I.R.S., Report Claims

Due to budget cuts and an ever increasing workload, the IRS is unable to carry out its primary duty of tax collection effectively. This is according to a report in Wednesday’s issue of the Internal Monitor, a publication of the IRS.

Budget cuts have led to staff reductions causing a huge backlog of work. Hundreds of billions of dollars in taxes are not being collected every year because of these changes. This is what the taxpayer advocate, Nina Olson claims in her report to Congress.

In order to discharge … Read the rest

Do Not Fall For Trecherous Tax Scams

Do Not Be Deceived By Cyber Criminals’ Tax Scams!

The U.S. Internal Revenue Service (“IRS”) fields thousands of  complaints annually from taxpayers concerned about suspicious faxes, e-mails, phone calls, and printed notices. Parties initiating such correspondence invariably purport to be IRS representatives. Many such scams even employ forged IRS insignia to entice a response. Known as “phishing,” the common objective of these scams is tricking unsuspecting taxpayers into disclosing sensitive financial and personal data. This info is then used to steal your money or identity.

Following are five facts to know about all forms of phishing:

  • Legitimate IRS communications never
Read the rest