How Consumers Can Avoid Becoming a Potential Victim of IRS Scammers

How Consumers Can Avoid Becoming a Potential Victim of IRS Scammers

 

With the tax season rapidly approaching, it is extremely important for taxpayers to be vigilant. According to the Internal Revenue Service, scammers are targeting recent immigrants with threats of arrest and deportation if the money demanded is not paid through a pre-loaded debit card or wire transfer.  Generally, these scammers use common names to identify themselves and are able to recite the last four digits of the victim’s Social Security Number.

 

If you or someone you know has fallen victim to such a scam, the Internal Revenue Service encourages you to contact them directly. You should also file a complaint with the Federal Trade Commission.  If you receive one of these calls and do not owe taxes, you should immediately report the incident to the Treasury Inspector General for Tax Administration.

 

Happy Filing!

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How Consumers Can Avoid Becoming a Potential Victim of IRS Scammers

With the tax season rapidly approaching, it is extremely important for taxpayers to be vigilant. According to the Internal Revenue Service, scammers are targeting recent immigrants with threats of arrest and deportation if the money demanded is not paid through a pre-loaded debit card or wire transfer.  Generally, these scammers use common names to identify themselves and are able to recite the last four digits of the victim’s Social Security Number.

 

If you or someone you know has fallen victim to such a scam, the Internal Revenue Service encourages you to contact them directly. You should also file a complaint with the Federal Trade Commission.  If you receive one of these calls and do not owe taxes, you should immediately report the incident to the Treasury Inspector General for Tax Administration.

 

Happy Filing!

White House Says Tax Avoidance, Evasion to Be Major Issues at G-8 Meeting

The White House continues its efforts on the pursuit of tax evasion and legal tax avoidance.  Their focus includes companies that take advantage of U.S. tax laws to shift profits to no tax or low tax jurisdictions.

According to Caroline Atkinson, Special Assistant to the President for International Economic Affairs, The United States continues to push for a “single global standard” based on the Foreign Account Tax Compliance Act (“FATCA”).  “We believe that’s a very powerful tool. We’ve already seen it having a powerful effect on tax havens and illicit activity using such tax havens,” Atkinson said. Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the Internal Revenue Service.

The United States is also working with the United Kingdom and other countries to improve the ability of tax authorities and law enforcement to identify the people behind shell companies that are set up to hide tax liabilities.  What this means is that with a great focus on detection and government assistance in compliance, taxpayer may be further encouraged to come forward early.

 

Tips on Making Estimated Tax Payments

      When you do not have enough taxes withheld from your annual income, the IRS will expect you to make estimated tax payments.  This is the case for those earning self-employment income, interest, dividends or capital gains.  When applicable, estimated taxes should be done timely to avoid penalties and related interest assessments.  Penalties for failure to pay estimated taxes are often the most difficult to remove.    

            For 2013, should you expect to owe over $1,000.00 in tax, you will want to make estimated tax payments.  

            To calculate the amount of your estimated taxes, project the amount of income you expect to receive in the current year.  Remember, it may be prudent to include any tax deductions and credits, as well as the impact of life changing events such as birth and marriage.  If you are unsure, and your Adjusted Gross Income (AGI) was over $150,000.00 in the prior year, have your estimated tax payment equal 110% of what you owed for the prior year.  This figure should then be paid quarterly if possible.  To avoid shortfalls, it is best to try to make your estimates as accurate as possible.

            Estimated tax payments are usually made four times a year.  The dates that apply to most are April 15, June 17 and Sept. 16 in 2013 and Jan. 15, 2014.  Use the Form 1040-ES, Estimated Tax for Individuals, to report your estimated tax.

            Taxes may be paid online, by phone, check, money order, credit or debit card.  More information about your payment options are available in the Form 1040-ES instructions.  If you mail your payments to the IRS, payment vouchers that come with Form 1040-ES should be used.  It is recommended when paying by check that you are very clear with your identifying information as well as your tax year to which payment applies.

            For more information about estimated taxes, see Publication 505, Tax Withholding and Estimated Tax.

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Kundra & Associates

Maryland Tax Lawyers

Kundra & Associates is a Maryland-based tax law firm dedicated exclusively to tax defense and tax counsel. Our clients are comprised of domestic and international businesses and individuals located in Maryland, Virginia, Washington, D.C., across the nation and around the world. Our Maryland tax attorneys provide sophisticated tax defense and sound legal tax advice.

If you or your business is in need of IRS audit defense and tax litigation, we are ready to help. Contact our Washington, D.C., tax defense lawyers online or call 301-424-7585 to schedule an appointment to discuss your situation.