Fake IRS scammers are getting more convincing

Thieves who call pretending to be IRS agents seem to know a lot more about the people they’re trying to scam and create a deep fear, making it seem like the victims are really in trouble with the IRS.
Scammers are targeting middle class families.
Beware of scammers making unsolicited calls claiming to be IRS officials. They demand that the victim pay a bogus tax bill. They con the victim into sending cash, usually through a prepaid debit card or wire transfer. They may also leave “urgent” callback requests through phone “robo-calls,” or via a phishing email.

Scammers often alter caller ID numbers to make it look like the IRS or another agency is calling. The callers use IRS titles and fake badge numbers to appear legitimate. They may use the victim’s name, address and other personal information to make the call sound official.

The IRS Will Never:

Call to demand immediate payment over the phone, nor will the agency call about taxes owed without first having mailed you a bill.

Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.

Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.

Require you to use a specific payment method for your taxes, such as a prepaid debit card.

Ask for credit or debit card numbers over the phone.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

How Seasonal Workers Affect Your Workforce Size

For purposes of the Affordable Care Act, an employer’s size is determined by the number of its employees. Employer benefits, opportunities and requirements are dependent upon the employer’s size and the applicable rules. If an employer has at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, the employer is an ALE for the current calendar year.  However, there is an exception for seasonal workers.

Here’s the exception: If your workforce exceeds 50 full-time employees for 120 days or fewer during a calendar year, and the employees in excess of 50 during that period were seasonal workers, your organization is not considered an ALE. For this purpose, a seasonal worker is an employee who performs labor or services on a seasonal basis.

The terms seasonal worker and seasonal employee are both used in the employer shared responsibility provisions, but in two different contexts. Only the term seasonal worker is relevant for determining whether an employer is an applicable large employer subject to the employer shared responsibility provisions.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

How a Summer Wedding Can Affect Your Taxes

With all the planning and preparation that goes into a wedding, taxes may not be high on your summer wedding checklist. However, you should be aware of the tax issues that come along with marriage. Here are some basic tips to help with your planning:

Name change. The names and Social Security numbers on your tax return must match your Social Security Administration records

Change tax withholding. A change in your marital status means you must give your employer a new Form W-4, Employee's Withholding Allowance Certificate.

Changes in circumstances. If you or your spouse purchased a Health Insurance Marketplace plan and receive advance payments of the premium tax credit in 2016, it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace when they happen.

Address change. Let the IRS know if your address changes. To do that, send the IRS Form 8822, Change of Address. You should also notify the U.S. Postal Service.

Tax filing status. If you’re married as of Dec. 31, that’s your marital status for the whole year for tax purposes.

Select the right tax form. Choosing the right income tax form can help save money.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

IRS, Partners Warn Tax Preparers of Data Theft Risks

Leaders from the Internal Revenue Service, state tax agencies and tax preparation community today warned tax preparers that they increasingly are targets of cybercriminals and should take appropriate steps to protect clients from data theft.
IRS also posted new information to help tax professionals get started with safeguards to protect clients’ data. It’s the first in a series of fact sheets and tips on security, scams and identity theft prevention measures aimed at tax professionals. The Protect Your Clients; Protect Yourself campaign will run through the start of the 2017 filing season.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Summer Time Tax Tip : Paying owed taxes

The IRS offers many safe and easy ways to pay your taxes. These tips explain many of them:

• Mailed tax bills. The IRS sends bills in the U. S. mail. Try to pay soon and in full to avoid any extra charges.
• Use IRS Direct Pay. The best way to pay your taxes is with IRS Direct Pay. It’s the safe, easy and free way to pay from your checking or savings account.
• Get a short-term payment plan. If you owe more tax than you can pay, you may qualify for more time- up to 120 days- to pay in full.
• Apply for an installment agreement. Most people who need more time to pay can apply for an Online Payment Agreement on IRS.gov.
• Check out an offer in compromise. An offer in compromise or OIC may let you settle your tax debt for less than the full amount you owe. 
• Avoid tax surprises. If you are an employee, you can avoid a tax bill by having more taxes withheld from your pay. To do this, file a new Form W-4, Employee’s Withholding Allowance Certificate, with your employer.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

Tax Breaks for the Military

If you are in the U. S. Armed Forces, there are special tax breaks for you. For example, some types of pay are not taxable. Certain rules apply to deductions or credits that you may be able to claim that can lower your tax. In some cases, you may get more time to file your tax return. You may also get more time to pay your income tax. Here are some tips to keep in mind:

Deadline Extensions.  Some members of the military, such as those who serve in a combat zone, can postpone some tax deadlines.
Combat Pay Exclusion.  If you serve in a combat zone, your combat pay is partially or fully tax-free.
Moving Expense Deduction.  You may be able to deduct some of your unreimbursed moving costs on Form 3903.
Earned Income Tax Credit or EITC.  If you get nontaxable combat pay, you may choose to include it in your taxable income. Including it may boost your EITC, meaning you may owe less tax and could get a larger refund.
Signing Joint Returns.  Both spouses normally must sign a joint income tax return. If your spouse is absent due to certain military duty or conditions, you may be able to sign for your spouse.
Reservists’ Travel Deduction.  Reservists whose reserve-related duties take them more than 100 miles away from home can deduct their unreimbursed travel expenses on Form 2106, even if they do not itemize their deductions.
Uniform Deduction.  You can deduct the costs of certain uniforms that you can’t wear while off duty.
ROTC Allowances.  Some amounts paid to ROTC students in advanced training are not taxable.
Civilian Life.  If you leave the military and look for work, you may be able to deduct some job search expenses.
Tax Help.  Most military bases offer free tax preparation and filing assistance during the tax filing season.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999

IRS Takes Steps to Strengthen IVES Program

As part of a wider effort to protect taxpayer information and strengthen authentication standards, the Internal Revenue Service is putting in place new requirements for participants using the Income Verification Express Service (IVES), a service supporting the lending industry to verify loan applicant’s incomes.
The new requirements will help further ensure IVES participants verify and validate their clients using the system. The IVES service is used by pre-screened companies who, in turn, are hired by clients such as mortgage firms and loan companies who need to verify applicants’ income.
The IRS is working with the IVES participants to help ensure a smooth transition to the stronger validation rules. These new requirements are being shared this week with the participants. The IRS will only accept transcript requests from IVES participants who certify that they will submit requests only from clients who have been verified using the new requirements.

Courtesy of IRS

For more information contact Neikirk, Mahoney and Smith at 502-896-2999