Avoid Refund Delays!

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Many people dread tax time, but it can be even more frustrating if you have to wait longer than you’d hoped for your refund. Unfortunately, the Internal Revenue Service is warning that patience may be necessary this year. For one thing, identity theft and tax refund scams have become significant concerns, so the Service is taking extra measures to spot fraudulent returns. The IRS is also required to hold refunds for returns claiming the Earned Income Tax Credit and the Additional Child Tax Credit until mid-February.

You can help prevent any additional delays by ensuring that you’re ready with all the necessary documents to file your return, including Forms W-2 and 1099 reporting your income, and all the required receipts and other paperwork to ensure you qualify for your deductions or credits. Contact our office today with any concerns you may have about preparing to file your return. We can offer personalized answers to all your financial questions.

Documenting Your Charitable Donations

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Many people make donations to charities whose work they support, but if you are planning to take a tax deduction for your gift, you must have the proper paperwork. Assembling the right documentation can also be tricky because the requirements vary based on whether the donation is cash and on the value of your gift. If you donate less than $250 in cash, for example, a canceled check, credit card statement or similar record may be sufficient, but if you give more, you will need a written acknowledgement from the charity. An additional tax form—and possibly an appraisal—may be needed for non-cash donations, depending on their value. Of course, the organization itself must also qualify as a charity under IRS rules. Be sure to contact us with all of your questions on charitable giving or any other financial concern.

2016 Tax Filing Deadlines

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For tax year 2016, the IRS adjusted several due dates for the filing of tax returns and foreign account reporting.

  • The due date (without extension) for filing a C corporation tax return will be three-and-a-half months after the close of the tax year (April 15 for calendar-year tax years).
  • The due date (without extension) for filing a partnership tax return will be two-and-a-half months after the close of the entity’s tax year (March 15 for calendar-year tax years).
  • The due date (without extension) for filing a S corporation tax return will be two-and-a-half months after the close of the entity’s tax year (March 15 for calendar-year tax years).
  • The due date for filing a trust tax return (Form 1041) having a calendar year will be April 15.
  • The due date for filing a trust tax return (Form 1041) with a non-calendar year will be three-and-a-half months after the close of the tax year.
  • The due date for filing the FinCEN Foreign Bank Account Reporting (FBAR) will be April 15.

As a general rule, the new filing dates are effective for tax returns filed beginning January 1, 2016. The exception to this rule is for C corporations with tax years ending on June 30. For those C corporations, the current due date (without extension) will remain September 15 until after 2025.

 

 

 

Beware of Tax Scams!

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Did you know that con artists posing as Internal Revenue Service representatives frequently try to scam people out of their money? While this is a long-standing problem, the IRS has issued a new warning against thieves who may contact people on the phone or via email or a letter and try to trick them into divulging personal financial information, such as their Social Security or bank account numbers, or sending cash. And the scams can be tough to spot. Potential victims may see a fake caller ID that identifies the call as coming from the IRS or receive mail or email that appears to have the IRS letterhead or one like this that resembles the IRS website. The scammers typically try to intimidate victims into acting quickly—by, say, sending a payment to what they claim is an IRS address—by threatening arrest or some other consequence.

If you receive an IRS communication that seems suspicious or doesn’t make sense, please call our office. Whether you are facing a legitimate tax issue or a scam, we can help you sort through the details and determine how to respond. You can report incidents to the Treasury Inspector General for Tax Administration at 800-366-4484 or online. Remember, too, that the IRS website is www.irs.gov, so be on alert if you’re directed to another similar site that ends in .com or .net instead of .gov.

IRS Renews Warning about Form W-2 Scam

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The IRS has renewed its warning about an email scam that targets payroll and human resources departments. The scam involves a phishing email that solicits sensitive employee information such as social security numbers and copies of Form W-2 and has expanded to include school districts, tribal organizations, and nonprofit groups. In addition, cybercriminals are now following up with an apparent executive email to the payroll department or controller asking that a wire transfer be made to a certain account. The IRS encourages all organizations to create an internal policy on the distribution of employee W-2 information. Organizations receiving the phishing email should forward it to phishing@irs.gov . News Release IR 2017-1 and 2017-20.