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Protect Yourself from Threats

            When it comes to data security threats, the challenges never end. The tactics that criminals use continue to change, but there are some basic things to keep in mind. When it comes to mass email messages or texts, the goal is to get someone to click on a link to steal information or download malware. This is phishing or smishing. An update to this scam is called clone phishing. In this variation, a real email is copied and sent to the recipient again. This time it has an attachment with malicious software or a link to a website designed to steal your personal information.           We can never be too sure how the attack will present itself, but we can be prepared with security measures to protect ourselves. Stop and be aware of warning signs. Unexpected messages with urgent tones telling you to click or download something should be examined closely. Getting a repeated message from a trusted source w...
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Early Results from Focused Efforts on High Income Tax Cheats

            Over the past year, the Internal Revenue Service ( IRS ) has used funding from the Inflation Reduction Act on audit activities for those who earn more than $1 million and have more than $250,000 in tax debt. In that time, the IRS collected $1 billion from the group that met these criteria. The increase in funding will allow for other goals to be reached as well.           More staff has been added and technology is being updated to provide better service to all taxpayers in the coming years. The IRS will now expand its enforcement activity to include complex partnerships, large corporations, and high-income high wealth individuals who do not file tax returns. In recent years the IRS was not consistent with enforcing tax rules in this area and had fallen behind in the ways some had gotten around their tax responsibilities. These new initiatives look to bridge that gap. If you are in need of t...
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Appealing an IRS Rejection: Offer in Compromise

            When it comes to paying a tax debt, dealing with the Internal Revenue Service ( IRS ) can be challenging. There are programs that are available to help in these situations. One of them is called Offer in Compromise. It allows a taxpayer to pay less than the full amount they owe when considering factors like ability to pay and income. However, an application to this program is not a guarantee of acceptance.           If the Offer in Compromise is rejected, it can be appealed. For that to be successful it must take place within 30 days of the rejection. The appeal must also be specific. There must be documentation to support each area of disagreement with the IRS . In a situation like this, it may be wise to consult a qualified tax professional .
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The IRS Focuses on High Income Tax Cheats

             The Internal Revenue Service ( IRS ) continues to focus on applying the tax laws with accuracy and fairness. With that in mind, they have announced that they are restarting a program that focuses on individuals who did not file returns from 2017 to 2021 and had at least $400,000 in income. They have identified at least 125,000 cases of people who are not in compliance.           The non-filer letters will be going out every week to start the process of filing returns, collecting taxes, interest, and penalties. The basis of these letters comes from information through Forms W2, 1099 and others. Those who receive letters of this nature need to take quick action. The enforcement actions in this program are stronger than usual. That makes it critical that those who receive these letters go to a qualified tax professional . The IRS can be made aware of qualifying deductions and credits that can ch...
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Beware of Phishing

              Phishing is a problem that never really goes away, but the intensity increases at certain times of the year. Tax Season is one of those times. Phishing is the practice of sending fraudulent communication pretending to be from a source that is trustworthy. This can take on different forms. Most common are emails and text messages.           The Internal Revenue Service ( IRS ) will never send a message to taxpayers asking for personal or financial information. These types of messages are received frequently and are created to induce panic or fear so that taxpayers will act without thinking. If you get a suspicious message, do not reply. Do not click on any attachments or links. This can install a virus. Delete the message. The IRS will never use social media to ask taxpayers for information.
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Penalty Relief From the IRS

            The pandemic caused a great disruption to many institutions, and the Internal Revenue Service ( IRS ) was not exempt from this. In fact, their mail services were paused for a time and many who had tax balances did not receive a notice for the tax years 2020 and 2021. When tax balances are not paid promptly, penalties and interest will compound the amount. How will the IRS rectify this problem?           At the end of 2023, it was announced that the IRS had created a program to provide relief for those who were not given a written notice that they had a tax balance. They will automatically waive penalties on taxed amounts of $100,000 or less. Those who have already paid may be eligible for a credit on other tax years or a refund of the tax penalty. Those with more than $100,000 in taxes assessed are not automatically enrolled, but they can apply for relief.    ...
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What is Fair in the Tax System?

                 Everyone wants to be treated fairly. That is an essential quality that all people have. But what is fairness? Trying to answer that question can prove to be difficult for some. While fairness is impartial and just treatment without favoritism or discrimination, applying this principle is a challenge. Each person has their own idea of what is fair. That is certainly true when it comes to the current tax system.           The Internal Revenue Service ( IRS ) is aware of that sentiment. After a year of review following the passing of the 2022 Inflation Reduction Act funding, they are determined to make a change. These changes will focus attention on the wealthy, partnerships, and other high-income earners who in recent years have had a sharp reduction in audits. The IRS is planning to use Artificial Intelligence to detect patterns in tax avoidance and new threats. They will al...
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