Tag Archives: deductions

Tax Reform is Confusing Part 2

Do you struggle feeling Tax Reform is confusing?

Yes, tax reform is confusing. In part 2 we hope to shed light on other areas of tax reform changes. As mentioned last week, we decided to put together a side-by side comparison of the old and new law. At the end of Part 1’s blog post, is an infographic to help you maneuver all the details behind Tax Reform. Below we will break down Part 2 of this very long infographic for an easier understanding. Let’s go! Continue reading

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Tax Reform and Your Taxes

Well, the Tax Cuts and Jobs Act (H.R. 1) has passed, mainly starting in 2018. Are you confused by tax reform and your taxes, and how this new law will impact you? You’re not alone. As has become the norm for Congress, it played brinksmanship and waited to almost the end of the year, in the midst of the holidays, to pass this very extensive tax bill, providing little time for anyone to plan for 2018.

So that you have an idea about how these changes might affect individual taxpayers like yourself, we have put together some of the key points of the new law. As a suggestion, pull out your 2016 federal return and follow along to get a better understanding of these changes. Continue reading

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Top 12 IRS Tax Scams for 2016

We are interrupting our regularly scheduled series, to bring you the Top 12 IRS Tax Scams for 2016 — and, it is revealing. Our series will resume in our next blog.

1. Identity Theft. A tax returned filed under another personal identity.

2. Phone Scams. These scams involve threats of the IRS coming after you. Fear tactics are used to scare individuals into giving over personal information.

3. Phishing. Emails are used to trick you into clicking on links and responding to false inquiries. You can read more in Phishing Scams, Tax Scams Part 1 of 4 in our scams series.

4. Return Preparer Fraud. These are not tax preparers at all, but instead people who claim to be qualified to file your tax papers. You should always vet who you chose to do your taxes.  Of course, once you hand over your information, they will then steal your identity and your refund.

The IRS has launched the Directory of Federal Tax Return Preparers.  If you search Massachusetts 02169, 5 miles, Franch, and Enrolled Agent Credentials, you will find Alex Franch, BS EA of Worthtax listed.

 

2016_01_09 IRS Tax Preparaer's Directory, Top 12 IRS Tax Scams

 

5. Offshore Tax Avoidance. This is the attempt to hide money and income through offshore accounts for the purpose of evading taxes. The IRS suggests that if someone is involved in this to come clean and voluntarily get caught up on tax filings.

6. Inflated Refund Claims. Beware of any tax preparer who promises you a large refund before doing your taxes. This goes hand and hand with #4 above.

7. Fake Charities. This is low, I mean low. These are set up at the most vulnerable and devastating time.  Scammers pull at your heart strings to give to a cause, only to turn around and steal your money.

8. Falsely Padding Deductions. Don’t claim a deduction that isn’t yours. Don’t overstate an amount. Do not claim a credit that does not apply to you. And carefully consider what you take as a deduction for charitable contributions, and rental and business expenses.

9. Excessive Claims for Business Credits. This goes hand and hand with Falsely Padding Deductions. Fuel Tax Credits is one common area of abuse by overstating mileage. Another example given is the Research Credit. Make certain you can adequately prove any credits you take.

10. Falsifying Income to Claim Credits. Don’t make up a tax credit on your tax return. Remember those false tax preparers in #4, well these scammers will try to get you to agree to falsifying your tax return just so you will get a bigger refund. Oops, did I say you? I meant them a bigger refund. Because the scammer will steal your money.

11. Abusive Tax Shelters. The IRS has means of finding abuse. They are determined to find complicated and convoluted tax evasion plots.

12. Frivolous Tax Arguments. These frivolous tax arguments are designed by scammers to convince you to come up with every imaginable argument for not paying taxes. They convince you you have a case, only to put you in a worse predicament. They are often repeat offenders. And, the claims they make irrational and bizarre.

 

Do you think you fell victim to the IRS “Dirty Dozen” List of Scams?

So there you have it! The IRS “Dirty Dozen” List of Scams. If you think that you fell victim to any of the above scams call Alex Franch, BS EA at 781.849.7200. He can help you with the paper work involved to restore your right identity with the IRS. You can also visit our Tax Identity Theft Information Center. Worthtax has locations in Quincy, Weymouth and Dedham.

Other Tax Identity Theft Help Articles:

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