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The Internal Revenue Service spotted $961 million in fraudulent refund claims on tax returns through early March, according to the Treasury Inspector General for Tax Administration in a report released April 7. The report provides interim results of the 2017 tax filing season and is available here . "This period is critical for the IRS, because during this time, most individuals file their income tax returns and contact the IRS if they have questions about specific laws or filing procedures," TIGTA said. The IRS confirmed identity theft cases involving 14,068 fraudulent tax returns as of March 2. Overall, the agency has received fewer returns at this ...
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NSA and other tax professional groups wrote to members of Congress last week urging a comprehensive set of recommendations designed to improve services provided by the IRS to taxpayers and tax practitioners. The groups called for an improved governance and oversight structure for the IRS and proposed a new unit within the IRS that would centralize the agency's services to tax practitioners. A copy of the group's report is available here . Also available are the group's letter to congressional tax writers and NSA's press release accompanying the publication of the group report. The recommendations were developed by the groups over several months and are ...
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The IRS's private debt collection program is set to begin this week, with four private companies trying to collect overdue taxes on the government's behalf. The IRS debt collection program is a new version of a program established in 2006 that was shut down in 2009 because it wasn't profitable. The new program was mandated by Congress in the 2015 Fixing America's Surface Transportation (FAST) Act, and the agency is under pressure to make it work this time around. According to National Taxpayer Advocate Nina E. Olson, the IRS has significantly reduced oversight in order to bring down costs. In addition, she said that the rollout of the new program will ...
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Taxpayers usually will have taxes withheld from their pay if they are an employee. However, if a person doesnt have taxes withheld, or they dont have enough tax withheld, they may need to make estimated tax payments. Taxpayers that are self-employed normally have to pay their taxes this way. Here are five tips about making estimated tax payments: When the tax applies. Taxpayers should pay estimated taxes if they expect to owe at least $1,000 in tax for 2017 after subtracting their withholding and refundable credits. Special rules apply to farmers and fishermen. How to figure the tax. Taxpayers need to estimate the amount of income they expect ...
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The National Society of Accountants (NSA) and other tax practitioner-related associations have formed a coalition to call for massive improvements in the Internal Revenue Service (IRS). The coalition issued a report, Ensuring a Modern-Functioning IRS for the 21st Century , that outlines the framework for these improvements and a range of recommendations. NSA Executive Vice President John Ams, who serves on the IRS Electronic Tax Administration Advisory Committee (ETAAC) and chairs one of the ETAAC subgroups, explained, We have spent years calling for these improvements and better funding for the IRS to serve the needs of American taxpayers, yet funding ...
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Tax Professionals Warned of e-Services Scam; Urged to be Wary of Schemes as Filing Season Deadline Approaches The IRS, NSA, state tax agencies and the tax industry today warned tax professionals to beware of phishing email scams claiming to be from IRS e-Services and of schemes in general as the April 18 deadline nears. Acting as the Security Summit, the IRS, state tax agencies and the tax industry warned that this time of year is the high season for identity thieves scams to steal sensitive data from tax professionals. All tax preparers and their employees must be on guard against phishing activities. The IRS noted a particular surge in the past ...
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Tips on Hiring a Qualified Tax Preparer Its the annual ritual that no one likes: Doing your taxes. So why do it? The National Society of Accountants (NSA) has people for that! NSA is the primary organization representing Main Street accounting and tax professionals who prepare millions of tax returns for taxpayers. A recent NSA survey shows the average cost for a professional to prepare an itemized Form 1040 plus a state return is just $273, and the average cost to prepare a non-itemized return plus a state return is only $176. It usually takes people more than five hours to prepare an itemized return five hours that you wont get back, says ...
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Additional Staff Available Starting Tomorrow to Revalidate Your Identity; Dont Delay If you received a Letter 5903 , e-Services Revalidation , you must revalidate your identity. For a limited time, the e-Services Help Desk will have additional staff available to only assist tax professionals who need to revalidate their identity to have their e-Services registration account reinstated.. Additional assistors will be in place Tuesday, March 21 through Friday, March 24 . E-Services registration accounts were suspended for tax professionals who received Letter 5903 and failed to revalidate their identities within the required 30-day time period. ...
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The Internal Revenue Service today granted many businesses affected by this weeks severe winter storm additional time to request a six-month extension to file their 2016 federal income tax returns. The IRS is providing this relief to victims and tax professionals affected by this weeks storm (known as Winter Storm Stella) that hit portions of the Northeast and Mid-Atlantic. Business taxpayers who are unable to file their tax return by todays due date (March 15, 2017) can request an automatic extension by filing Form 7004 , available on IRS.gov, on or before March 20, 2017. Form 7004 provides a six-month extension for returns filed by partnerships (Forms ...
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The IRS will not require taxpayers to indicate whether they have health insurance when filing their tax returns, a return to the policy the agency had in place in prior years. The agency reversed a previous decision to require an indication of coverage on tax returns filed this year after President Donald Trump signed an executive order January 20 requiring federal agencies to reduce the burden of the ACA. After accepting returns that did not indicate coverage in 2014 and 2015, the IRS said it had set up a system for this year that would reject tax returns during processing if an individual did not provide health coverage information. The agency decided to ...
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Hiring someone to prepare your tax return? Make sure they have the credentials and experience to handle it professionally and stand behind their work. Unlike other industries, there is no national licensing requirement to become a paid tax preparer. Anyone can claim to be a tax preparer and charge taxpayers for completing and filing tax returns. Thats why its so important to find preparers with credentials, which are independent verification of their ability that can give you confidence that they will do a good job. Heres a guide to common credentials that demonstrate a high level of competency in tax preparation: Certified Public Accountant (CPA) ...
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Taxpayers with children may qualify for certain tax benefits. Parents should consider child-related tax benefits when filing their federal tax return: Dependent. Most of the time, taxpayers can claim their child as a dependent. Use the Interactive Tax Assistant to help determine who can be claimed as a dependent. Taxpayers can generally deduct $4,050 for each qualified dependent. If the taxpayers income is above a certain limit, this amount may be reduced. For more on these rules, see Publication 501 , Exemptions, Standard Deduction and Filing Information. Child Tax Credit. Generally, taxpayers can claim the Child Tax Credit for each qualifying ...
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Phyllis Kubey, EA, CFP, ATA, ATP, a member of the National Society of Accountants (NSA) who has more than 30 years of experience as a tax professional, has been appointed as a member of the Internal Revenue Service Advisory Council (IRSAC). IRSAC is an advisory body designed to focus on broad policy matters and reviews existing tax policy and/or recommends policies with respect to emerging tax administration issues. IRSAC advises the IRS Commissioner with respect to issues having a substantive effect on federal tax administration, including operational improvements and current or proposed IRS policies, programs, and procedures. Ms. Kubey will serve ...
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As of Sunday Feb. 5, certain e-Services users who have not verified their identities with the IRS have had their accounts suspended. The IRS mailed letters 5903 between Dec. 1 and Dec. 16 to those users who had been active on their accounts in the past year and who had access to the Transcript Delivery System. Users were given 30 days to verify their identities as part of our effort to better secure the e-Services program and protect taxpayer data. The IRS has updated the www.irs.gov/eservices landing page and the Important Update about Your e-Services Account to provide users with guidance about how to reinstate their accounts if they did not do so within ...
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The Internal Revenue Service, state tax agencies and the tax industry issued an urgent alert today to all employers that the Form W-2 email phishing scam has evolved beyond the corporate world and is spreading to other sectors, including school districts, tribal organizations and nonprofits. In a related development, the W-2 scammers are coupling their efforts to steal employee W-2 information with an older scheme on wire transfers that is victimizing some organizations twice. This is one of the most dangerous email phishing scams weve seen in a long time. It can result in the large-scale theft of sensitive data that criminals can use to commit various ...
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The Earned Income Tax Credit has helped workers with low and moderate incomes get a tax break for 40 plus years. Yet, one out of every five eligible workers fails to claim it. Here are some things taxpayers should know about the EITC: Review Your Eligibility. Taxpayers who worked and earned under $53,505 may qualify for EITC. Filers should review EITC eligibility rules if their household income or family situation has changed. They may qualify for EITC this year, even if they did not in the past. To qualify, a taxpayer must file a federal income tax return claiming the Earned Income Tax Credit. This is true even if a taxpayer is not otherwise required ...
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Kathy Hettick, EA, ABA, ATP, who served as the 2015-16 President of the National Society of Accountants (NSA), has been appointed as a member of the Internal Revenue Service Advisory Council (IRSAC). Hettick is principal of Hettick Accounting & Tax, LLC, in Enumclaw, Washington. IRSAC is an advisory body designed to focus on broad policy matters and reviews existing tax policy and/or recommends policies with respect to emerging tax administration issues. IRSAC advises the IRS Commissioner with respect to issues having a substantive effect on federal tax administration, including operational improvements and current or proposed IRS policies, programs, ...
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The National Society of Accountants (NSA) is offering an intensive NSA Enrolled Agent (EA) Exam Review Course & Accredited Tax Preparer (ATP) Review Course/Exam August 20-22, 2017, at the Nugget Casino Resort in Reno, NV, immediately before the NSA Annual Convention and Expo at that same location. Designed to give tax professionals the best opportunity to pass the EA exam on the first try, the 3-day course provides in-depth review of all the key components of the exam. Enrolled Agents are authorized to represent taxpayers before the IRS and tax professionals who hold the EA credential can command higher fees. They must pass a three-part IRS exam covering ...
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In compliance with Freedom of Information Act (FOIA) laws, the IRS makes available a list of PTIN holders and a list of enrolled agents to interested parties. The lists are currently provided via CD-ROM to those who submit a request and pay a $35 fee to cover IRS costs. This process will soon change as a result of the FOIA Improvement Act of 2016 signed by the President on June 30, which requires agencies to " make available for public inspection in electronic format...copies of all records...that have been requested 3 or more times ." The PTIN list has been requested more than 1,200 times, well over the limit. The IRS is working to implement ...
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A biennial survey conducted by the National Society of Accountants (NSA) reported detailed data about business practices, client fees, and spending for tax and accounting professionals. The 2016-17 NSA Income and Fees of Accountants and Tax Preparers in Public Practice Survey Report offers useful benchmarks for firms to use in billing, fee increases, engagement practices and other operations. Business Mix and Revenue Surveyed firms reported that on average 57.3% of gross income comes from tax-return preparation, 15.4% from write-up work, 8.9% from payroll services, 7.0% from tax services, 3.6% from QuickBooks/bookkeeping, 2.6% from financial statement ...
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