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williamtruax · 4 years ago

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BEWARE! New COVID-Related Scam Targets Taxpayers

With cybercrime on the rise in the wake of COVID-19, we want to remind taxpayers they should be on high alert against tax fraud and other related financial scams. Over the past few months alone, the IRS Criminal Investigation division has seen a significant increase in crimes related to Economic Impact Payments (EIP) and other tax-related schemes looking to take advantage of unsuspecting taxpayers.

In fact, just this week the IRS, state tax agencies and the tax industry warned of a new text scam created by thieves that trick people into disclosing bank account information under the guise of receiving a $1,200 Economic Impact Payment.

New SMS Text Scam is Very Deceptive

The scam text message states: "You have received a direct deposit of $1,200 from COVID-19 TREAS FUND. Further action is required to accept this payment into your account. Continue here to accept this payment …" The text includes a link to a fake phishing web address.

This fake phishing URL, which appears to come from a state agency or relief organization, takes recipients to a fraudulent website that impersonates the IRS.gov Get My Payment website. Individuals who visit the fraudulent website and then enter their personal and financial account information will have their information stolen by these scammers.

People who receive this text scam should take a screen shot of the text message they received and then send it in an email to [email protected] with the following information:

Date/Time they received the text message

The number that appeared on their Caller ID

The number that received the text message

As we’ve mentioned in previous articles about tax security, the IRS does not send unsolicited texts or emails. They also don’t call people with threats of jail and lawsuits, or demand tax payments on gift cards. There’s a ton of really bad information floating around right now so it’s always a good idea to check before you click and verify sources for accuracy.

The Federal Trade Commission has some great information about how to recognize and report spam text messages if you’d like to learn more.

Don’t Let Your Guard Down

Scams related to COVID-19 are not limited to stealing EIPs from taxpayers. We’ve been seeing creative schemes related to the organized selling of fake at-home test kits, offers to sell fake cures, vaccines, pills and advice on unproven treatments for COVID-19. Other scams are aimed at trying to sell large quantities of medical supplies through the creation of fake online stores, social media accounts and email addresses where criminals fail to deliver promised supplies after receiving funds.

Some criminals are even offering opportunities to invest early in companies working on a vaccine for the disease promising that the "company" will dramatically increase in value as a result. These promotions are often presented as "research reports" or make predictions of a specific "target price" related to low-priced stocks issued by small companies with limited publicly available information.

There has also been a tremendous increase in phishing scams utilizing emails, letters, texts and website links aimed at tricking unsuspecting taxpayers into giving up their personal and financial information. These phishing schemes are using keywords such as "Coronavirus," "COVID-19," or "Stimulus Payments" and are being blasted to large numbers of people in an effort to get account numbers and passwords.

How to Report a Crime

If you receive an email, letter or phone call that looks suspicious, we recommend calling the National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or opening a case through their web complaint form. The NCDF is a national coordinating agency within the Department of Justice's Criminal Division dedicated to improving the detection, prevention, investigation and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as COVID-19.

Taxpayers can also report phishing attempts directly to the IRS. Those who’ve receive unsolicited emails or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), should forward it to [email protected].

We’ve shared a number of important steps you can take at home or work to help keep your information safe from cybercriminals in our 7-part Data Security series.

If you have any questions about cybersecurity or how Truax helps keep your personal and financial information secure, please CONTACT US right away. We’re here to help!

#Cybersecurity #Tax Scams #COVID-19

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2290tax · 5 years ago

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Expedite your Excise Tax Refund Claims

Expedite your #ExciseTax Refund Claims, Don't let your federal excise tax refunds slip away... as like your income tax refunds this federal #excisetax refunds can also be done online. @TaxExcise the 1st ever website to facilitate electronic filing for excise tax refund claims.

Don’t let your federal excise tax refunds slip away… as like your income tax refunds this federal excise tax refunds can also be done online. TaxExcise.com is the 1st ever website to work with the IRS to facilitate electronic filing for excise tax refund claims since 2007. The only website that supports all the excise tax forms (2290, 720 and 8849) at one place.

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un-enfant-immature · 6 years ago

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How to file taxes on your cryptocurrency trades in a bear year

Chandan Lodha Contributor

Chandan Lodha is co-founder at CoinTracker, a Y Combinator and Initialized Capital-backed startup that offers a secure cryptocurrency tax calculator. He was previously the Product Manager on Project Loon at Google[x].

Fred traded bitcoin, ether and a handful of other cryptocurrencies on Gemini, Binance and Coinbase last year. Unfortunately, due to the crypto downturn, his trading yielded a capital loss of more than $35,000. He’s not alone — the stories have been coming out right and left about people who are not already rich, who have lost serious money lately.

While it was a rough loss, filing taxes could add another headache in a few weeks if not done correctly.

Given that bitcoin is down 55 percent year-over-year in 2018, compared to 686 percent up the year before, chances are that filing taxes on crypto trades may look quite different this year for crypto holders like Fred.

The main difference is that users will want to claim capital losses in a bear year to reduce their tax bill. That means ensuring that you are maximizing your capital loss claims to the greatest potential by:

Offsetting capital gains in other asset classes in the same tax year

Using the remainder of losses to offset up to $3,000 of other income ($1,500 if you’re married and filing separately)

Rolling over any remaining capital losses to future years

Capital loss example

To get an understanding of how powerful this is, let’s take an example. Imagine Maya earned $5,000 in the stock market in 2018, but lost $9,000 in cryptocurrency trading in the same year. Without filing cryptocurrency taxes, Maya would be on the hook for capital gains taxes on $5,000 from the stock market. At the 24 percent short-term tax rate, that would be $1,200 ($5,000 * 24 percent) to pay in taxes!

Now, taking into account the $9,000 crypto capital loss, all $5,000 of capital gains in the stock market would be offset, leaving an additional $4,000 of losses. Because Maya is single, an additional $3,000 of income could be offset (which normally would also be taxed at 24 percent). Therefore, you would save $1,200 of taxes (from the stock market) and $720 ($3,000 * 24 percent) that would have been paid in income tax, for a total of $1,920 saved in taxes. And, on top of that, Maya would still have an incremental $1,000 ($9,000 – $5,000 – $3,000) of capital losses that could be rolled forward to the 2019 tax year to offset capital gains (and potentially income) the next year as well. Not bad.

2018 tax changes

The last year brought many new cryptocurrency trading pairs versus earlier years, as well as more transactions on more exchanges. This means, more than ever, you’ll want to ensure that you have all your accounts or records from all the accounts handy.

There are also regulatory differences as well. This year for U.S. holders, the IRS has clarified that like-kind exchanges only apply to real property (like real estate). That means that cryptocurrency-to-cryptocurrency trades in 2018 are subject to capital gains calculations, not just when you cash out to fiat currency (e.g. USD) at the end of the day.

According to IRS guidance, all virtual currencies are taxed as property, whether you hold bitcoin, ether or any other cryptocurrency. With the new clarification that like-kind exchange does not apply to cryptocurrency, this means you need to have solid records of every cryptocurrency transaction you made, including crypto-to-crypto transactions.

Keeping track of all of these individual transactions can turn into a nightmare scenario depending on your trade history; however, it is important to have a record of all your transactions so you can file your IRS Form 8949, the capital gains tax form. New tools are also starting to be built to help automate the tracking, record-keeping and tax form generation for your cryptocurrency taxes.

My company, CoinTracker, is one — and Fred is a real client. He’s preparing his taxes now: he will be able to wipe all his capital gains clear for 2018, offset $3,000 of income, and also rollover all the rest of the capital gains to future years. While he doesn’t know the full amount in savings yet because he hasn’t finished his taxes, it will likely end up being thousands of dollars.

Mining

In the event that you are a cryptocurrency miner, the IRS counts mined cryptocurrency as taxable income. The mined coins are included in gross income and taxed based on the fair market value of the coins at the time they are received. The filing method will depend on whether you are a hobbyist or business miner, which depends on factors such as the manner of the mining, the expertise of the taxpayer and the amount of profits.

Hobbyists will add the income to their Form 1040 and not be subject to self-employment taxes, though not have as many deductions available. Business miners will include their income and expenses on Schedule C and their income will be subject to 15.3 percent self-employment tax (though will be able to claim deductions against income).

Disclaimer: This post is for informational purposes only. For tax advice, please consult a tax professional.

#TechCrunch

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excisetaxonline · 5 years ago

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Electronic Filing for Federal Excise Tax Form 720

Over the last 20 years, technology has transformed the way we live and work forever. This is especially true of the accounting and tax profession, made tax preparation, calculations and filing much more easier than it use to be. Federal Excise taxes are reported at end of every Quarter consolidating the deposits (if apply) and calculating the taxes owed. TaxExcise.com has effectively utilized…

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thinktradeinc · 5 years ago

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February the month that adds an extra day to the calendar also brings the HVUT deadline closer. Efile vehicles used in January due by March 2nd.

Other services offered are Claim of Refund Form 8849 (schedules 1, 2, 3, 5, 6 and 8), The Quarterly Federal Excise Tax Form 720 and the preparation of IFTA (International Fuel Tax Agreement).

Read more: http://blog.tax2290.com/form-2290-deadline-is-fast-approaching-for-vehicles-first-used-in-january-2020/

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advancetaxreliefexperts · 3 years ago

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EXCISE TAX FILERS SHOULD TRY E-FILING

The IRS encourages taxpayers who file federal excise taxes to file electronically.

The following exercise forms can be e-filed:

Form 720, Quarterly Federal Excise Tax Return Form 2290, Heavy Highway Vehicle Use Tax Form 8849, Claim for Refund of Excise Taxes Return; Schedules 1, 2, 3, 5, 6 and 8 only

Advantages of an excise e-file: E-filing excise tax returns is safe, secure, easy, and accurate.

Form 720 e-file is convenient, plus taxpayers receive faster service and an acknowledgment from the IRS that the agency accepted their e-filed Form 720.

Form 8849 e-file offers faster refunds than through paper filing. Form 8849 Schedules 1, 2, 3, 5, 6 and 8 may be e-filed.

Form 2290 e-file provides taxpayers their Form 2290 Schedule 1 almost immediately after the IRS receives the e-filed form.

Excise tax e-file facts. Only providers who have passed the IRS Assurance Testing System requirements for software developers of electronic IRS Excise returns are listed on the excise tax e-file providers' pages.

Filers must have an Employer Identification Number to e-file excise tax returns. Taxpayers who don't already have an EIN can learn how to apply for one on IRS.gov. Service is available 24/7.

***Filers reporting 25 or more trucks on Form 2290 must e-file.

Paying the excise taxes completes the filing process, and there are multiple ways to pay any excise tax due, including electronic methods.

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ADVANCE TAX RELIEF LLC www.advancetaxrelief.com BBB A+ RATED CALL (713)300-3965

Advance Tax Relief is rated one of the best tax relief companies nationwide.

#FreshStartInitiative #OfferInCompromise #TaxPreparation #TaxAttorneys #TaxDebtRelief #TaxHelp #BackTaxHelp #TruckDrivers #Form2290

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elizabethcariasa · 4 years ago

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Bad tax preparers again make IRS' Dirty Dozen scam list

If tax it the time of coronavirus taught us anything, it's that tax professionals are indispensable.

On the heels of getting a handle on the 2017 tax reform changes, tax pros this filing season were handed even more jobs. They helped people understand COVID-19 economic relief payments, what tax tasks were delayed until when and the Paycheck Protection Program.

And now, just days after Tax Day 2020 finally came and went, another coronavirus stimulus package, no doubt with more tax implications, is in the works.

The bottom line is that tax help from a reputable tax pro is critical, in normal and decidedly abnormal tax years like 2020.

Picking, vetting your tax adviser: A tax pro gets an inside look at some of your most intimate fiscal and personal information. You depend on them to help you meet your tax obligations legally and in the least costly way possible.

So it's crucial that you make the correct choice when choosing tax help. That isn't always easy.

First you must determine which type of tax preparer fits your personal tax and financial needs. Once you decide that, you then must thoroughly check out that preparer to make sure that she or he is knowledgeable and trustworthy.

Most tax pros are honest and provide high-quality service. They work overtime to make sure they are on top of the tax laws and the intricacies that could benefit clients.

Sadly, though, there are bad actors in every profession. That means the tax profession has its share of unscrupulous return preparers. And these folks are part, once again, of the Internal Revenue Service's annual Dirty Dozen threats to taxpayers.

Ghost tax preparers: Among the worst of corrupt tax pros are the so-called ghost preparers. These unprincipled preparers regularly expose their clients to potentially serious filing mistakes. When these crooked preparers are done, their victims face not only the loss of the tax refund they were counting on, but also possible tax fraud charges.

A key tip-off that you're dealing with a ghost preparer is that they don't sign the tax returns they prepare. They may print the tax return, leaving the tax preparer portion blank, and tell the taxpayer to sign and mail it to the IRS.

In e-filing cases, a ghost preparer will complete but not digitally sign as the paid preparer the electronic return.

By law, anyone who is paid to prepare or help complete a federal tax return, either on paper or electronically, must have a Preparer Tax Identification Number (PTIN). All paid preparers must include their PTINs on the returns they completed or provided help with and also sign those returns, whether paper or electronic.

This lack of identifiers is how these unscrupulous preparers earned their ghost monikers.

Frequent ghost targets: In addition to helping folks who find them, the IRS warns that ghost (and other unscrupulous) preparers also often target individuals who don't have a filing requirement. They then promise these folks inflated refunds by claiming tax credits, such as education credits or the Earned Income Tax Credit (EITC), for which the individuals don't qualify.

Such no-need-to-file folks got special attention this year because of COVID-19 economic relief payments. These folks were eligible for the stimulus amounts, but had to fill out a return so the IRS, which is charged with still distributing the money, knew where to send it.

These nonfilers, many of whom had not sent in a Form 1040 in years, were perfect prey for these bad tax pros.

Bad tax preparer warning signals: The bottom line, as noted earlier in this post, is that taxpayers need to be proactive in finding and vetting tax pros.

If you encounter one who promises you a big refund before looking at your personal tax records, don't hire that person.

The same no-hire advice applies to a tax preparer whose fees are based on a percentage of your refund. That's a signal that your filing might be fudged to create a bigger refund and bigger fee for the preparer.

Even after you've settled on a tax preparer, if that person asks you to sign a blank return, don't. If they insist, walk away.

Remember, even if your tax preparer is a crook, you are the one who will pay. Taxpayers are ultimately responsible for the accuracy of their tax returns, regardless of who prepares it.

Note, too, that if you do fall victim to an abusive tax pro, you can report that bad tax preparer to the IRS.

12 on the tax big bad list: Also stay on alert for the other 11 Dirty Dozen tax scams and threats that made the IRS' 2020 list. Remember that efforts to steal your money and/or tax identity occur year-round.

The full slate of bad tax actors and actions is:

Ghost and other unscrupulous tax preparers

COVID-19 economic relief payment or tax refund theft

Phishing

Fake charities

IRS impersonators' threatening phone calls

Social media scams

Senior fraud

Scams targeting non-English speakers

Offer in Compromise mills

Fake payments with repayment Demands

Payroll and HR scams

Ransomware

Several of the scams, like those perpetuated by unscrupulous preparers, are repeat offenders. Phishing, fake charities and the persistent threatening calls from crooks claiming to be with the IRS also are list returnees in 2020.

The links in the above numbered list go to some of my blog posts on those topics. You also can read more about each scam area in the IRS' detailed release of this year's Dirty Dozen.

Report all scams and attempts: As the inclusion of coronavirus-related scams on this year's list shows, crooks are always evolving.

If you've been an identity theft or scam victim or even a near-victim, whether COVID-19 related or otherwise, let the IRS and other federal agencies monitoring such criminal activities know.

Tell the IRS about phishing attempts, especially unsolicited efforts to gather tax-related information, by forwarding the fake emails to [email protected].

Report any COVID-19 schemes to the National Center for Disaster Fraud (NCDF). You can call the toll-free hotline at 1-866-720-5721 or fill out a the NCDF's online complaint form.

You call can any tax-related fraud or theft to the Treasury Inspector General for Tax Administration (TIGTA). The best way to do that is with TIGTA's online reporting option at its online scam page.

Finally, trust your instincts. Most of us know when something seems off. When it comes to most things in life, including taxes, offers that seem to be too good to be true usually end up not being true.

You also might find these items of interest:

6 ways to avoid being a tax scam victim

Tax scams use SSNs, fake tax agency as hooks

2019's Dirty Dozen tax scams repeat last year's list