The IRS is giving Hurricane Harvey victims some tax relief after parts of Texas were destroyed by the natural disaster. Taxpayers in the affected parts of Texas have until January 31st, 2018 to file certain individual and business tax returns. The IRS announced that victims could also wait to make certain tax payments until the new deadline. This new deadline includes additional filing extensions for those who have valid extensions that run out on October 16th.
Newly enacted legislation could mean tax relief for thousands of Oklahomans. In May, Governor Mary Fallin signed the 2017 Voluntary Disclosure Initiative. The Initiative is a tax amnesty program that is meant to help people pay back their state taxes. From September 1st to November 30th, eligible taxpayers can get a waiver of penalty, interest, or other collection fees due on eligible taxes. That is, if the taxpayer voluntarily files all missing tax returns and pays taxes due during the initiative’s time frame.
The Internal Revenue Service is reminding truckers and owners of heavy highway vehicles that in most cases, their next federal Highway Use tax return is due August 31st. The deadline applies generally to Form 2290 and the accompanying tax payment for the year that begins July 1st, 2017 and ends June 30, 2018. Returns must be filed and tax payments made by the deadline for vehicles used during July. If you used the vehicle after July, the deadline is the last day of the month following the month you used the vehicle in.
Identity theft can happen to anyone, at any time, and despite protections you have, it could drastically affect your finances. Identity theft can not only affect you bank account or credit card, it can also affect your taxes and possible refunds you could receive. If someone gets ahold of your Social Security number or even your Employer Identification Number, they could use that to file a tax return or obtain a fraudulent refund. Most people don’t even find out they are victims of identity theft until they submit their tax return and the IRS tells them someone has already filed using that Social Security number.
The IRS works to stop identity theft from happening but you can help protect yourself. The IRS has provided these simple 8 tips that could help you stop identity theft before it happens.
Not filing your tax return is not only against the law, it could also leave you with a large balance owed to the government with some penalties and interest added on. That’s why you need to always, always, file your tax return, even if you can’t pay your tax liability in full. This can not only help you stay in compliance with the federal government, but it also helps you avoid penalties and other consequences. If you have a balance due, filing your past due return now and paying your tax liability can limit the interest and late payment penalties you have to pay.
During the summer, a lot of taxpayers will travel not only for vacation, but also so that they can participate in a charity service trip. These trips help not only someone in need, but they can also help you lower your taxes each year. For those of you who do travel for a charity, or for those of you thinking about it, there are a few things you should keep in mind before you book that plane ticket.
Unfortunately, there are some deductions that don’t fit into one tax category. Those miscellaneous deductions can help reduce taxable income and the amount of taxes owed. You might not know for instance, that your employee uniform can be a work expense that you can deduct from your taxes. But if you choose to write off certain miscellaneous deductions, you must then itemize your deductions instead of taking the standard deduction on your tax return.
If you do decide to itemize your deductions, here are a few things to keep in mind.
This month’s closed case round up feature IRS mistakes, local small businesses, and a dishonest CPA that left their client high and dry.
Case #1: Our client was a disabled veteran who was barely able to make ends meet and owed the IRS over $100,000. His problems started shortly after his father died and he became a trustee for his father’s investments. Our client did not receive the letters the IRS sent him and didn’t realize he owed money until it was too late. Living on less than $1,000 a month, our client ended up getting levied, with the IRS taking over $100 out of his disability checks. We were not only able to get his levy released, but we were also able to put him into a currently non-collectible status saving him about $112,709 in the process. Now our client receives his full disability check and can live without fear of owing money to the IRS.
When you’re enjoying your summer vacation, the last thing you want to think about is taxes. But most people aren’t aware of the tax implications that comes with residential and vacation home rentals. If you receive money for the use of one of your personal residences, that generally requires reporting the rental income on your tax return. It could also mean that certain expenses for that home can be used as deductions.
The IRS is warning people about a new scam that involves their Electronic Federal Tax Payment System (EFTPS). The new scam involves a scammer calling a taxpayer and claiming they are from the IRS. The scammer then tells the taxpayer that two certified letters allegedly sent to the taxpayer in the mail have been returned as undeliverable. The scammer then threatens to arrest you if a payment is not made through a prepaid debit card. The scammer says the card is linked to the EFTPS system, when in fact it is controlled entirely by the scammer. The taxpayer is also warned not to contact their tax preparer, their attorney or their local IRS office until a payment is made.