by Renee Lawson | Feb 4, 2015 | Tax Preparation
This year the Ohio Department of Taxation is offering random taxpayers ID Quiz to verify their identity to receive tax refunds.
“The online quiz will give people five minutes to answer four questions that are designed so no one else would know the answer. You’ll need to get three right to get your refund. State tax officials say they have made accommodations for people who don’t have computers or internet access at home.”
Source Dayton Daily News – Want your state tax refund? You may have to quiz
If you receive a letter don’t panic.
Below is the link for frequently asked questions from the state’s website regarding the ID Quiz letter:
ID Quiz
Before you start the quiz locate all of the requested information before starting the ID Quiz.
Your income tax refund may be delayed as the state tries to combat fraudulent returns from being processed.
“With income tax fraud and identity theft on the rise, the Ohio Department of Taxation (ODT) is committed to safeguarding taxpayer dollars by increasing security measures. The identity confirmation quiz is just one of the tools ODT is using to prevent fraudsters from receiving a refund as a result of identity theft.” (Ohio Department of Taxation Website)
If you don’t receive an ID Quiz your refund will be processed without delay.
Exercise patience this years tax season.
Your Tax and Financial Coach,
Paulette Marshall
by Renee Lawson | Feb 4, 2015 | Tax Preparation
Many people are afraid of the IRS.
There are criminals who are taking advantage of this fear.
“These callers may demand money or may say you have a refund due and try to trick you into sharing private information. These con artists can sound convincing when they call. They may know a lot about you, and they usually alter the caller ID to make it look like the IRS is calling. They use fake names and bogus IRS identification badge numbers. If you don’t answer, they often leave an “urgent” callback request.”
Source IRS – Scam Phone Calls Continue; IRS Identifies Five Easy Ways to Spot Suspicious Calls
The IRS has listed 5 ways to verify that the conartist is a fake IRS agent.
1 click resources. Call to demand immediate payment is a phone scam.
The IRS corresponds with taxpayers via mail.
You may either receive a standard letter or a certified letter from the IRS.
2. Demand payment without giving you the opportunity to question or appeal the amount owed is a phone scam.
The IRS gives you an opportunity to answer any correspondence received with a date attached that it should be answered or payment made.
3. Require you to use a specific payment method is a phone scam.
The example the article uses is asking you to pay with a prepaid debt card.
The IRS allows options to pay your tax liability.
They will not ask you to pay a certain way.
4. Ask for your credit card information over the phone is a phone scam.
No IRS employee will ask you to provide this information.
In order to make payments online you will be required to register an account and then provide your information.
5. Threaten to have you arrested by the local police or other agencies if you do not pay immediately is a phone scam.
The IRS will not have your local police department come to arrest you.
“If you get a phone call from someone claiming to be from the IRS and asking for money, here’s what you should do:
- If you know you owe taxes or think you might owe, call the IRS at 1.800.829.1040. The IRS workers can help you with a payment issue.
- If you know you don’t owe taxes or have no reason to believe that you do, report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1.800.366.4484 or at www.tigta.gov.”
Never give your personal information to someone calling you on the phone.
Remember that the IRS will not call you unless you request to be contacted by them.
The normal correspondence for the IRS is via the United States Postal Service.
Your Tax and Financial Coach,
Paulette Marshall
by Renee Lawson | Jan 8, 2015 | Tax Preparation
The Affordable Care Act (ACA) and its Possible Effects on You and Your Tax Return
We know you have a choice when choosing a tax professional, and we want to thank you for your business! We wanted inform you how the Affordable Care Act (ACA), sometimes also referred to as Obamacare, may impact all of us this tax season.
The ACA created the new Premium Tax Credit and the Individual Responsibility Payment that may affect your tax return this season.
More Complex Tax Returns
The entire filing process will be more complicated this year, with every tax return to now include new provisions related to health insurance. This year, many taxpayer returns will contain additional forms related to health care coverage. Tax returns will be more complicated and will take more time and expertise to complete.
Possible Reduced Refunds
The new Individual Responsibility Payment will be assessed by the IRS against taxpayers who do not indicate on their return that they either had health care coverage throughout 2014, and do not qualify for an exemption from the health care coverage requirement Learn More. This new payment amount is collected by the IRS as part of the new ACA law starting with 2014 returns. As a result, if the IRS subjects you to this payment amount, your refund may be less than you expected, or less than you received in past years.
Additionally, the IRS may adjust your refund (either up or down) if you currently receive health insurance through the Marketplace (sometimes also referred to as Obamacare) but the IRS determines that the information on file at the Marketplace is incorrect.
Who is Affected?
All taxpayers across the country are subject to the requirements of new ACA law. The federal government urges all consumers receiving coverage through the their federal or state Marketplace to report “life changes” that can affect their coverage as soon as the changes take place (such as changes in marital status, income, number of dependents, where you live, or disability status). The government urges you to report these changes so that insurance adjustments can be made immediately and tax refunds not affected as much.
Your Tax Professional’s Assistance
Now, more than ever, it benefits you to have the assistance of a tax professional familiar with the changes, laws, and tax forms associated with ACA. Your Tax Professional is here at Liberty Accounting Plus to assist you with the proper tax forms and with questions and problems that may arise.
You can find additional information on ACA online at IRS.gov.
If you didn’t get health coverage last year open enrollment is available until February 15, 2015. Check out www.healthcare.gov to enroll today. You can avoid penalties next filing season.
Please give us a call if you have any questions regarding the Affordable Care Act at 937-268-9004.
Your Tax and Accounting Coach,
Paulette Marshall
by Renee Lawson | Jan 8, 2015 | Tax Preparation
This year there will be some changes to the number of direct deposits one account can accept from the IRS.
Source IRS – Direct Deposit Limits
“In an effort to combat fraud and identity theft, new IRS procedures effective January 2015 will limit the number of refunds electronically deposited into a single financial account or pre-paid debit card to three.”
This is an effort from the Internal Revenue Service to combat fraud from criminals from receiving mulitple refunds into one bank account or pre-paid debt card.
The second feature is to combat taxpreparers from spliting the taxpayers refund for fees using Form 8888.
“The new limitation also will protect taxpayers from preparers who obtain payment for their tax preparation services by depositing part or all of their clients’ refunds into the preparers’ own bank accounts. The new
direct deposit limits will help eliminate this type of abuse.”
Tax preparer fees cannot be deducted from a taxpayer in this manner.
Nor can the tax preparer open a joint account with the taxpayer to receive payment for tax preparation.
Any tax preparer who is trying to collect tax preparation fees using Form 8888 is subject to penalty.
You should avoid a taxpreparer who is trying to split your refund using Form8888.
We look forward to helping you file your taxes.
Your Tax and Financial Coach,
Paulette Marshall
by Renee Lawson | Jan 4, 2015 | Tax Preparation
The 2015 tax season date will be January 20, 2015.
“WASHINGTON — Following the passage of the extenders legislation, the Internal Revenue Service announced today it anticipates opening the 2015 filing season as scheduled in January.”
Source IRS – Tax Season Opens As Planned Following Extenders Legislation
The fastest way to receive your refund is through e-file.
The IRS also reminds taxpayers that electronic filing is the most accurate way to file your return. There is no
advantage in filing a paper return early. All returns will start being processed on the 2015 tax season date of
January 20. 2015.
With the 2015 tax season date announced we look forward to preparing your taxes in this new filing season.
Your Tax and Accounting Coach,
Paulette Marshall
