Don’t Fall for Phony IRS Websites
Oct 29th
IRS Corrected Special Edition Tax Tip 2012-13
The Internal Revenue Service is issuing a warning about a new tax scam that uses a website that mimics the IRS e-Services online registration page.
The actual IRS e-Services page offers web-based products for tax preparers, not the general public. The phony web page looks almost identical to the real one.
The IRS gets many reports of fake websites like this. Criminals use these sites to lure people into providing personal and financial information that may be used to steal the victim’s money or identity.
The address of the official IRS website is www.irs.gov. Don’t be misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov.
If you find a suspicious website that claims to be the IRS, send the site’s URL by email to phishing@irs.gov. Use the subject line, ‘Suspicious website’.
Be aware that the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.
If you get an unsolicited email that appears to be from the IRS, report it by sending it to phishing@irs.gov.
The IRS has information at www.irs.gov that can help you protect yourself from tax scams of all kinds. Search the site using the term “phishing.”
Links:
- Suspicious e-Mails and Identity Theft
- Reporting Phishing
- Identity Theft resource page
- Publication 4523, Beware of Phishing Schemes (PDF)
IRS YouTube Videos:
IRS Podcasts:
More Bogus IRS Emails Hit Inboxes
Oct 1st
from Kelly Phillips Erb, aka taxgirl:
If you’re like me, you got slammed today with bogus emails claiming to be from the IRS. Most were the run of the mill “Federal tax transaction rejected” variety – like the ones from before. A few, however, were a bit more sophisticated. This one, in particular, caught my eye:
To read the rest of her article, please go here.
Reminder: Are You 1099 Compliant?
Aug 30th
Are you a sole proprietor, farmer, landlord, partner or shareholder? If so, take note, because included on the 2012 Schedules, C, E and F and Forms 1065, 1120 and 1120-S are two questions regarding 1099 compliance that must be answered.
The first question is “Did you make any payments in 2012 that would require you to file Form(s) 1099?” Then, ‘If “Yes,” did you or will you file all required Forms 1099?’ These questions are part of the IRS’ ongoing effort to close the tax gap by ensuring that service providers report 100% of their income.
When are you required to file a 1099? A 1099 is required to be filed when $600 or more is paid to any unincorporated business or individual for any of the following.
- For services
- For services combined with providing materials
- For rent
In addition, if you paid $600 or more for legal or health care services, 1099′s need to be issued regardless of the vendor’s entity status (in other words, you must send them to corporations as well.)
Before you decide to simply answer “No” to these questions, keep in mind that the penalties for noncompliance can add up. For “Intentional Disregard” (purposefully not filing the required forms), the minimum penalty the IRS may impose is $100 per 1099 not filed, with no maximum penalty.
To avoid noncompliance be sure to complete a Form W-9 before you pay for services rendered. Examples of services rendered include, but are not limited to repairs, janitorial, accounting, legal, consulting and computer maintenance services. In other words, get the name, address, entity type and Social Security Number or Federal Employer Identification Number of anyone you make payments to for services rendered in the course of conducting your business. Five minutes worth of due diligence can save you hundreds, even thousands of dollars!
BRING US YOUR 1099-Ks!
1099-Ks are now required to be filed by credit card companies, banks and third party networks (think PayPal) to report gross receipts made by credit or debit cards. If you report gross receipts of less than the amounts reported on the 1099-Ks issued to you the IRS will be sure to assess additional tax and penalties. Because of this we must have your 1099-K’s to ensure correct revenue reporting.
The reporting requirements can be complex. Please contact our office if you need clarification on these issues.
Organizing Tax Records This Summer Can Help You Keep Your Cool
Aug 10th
IRS Summertime Tax Tip 2012-16
If the sweltering dog days of summer aren’t incentive enough to get out of the sun for awhile, the IRS suggests another reason to head indoors: organizing your tax records. Devoting some time mid-year to putting your tax-related documents in order may not only keep you out of the sun, but it should also make it easier for you to prepare your tax return when the filing season arrives.
Here are some things the IRS wants individuals and small business owners to know about recordkeeping.
- What to keep – Individuals. In most cases, keep records that support items on your tax return for at least three years after that tax return has been filed. Examples include bills, credit card and other receipts, invoices, mileage logs, canceled, imaged or substitute checks or other proof of payment and any other records to support deductions or credits claimed. You should typically keep records relating to property at least three years after you’ve sold or otherwise disposed of the property. Examples include a home purchase or improvement, stocks and other investments, Individual Retirement Account transactions and rental property records.
- What to keep – Small Business Owners. Typically, keep all your employment tax records for at least four years after the tax becomes due or is paid, whichever is later. Also, keep records documenting gross receipts, proof of purchases, expenses and assets. Examples include cash register tapes, bank deposit slips, receipt books, purchase and sales invoices, credit card charges and sales slips, Forms 1099-MISC, canceled checks, account statements, petty cash slips and real estate closing statements. Electronic records can include databases, saved files, e-mails, instant messages, faxes and voice messages.
- How to keep them - Although the IRS generally does not require you to keep your records in any special manner, having a designated place for tax documents and receipts is a good idea. It will make preparing your return easier, and it may also remind you of relevant transactions. Good recordkeeping will also help you prepare a response if you receive an IRS notice or need to substantiate items on your return if you are selected for an audit.
For more information on recordkeeping for individuals, check out Chapter 1, “Filing Information,“ in IRS Publication 17, Your Federal Income Tax.
Find small business recordkeeping information in IRS Publication 583, Starting a Business and Keeping Records. Both publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Also available are new video and audio files explaining recordkeeping requirements in detail, located on the IRS video portal at www.irsvideos.gov.
Links:
- Publication 17, Your Federal Income Tax (PDF)
- Tax Topic 305 – Recordkeeping
- Publication 583, Starting a Business and Keeping Records (PDF)
YouTube Videos:
Summer Hours for 2012
Apr 27th
From May 1 through September 30 our offices will close at noon on Fridays.
Have a great summer!
Just a Reminder!
Mar 26th
Our tax offices will close at 2 pm on Tuesday, April 17 and re-open at 8 am on Thursday, April 19. However, Gough Financial Group will be open.
Just a reminder — All e-file authorization forms (Form 8879) MUST be received in our office by Monday, April 16 to ensure timely filing.
Have employees? Check out our FREE encore seminar
Jan 13th
Criser Gough & Parrish
Presents a Complimentary
EXECUTIVE BRIEFING
HR Mistakes That Can Cost You Money
Did You Know That . . .
- Fines for mistakes on Employment Verification Form I-9s start at $100 per mistake per form?
- It is illegal to have medical information in personnel files?
- Incorrectly classifying someone as exempt who should be non-exempt can make you subject to fines, overtime pay and back wages?
- Sexual harassment lawsuits cost companies thousands and thousands of dollars?
We know that you try to run your business in an efficient manner and in compliance with state and Federal regulations. But do you know if you are or not? This seminar will provide you with information to help reduce your risk by understanding hot buttons in employment law compliance. This seminar is designed to provide you with a high-level overview of key employment issues including:
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Join us on Thursday, January 26, 2012
8:00 to 9:30 AM
Office This, 4031 E Harry St, Wichita KS
Please RSVP to Penny at 316-685-1040 or penny@crisergoughparrish.com by January 23.
Presenters: Anita Buchanan, MBA, SPHR, Will Stricker, Leslie Neinast
Are You 1099 Compliant?
Jan 4th
by Julie Powers
Are you a sole proprietor, farmer, landlord, partner or shareholder? If so, take note, because included on the 2011 Schedules, C, E and F and Forms 1065, 1120 and 1120-S are two new questions regarding 1099 compliance that must be answered.
The first question is “Did you make any payments in 2011 that would require you to file Form(s) 1099?” Then, ‘If “Yes,” did you or will you file all required Forms 1099?’ These questions are part of the IRS’ ongoing effort to close the tax gap by ensuring that service providers report 100% of their income.
When are you required to file a 1099? A 1099 is required to be filed when $600 or more is paid to any unincorporated business or individual for any of the following.
- For services
- For services combined with providing materials
- For rent
In addition, if you paid $600 or more for legal or health care services, 1099′s need to be issued regardless of the vendor’s entity status (in other words, you must send them to corporations as well.)
Before you decide to simply answer “No” to these questions, keep in mind that the penalties for noncompliance can add up. For “Intentional Disregard” (purposefully not filing the required forms), the minimum penalty the IRS may impose is $100 per 1099 not filed, with no maximum penalty.
To avoid noncompliance be sure to complete a Form W-9 before you pay for services rendered. Examples of services rendered include, but are not limited to repairs, janitorial, accounting, legal, consulting and computer maintenance services. In other words, get the name, address, entity type and Social Security Number or Federal Employer Identification Number of anyone you make payments to for services rendered in the course of conducting your business. Five minutes worth of due diligence can save you hundreds, even thousands of dollars!
BRING US YOUR 1099-Ks!
1099-Ks are now required to be filed by credit card companies, banks and third party networks (think PayPal) to report gross receipts made by credit or debit cards. If you report gross receipts of less than the amounts reported on the 1099-Ks issued to you the IRS will be sure to assess additional tax and penalties. Because of this we must have your 1099-K’s to ensure correct revenue reporting.
The reporting requirements can be complex. Please contact our office if you need clarification on these issues.
IRS Announces 2012 Standard Mileage Rates, Most Rates Are the Same as in July
Dec 12th
IR-2011-116, Dec. 9, 2011 http://1.usa.gov/ttw0ow
The Internal Revenue Service today issued the 2012 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 55.5 cents per mile for business miles driven
- 23 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51.
Notice 2012-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
Free Seminar – HR Mistakes That Can Cost You Money
Nov 21st
Did You Know That . . .
• Fines for mistakes on Employment Verification Form I-9s start at $100 per mistake per form?
• It is illegal to have medical information in personnel files?
• Incorrectly classifying someone as exempt who should be non-exempt can make you subject to fines, overtime pay and back wages?
• Sexual harassment lawsuits cost companies thousands and thousands of dollars?
We know that you try to run your business in an efficient manner and in compliance with state and Federal regulations. But do you know if you are or not? This seminar will provide you with information to help reduce your risk by understanding hot buttons in employment law compliance.
Come Join Us on Wednesday December 7, 2011
8:30 to 10:00
Office This
Hello Goodbye room
4031 E Harry
Wichita KS
Please RSVP to Penny at 316-685-1040 or penny@crisergoughparrish.com no later than Monday, December 5, 2011
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