New refund fraud uses taxpayers' actual bank accounts

The IRS has reported on a new refund fraud scheme affecting taxpayers, where a criminal uses the taxpayer's actual bank accounts for a fraudulent refund deposit. A person posing as a debt collection agency then contacts the taxpayer to say the refund was deposited in error, and asks the taxpayer to forward the money. People should be extremely wary of callers posing as debt collection personnel, especially if they know they don't owe back payments. 

The federal budget bill passed into law on Feb. 9 extends the deduction for tuition and related expenses for tax year 2017.  The Vermont Department of Taxes had issued an earlier statement saying the deduction had not been extended based on the federal Tax Cuts and Jobs Act. If you are eligible for the deduction and it is not allowed by your software, please contact your vendor immediately to avoid filing errors.

Do you use more than 25% of your home for business use? If you are entering a percentage of home business use on Line A4, "Business Use of Dwelling," on Form HS-122, Homestead Declaration, be sure it matches the percentage of business use you are claiming on Line 7, "Business Percentage," on federal Form 8829, Expenses for Business Use of Your Home. These two forms should show the same percentage numbers, unless it is a bed and breakfast.  For more information visit our website.

 

Businesses with questions can reach the Department at 802-828-2505 (option 2). This phone number for businesses is answered Monday, Tuesday, Thursday, Friday 7:45AM-4:30PM. We do not take calls on Wednesdays.

 

For questions about Corporate or Business Entity Income Tax, email tax.corporate@vermont.gov.

 

For questions about Sales and Use Tax, Meals and Rooms Tax, Local Option Tax, Withholding, or for support with myVTax, email tax.business@vermont.gov.

 

We are here to help.

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