|
Ted Phillips, The Del Ray CPA
(571) 312-1169
FAX (571) 227-7907
114 E. Randolph Avenue
Alexandria, VA 22301
|
|
|
Watch Out For Tax-Based Scams
|
|
IMPORTANT DATES
September 16, 2019
2019 third quarter estimated tax payments due
Extended income tax returns due for corporations and partnerships
September 30, 2019
Extended income tax returns due for trusts
October 15, 2019
Extended income tax returns due for individuals
Please get any remaining documents in to the office as soon as you can. I am continuing to contact clients with final wrap-up questions, and get returns in the mail.
|
|
The past few years have seen an increase in scammers who call, mail or email pretending to be from the IRS or another tax agency. Of course, if you are ever unsure whether an communication about taxes is real, you can contact our office and we will help you figure it out.
Here are a few other things to keep in mind to avoid falling prey to a fake:
TELEPHONE CALLS
Phone scams have become increasingly common; perhaps you have received an alarming, threatening call demanding immediate payment of an overdue tax balance. These are not genuine. Keep in mind:
- You will typically receive a written notice of tax due before you are called (as long as IRS has your current address!).
- The IRS will not threaten you over the phone, or demand your credit card information immediately. They will never offer to accept payment by gift card.
- The IRS already knows your SSN and will not ask you to confirm it.
- You have the right to hang up and call IRS to confirm whether you actually have a balance due: call 1-800-829-1040. There is no need to speak to the suspicious caller, or call them back.
|
|
These calls can be especially confusing because, if you owe back taxes, the IRS and states may hire third-party collectors, who do sometimes robo-call or accept payment over the phone. But even in these cases, you should have received multiple written notices first.
MAIL
Unfortunately, this year some taxpayers are also reporting receiving fake mail, pretending to be from the IRS. Some ways to spot this serious offense:
|
|
- Real IRS letters bear a seal and return address like the one on the right (address will vary). They provide a notice number or letter number, your name and address as it appears on tax returns, and usually your SSN (sometimes the last four digits). They should not be requesting this information.
- If payment is due, there should be instructions for how to mail it, usually with a payment coupon. It should ask that checks be made payable to "US Treasury." It shouldn't offer gift cards, foreign currency, or cryptocurrency as payment options.
- The sender may seem to already know some of your financial information--this does not mean the letter is genuine. Things like real estate tax payments and house liens can be public information.
- If a telephone number is listed, you can try searching online to see if it is a genuine IRS number before calling.
I am always available to review and respond to tax-related correspondence you receive, including researching whether it is genuine. If we have a signed Power of Attorney on file for you, I will receive copies of any IRS notices.
|
|
Waiver of Underpayment Penalties Made Automatic
|
|
In mid-March of this filing season, IRS announced that taxpayers would only be penalized if they paid in less than 80% of their taxes in 2018. Usually, a penalty is applied if you pay less than
90% of taxes during the year. This was meant to ease the burden on many taxpayers who were surprised when their withholding was lowered in 2018, and they ended up with an unexpectedly large balance due.
Now, IRS has decided to automatically apply the 80% waiver of penalties to all taxpayers, meaning that we do not have to request the waiver specifically, and also that anyone who filed before the waiver was announced will now receive it automatically. Though this will not apply to most of my clients, if someone filed early and paid an underpayment penalty for 2018, it is possible that they will receive a refund in the next few months. We do not need to take any further action.
More importantly, IRS is unlikely to keep this lower rate in place for 2019. If you are concerned about your withholding levels at work, now is a good time for me to take a look at your current pay-stubs to calculate how much, if any, you may owe next year. Additionally, if you have significant self-employment income this year, or have received unexpectedly large gains or other income, it might make sense to make estimated payments to avoid the underpayment penalty. Contact me if you would like to discuss these issues.
|
|
Please use our document portal to send documents securely online.
If you are using our portal for the first time, contact Shannon in our office to set up an account:
Shannon@TheDelRayCPA.com
.
|
|
|
Ted Phillips, The Del Ray CPA
(571) 312-1169 | FAX (571) 227-7907
|
|
|
|
|
|
|