Posts Tagged ‘tax returns’

Is The Information in Your Tax Return Documents Correct???

Monday, March 21st, 2022

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

This is the time of the year in which we diligently accumulate and sort all of the documents that we’ll need to prepare our tax returns.  You should also always review all of the data in each document to ensure that it’s correct, and that no information is missing or incorrect.  As a general rule, it will be, but there are situations in which it’s not.  Whoever provided you with that information has already sent a copy or transmitted it to the Internal Revenue Service.  So now both you and the IRS are utilizing incorrect or missing information.

What action(s) should you initiate or what should you do in order to correct the problem(s) BEFORE you file your tax returns.  In the worst case, you’ll have to file amended tax returns if the errors and mistakes cannot be promptly corrected.  Who should you contact?  What agencies should be contacted?

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Identity Theft – Prevention & Reporting

Tuesday, June 1st, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

“Identity Theft” is a global problem that is not expected to decline or even be eliminated.  Truly said “An ounce of prevention is worth far more than a pound of cure”, or rectification.  From usa.gov:

Identity (ID) theft happens when someone steals your personal information to commit fraud. The identity thief may use your information to apply for credit, file taxes, or get medical services. These acts can damage your credit status, and cost you time and money to restore your good name.”

You must always be proactively engaged in the monitoring of all of your financial accounts, loans, invoices or bills for items that you did not authorize, or purchase, unexplained notifications from lenders for loans for which you did not apply, or unexplained debt collection calls.

Should you become the victim of Identity Theft, you should immediately contact your local law enforcement offices and the Federal Trade Commission [ Identity Theft Recovery Steps | IdentityTheft.gov ].  Again, from usa.gov:

” Freeze your credit files with EquifaxExperianInnovisTransUnion, and the National Consumer Telecommunications and Utilities Exchange for free. Credit freezes prevent someone from applying for and getting approval for a credit account or utility services in your name.”

You may also experience similar problems with your tax returns and the Internal Revenue Service.  However, there are some actions that you can take now to possibly avoid this situation:

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People Should Be on The Lookout for Identity Theft Involving Unemployment Benefits

Thursday, February 25th, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

The IRS urges taxpayers whose identities may have been used by thieves to steal unemployment benefits to file a tax return claiming only the income they actually received.

In 2020, millions of taxpayers were affected by the COVID-19 pandemic through job loss or reduced work hours. Some taxpayers applied for and received unemployment compensation from their state. By law, unemployment benefits are taxable.

Scammers also took advantage of the pandemic by filing fraudulent claims for unemployment compensation using stolen personal information of individuals who had not filed claims. Payments made as a result of these fraudulent claims went to the identity thieves.

Taxpayers who receive an incorrect Form 1099-G should contact the issuing state agency to request a revised form. If they’re unable to get a timely, corrected form from states, they should still file an accurate tax return, reporting only the income they received. They should save whatever documentation they have regarding their attempts to receive a corrected form from their state agency.

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Avoiding Any Possible Exposure to Allegations of Fraud and Criminal Misconduct

Friday, July 29th, 2011

The exclusive purpose for the information which is provided from this website is to disseminate  information, and not to provide tax advice.

An excellent article on this subject was published this month in the August 2011 issue of the Journal of Accountancy, which is an official publication for the American Institute of Certified Public Accountants.   This is a link to that article:  http://www.journalofaccountancy.com/Issues/2011/Aug/20114034.htm   The “Executive Summary” for the article states that “Taxpayers may be subject to criminal prosecution for felonies, including tax evasion, under IRC (Internal Revenue Code) section 7201 and filing false returns under (IRC) section 7206″  “In addition to criminal investigations, the IRS may also pursue civil penalties, including the (IRC) section 6663 fraud penalty.”  

Clearly it is always in the best interests of both taxpayers and business owners to proactively ensure that they never become the subject of these types of investigations by any agency or taxing authority.  Proverbally, Benjamin Franklin reminded us that “An ounce of prevention is worth a pound of cure!”   In a nutshell, either acquire all of the knowledge and expertise that you need to meet ALL of the regulatory requirements for your business operations or engage someone who does have these skills. 

In his play Hamlet, William Shakespeare wrote the line “To thy own self be true..”  In the context of this article it means that you should always be mindful of your own knowledge and skills, and that you should always remain within those boundaries.  If the demands (requirements) of your business or personal financial situation are becoming so complex as to exceed those limitations, contact a professional whose education, knowledge, and experience are appropriate for your situation. 

Finally, if you have been notified that you are the subject of a fraud or criminal miscounduct investigation you should immediately contact an attorney with the experience and skills to assist you in the satisfactory resoulution of these issues.