November 18. 2016
Plan ahead for the coming tax filing season.
There are important changes you should know about before the 2017 filing season begins. If you are a client of Tax On Wheels, LLC we will take care of everything for you. If, on the other hand, you are the do it yourself type, there are a couple of things like refund delays and electronic filing procedures you should factor into your tax preparation regimen.
The IRS lays out all of the details on its website, IRS.gov/GetReady to help taxpayers understand the changes that may affect the processing of tax returns and release of refunds. We encourage you to review this page now before tax season so that you will be ready for what is in place now.
As always, please feel free to contact Tax On Wheels, LLC at 803 732-4288 if we can be of assistance to you.
November 5, 2016
Liberty tax outlets across the country have suffered a string of setbacks in the past few months. Federal authorities allege fraudulent tax returns were generated at several locations. Most recently, three local Liberty Tax franchise stores were shut down by federal authorities and the operator of the franchise was permanently barred from preparing tax returns.
But that is not the end of the story. Apparently, as part of a court ordered injunction, the franchise operator will have to provide to the IRS a list of all of its customers. We don’t think the IRS wants that information so it can update their holiday greeting card list. We suspect that many of those on the list can expect some type of inquiry/audit from tax authorities in the near future. And here’s a pro tip, there is no statute of limitations on tax fraud. Normally, if you have been reasonably accurate in filing your tax return you can assume that the IRS cannot and will not challenge your return after 3 years. But not so if you have filed a fraudulent return, or had one filed on your behalf. The IRS can come after you at any time in the future with no deadline or time limit. Ouch!
Even if you consider yourself a victim of unscrupulous tax return preparers and you had no idea there was anything wrong, you are ultimately responsible for everything on your tax return. You may be babe in the woods innocent, but that will not change your tax liability. You will be responsible for all of the taxes the IRS believes you owe. The good news is you may be able to convince the IRS to relieve you of some of the quite substantial penalties that may apply.
If you find that you need assistance in responding to a letter or audit from a state or federal taxing authority, whether due to the recent Liberty Tax troubles or not, please let us see how we can help you. We’ll give you an honest assessment of your situation and provide you with several steps to take to help mitigate the damage, all for no cost or obligation. If, however, you would like our assistance in responding to the letter or audit, Tax On Wheels,LLC is here to help. We will offer you a fair price, to help resolve your tax issues. Frequently we find that our prices are significantly lower than many of our competitors to obtain the exact same results.
Tax On Wheels, LLC can be reached at 803 732-4288 or toll free at 877 439-3514. Our email address is taxonwheels@att.net.
October 17, 2016
IRS Gives Expanded Tax Relief to Victims of Hurricane Matthew; Parts of Four States Eligible; Extension Filers Have Until March 15 to File
Caution: This is not an extension to pay taxes due by April 17, 2016! Read this carefully to understand the relief granted.
WASHINGTON –– Hurricane Matthew victims in much of North Carolina and parts of South Carolina, Georgia and Florida have until March 15, 2017, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service announced today. This includes an additional filing extension for those with valid extensions that run out at midnight tonight, Oct. 17.
The IRS is now offering this expanded relief to any area designated by the Federal Emergency Management Agency (FEMA), as qualifying for either individual assistance or public assistance. Moreover, taxpayers in counties added later to the disaster area will automatically receive the same filing and payment relief.
The IRS is taking this step due to the unusual factors involving Hurricane Matthew and the interaction with the Oct. 17 extension deadline.
The tax relief postpones various tax filing and payment deadlines that occurred starting on Oct. 4, 2016. As a result, affected individuals and businesses will have until March 15, 2017, to file returns and pay any taxes that were originally due during this period. This includes the Jan. 17 deadline for making quarterly estimated tax payments. For individual tax filers, it also includes 2015 income tax returns that received a tax-filing extension until today, Oct. 17, 2016. The IRS noted, however, that because tax payments related to these 2015 returns were originally due on April 18, 2016, those are not eligible for this relief.
A variety of business tax deadlines are also affected including the Oct. 31 and Jan. 31 deadlines for quarterly payroll and excise tax returns. It also includes the special March 1 deadline that applies to farmers and fishermen who choose to forgo making quarterly estimated tax payments.
In addition, the IRS is waiving late-deposit penalties for federal payroll and excise tax deposits normally due on or after Oct. 4 and before Oct. 19 if the deposits are made by Oct. 19, 2016. Details on available relief can be found on the disaster relief page on IRS.gov.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. Thus, taxpayers need not contact the IRS to get this relief. However, if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
Individuals and businesses who suffered uninsured or unreimbursed disaster-related losses can choose to claim them on either the return for the year the loss occurred (in this instance, the 2016 return normally filed next year), or the return for the prior year (2015). See Publication 547 for details.
Currently, the following areas are eligible for relief:
North Carolina: Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Chowan, Columbus, Craven, Cumberland, Currituck, Dare, Duplin, Edgecombe, Gates, Greene, Harnett, Hoke, Hyde, Johnston, Jones, Lenoir, Martin, Nash, New Hanover, Onslow, Pamlico, Pasquotank, Pender, Perquimans, Pitt, Robeson, Sampson, Tyrrell, Washington, Wayne and Wilson counties.
South Carolina: Beaufort, Berkeley, Charleston, Colleton, Darlington, Dillon, Dorchester, Florence, Georgetown, Horry, Jasper, Marion, Orangeburg and Williamsburg counties.
Georgia: Bryan, Camden, Chatham, Glynn, Liberty and McIntosh counties.
Florida: Brevard, Duval, Flagler, Indian River, Nassau, St. Johns, St. Lucie and Volusia counties.
The tax relief is part of a coordinated federal response to the damage caused by severe storms and flooding and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.
As always, please feel free to contact Tax On Wheels,LLC at 803 732-4288 if you need assistance with this or any tax related matter.
October 12, 2016
Victims of Hurricane Matthew, which took place beginning on October 4, 2016, in parts of North Carolina, may qualify for tax relief. The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area.
Affected areas that currently qualify include Beaufort, Bladen, Columbus, Cumberland, Edgecombe, Hoke, Lenoir, Nash, Pitt and Robeson counties. Continue to check the Tax Relief in Disaster Situations page to stay up-to-date on eligible areas and updated deadlines. The IRS expects additional states to be included in the extended relief.
Certain deadlines falling on or after October 4, 2016, and on or before March 15, 2017, have been postponed to March 15, 2017. This includes the 2015 individual returns on extension originally due on October 17 and the January 17, 2017, deadline for making quarterly estimated tax payments. Also included are the October 31 and January 31 deadlines for quarterly payroll and excise tax returns.
The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers and their tax preparers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866.562.5227 to request this tax relief.
More details can be found in IR-2016-131.
As always, please feel free to contact us here at Tax On Wheels, LLC at 803 732-4288 if we can assist you with this or any other tax matter.
September 28, 2016
If you filed form 4868 to extend the tax filing deadline for your form 1040, the extended deadline for getting your tax return filed is fast approaching. October 15, 2016 is the statutory deadline, but since that date falls on a Saturday, the date is moved to the next business day, in this case Monday October 17, 2016.
It amazes me that when the human brain is given a deadline, it somehow determines that the best possible date to begin trying to meet that deadline is the 24 hours immediately preceding the deadline. While that may have worked for your 3rd grade spelling test, it tends to be problematic with tax returns.
Bottom line, time’s up. If you work with a preparer he or she needs the remaining time between now and the deadline to make sure your return is correct. If you are a do it yourselfer, you need the remaining time to make sure your return is correct.
Either way, it’s time to Get her done!
July 1, 2016
Tax scammers work year-round; they don’t take the summer off. The IRS urges you to stay vigilant against calls from scammers impersonating the IRS. Here are several tips from the IRS to help you avoid being a victim:
The real IRS will not:
If you don’t owe taxes or have no reason to think that you do:
If you know you owe, or think you may owe taxes call the IRS at 800-829-1040. IRS employees can help you if you do owe taxes.
IRS Tax Tips provide valuable information throughout the year. IRS.gov offers tax help and info on various topics including common tax scams, taxpayer rights and more.
IRS YouTube Videos:
IRS Podcasts:
April 17, 2016
WASHINGTON — The Internal Revenue Service announced a new payment option for individual taxpayers who need to pay their taxes with cash. In partnership with ACI Worldwide’s OfficialPayments.com and the PayNearMe Company, individuals can now make a payment without the need of a bank account or credit card at over 7,000 7-Eleven stores nationwide.
“We continue to look for new ways to provide services for our taxpayers. Taxpayers have many options to pay their tax bills by direct debit, a check or a credit card, but this provides a new way for people who can only pay their taxes in cash without having to travel to an IRS Taxpayer Assistance Center,” said IRS Commissioner John Koskinen.
Individuals wishing to take advantage of this payment option should visit the IRS.gov payments page, select the cash option in the other ways you can pay section and follow the instructions:
Because PayNearMe involves a three-step process, the IRS urges taxpayers choosing this option to start the process well ahead of the tax deadline to avoid interest and penalty charges.
The IRS has been partnering with Official Payments since 1999 for taxpayers wanting to use a credit card to pay taxes.
In this new option, PayNearMe is currently available at participating 7-Eleven stores in 34 states. Most stores are open 24 hours a day, seven days a week,. For details about PayNearMe, the IRS offers a list of frequently asked questions on IRS.gov.
The IRS reminds individuals without the need to pay in cash that IRS Direct Pay offers the fastest and easiest way to pay the taxes they owe. Available at IRS.gov/Payments/Direct-Pay, this free, secure online tool allows taxpayers to pay their income tax directly from a checking or savings account without any fees or pre-registration.
“Taxpayers should look into the payment option that works best for them,” Koskinen said.
Check IRS.gov/payments for the most current information about making a tax payment.
The IRS continues to remind taxpayers to watch out for email schemes. Taxpayers will only receive an email from OfficialPayments.com or PayNearMe if they have initiated the payment process. The IRS reminds taxpayers who haven’t taken this step to be watchful of any emails they receive saying there are tax issues involving the IRS or from others in the tax industry.
Please contact Tax On Wheels, LLC at 803 732-4288 if you have questions or need assistance with any state or federal tax matters.
March 22, 2016
Although we are located in South Carolina, we prepare tax returns for clients all across the country including the state of New York.
For the past few weeks, the state of New York has been on a bit of a tear locking up rogue tax preparers, as have many other jurisdictions including the IRS. But New York has made a special effort to post the name and image of tax preparers who have been arrested for various scams involving bogus tax returns to the tune of about one a week. (Scroll to the bottom of this article for more details on the arrests).
In light of their recent activities, the state of New York has posted what we think is a pretty good guide to choosing a tax preparer and we would like to share their guide with our readers. Of course, we think Tax On Wheels, LLC is an excellent choice for your tax preparation needs and we will be happy to assist you with your tax return. Simply give us a call at 803 732-4288 and we will take it from there.
Following Recent Statewide Tax Preparer Arrests, NYS Tax Department and the NYS Division of Consumer Protection Issue Alert
Tax Department launches new webpage and checklist for taxpayers who are considering hiring a tax preparer.
The New York State Department of Taxation and Finance and the Division of Consumer Protection today issued a consumer warning to the seven million taxpayers who have yet to file income tax returns.
“In light of the recent arrests of tax preparers across New York State, we’re urging taxpayers to ask the right questions before trusting someone with their private information,” said New York State Commissioner of Taxation and Finance Jerry Boone. “Each year, we receive thousands of tax returns based on stolen identities, some of which are submitted by unethical tax preparers. If you choose to hire a tax preparer, follow these easy steps to ensure that the preparer is honest and qualified.”
“The Division of Consumer Protection strongly urges all New Yorkers to practice due diligence when selecting a tax preparer,” said Acting NYS Secretary of State Rossana Rosado. “Always get the terms and total cost of the service in writing. Avoid any tax preparer who charges a percentage of your tax refund as part of the fee. Most important, if you suspect you’re being defrauded by a tax preparer, report that individual to the Tax Department immediately.”
Before you hire a tax preparer
While millions of New Yorkers prepare their taxes without the services of a paid tax preparer, the Tax Department and Division of Consumer Protection encourage taxpayers who are considering a paid preparer to ask these four questions:
Taxpayers should also ensure that the preparer will:
Taxpayers can also contact the Better Business Bureau to see whether a tax preparer has a history of consumer complaints.
New York is one of only four states to regulate the tax preparer industry. While most tax preparers are honest and provide excellent service to their clients, taxpayers must remain vigilant to protect themselves from individuals who file fraudulent returns or misuse personal information.
New webpage and checklist for taxpayers
To help taxpayers screen potential tax preparers, the Tax Department published a new checklist available at its Tips for hiring a tax preparer webpage. Before hiring a tax preparer, use the checklist as a guideline when visiting or calling prospective preparers.
File a complaint
If you’re aware of a tax preparer who has engaged in illegal or improper conduct, contact the NYS Tax Department’s Office of Professional Responsibility at (518) 530-HELP (option #2) or file a tax preparer complaint online. The Tax Department will review your complaint promptly and, where appropriate, take corrective action, which may include sanctions.
Recent arrests
March 8, 2016
This year, you may receive one or more forms that provide information about your 2015 health coverage; these forms are 1095-A, 1095-B and 1095-C. The IRS does not issue these forms and cannot provide you with a copy of any of these forms.
This tip provides guidance about what you should do if you are expecting to receive any of these forms, but do not have them by the time you are ready to file your tax return.
Form 1095-A, Health Insurance Marketplace Statement, provides you with information about your 2015 health care coverage if you or someone in your family enrolled in coverage through the Health Insurance Marketplace. The Marketplace should have furnished Form 1095-A to you by February 1, 2016.
Form 1095-B, Health Coverage, provides you with information about your health care coverage if you, your spouse or your dependents enrolled in coverage through an insurance provider or self-insured employer last year. Coverage providers should furnish Form 1095-B to you by March 31, 2016.
Form 1095-C, Employer-Provided Health Insurance Offer and Coverage Insurance, provides you with information about the health coverage offered by your employer. In some cases, it may also provide information about whether you enrolled in this coverage. Employers that are required to issue Form 1095-C should furnish it to you by March 31, 2016.
Do not attach any Forms 1095 to your tax return. Keep the health care information forms with your tax records.
For more information on these forms, see the Questions and Answers about Health Care Information Forms for Individuals on the IRS website. And, as always, please feel free to contact Tax On Wheels, LLC if we may be of assistance to you in deciphering your tax or health insurance situation. You may reach us by calling 803 732-4288.
February 8, 2016
We have been informed that the IRS has released significant funding for tax refunds with an effective date of Wednesday February 10, 2016.
This is good news for those of you waiting on a federal refund. According to previously issued statements by the IRS, 90% of you will have good news waiting for you at the bank soon. ;+)
No word yet on state refunds.