Visit our News page for regular updates on tax regulation and the latest developments at our firm.

03/21/2012: 

IRS Warns of Phone Scam

"Accounting Today" today warned of athe "largest ever" phone fraud scam being run by individuals reporting to be from the Internal Revenue Service.  The Treasury Inspector General for Tax Administration, J. Russell George, states that the TIGTA has received reports of over 20,000 contacts and that thousands of victims of this fraud have collectively paid over $1 million to the perpetrators.  The article goes on to advise taxpayers on how to proceed in case they receive any such call. 

Some very important things to remember are that 1) the IRS will not contact you by phone first; 2) the caller will identify themselves and offer a bogus "IRS badge number" and may know the final four of your SSN; 3) the IRS does NOT accept or demand immediate payment by debit card or wire transfer.  If you receive such a call, do NOT divulge any personal information!  Any similar emails you receive should be forwarded to the IRS at phishing@IRS.gov -- and don't open any attachments or click on any links!

If you'd like to see the full article, please go to http://www.accountingtoday.com/news/taxpayers-warned-of-largest-ever-phone-fraud-scam-from-irs-impostors-70053-1.html?utm_campaign=daily-mar%2021%202014&utm_medium=email&utm_source=newsletter.

02/23/2012: 

Checking the Status of Your Refund 

One of the most frequently asked questions I get from clients, friends and family at this time of year is “How long will it be before I get my refund?” As a general rule, if you file a paper return, refund information will generally be available three to four weeks after mailing your return and you should expect the refund about six weeks after filing.  If you’ve already filed your federal tax return and are due a refund, you have several options to check on your refund. The easiest way to check is by using the IRS “Where’s My Refund?” program, located on their website at http://www.irs.gov.

You’ll need the following information ready to use their site:

• Your Social Security Number or Individual Taxpayer Identification Number
• Your filing status which will be Single, Married Filing Joint Return, Married.
• Filing Separate Return, Head of Household, or Qualifying Widow(er).
• Exact whole dollar refund amount shown on your tax return.

Once you enter your personal information, you could get several responses, including:

• Acknowledgement that your return was received and is in processing.
• The mailing date or direct deposit date of your refund.
• Notice that the IRS could not deliver your refund due to an incorrect address. In this instance, you may be able to change or correct your address online using Where’s My Refund?

02/22/2012: 

Beware of Bogus IRS e-mails

There's a new round of e-mail scams going around, purporting to be from the IRS. Scammers use the IRS name or logo to make the message appear authentic so you will respond to it. In reality, it’s a scam attempting to trick you into revealing your personal and financial information.

The IRS does not initiate contact with taxpayers by e-mail or social media channels to request personal or financial information. Never share confidential information via e-mail with someone alleging to be the IRS. If you receive a suspicious e-mail claiming to be from the IRS, or directing you to an IRS site, do not reply, do not open any attachments, and do not click on any links.

For more information on these scams and what to watch for, go to:www.irs.gov/uac/Newsroom/Beware-of-Bogus-IRS-Emails



02/16/2012: 

Is the Economy Turning Around?

In talking to many of our colleagues and friends, we're often asked “So, what's with the economy? Will it ever get back to normal?”

Well, the U.S. “normal” economy shouldn’t be confused with the boom days of the middle of the last decade - we've all seen (and felt!) the pain of what imprudent and often unscrupulous lending and financial policies can bear.  That being said, the “normal” U.S. economy shouldn’t mean the malaise that has plagued us for the past five years, either.

Somewhere in the middle - that’s a good goal.

So, how can you take your business to that next step of achieving “normal” growth? This doesn't mean “rocket ship to the moon”-type growth, but that which is sustainable, controllable and within your means - the kind of growth that doesn’t require your presence on-site 24/7.

The Small Business Administration (SBA) has some excellent guidance on this point.  As a good example, look at their blog post "How to Find an Accountant Who Can Help Your Small Business over the Long Haul" (http://www.sba.gov/community/blogs/community-blogs/small-business-cents/how-find-accountant-who-can-help-your-small-bus).  Many Small Business owners make the mistake of staying with a family CPA who may or may not have the type of skills you need to develop and protect your business.  Consider your choices carefully. Interview multiple Accountants or CPAs to find the one whose skill set and personality best "fit" you. Check their references - selecting the wrong Advisor can be a painful (and costly) mistake!

10/25/2012: Some actual helpful advice from the IRS:

Don't Fall for Phony IRS Websites

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 and payers, 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.

Give us a call if you have any questions!

Independent Contractor or Employee?

The key word is “control”.  An employee erroneously classified as an independent contractor (IC) can result in significant fines and penalties to your company. The Internal Revenue Service measures the evidence of control over a worker and their independence in three categories:

1. Behavioral: Does the company control or have the right to control what the worker does and how, when or where the worker does his or her job?
2. Financial: Are the business aspects of the worker’s job controlled by the payer? (These include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
3. Type of Relationship: Are there written contracts or employee-type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

The IRS has identified 20 factors to determine whether enough control exists over a worker to be an employee. While the IRS says the importance of each factor depends on the individual circumstances, these guidelines they should be helpful in determining whether you wield enough control to show an employer-employee relationship. If your answer to each of the first four questions is “Yes”, you’re probably dealing with an independent contractor; any “Yes” answers to questions 5 through 20 means your worker is probably an employee.

Evaluate your answers carefully – mistakes can be expensive!

1. Profit motive/exposure to loss. Can the worker make a profit or suffer a loss as a result of the work, aside from the money earned from the project?
2. Equipment and/or facilities. Does the worker have an investment in the equipment and facilities used to do the work?
3. Multiple engagements. Does the person work for more than one company at a time?
4. Services offered to the general public. Does the worker offer services to the general public?
5. Instructions. Probably the most important question is: do you have control over when, where and how the work will be performed?
6. Training. Do you train the worker to do the job in a particular way?
7. Integration. Are the worker’s services so important to your business that they have become a necessary part of the business?
8. Services rendered personally. Must the worker provide the services personally, as opposed to delegating tasks to someone else?
9. Hiring assistants. Do you hire, supervise and pay the worker’s assistants?
10. Continuing relationship. Is there an ongoing relationship between the worker and your company?
11. Work hours. Do you set the worker’s hours?
12. Full-time work. Must the worker spend all of his or her time on your company’s tasks?
13. Work done on premises. Must the individual work on your premises or do you control the route or location where the work must be performed?
14. Sequence. Do you have the right to determine the order in which services are performed?
15. Reports. Must the worker give you reports accounting for his or her actions?
16. Pay Schedules. Do you pay the worker by hour, week or month? ICs in many fields are paid by the project, but some industries’ ICs are paid hourly.
17. Expenses. Do you pay the worker’s business or travel costs? ICs are usually required to pay their own.
18. Tools and materials. Do you provide the worker with equipment, tools or materials? ICs usually supply the materials for the project and use their own tools and equipment.)
19. Right to terminate. Can you fire the worker? An IC usually cannot be fired without subjecting you to the risk of breach of contract lawsuit.
20. Worker’s right to quit. Can the worker quit at any time, without incurring liability? An IC has a legal obligation to complete the contract.

Should you have any questions about this or other matters, please feel free to contact us!

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