Monthly Archives: March 2014

Falsely Claiming Zero Wages or Using False Form 1099

Filing a phony information return is an illegal way to lower the amount of taxes an individual owes. Typically, a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used as a way to improperly reduce taxable income … Continue reading

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Return Preparer Fraud

About 60 percent of taxpayers will use tax professionals this year to prepare their tax returns. Most return preparers provide honest service to their clients. But, some unscrupulous preparers prey on unsuspecting taxpayers, and the result can be refund fraud … Continue reading

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Pervasive Telephone Scams

The IRS has seen a recent increase in local phone scams across the country, with callers pretending to be from the IRS in hopes of stealing money or identities from victims. These phone scams include many variations, ranging from instances … Continue reading

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Seven Facts about Dependants and Exemptions

The IRS has seven facts on these rules to help you file your taxes. 1. Exemptions cut income. There are two types of exemptions: personal exemptions and exemptions for dependants. You can usually deduct $3,900 for each exemption you claim … Continue reading

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Identity Theft

Identity theft occurs when someone uses your personal information, such as your name, Social Security number (SSN) or other identifying information, without your permission, to commit fraud or other crimes. In many cases, an identity their uses a legitimate taxpayer’s … Continue reading

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Important Reminders about Tip Income

-Tips are taxable. You must pay federal income tax on any tips you receive. The value of non-cash tips, such as tickets, passes or other items of value are also subject to income tax. -Include all tips on your return. … Continue reading

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2014 Filing Season Continues with Higher Refunds Issued

The IRS released 2014 tax filing season statistics showing that 15 percent more refunds were already issued this year, compared to 2013 figures. Additionally, the average federal refund totaled $3,3211, an increase of $190 compared with the same period a … Continue reading

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Four Good Reasons to Direct Deposit Your Refund

Here are four good reasons to choose direct deposit: 1. Convenience. There is no need to make a trip to the bank to deposit a check. 2. Security. Sinces no risk of your refund check being stolen or lost in … Continue reading

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Five Facts about Unemployment Benefits

Here are five important facts from the IRS about unemployment compensation: 1. You must include all unemployment compensation in your income for the year. 2. There are several types of unemployment compensation. 3. You must include benefits paid to you … Continue reading

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Ten Facts about Capital Gains and Losses

Capital assets include property such as your home or car. They also include investment property such as stocks and bonds. A capital gain or loss is the difference between your basis and the amount you get when you sell an … Continue reading

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