Hiding Income Offshore

Posted on April 8, 2014 by Camron Hoorfar

offshore

Over the years, numerous individuals have been identified as evading U.S. taxes by hiding income in offshore banks, brokerage accounts or nominee entities and then using debit cards, credit cards or wire transfers to access the funds. Others have employed foreign trusts, employee-leasing schemes, private annuities or insurance plans for the same purpose.

The IRS uses information gained from its investigations to pursue taxpayers with undeclared accounts, as well as the banks and bankers suspected of helping clients hide their assets overseas. The IRS works closely with the Department of Justice (DOJ) to prosecute tax evasion cases.

Courtesy of the IRS Issue Number: 2014-16

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False Promises of “Free Money” from Inflated Refunds

Posted on April 4, 2014 by Camron Hoorfar

money 2

Scam artists routinely pose as tax preparers during tax time, luring victims in by promising large federal tax refunds or refunds that people never
dreamed they were due in the first place.

Scammers build false hope by duping people into making claims for fictitious rebates, benefits or tax credits. They charge good money for very bad advice. Or worse, they file a false return in a person’s name and that person never knows that a refund was paid.

Courtesy of the IRS Issue Number: 2014-16
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False Income, Expenses or Exemptions

Posted on April 3, 2014 by Camron Hoorfar

income 2

Another scam involves inflating or including income on a tax return that was never earned, either as wages or as self-employment income in order to maximize refundable credits. Claiming income you did not earn or expenses you did not pay in order to secure larger refundable credits such as Earned Income Tax Credit could have serious repercussions. This could result in repaying the erroneous refunds including interest and penalties, and in some cases, even prosecution.

Courtesy of the IRS Issue Number: 2014-16
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Falsely Claiming Zero Wages or Using False Form 1099

Posted on March 28, 2014 by Camron Hoorfar

zero

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 to zero. The taxpayer may also submit a statement rebutting wages and taxes reported by a payer to the IRS.

Don’t fall prey to people who encourage you to claim deductions or credits to which you are not entitled or willingly allow others to use your information to file false returns.

Courtesy of the IRS Issue Number: 2014-16
Check out our website at www.Hoorfarlaw.com.

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Return Preparer Fraud

Posted on March 27, 2014 by Camron Hoorfar

fraud 2

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 or identity theft.

Remember: Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. Make sure the preparer you hire is up to the task.

Courtesy of the IRS Issue Number: 2014-16
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Pervasive Telephone Scams

Posted on March 25, 2014 by Camron Hoorfar

phone

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 from where callers say the victims owe money or are entitled to a huge refund.

Courtesy of the IRS Issue Number: 2014-16
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Seven Facts about Dependants and Exemptions

Posted on March 21, 2014 by Camron Hoorfar

dependant

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 on your 2013 tax return.

2. Personal Exemptions. You can usually claim an exemption for yourself. If you’re married and file a joint return you can also claim one for your spouse. If you file a separate return, you can claim and exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependant of another taxpayer.

3. Exemptions for dependants. A dependant is either your child or a relative that meets certain tests. You can’t claim your spouse as a dependant.

4. Some people don’t qualify. You generally may not claim married persons as dependants if they file a joint return with their spouse.

5. Dependants may have to file. People that you can claim as your dependant may have to file their own federal tax return.

6. No exemption on dependant’s return. If you can claim a person as a dependant, that person can’t claim a personal exemption on his or her own tax return.

7. Exemption phase-out. The $3,900 per exemption is subject to income limits.

Courtesy of the Internal Revenue Service: Issue IRS Tax Tip 2014-22
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Identity Theft

Posted on March 20, 2014 by Camron Hoorfar

robber

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 identity to fraudulently file a tax return and claim a refund.

Courtesy of the IRS Issue Number: 2014-16
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Important Reminders about Tip Income

Posted on March 19, 2014 by Camron Hoorfar

tip jar

-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. You must include the total of all tips you received during the year on your income tax return.

-Report tips to your employer. If you receive $20 or more in tips in any one month, from any one job, you must report your tips for that month to your employer.

-Keep a daily log of tips.

For more information, check out Internal Revenue Service Issue Number: IRS Tax Tip 2014-16.

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2014 Filing Season Continues with Higher Refunds Issued

Posted on March 13, 2014 by Camron Hoorfar

refund

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 year ago.

The statistics issued, covering the period through February 14, show that while the overall number of tax returns filed this year is down slightly, less than a percentage point, nearly 95 percent of all returns received were filed electronically.

Visit our website at www.Hoorfarlaw.com.
Courtesy of the IRS Issue Number 2014-17

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