Tag: refund

Tax Fraud: How is the IRS Protecting you this Tax Season?

With thshutterstock_45292546-1e familiar scent of the rapidly approaching tax season in the air, the issue of security and tax fraud linger from years past.

Earlier this year, the IRS confirmed an upsetting $39 million breach where hackers made 200,000 attempts to retrieve taxpayer data. Roughly 100,000 of those attempts were successful.

Based on the August 2014 Identity Theft Report from the Government Accountability Office (GAO), the IRS paid out eighteen percent, or $5.2 billion, in refund fraud. Although areas remain where the IRS continue to fall short such as authorization controls, this year the GAO reported that the IRS showed to be making improvements.

Tax software providers are following suit by reinforcing security precautions for all users. These include password requirements, security questions and lockout functions.  At the 2015 Security Summit, IRS Commissioner, John Koskinen distinguished twenty new factors to consider when assessing fraud.  “Thanks to the cooperative efforts taking place between the industry, the states and the IRS, we will have new tools in place this January to protect taxpayers during the 2016 filing season.”, says Koskinen.

This, along with the efforts of all taxpayers, will help thwart identity thieves. Here are some ways the IRS urges you protect yourself:

  • Use reliable computer security software with firewalls and virus protection
  • Create secure computer passwords
  • Avoid giving out any personal information over the phone to those claiming to be from the IRS
  • Check your credit report every year
  • Safeguard your SSN and always verify identities of those you give it to

If you think you have been a target of tax fraud or need more help understanding your taxes, please visit our live chat at our website (www.semaphoretax.com) to get in contact with one of our experienced tax professionals, or call us at 866-736-2444.

 

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor or tax advisor with respect to matters referenced in this post. Semaphore assumes no liability for actions taken in reliance upon the information contained herein.

Sources:

https://www.irs.gov/uac/Newsroom/IRS,-States,-Industry-Continue-Progress-to-Protect-Taxpayers-from-Identity-Theft

http://www.gao.gov/assets/670/665368.pdf

http://www.gao.gov/assets/670/667965.pdf

http://www.usatoday.com/story/money/2015/06/02/irs-data-breach-senate-hearing/28353983/

http://www.usatoday.com/story/money/2015/10/20/irs-identity-theft-protection-effort/74262804/

 

Revised Publications: 3 out of 5 People Still Need to File

With almost 59 million tax returns filed so far, the IRS estimates that three out of five taxpayers have yet to file their tax returns, according to statistics released today. Are you one of them?

For those of us still working on their taxes, the IRS added three revised publications to IRS.gov just this week. These publications will help businesses and individuals understand how to figure depreciation as well as pension options.

Breakdown:

Publication 946, “How to Depreciate Property” explains how you can recover the cost of business or income-producing property through deductions for depreciation. The publication was updated to reflect the extension of expiring tax provisions in legislation signed into law on Dec. 19.

Publication 4587, “Payroll Deduction IRAs for Small Businesses” explains that individuals saving in a traditional IRA may be able to receive some tax advantages on the money they contribute, and the investments can grow tax-deferred.

Publication 4334, “SIMPLE IRA Plans for Small Businesses” explains how a SIMPLE (Savings Incentive Match Plan for Employees of Small Employers) IRA plan offers great advantages for businesses that have 100 or fewer employees (who earned $5,000 or more during the preceding calendar year) and that do not have another retirement plan.

The IRS constantly adds revised tax forms, publications, instructions and tax information to IRS.gov. They encourage taxpayers to frequently visit IRS.gov, including the forms and pubs page for all current forms and publications, updates and changes, and additional information.

#TaxTipTues: Where’s My Refund?

After you answer the most important question: “How much will I get on my refund?”, wondering “Where is my refund?” is not far off.

Finding out the status of your refund is simple.
Visit IRS.gov and select “Where’s my refund” to check the status of your refund. The IRS updates the site every 24 hours.

Note: If you have mailed your tax return in, it can take up to 4 weeks before it will be available to view online.
In order to check the status of your refund, have the following handy:
1.) Social security number
2.) Your filing status
3.) The exact amount you’re expecting back.

It’s that simple. Thanks for reading this week’s #TaxTipTues. Stay in touch with us on Twitter.

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor or tax advisor with respect to matters referenced in this post. Semaphore assumes no liability for actions taken in reliance upon the information contained herein.