IRS unveils "Dirty Dozen" list of tax scams for 2020; Americans urged to be vigilant to these threats during the pandemic and its aftermath
The Internal Revenue Service today announced its annual "Dirty Dozen" list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments.
This year, the Dirty Dozen focuses on scams that target taxpayers. The criminals behind these bogus schemes view everyone as potentially easy prey. The IRS urges everyone to be on guard all the time and look out for others in their lives.
To check out the 12 scams - see the link below at the IRS website:
https://www.irs.gov/newsroom/irs-unveils-dirty-dozen-list-of-tax-scams-for-2020-americans-urged-to-be-vigilant-to-these-threats-during-the-pandemic-and-its-aftermath
IRS.GOV
IRS unveils "Dirty Dozen" list of tax scams for 2020; Americans urged to be vigilant to these threats during the pandemic and its aftermath | Internal Revenue Service
If you are filing your 2019 federal income tax return AFTER April 15, 2020 - the IRS has announced they will be paying Interest on refunds issued after April 15. The interest rate is 5% between April 15, 2020, and June 30, 2020. If the refund is issued between July 1, 2020, and Sep. 30, 2020, the interest rate is 3%. Watch for the Form 1099-INT when preparing the 2020 tax return.
The IRS said that if individuals have their refunds issued after April 15 and they file their 2019 tax returns returns prior to the July 15 deadline, they will receive interest that covers the period from April 15 until the refund issue date.
In typical years, a taxpayer who files a return on or after April 15 wouldn't get interest from the IRS unless the agency took more than 45 days to issue the refund.
For more information, check out the article below:
https://www.fool.com/taxes/2020/06/25/the-irs-will-pay-interest-on-tax-refunds-issued-af.aspx
FOOL.COM
The IRS Will Pay Interest on Tax Refunds Issued After April 15 -- Even for Filers Who Haven't Submitted Their Taxes Yet | The Motley Fool
The IRS is reminding taxpayers to keep their economic impact payment notice with their other 2020 tax records!
People who receive an Economic Impact Payment this year should keep Notice 1444, Your Economic Impact Payment, with their tax records. This notice provides information about the amount of their payment, how the payment was made and how to report any payment that wasn’t received.
For security reasons, the IRS mails this notice to each recipient’s last known address within 15 days after the payment goes out. It’s especially important for people to keep this notice if they think their payment amount is wrong. When they file their 2020 tax return, they can refer to Notice 1444 and claim additional credits, if they are eligible for them.
We will appreciate receiving this letter with your 2020 tax documents next year!
Nice little tax break coming up for your 2020 taxes. This is up to $300 for your charitable donations even if you do not itemize (does not include non-cash contributions).
https://www.cnbc.com/2020/03/25/coronavirus-bill-has-a-300-tax-break-for-charitable-giving.html
CNBC.COM
Coronavirus relief bill gives you a $300 tax break for charitable donations
MILES for Miles - JDRF One Walk, Des Moines 2020 - Virtual Walk on June 13, 2020.
This year Miles has really benefited from the Type 1 Diabetes research and technology funded in part by JDRF.
In January the software in his pump was upgraded. His pump now communicates with his continuous glucose monitor (CGM) in his arm. His pump then automatically adjusts the amount of insulin delivered to his body. ( First phase of an artificial pancreas)
This not only improves his short term and long term health. It also provides peace of mind to his caregivers who can worry less about the highs and lows of blood glucose levels.
Please consider supporting team MILES for Miles and JDRF One Walk by clicking on the link below.
https://www2.jdrf.org/site/TR?fr_id=7930&s_participantTrID=7930&pg=team&team_id=298022
WWW2.JDRF.ORG
Please help me create a world without type 1 diabetes by making a donation today!
President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act, (CARES Act), a $2 trillion stimulus package to mitigate the impact of the Coronavirus pandemic. For more information,check out the news section on our website for more details.
http://www.jamccoycpa.com/news/
JAMCCOYCPA.COM
News | Julie McCoy, CPA
IRS announced today (January 15) the 2021 tax filing season begins February 12. This is later than in most previous years (about 3 weeks later), when tax season has started in January. The IRS says the delay is due to the extra time it needs for programming and testing its systems following the tax law changes made by the Consolidated Appropriations Act, 2021 (CAA 2021), P.L. 116-260, which was enacted Dec. 27.
The IRS anticipates a first week of March refund for many EITC (Earned Income Tax Credit) and ACTC (Additional Child Tax Credit) taxpayers if they file electronically with direct deposit and there are no issues with their tax returns. This would be the same experience for taxpayers if the filing season opened in late January. Taxpayers will need to check Where's My Refund for their personalized refund date.
For more details - see the IRS news article at:
https://www.irs.gov/newsroom/2021-tax-filing-season-begins-feb-12-irs-outlines-steps-to-speed-refunds-during-pandemic
IRS.GOV
2021 tax filing season begins Feb. 12; IRS outlines steps to speed refunds during pandemic | Internal Revenue Service
If you get a 1099-G tax form but didn't collect unemployment in 2020, it could be fraud. Our firm experienced over a half dozen of fraudulent employment claims for our business clients. This is a nationwide problem and could happen to you!
Tens of millions of Americans lost their jobs or reduced their work hours in 2020 because of the coronavirus pandemic. Unfortunately, that meant go time for would-be fraudsters.
Around 76 million claims for unemployment have been made since last March. While many of those claims have come from people trying to recoup lost income and stay above water, not all of them are legitimate. Fraudsters will often use another person's name and address to file a claim, but include a bank account they have access to to collect the money. If you get Form 1099-G in the mail with your name on it reporting unemployment benefits you did not receive, then it's likely fraud.
For more information on what to do if you receive a 1099-G, see this article from Kiplinger:
https://www.kiplinger.com/taxes/602174/identity-theft-victims-pay-tax-unemployment-benefits
https://www.businessinsider.com/personal-finance/unemployment-benefits-fraud-filing-taxes-1099-g-2021-1
KIPLINGER.COM
Will Identity Theft Victims Have to Pay Tax on Unemployment Benefits They Didn't Receive? | Kiplinger
Even though the 2020 tax filing season starts in about two weeks from now, can you believe there are STILL people who have not received their tax refunds for 2019? As you can imagine - it has been a very frustrating situation. Channel 6 news reporter, Mike McKnight, interviewed our owner, Julie McCoy, as part of his investigative reporting into this unfortunately all too common problem with the 2019 federal income tax returns. Check out the news story:
https://www.wowt.com/2021/01/27/omaha-taxpayers-frustrated-on-refund-delays/
WOWT.COM
Omaha taxpayers frustrated on refund delays
Just a little tax season humor - provided by TPS Software. If you want to see more "tax season themed memes" check out:
https://tpssoftware.com/9-accounting-memes-for-tax-season/
Fake calls from Apple and Amazon support: What you need to know
We have recently been made aware from two of our clients of this latest scam. Calls or emails from Amazon or Apple that truly seem to be legit - but once again it is a scam.
Scammers are calling people and using the names of two companies everyone knows, Apple and Amazon, to rip people off. Here’s what you need to know about these calls.
In one version of the scam, you get a call and a recorded message that says it’s Amazon. The message says there’s something wrong with your account. It could be a suspicious purchase, a lost package, or an order they can’t fulfill.
In another twist on the scam, you get a recorded message that says there’s been suspicious activity in your Apple iCloud account. In fact, they say your account may have been breached.
For more details - check out this article posted on the Federal Trade Commission website:
https://www.consumer.ftc.gov/blog/2020/12/fake-calls-apple-and-amazon-support-what-you-need-know
CONSUMER.FTC.GOV
Fake calls from Apple and Amazon support: What you need to know
2021 Economic Impact Payment Status Available at the IRS website.
Find when and how the IRS will be sending your 2021 Economic Impact Payment with the Get My Payment tool.
The first batch of payments will be sent by direct deposit, which some recipients started receiving as early as March 12 (many are hitting this upcoming week on March 17)
Additional batches of payments will be sent in the coming weeks by direct deposit and through the mail as a check or debit card.
Status Messages you might see:
You'll see one of these messages when you use Get My Payment:
Payment Status:
A payment has been processed, a payment date is available and payment is to be sent either by direct deposit or mail. Note: mail means you may be issued an EIP Card or a check.
or
You’re eligible, but a payment has not been processed and a payment date is not yet available.
It will not show the amount of your 2021 Economic Impact Payment.
Payment Status Not Available: We haven't yet processed your payment or you're not eligible for a payment.
https://www.irs.gov/coronavirus/get-my-payment
IRS.GOV
Get My Payment | Internal Revenue Service
