Archive for the ‘Tax Information’ Category

New development could cause scammers to capitalize on potential confusion

Senator Collins Cautions Consumers of IRS’s Use of Private Debt Collection Companies

PRESS RELEASE
April 14, 2017

Click image for more information

Washington, D.C. – U.S. Senator Susan Collins, the Chairman of the Senate Aging Committee, is cautioning consumers to be aware of the Internal Revenue Service’s (IRS) new policy of using private debt collection companies to collect unpaid taxes.

Under the new protocol, the IRS has authorized four private debt collection companies to collect unpaid taxes. They are CBE Group of Cedar Falls, IA; Conserve of Fairport, NY; Performant of Livermore, CA; and Pioneer of Horseheads, NY. Only one of these companies will contact you in the event you owe money to the IRS.
Here is what you need to know about this new development:

  • If you have an overdue balance on your account, the IRS will first send you a letter informing you that it is giving your information to one of the four companies listed above, providing the company name and contact information.
  • The debt collector will then send you a letter confirming the account turnover prior to contacting you by phone.
  • Upon calling you, they will be able to discuss payment options, but the only way you can pay your tax debt is electronically or by check payable to the US Treasury.

“The IRS’s use of private debt collection companies to collect unpaid taxes is in the spirit of efficiency, but may create confusion for those already susceptible to the IRS impersonation scam, like our nation’s seniors,” said Senator Collins. “I urge consumers to remain vigilant and protect themselves from potential scams that could stem from this new development.”

If you know you don’t owe taxes or do not immediately believe that you do, you can report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484.

To read more about this change from the IRS, click HERE.

Never give personal information, such as bank account or credit card numbers, to someone you do not know. If you suspect fraud, please contact the Aging Committee’s Fraud Hotline at 1-855-303-9470

Advertisements

You can’t avoid death and taxes, but you can dodge identity theft

CONSUMER FORUM

Posted Jan. 30, 2017, at 8:25 a.m.

Last year, the Internal Revenue Service, the states and tax professionals teamed up to reduce incidents of taxpayer identity theft.


The crime occurs when a criminal steals your Social Security number and files a return in your name; the thief claims a refund to which he’s not entitled. When you file your legitimate tax return, the IRS flags it because it has already received a return in your name.

It’s believed that more diligent enforcement helped the IRS to prevent more than $180 million from going to fraudulent claimants. Now, officials are doubling down on their efforts to fight taxpayer ID theft.

The Federal Trade Commission has proclaimed the week of Jan. 30-Feb. 3 as Tax Identity Theft Week. The agency is offering a series of events to educate consumers and business people on ways they can minimize the risk of thieves stealing refunds.

At 3 p.m. Tuesday, Jan. 31, the FTC and Identity Theft Resource Center will hold a Twitter chat dealing with tax identity theft, ways to protect yourself and what to do if you are a victim.

A similar session is planned for 11 a.m. Wednesday, Feb. 1, about tax ID theft for service people, veterans and their families. At 4 p.m. Wednesday, Feb. 1, FTC and the IRS will hold a tax ID theft chat for small business people. Find a link to these and other events at www.ftc.gov and look under “Latest News.”

Income tax season is big business for high-tech criminals, so be on guard for all sorts of scams. You might get a call from someone posing as an IRS official, seeking to “verify” tax return information by phone.

Other scammers may mention news reports of tax fraud and try to trick victims into “verifying the last four digits of their Social Security number.”

Others might pretend to be from the tax preparation industry … in short, they’ll use any tactic they think might work to fool consumers.

The crooks also take aim at business people. They might call human resources professionals and ask for information found on W-2 forms; a variation of that scam has an email message bearing the name of a corporate officer seeking personal information about an employee. Some scammers have posed as providers of software to trick tax preparers.

The variations are virtually endless. The IRS lists many of the most often used tricks at its website, www.irs.gov/uac/tax-scams-consumer-alerts.

Many tax pros suggest filing early, thereby giving the crooks less time to file fraudulently ahead of you. Once you have filed, you can check the status of your refund at www.irs.gov/Refunds.

You also can call the IRS Identity Theft toll-free at 800-908-4490 or visit www.irs.gov/identitytheft.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.

Identity thieves try to cash in during tax filing season

CONSUMER FORUM

Posted Feb. 01, 2015, at 9:53 a.m.

click image to report scams, waste and abuse

Two headlines top the news near the start of this income tax season.

Thieves who steal Social Security numbers and other personal data do so in order to file phony tax returns and claim rebates they’re not owed.

And crooks posing as Internal Revenue Service officials are calling people and, in many cases, bullying them into sending money they don’t owe.

They use common names and all kinds of tricks. They may say they’re calling from the IRS criminal division. They might have technology that will spoof a caller ID, making it appear they’re calling from a real IRS office. They threaten those they consider easier targets — such as older people and recent immigrants — with fines, jail terms, job loss, even deportation.

The crooks do their homework before calling. They might know a person’s Social Security number — or at least the last four digits — and other personal details that lend credence to their pitch. Demanding immediate payment is a tipoff it’s a scam — the real IRS first would notify you by letter of any official action — and the agency never would demand payment by a debit card or wire transfer.

Losing a one-time payment is bad enough. Thousands of taxpayers have filed their income taxes only to find a crook has stolen their identities, filed fraudulently and collected their refunds illegally.

The IRS says after such discoveries, it takes an average of four months to get a refund to its rightful recipient. That person also needs to go through the hassle associated with identity theft. Perhaps ironically, prisoners’ Social Security numbers often are tempting targets, because inmates are less apt to be on top of their tax or banking activities.

The Treasury Inspector General for Tax Administration, or TIGTA, says it has received reports of 290,000 scam calls since October 2013, and nearly 3,000 victims have lost a total of $14 million. The IRS has been working to curb these crimes, saying it spotted 19 million suspicious returns since 2011 and prevented more than $63 billion in fraudulent returns. Read about ways to spot impersonators and report scams at Treasury.gov/tigta.

Consumers can and should take all the usual steps to prevent fraud: use firewalls and antivirus software, use strong passwords and change them often on all online accounts and reveal your Social Security number only when it’s absolutely necessary.

If you become a victim, the IRS says it wants to help. Read about the agency’s prevention and detection efforts at IRS.gov/Individuals/Identity-Protection.

The IRS is also warning consumers about unscrupulous preparers who push filers to make inflated claims. Often, these preparers will demand an up-front fee; they may also refuse to give the taxpayer a copy of the return. Both are things that legitimate tax preparation pros don’t do.

You may qualify for free help preparing your income tax filings. Seniors can check with AARP or the local agency on aging. The Volunteer Income Tax Assistance, or VITA, program gives free tax help to people who make $53,000 or less, have disabilities, are older or who speak little English and need help preparing their returns.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit necontact.wordpress.com or email contacexdir@live.com.

New Maine tax credit replaces ‘Circuit Breaker’ program

CONSUMER FORUM

By Russ Van Arsdale, executive director Northeast CONTACT Posted March 30, 2014, at 5:42 p.m.

A friend approached me recently, saying he was concerned that some seniors may have thrown away paperwork that they could have used to save some money.

At issue is Maine’s new Property Tax Fairness Credit, passed by the Legislature to take the place of the Maine Residents Property Tax and Rent Refund “Circuit Breaker” program. Lawmakers repealed that statute last year and put the PTFC in its place.

Qualifying for the credit are consumers who were Maine residents for any part of tax year 2013 and who lived in a home they owned or rented here for that part of the year. They must have had a Maine adjusted gross income of not more than $40,000 and paid property tax of at least 10 percent of that amount or paid rent on an apartment that was over 40 percent of their Maine adjusted gross income.

The credit of up to $300 (or $400 for those age 70 or older) became available in January and is claimed on the state individual Income Tax Form 1040ME.

To get the credit, eligible people must complete a worksheet that accompanies the form. And that’s where the confusion may have started.

Worksheets were mailed to all Mainers who filed a Circuit Breaker application on or after Aug. 1, 2012, whether they paid state income tax or not. My friend had said some seniors he knew had received the mailing from Maine Revenue Services and discarded it; since they were not liable for any Maine income tax, they reasoned, there was no need to concern themselves with whatever was in the envelope.

That’s not a problem, according to state officials and representatives of seniors groups we’ve spoken with. The forms can be downloaded from Maine Revenue Services’ website (www.maine.gov/revenue/forms) or by calling 1-207-624-7894 to request that a form be mailed. The credit is available for three years for Mainers who do not have to pay any income tax.

Volunteers from AARP will be at various area Agencies on Aging until April 15. Dyan Walsh, director of community services at the Eastern Area Agency on Aging, says the volunteers have received special training on the PTFC.

Walsh says a number of seniors have called since Jan. 1, expecting to sign up for the Circuit Breaker program and not realizing that it had been replaced by the PTFC. Walsh says if seniors cannot travel to the EAAA office, they can call Maine Revenue Services at 207-626-8475 for help. They may also seek assistance by emailing income.tax@maine.gov or by visiting in person at 51 Commerce Drive, Augusta.

Low- and moderate-income earners may qualify for free help in preparing their state and federal income taxes through a program called Ca$h Maine. You can call 211 for details or read about it online at www.211maine.org/cah-maine-2013/.

AARP also offers free tax help at the Bangor Public Library. Until April 10, help will be available Wednesdays and Thursdays from 10 a.m. to 5 p.m. in the small conference room near the reading room.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s all-volunteer, nonprofit consumer organization. For assistance with consumer-related issues, including consumer fraud and identity theft, or for information, write Consumer Forum, P.O. Box 486, Brewer, ME 04412, visit https://necontact.wordpress.com or email contacexdir@live.com.  

Enhanced by Zemanta

A (Potentially) Taxing Situation | Consumer Information from FTC

February 12, 2013

by

Carol Kando-Pineda
Attorney, FTC

Tax season is here. It’s time to get your files and forms in order. You may be well-versed in W-2s and 1099’s, but do you know that an identity thief can mess up your tax files or even get to your tax refund before you can file for it?

Tax-related ID theft can happen in a few ways; all of them involve your Social Security Number (SSN). If someone uses your SSN to get a job, the employer reports that person’s income to the IRS using your SSN. When you file your tax return, you don’t include those earnings. The IRS doesn’t know those wages were reported by an employer you don’t know, so the agency would send you a notice or letter saying you didn’t report that income.

Sometimes an identity thief uses your SSN to file for — and get — your tax refund before you file. Then, when you file your return, IRS records show the first filing and the refund. You’ll get a notice or letter from the IRS saying more than one return was filed for you.

If this happens to you — or if the IRS sends you any notice or letter indicating a problem — contact them immediately. Visit the IRS  online or call 1-800-908-4490. Specialists will help you get your tax return filed, get you any refund you may be due, and protect your IRS account from identity thieves in the future.

One additional point: the IRS never starts contact with a taxpayer using email, text, or social media that asks for personal or financial information. If you get an email that claims to be from the IRS, do yourself a favor: don’t reply or click on any links.  Instead, forward it to phishing@irs.gov.

On February 20 and 21, 2013, the FTC, federal and state enforcement agencies, and consumer advocacy groups will hold a series of Town Halls in South Florida to discuss how to combat tax-related ID theft.

If you suspect identity theft, learn more about how to repair the damage.

Treasury Launches Pilot Program of Prepaid Debit and Payroll Cards for Fast, Safe and Convenient Tax Refunds

Press Release from U.S. Department of the Treasury

1/13/2011

WASHINGTON – Timed for tax season, the U.S. Department of the Treasury launched a pilot today to offer taxpayers a safe, convenient and low-cost financial account for the electronic delivery of their federal tax refunds. The new account card option provides everyday money-saving conveniences and consumer protection features for Americans with limited or no access to traditional banking services.

“This pilot program will provide low- and moderate-income Americans with a low-cost option for faster delivery of their federal tax refund,” said Deputy Secretary of the Treasury Neal Wolin. “This innovative card can be used for everyday financial transactions, such as receiving wages by direct deposit, withdrawing cash, making purchases, paying bills and building savings safely and conveniently, giving users more control over their financial futures.”

As the next step in this pilot, originally announced in September, Treasury will mail letters next week to 600,000 low- and moderate-income individuals nationwide. The letters will invite these taxpayers to consider activating a MyAccountCard Visa® Prepaid Debit Card in time to have their 2010 federal tax refund direct deposited to the card. Compared to paper checks, direct deposit provides a safer, faster and more convenient way to receive a federal tax refund as well as other regular income.

Also this week, Treasury began a companion pilot to encourage tens of thousands of current and potential payroll card users to direct deposit their 2010 federal tax refund onto existing payroll cards. Nationwide, more than 1.7 million workers use payroll cards to receive and access their wages, often because they do not have bank accounts. Working with ADP, a provider of payroll services, Treasury will highlight the safety, ease and convenience of direct deposit onto payroll cards through tax season communications, including materials distributed with pay statements. Continue reading

IRS no longer mailing tax packages

Tax Package Mailing to End Following Growth of e-File

Business and individual taxpayers will no longer receive paper tax packages in the mail from the IRS. Tax packages contained the forms, schedules and instructions for filing a paper tax return. The IRS is taking this step because of the continued growth in electronic filing as well as to help reduce costs. 

In early October, the IRS sent a postcard (Notice 1400-A, Notice 1400-J or Notice 1400-E) to businesses that normally receive their tax forms and publications from the IRS. Most businesses receive their tax products from a tax professional or tax software. The postcard explains how to get the tax forms and instructions needed to file future returns.

The information lists the forms and publications that will no longer be mailed:

  • Package 1065, the Return of Partnership Income Package; Package 1120, the U.S. Corporation Income Tax Package; and Package 1120S, the S Corporation Income Tax Package. The forms, schedules and related instructions previously included in these packages will continue to be available separately, both electronically and in print.
  • Publication 393, Federal Employment Tax Forms Information, will also not be mailed. The IRS encourages businesses to electronically file Forms W-2 even when filing fewer than 250 forms. The benefits for filing electronically are that:
  • Since most returns for split-interest trust filers are prepared using computers, the IRS will no longer mail Publication 5227, the Split-Interest Trust Information Return.

For any of the products listed above, businesses may go to IRS.gov after January 10, 2011, and click on Forms and Publications, or go directly to IRS.gov/formspubs and follow the directions for getting forms and instructions.

“Tax Package Mailing to End Following Growth of E-File.” Internal Revenue Service. 12 Nov. 2010. Web. 16 Jan. 2011. <http://www.irs.gov/businesses/small/article/0,,id=228152,00.html>. 

By Mail: You can call 1-800-TAX-FORM (800-829-3676) Monday through Friday 7:00 am to 10:00 pm local time – except Alaska and Hawaii which follow Pacific time – to order current year forms, instructions and publications as well as prior year forms and instructions by mail. You will receive your order by mail, usually within 10 days.

Forms may be available at local libraries and post offices. Or visit Bangor Area Internal Revenue Office: 324 Harlow St., Bangor, Maine

%d bloggers like this: