DiSabatino CPA Blog

Mike's weekly post usually concentrated on tax saving strategies.

Private Agencies Now Collecting for IRS Your scam alert should be on high

Private Agencies Now Collecting for IRS
Your scam alert should be on high

In a recent announcement, the IRS notified all taxpayers that outside collection of past-due tax bills is now beginning in mid-April 2017. This is a direct result of Congressional action in late 2015 requiring the IRS to turn over to outside companies billions in uncollected taxes it is no longer pursuing. This will impact all of us. Here is what you need to know.

Turn up your scam alert. Rest assured the tax-related identity theft epidemic is going to hit a new high as scam artists now will try to impersonate collection agencies. Never pay a collection agency directly for any tax owed. If you do not think you owe money to the IRS, ask for help.

Only four agencies have been authorized. Only four collection agencies have been authorized to collect unpaid taxes for the IRS. They are:

  • ConServe, of Fairport, New York
  • Pioneer, of Horseheads, New York
  • Performant, of Pleasanton, California
  • CBE Group, of Cedar Falls, Iowa
Continue reading
Rate this blog entry:
0
47 Hits

Tax Tips for Those Getting Married Know someone getting married? Send them this tip now.

Tax Tips for Those Getting Married
Know someone getting married? Send them this tip now.

Tax Tips for Those Getting Married

Know someone getting married? Send them this tip now.

If you recently got married, plan to get married, or know someone taking the matrimonial plunge, here are some important tax tips every new bride and groom should know.

Notify Social Security. Notify the Social Security Administration (SSA) of any name changes by filling out Form SS-5. The IRS matches names with the SSA and may reject your joint tax return if the names don’t match what the SSA has on file.

Address change notification. If either of you are moving, update your address with your employer as well as the Postal Service. This will ensure your W-2s are correctly stated and delivered to you at the end of the year. You will also need to update the IRS with your new address using Form 8822.

Continue reading
Tags:
Rate this blog entry:
0
184 Hits

Weekly Tax Tip Five Steps to Take if You're Audited

Weekly Tax Tip
Five Steps to Take if You're Audited

Getting audited is no one’s idea of a good time, yet you can minimize the stress if you take the right approach.

Step 1: Understand why and when. While it's possible you were selected randomly, it’s more likely you were selected for a specific reason. One example might be if your deductions for charitable donations or business expenses were greater than is typical for your income or profession. Before proceeding, make sure you understand what is being challenged and when you must reply.

Comment: Your chance of being audited “randomly” rises along with the size of your income. With $200,000 a year in income your chance of being audited nearly doubles (1.01% in FY2016) compared with a person who has half of that income. People with more than $10 million in income have a nearly 1-in-5 chance of an audit every year.

Continue reading
Rate this blog entry:
0
360 Hits

Reminder: 1st Quarter Estimated Taxes Due

Reminder: 1st Quarter Estimated Taxes Due

If you have not already done so, now is the time to review your tax situation and make a 2017 estimated quarterly tax payment using Form 1040-ES. The first quarter due date is now here.

First-quarter due date: Tuesday, April 18, 2017.

Remember, you are required to withhold (pre-pay) at least 90 percent of your current tax obligation, or 100 percent of last year’s federal tax obligation throughout the tax year.* A quick look at last year’s tax return and a projection of this year’s obligation can help determine if a quarterly payment might be necessary in addition to what is being withheld from any paychecks. Here are some things to consider:

Continue reading
Rate this blog entry:
0
453 Hits

Your next audit may be an "audit lite"

Your next audit may be an "audit lite"

Your next audit may be an "audit lite"

The IRS is handling more reviews with form letters

In-person audits with an IRS agent are becoming more uncommon. The IRS is instead handling many routine reviews through form letters called correspondence audits.

These IRS letters are a kind of “audit lite” the agency uses to ask for clarification and justification of specific deductions on your tax return. Common issues that trigger a correspondence audit are large charitable deductions, withdrawals from retirement accounts and education savings plans, excess miscellaneous deductions, and small business expenses.

Continue reading
Tags:
Rate this blog entry:
0
460 Hits

Taxpayers to forfeit more than $1 billion in refunds Are you one of them?

Taxpayers to forfeit more than $1 billion in refunds
Are you one of them?

The IRS disclosed there will be more than $1 billion in federal tax refunds forfeited this year if taxpayers don’t claim them by April 18.

Refunds have to be claimed within three years or they are forfeited to the government. The unclaimed $1 billion comes from about 1 million taxpayers who still haven't filed returns for the 2013 tax year. Often the people who leave these refunds behind are young adults, college students, senior citizens and low-income taxpayers.

Why refunds go unclaimed

Continue reading
Tags:
IRS
Rate this blog entry:
1
615 Hits

Tax Credits versus Tax Deductions

Tax Credits versus Tax Deductions

Tax Credits versus Tax Deductions... Which is worth more to you? 

Every industry and profession has common terms that are used so often those of us in the business often forget that most people do not have the depth of understanding that a person working within the tax code might have. One of these areas is understanding the differences between the tax terms "deductions" and "credits". Is one better than the other?

If it were simple

Continue reading
Rate this blog entry:
0
705 Hits

DiSabatino CPA Receives 2017 Best of Camarillo Award

 

HoFCrystalBlack.png.md.cc.DJF 6T6S FUVVDiSabatino CPA Receives 2017 Best of Camarillo Award

Camarillo Award Program Honors the Achievement

CAMARILLO March 2, 2017 -- DiSabatino CPA has been selected for the 2017 Best of Camarillo Award in the Certified Public Accountants category by the Camarillo Award Program for the fifth consecutive year.

Continue reading
Rate this blog entry:
0
757 Hits

The Tax Impact as Your Children Grow Up Prepare now for potential income tax hits

The Tax Impact as Your Children Grow Up
Prepare now for potential income tax hits

The Tax Impact as Your Children Grow Up
Prepare now for potential income tax hits

As your children grow older, you can easily be surprised by a larger tax bill. To help ease the possible burden, consider these tax implications as your dependent children age.

 

Continue reading
Tags:
Rate this blog entry:
0
935 Hits

Ten Commonly Overlooked Deductions

Ten Commonly Overlooked Deductions

 Ten Commonly Overlooked Deductions
Don't forget these ideas to lower your taxes

The tax code is about 75,000 pages long, so it’s not surprising there are many overlooked money-saving deductions hidden within it. Check out this list of commonly overlooked deductions. You might wind up with a bigger refund than you expected.

Continue reading
Rate this blog entry:
0
938 Hits

In the News: IRS Announces Release of Held Refunds

In the News: IRS Announces Release of Held Refunds

Finally...your refund is soon to be on its way

The IRS recently announced that tax returns using the Earned Income Tax Credit and the Additional Tax Credit will have their refunds issued. Congress approved legislation that delayed sending out these refunds until at least February 15th.

Here are the key dates: 


 

Saturday, February 18th: IRS "Where’s My Refund" web application will be updated with refund information.

Week of Feb. 27th: Probable timeframe the refunds will be arriving in bank accounts.

Here is a copy of the announcement:

Where’s My Refund? will be updated on Feb. 18 for the vast majority of early filers who claimed the Earned Income Tax Credit or the Additional Child Tax Credit. Before Feb. 18, some taxpayers may see a projected deposit date or an intermittent message that the IRS is processing their return.

By law, the IRS is required to hold EITC and ACTC refunds until Feb. 15. However, taxpayers may not see those refunds until the week of Feb. 27. Due to differing timeframes with financial institutions, weekends and the Presidents Day holiday, these refunds likely will not start arriving in bank accounts or on debit cards until the week of Feb. 27 -- if there are no processing issues with the tax return and the taxpayer chose direct deposit.

Source: IRS e-news

Please recall this announcement only relates to held refunds that use the Earned Income Tax Credit and the Additional Tax Credit. Other refunds should be processed in normal timing.

Please consult our firm to asses your specific situation.

DiSabatino CPA
Michael DiSabatino
651 Via Alondra Suite 715
Camarillo, CA 93012
Phone: 805-389-7300
ww.sharpcpa.com

This publication provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, rewritten or redistributed without permission, except as noted here.  All rights reserved.

Continue reading
Rate this blog entry:
1
1060 Hits

No Health Insurance Still Means Big Penalties Avoid this tax penalty by taking action now

No Health Insurance Still Means Big Penalties
Avoid this tax penalty by taking action now

No Health Insurance Still Means Big Penalties

Avoid this tax penalty by taking action now

If you think President Trump's recent executive order means that the fees for not having health insurance are no longer in effect, you could be sorely mistaken. To avoid potentially thousands of dollars in "shared responsibility" tax penalties, you still need to be covered by a basic level of health insurance.

Continue reading
Rate this blog entry:
2
1193 Hits

Rejected! What to do if your e-filed tax return is rejected by the IRS

Rejected!
What to do if your e-filed tax return is rejected by the IRS

Rejected!

What to do if your e-filed tax return is rejected by the IRS

More than 90% of individual tax returns are now filed electronically, and usually the process goes smoothly. However, when an e-filed tax return is rejected, e-filing can become more complicated.

Continue reading
Rate this blog entry:
0
1271 Hits

File That Final Tax Return

File That Final Tax Return
File That Final Tax Return
Five reasons death and a tax return makes sense

If a parent or loved one died this past year, you may wish to consider filing a final tax return even if not technically required to do so.

Continue reading
Rate this blog entry:
0
160381 Hits

Do You Need to File a Tax Return?

Do You Need to File a Tax Return?
Do You Need to File a Tax Return?
Getting this wrong can cost you

One of the more common tax questions is whether you need to file a tax return this year. The answer is: It all depends. Here are some quick tips to help you determine your answer.

Continue reading
Rate this blog entry:
0
159831 Hits

Understanding Tax Terms: All those 1099's

Understanding Tax Terms: All those 1099's
Understanding Tax Terms: All those 1099's
Be prepared to file your tax return

Most taxpayers receive at least one 1099 each year. Virtually every small business, including sole-proprietors, must issue at least one 1099 each year. Here is a summary of the most common of these informational tax forms that you will need to file your tax return this year.

Continue reading
Rate this blog entry:
0
159843 Hits

Contractor or Employee?

Contractor or Employee?
Contractor or Employee?
Knowing the difference is important

Is a worker an independent contractor or an employee? This seemingly simple question is often the contentious subject of numerous IRS audits. As an employer, getting this wrong could cost you plenty in the way of Social Security, Medicare taxes, and other employment related taxes. Here is what you need to know.

Continue reading
Rate this blog entry:
0
160630 Hits

Extension for Form 1095 Reporting

Extension for Form 1095 Reporting

Extension for Form 1095 Reporting
What everyone needs to know

For 2015 tax returns, everyone employed by a company with 50 or more employees will receive a new Form 1095. This form is in addition to the Form 1095’s received by other taxpayers using the Marketplace to purchase their health insurance. You need this form to file your taxes as it provides the necessary proof that you have adequate health insurance for the year.

A recent announcement by the IRS provides a delay for the issuing of this form due to complications in creating the proper form by employers and insurers.

Continue reading
Rate this blog entry:
0
149486 Hits

IRS PIN Announcement: DO NOT THROW OUT

IRS PIN Announcement: DO NOT THROW OUT

IRS PIN Announcement: DO NOT THROW OUT

If you are one of the unfortunate victims of IRS identity theft you will need a one-time PIN to file your tax return. Without this numeric identifier your 2015 tax return will be rejected. The IRS issues taxpayer victims this PIN in a written notice.

Continue reading
Rate this blog entry:
0
136598 Hits

Now is the time to make your estimated tax payment

Now is the time to make your estimated tax payment

Now is the time to make your estimated tax payment

If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. The fourth quarter due date is now here.

Continue reading
Rate this blog entry:
0
135852 Hits
 

Speed Up Your Success!

Contact Us Today: 1-805-389-7300

© 2006-2017 Michael DiSabatino, CPA. All Rights Reserved.