A major problem of tax fraud the IRS is trying to combat is fraudulent preparers filing multiple returns and having many refunds direct deposited into the same account (usually belonging to said preparer). So the IRS is planning to put some direct deposit limitations on tax refunds starting next January. See more details in this article in AccountingToday by Michael Cohn: http://www.accountingtoday.com/news/irs_watch/irs-impose-direct-deposit-limits-prevent-identity-theft-71230-1.html So in the future you can only deposit three direct deposits into the same bank account; more than three will get a notification from the IRS that any refunds over three will be mailed by check to the taxpayer’s address of record. Time will tell if this will help prevent tax fraud or just a change of tactics by the bad guys! For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Tax Musings: Oops – Do You Owe Sales Tax and Not Realize You Do?
One of the side effects of our last economic slowdown was in state government budgets; states searched hard for new income, and many of them found a great source by cracking down on sales tax collections. Their new hot buzzword: nexus. Nexus means a connection that a business has with a state, and it has to do with a form of presence. In the sales tax world, you owe sales tax to a state if you have nexus in that state and you are selling taxable items. The scary part for small businesses is what makes up nexus. A Small World Globalization and technology together have produced dramatic shifts in the way businesses can look today. Not only can we access a pool of local talent to staff and grow our businesses, we can employ almost anyone around the world to work for us. Hiring employees or contractors located in other states can stretch our nexus to include that state. As an example, if your company is located in Illinois and you hire an employee that works from her home in Nevada, you might have nexus in Nevada and Illinois, and you might owe sales tax in both places. Sales [...]
CPA Tax Musings: What to do if You Get a Notice from the IRS
The dreaded envelope has come! The IRS is sending you a letter – what do you do (change your name and move? Hide under your bed? Leave the country?) No, take a look at this IRS Tax Tip sheet explaining what you need to do if you get such a letter: http://content.govdelivery.com/accounts/USIRS/bulletins/c0996d?reqfrom=share The two most important things are: don’t panic and don’t ignore it. Sometimes a letter or filling out an attached form may be all that is needed to resolve things. Talk to your tax preparer: they can help. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa