You would think that with tax season being “technically” over that you wouldn’t hear anymore about tax scams. Contrary to popular belief, tax scams are still going on as these scammers appear to work year round. The IRS is urgin people to stay vigilant against calls from these scammers that are impersonation as IRS officials.

Here are some tips from the IRS to help you avoid being a victim:

• Scammers use scare tactics. These aggressive and sophisticated scammers try to scare people into making an immediate payment. They will try to threaten you with arrest, deportation, and even state that they will have your professional license and/or your driver’s licence taken away if you don’t agree to pay. They are also known for robo-calls. Robo-calls are basically just a recording that states that it is urgent that you call back the number that it provides. DON’T CALL THE NUMBER BACK!
• Scammers spoof your caller ID. This merely means that when you receive a call the scammer can make it look like the IRS or another agency is calling you. The callers use IRS titles and take badge numbers to make themselves appear legit. More often than not they use online resources to get your name, address, and other details about your like to make the call sound official.
• Scammers also use phishing email and regular mail. Scammers are known to copy official IRS Letterhead to use in email or regular mail that the send to victims. A new trend for these scammers is they will actually provide an actual IRS address where they will tell you to mail the receipt for the payment that you made. This makes the scam look official.
• Remember that the IRS will not call you about your tax bills without first sending you a bill in the mail. They will not demand that you pay your taxes a certain way. For instance, require that you pay with a prepaid debit card or any specific form of payment. They will not ask you for a debit or credit card number over the phone. In addition, the IRS will not threaten to bring police or other agencies to arrest you for not paying. Nor will they threaten you with a lawsuit.
• Remember if you don’t owe taxes or have no reason to think that you do contact the Treasury Inspector General for Tax Administration (TIGTA), Us TIGTA’s “IRS Impersonation Scam Reporting” to report the incident. You should also report it to the Federal Trade Commission, us the “FTC Complaint Assistant” on the FTC. gov website. Please add IRS Telephone Scam in the notes.
• Remember that if you do receive a call do not provide any information to the caller. Hang up immediately. If you know you owe or think you may owe call the IRS at (800) 829-1040 and an employee can help you.

Each year the IRS mails millions of notices and letters to taxpayers. If you receive a notice from the IRS this is what you should do.

1. Don’t ignore it! You can respond to most IRS notices quickly and easily.  It is important that you reply right away! More often than not the IRS expects correspondence from you within thirty days!
2. Focus on the Issue: IRS notices usually deal with a specific issue about your tax return or tax account.  If you look at the explanation on the notice it will explain in detail the differences on our tax return.
3. Follow Instructions! Read the notice carefully. It will tell you if you need to take any action to resolve the matter.
4. If it is a correction notice it will state that the IRS corrected your tax return. You should review the information provided and compare it to your tax return.
5. If you agree with the proposed changes there is no need to reply unless a payment is due. Then remit payment as soon as possbile.
6. If you don’t agree it’s very important that you respond to the IRS. Write a letter that explains why you don’t agree.  Make sure to inlcude information and any documents you want the IRS to consider. Allow at least 30 days for a reponse from the IRS.
7. Keep in mind that once you receive a notice it is not necessary to visit your local branch. Most notices can be handled with written correspondence.

If you play the ponies, play cards or like to play the slots, your gambling winnings are taxable.  You must report them on your tax return.  Here are some tips that can help you at tax time next year.

• Income from gambling includes winnings from the lottery, horse racing and casino’s. It also includes cash and non-cash prizes. You must report the fair market value of non-cash prizes like cars and trips.
• If you win the payer may give you a form W-2G as well as send a copy to the IRS. The payer must issue the form based on the type of gambling, the amount that you won and other factors. In Missouri most establishments will withhold state withholding from your winnings.
• You report your winnings for the tax year on your return as “other income”. You must report all gambling winnings as income even if you don’t receive a W-2G.
• You can deduct your gambling losses on Schedule A. You can only deduct losses up to your winnings.

For more information please contact Wamhoff Accounting at 636-573-1212