Posted on | December 9, 2012 | 4 Comments
IRS Tax Fraud Increasing
Identity theft linked to IRS tax fraud has been increasing. However, according to a recent government report, the IRS is actually unaware of the number of persons who are running scams on the system.
Based on a study from the Government Accountability Office (GAO), a watchdog that collaborates with Congress, between January and September 2012, there were approximately 642,000 incidents of identity theft which involved tax fraud, which is 62 percent more than 2011. The report further stated that during that same period of time, the IRS would have paid some $754 million in refunds that were suspicious.
The report also shared that returns that involve identity theft are hard to track. The IRS informed the GAO that it is unable to determine why and how this is happening. American taxpayers who have been victims of identity theft and false returns, may experience delayed refunds and have to pay additional costs for re-filing, in addition to the tons of paperwork.
Unfortunately, the tax and fraud professionals advised that this problem in increasing because it is easy to run the scam via electronic filing such as turbotax 2011. Once scammers have someone’s Social Security number and name, they can apply for the refund to be transmitted via direct deposit. Therefore, it is difficult for the IRS software to determine the legitimacy of the returns that are filed.
This problem is estimated to burden the US Government by billions of dollars. CNBC reported that the IRS inspector general forecasted an estimated $21 billion that could be paid out over the next five years in tax refunds that are fraudulent.
One of GAO’s directors, James White, shared with The Huffington Post that this problem is hard to solve and partnering with the banks could be one of the solutions. During the first nine months of 2012, 116 banks reported information to the IRS about over 193,000 accounts that were linked to tax fraud. White further stated that this type of crime is hard to catch and measure.
The IRS was able to block an estimated 262,000 fraudulent tax returns in 2011. However, according to CNNMoney, approximately $5.2 billion was lost to identity theft.
Posted on | November 6, 2012 | 2 Comments
Using Turbotax 2011 would be the best way to handle the filing of your taxes regardless of your financial situation. There are many people that make the mistake of putting off their taxes until the last minute. However, doing so would only delay the return of the money that belongs to you. Additionally, it is possible that you would be subjected to late fees for missing the deadline. It is important that you turn in your taxes as soon as possible in order to limit the financial stress that you face during this season. Instead of waiting until the deadline is approaching, you want to look for solutions that can help you to rid your life of this problem during this tax year. When you have the ability to use this great software, you will find that it takes much less time to enter all of your information and get it submitted.
Typically, people worry about the amount of time that is needed to get their taxes submitted. However, TaxAct is a streamlined approach to filing taxes because it is designed for anyone to use. As a result, you do not need to be a tax professional in order to complete your taxes with this software. In fact, most people that use TaxAct know very little about the specifics of tax law. Since this software is designed to remove all of the hard work, all that you need to do is enter some financial information. When you choose TaxAct this tax season, you will be able to enjoy a larger savings than any other option on the market today. Try the best and you will notice the savings in your pocket.
Posted on | October 8, 2012 | 2 Comments
2011 Federal Tax Deductions
Everyone is looking for deductions for their 2011 federal tax situation. We’ve all heard of the mortgage deduction, the medical deduction, and even deductions for owning an electric car–but are those all the deductions you can find? It’s important to know all the deductions, so you can maximize your own personal benefits this tax season. There are many “unique” deductions that are perfectly legitimate that most individuals probably are not even aware exist. These deductions have been used in the past and are still on the books. Perhaps they might even help you this tax season. Take a look at this list of the top ten strange and weird deductions.
Posted on | September 6, 2012 | 6 Comments
2011 Federal Tax Filing
If you think 2011 federal tax filing is confusing, maybe this will help you. Below are some things that you will need to know for the tax season.
You should know that you may be able to file your federal tax return without any cost to you through the IRS Free File program. This program is designed to try to get taxpayers to file electronically. It is open to those that ma
de $57,000 or less. There are about 15 preparation companies in the program, and all of them have different criteria for eligibility that are usually based on income, age, military status, or state residency. Once you have finished doing your taxes on the Free File program, you can e-file your tax return for free.
You should also know that members of the military, senior citizens, and low income taxpayers may be able to file their taxes for free. Volunteers will help them with assistance and help them file electronically.
One other thing you should know is that new IRS regulations are making all tax preparers have a tax identification number. Tax preparers must use that pin number when they sign taxpayers returns. It your tax preparer does not have one; you need to find another preparer.
Above all, if you are going to file your taxes make sure you have all the necessary documents you need to file correctly.
Posted on | August 1, 2012 | 2 Comments
Getting professional help with your 2011 Federal Tax Filing would allow you to get your Back Taxes and obtain the money that belongs to you. If you have not been able to get your information ready in time, you probably missed out on the date that you were supposed to file your taxes. When this happens, you likely have money that is owed to you. However, not filing also means that you are not able to obtain this money because of the fact that you took too long to complete the filing process. If you find yourself in this position, you want to do what it takes to get the money that the government has been holding for you. Instead of allowing them to keep the money, you can have someone help you to get this money back into your pocket.
Doing 2011 Federal Tax Filing is not something that you should worry about when you have the assistance of a team that knows what they are doing. Through the use of these services, you would be able to get your taxes done quickly, this would allow you to get the money that belongs to you into your bank account as quickly as possible. It is very likely that you do not have a large amount of extra money, you should do what it takes to claim what is yours today.
Posted on | July 5, 2012 | No Comments
File Back Taxes
“I was underground” was the excuse Grammy-winning singer and rapper Lauryn Hill gave to explain why she did not file back taxes between 2005 and 2007. The IRS claims she owes three years in back taxes. On her Tumblr account, Ms Hill said she had not filed because she wanted to protect her family. Being “underground”, she surmised that filing her taxes would endanger herself and her family. However, the government did not agree with her and said she is facing three counts of misdemeanor for not paying back taxes on her $1.6 million income.
Ms. Hill asserted in her Tumblr account that she had every desire to “rectify this situation.” The 37-year-old resident of New Jersey said that she had left public life to get away from the “distortion and compromise.” In the early part of her career, Ms. Hill gladly paid her taxes. The former star of the Fugees posted that she did not abandon her fans on purpose. She did what she felt was right for herself and her family. She said she had the right to resist a system that was opposed to her personal survival. Making her file back tax would have jeopardized that.
Lauryn Hill has been ordered to appear before the court on June 29th. If convicted, Ms. Hill could serve a one year imprisonment and pay $300,000 dollars in fines because she did not rectify the situation. The court rejected her reason as to why she did not pay back taxes. Although this is not a great deal of money for the singer-actress, she feels she has a legitimate case against having to file back tax.