Online Tax Pros- Online Tax Help: tax tips

Thursday, March 7, 2013

2013 Tax Tip: Beware of Bogus IRS Emails

Source: http://southwindsor.patch.com/articles/2013-tax-tip-beware-of-bogus-irs-emails-49640791

A press release from the Internal Revenue Service:

The IRS receives thousands of reports every year from taxpayers who receive emails out-of-the-blue claiming to be from the IRS. Scammers use the IRS name or logo to make the message appear authentic so you will respond to it. In reality, it’s a scam known as “phishing,” attempting to trick you into revealing your personal and financial information. The criminals then use this information to commit identity theft or steal your money.

The IRS has this advice for anyone who receives an email claiming to be from the IRS or directing you to an IRS website:

Do not reply to the message;
Do not open any attachments. Attachments may contain malicious code that will infect your computer; and
Do not click on any links in a suspicious email or phishing website and do not enter confidential information. Visit the IRS website and click on 'Identity Theft' at the bottom of the page for more information.

Here are five other key point the IRS wants you to know about phishing scams:
1. The IRS does not initiate contact with taxpayers by email or social media channels to request personal or financial information;

2. The IRS never asks for detailed personal and financial information like PIN numbers, passwords or similar secret access information for credit card, bank or other financial accounts;

3. The address of the official IRS website is www.irs.gov. Do not be misled by sites claiming to be the IRS but ending in .com, .net, .org or anything other than .gov. If you discover a website that claims to be the IRS but you suspect it is bogus, do not provide any personal information on their site and report it to the IRS;

4. If you receive a phone call, fax or letter in the mail from an individual claiming to be from the IRS but you suspect they are not an IRS employee, contact the IRS at 1-800-829-1040 to determine if the IRS has a legitimate need to contact you. Report any bogus correspondence. Forward a suspicious email to phishing@irs.gov;

5. You can help the IRS and other law enforcement agencies shut down these schemes. Visit the IRS.gov website to get details on how to report scams and helpful resources if you are the victim of a scam. Click on "Reporting Phishing" at the bottom of the page.

These posts are for informational use only to educate people about their online income taxes and the financial world around them. If you found this helpful, share the original article or this one, and help spread the word! With tax season rapidly approaching let us get you the best income tax return you can possibly have by e-filing! Give us a comment on how you think this will affect tax season this year.

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Thursday, February 7, 2013

Tips for Filing Your Tax Return For Free

The IRS has made it very easy to prepare and electronically file your own income tax return through Free File at no cost. I recommend this route for anyone who is comfortable filing his or her own income tax return and has an uncomplicated tax return with an adjusted gross income (AGI) of $57,000 or less. Usually this is a taxpayer with one or two W2s and taking the standard deduction.

To use the program, simply visit the IRS website

and click on “Free File” located on the right side under the orange bar entitled “Filing and Payment.” This takes you to another location where vendors offer free filing as a service to the general public. Some vendors have age and resident state requirements, but there are plenty of vendors and it’s important to review the list to find the best fit.

The programs are easy to follow and require you to input your personal data as well as specified data from your W2 form. When complete, click the button to electronically file your tax return. You can even choose to have your refund direct deposited.

If you live in a state that levies an income tax, you may have to visit your state’s taxing agency website to prepare and file your state income tax return, which means inputting your data all over again. So look for one of the Free File vendors who offer assistance with state tax preparation. Some vendors allow you to file state income tax returns for free while others charge a fee, so make sure you review all the details.

For those who earned more than $57,000, you may still file for free. There are free online forms available, and both options allow people to file returns electronically and use direct deposit, which is the fastest way to get refunds.

If you are a senior citizen, you may access the IRS Volunteer Income Tax Assistance and Tax Counseling for the Elderly partners who will e-file your return for free. Some states offer tax preparation services for low-income filers.

More than 80% of all American taxpayers now file their tax returns electronically. There has never been a reported security breach at the IRS, and the agency claims to have “processed more than 1 billion individual tax returns safely and securely since the nationwide debut of electronic filing in 1990.”

The IRS generates refunds at a faster pace when a tax return is filed electronically. It makes sense: If you paper file your tax return, you must wait for the post office to deliver your return to the IRS. The return then must be keypunched into the system, which makes room for an error. By the time your tax return is processed and the refund check released it’s probably a good 5-10 days longer than if you had transmitted the data electronically.

The fastest way to get your refund is through direct deposit to your bank account. It takes time to prepare a paper check and then there’s the long journey from the IRS service center to your mailbox.

If you owe tax, you can e-file whenever you want then set an automatic payment date anytime on or before the April 15 deadline. You can pay by check or money order, by debit or credit card, or by transferring funds electronically from your bank account. If you do not transmit the funds electronically and prefer to mail a paper check, you must print a voucher – IRS Form 1040-V to send with your check. Make sure to put your Social Security Number and tax year on the memo line of the check.

If you cannot file your tax return by April 15, you may file for an extension using IRS Form 4868 – also available via Free File. Just remember that an extension is only for extra time to file, not for extra time to pay.
If you would like a volunteer to help you prepare the return via Free File, go to IRS.gov and search for “VITA” to find a volunteer-equipped self-preparation site location near you.

Bonnie Lee is an Enrolled Agent admitted to practice and representing taxpayers in all fifty states at all levels within the Internal Revenue Service. She is the owner of Taxpertise in Sonoma, CA and the author of Entrepreneur Press book, “Taxpertise, The Complete Book of Dirty Little Secrets and Hidden Deductions for Small Business that the IRS Doesn't Want You to Know.” Follow Bonnie Lee on Twitter at BLTaxpertise and at Facebook.

These posts are for informational use only to educate people about their online income taxes and the financial world around them. If you found this helpful, share the original article or this one, and help spread the word! With tax season rapidly approaching let us get you the best income tax return you can possibly have by e-filing! Leave us a comment if you want to share your opinion.