Olive Financial Services

08/04/2016

Find out how you can pay your federal income taxes without having to go into an IRS office. Go to IRS.gov and click Pay Your Tax Bill .

08/04/2016

Easy Electronic Payment and Payment Agreement Options Available to People Who Owe Tax

WASHINGTON — The Internal Revenue Service today reminded taxpayers that it’s easier than ever to pay their taxes electronically, and for those who can’t pay on time, quick and easy solutions are available.

This is the seventh in a series of 10 IRS tips called the Tax Time Guide. These tips are designed to help taxpayers navigate common tax issues as the tax deadline approaches.

Taxpayers who owe taxes can now choose among several quick and easy electronic payment options, including the following:

Electronic funds withdrawal allows taxpayers to E-file and pay from their bank account when using tax preparation software or a tax professional. EFW is only available when e-filing.
Direct Pay. Available at IRS.gov/directpay, this free online tool allows individuals to securely pay their income tax directly from checking or savings accounts without any fees or pre-registration. Payments can be made 24 hours a day and scheduled up to 30 days in advance. Any taxpayer who uses the tool receives instant confirmation that their payment was submitted. Direct Pay has successfully processed more than 10 million payments totaling over $30 billion since its debut in 2014.
Credit or debit card. Taxpayers can pay online, by phone or using their mobile device through any of the authorized debit and credit card processors. A convenience fee is charged by the processor. The IRS doesn’t receive or charge any fees for payments made with a debit or credit card. Go to www.IRS.gov/Payments for authorized card processors and their phone numbers.
IRS2Go. TheIRS2Go mobile app is free and offers taxpayers the option to make a payment with Direct Pay, or by debit or credit card through an approved payment processor for a fee.
Electronic Federal Tax Payment System. This free service gives taxpayers a safe and convenient way to pay individual and business taxes by phone or online. To enroll or for more information, call 800-316-6541 or visit www.eftps.gov.
Cash. Taxpayers without bank accounts or if cash is their only option can pay using the new PayNearMe option. Payments are limited to $1,000 per day, and a $3.99 fee applies to each payment. Because PayNearMe involves a three-step process, the IRS urges taxpayers choosing this option to start the process well ahead of the tax deadline to avoid interest and penalty charges. The IRS offers this option in cooperation with OfficialPayments.com/fed and participating 7-Eleven stores in 34 states. Details, including answers to frequently-asked questions, are at IRS.gov/paywithcash.
An automatic extension of time to file will be automatically processed for those taxpayers who choose to pay all or part of their taxes electronically by the April due date. An extension of time to file is not an extension to pay. Taxes are still due by the original due date. Taxpayers can get an automatic extension when making a payment with Direct Pay, Electronic Federal Tax Payment System or by debit or credit card and select Form 4868 as the payment type.

Taxpayers who choose to pay by check or money order should make the payment out to the “United States Treasury.” Also, print on the front of the check or money order: “2015 Form 1040”; name; address; daytime phone number; and Social Security number.

To help ensure that the payment is credited promptly, also enclose a Form 1040-V payment voucher.

The IRS advises taxpayers to file either a regular income tax return or a request for a tax-filing extension by this year’s April 18 deadline (April 19 for residents of Maine and Massachusetts) to avoid late-filing penalties. This penalty can be ten times as costly as the penalty for paying late.

Taxpayers who owe, but can’t pay the balance in full, do have options. Often, they qualify for one of several relief programs, including the following:

Most people can set up a payment agreement with the IRS online in a matter of minutes. Those who owe $50,000 or less in combined tax, penalties and interest can use the Online Payment Agreement to set up a monthly payment agreement for up to 72 months. Taxpayers can choose this option even if they have not yet received a bill or notice from the IRS. With the Online Payment Agreement, no paperwork is required, there is no need to call, write or visit the IRS and qualified taxpayers can avoid the filing of a Notice of Federal Tax Lien if one was not previously filed. Alternatively, taxpayers can request a payment agreement by filing Form 9465. This form can be downloaded from IRS.gov and mailed along with a tax return, bill or notice.
Some struggling taxpayers may qualify for an offer-in-compromise. This is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. The IRS looks at the taxpayer’s income and assets to make a determination regarding the taxpayer’s ability to pay. To help determine eligibility, use the Offer in Compromise Pre-Qualifier, a free online tool available on IRS.gov. Details on all filing and payment options are on IRS.gov.
Other tips in the Tax Time Guide series are available on IRS.gov.

Use this secure service to pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you. You'll receive instant confirmation that your payment has been submitted. Bank account information is not retained in IRS systems after payments are made…

08/04/2016

Retired Tax Court Judge Indicted for Tax Evasion : You can't make this stuff up.

Former U.S. Tax Court Judge Diane Kroupa and her husband are facing criminal charges for allegedly attempting to evade more than $400,000 in federal taxes.

In an April 4 indictment, the Justice Department said that the couple "conspired to evade their tax obligations" between 2004 and 2012. Since Kroupa began her 15-year term on the Tax Court in 2003 and retired in 2014, the alleged tax evasion occurred during the entire tenure at the Court.

The Justice Department said Kroupa's husband, Robert E. Fackler—a self-employed lobbyist and political consultant—fraudulently claimed personal expenses as business deductions for his firm, Grassroots Consulting, including items such as spa and massage fees (oh, the life of a lobbyist!), jewelry, wine club fees and vacations to Alaska, Australia, the Bahamas, China, England, Greece, Hawaii, Mexico and Thailand.

The indictment also states that Kroupa and Fackler failed to report approximately $44,520 that Kroupa received from a 2010 land sale in South Dakota and falsely claimed financial insolvency to avoid paying tax on $33,031 on cancellation of indebtedness income. To make matters worse, the couple in 2006, allegedly concealed documents from their tax preparer and an IRS Tax Compliance Officer during an audit, and during a second audit in 2012, Kroupa and Fackler caused misleading documents to be delivered to an IRS employee in order to convince the IRS employee that certain personal expenses were actually business expenses of Grassroots Consulting.

Altogether, between 2004 and 2010, Kroupa and Fackler purposely understated their taxable income by approximately $1 million and purposely understated the amount of tax they owed by at least $400,000, according to the indictment.

We are guessing that the "I didn't know it was against the law" defense will not work really well for a former U.S Tax Court judge.

08/04/2016

Vehicle First-Year Depreciation Limits Rise for 2016

The first-year depreciation deduction limits for owners of vehicles placed in service this year are $8,000 higher than they were for 2015: $11,160 for passenger automobiles and $11,560 for trucks and vans, the IRS said.

In Revenue Procedure 2016-23 released on April 1, the IRS said the amounts reflect provisions of the 2015 Protecting Americans from Tax Hikes Act, which raised the first-year depreciation limits. The limitation for vehicles for which the bonus depreciation deduction doesn't apply remains at $3,160 for passenger vehicles and rises $100 to $3,560 for trucks and vans.

The Revenue Procedure also revises the tables of depreciation limitations and lessee inclusion amounts for automobiles first placed in service or leased during 2015 and to which the 50 percent bonus depreciation applies as extended by the PATH Act.

The revenue procedure is to appear in Internal Revenue Bulletin 2016-16, dated April 18.

07/04/2016

Now you can make payment by cash of federal taxes at local 7-eleven.

WASHINGTON — The Internal Revenue Service announced today a new payment option for individual taxpayers who need to pay their taxes with cash. In partnership with ACI Worldwide’s OfficialPayments.com and the PayNearMe Company, individuals can now make a payment without the need of a bank account or…

25/03/2016

All tax debts are serious, but employment tax debts are particularly so. Failing to pay withheld trust fund taxes from employee pay can draw large IRS penalties and even prosecution.

21/03/2016

The IRS warns taxpayers about an increasing number of tax scams in communities across the country. For even more information go to IRS.gov and type “scam” in...

21/03/2016

IRS Recent Scam Alert. Please be aware that IRS will NEVER call you for tax or to VERIFY INFORMATION.

IRS YouTube VideosTax Scams: English | Spanish | ASL Security Summit Identity Theft Tips Overview: EnglishBe Cautious When Using Wi-Fi: EnglishUpdate Your Password Regularly: English

18/03/2016

The Treasury Inspector General for Tax Administration is pursuing fraudsters posing as IRS agents who call to harass taxpayers about fictitious tax debts, calling them back to warn them about their criminal activity and getting the phone company to shut them down.

07/03/2016

If you've started a new business or had a major life event last year, consider hiring a professional instead of self-preparing your taxes.

06/03/2016

With it being tax season, Michigan Attorney General Bill Schuette recently issued an updated consumer alert with tips on how to avoid the latest tax and IRS related scams.Tax season can be stressful enough without the added worry of falling victim to a sc

08/02/2016

Inflated Refund Claims Again Made the IRS “Dirty Dozen” List of Tax Scams for the 2016 Filing Season

IR-2016-18, Feb. 8, 2016

WASHINGTON — The Internal Revenue Service today warned taxpayers to be on the lookout for unscrupulous tax return preparers pushing inflated tax refund claims. This scam remains on the annual list of tax scams known as the “Dirty Dozen” for the 2016 filing season.

"Be wary of tax preparers that tout outlandish refunds based on federal benefits or tax credits you've never heard of or weren't eligible to claim in the past," said IRS Commissioner John Koskinen. "Taxpayers should choose preparers who file accurate returns."

Compiled annually, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter any time but many of these schemes peak during filing season as people prepare their returns or hire someone to help with their taxes.

Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shutdown scams and prosecute the criminals behind them.

Don't Fall Victim to Promises of Outlandish Refunds

Scam artists routinely pose as tax preparers during tax time, luring victims in by promising large federal tax refunds or refunds that people never dreamed they were due in the first place.

Scam artists use flyers, advertisements, phony store fronts and even word of mouth to throw out a wide net for victims. They may even spread the word through community groups or churches where trust is high. Scammers frequently prey on people who do not have a filing requirement, such as low-income individuals or the elderly. They also prey on non-English speakers, who may or may not have a filing requirement.

Scammers build false hope by duping people into making claims for fictitious rebates, benefits or tax credits. They charge good money for very bad advice. Or worse, they file a false return in a person's name and that person never knows that a refund was paid.

Scam artists also victimize people with a filing requirement and due a refund by promising inflated refunds based on fictitious Social Security benefits and false claims for education credits, the Earned Income Tax Credit (EITC), or the American Opportunity Tax Credit, among others.

The IRS sometimes hears about scams from victims complaining about losing their federal benefits, such as Social Security benefits, certain veteran’s benefits or low-income housing benefits. The loss of benefits was the result of false claims being filed with the IRS that provided false income amounts.

While honest tax preparers provide their customers a copy of the tax return they’ve prepared, victims of scams frequently are not given a copy of what was filed. Victims also report that the fraudulent refund is deposited into the scammer’s bank account. The scammers deduct a large “fee” before paying victims, a practice not used by legitimate tax preparers.

The IRS reminds all taxpayers that they are legally responsible for what’s on their returns even if it was prepared by someone else. Taxpayers who buy into such schemes can end up being penalized for filing false claims or receiving fraudulent refunds.

Taxpayers can help protect themselves by doing a little homework before picking preparers who make refund claims that may sound too good to be true.

Start with the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool can help taxpayers find a tax return preparer with the right qualifications. The Directory is a searchable and sortable listing of certain preparers registered with the IRS. It includes the name, city, state and zip code of:

Attorneys
CPAs
Enrolled Agents
Enrolled Retirement Plan Agents
Enrolled Actuaries
Annual Filing Season Program participants
Also check the preparer’s history. Ask the Better Business Bureau about the preparer. Check for disciplinary actions and the license status for credentialed preparers. For CPAs, check with the State Board of Accountancy. For attorneys, check with the State Bar Association. For Enrolled Agents, go to IRS.gov and search for “verify enrolled agent status” or check the Directory.