Category: blog&news

blog&news

PAID PREPARER DUE DILIGENCE LAW

IRS paid preparer due diligence compliance program is not something new to the tax industry, but the IRS is continually adopting new tactics and adding new things to the program. The paid preparer due diligence compliance program includes earned income credit (EITC), the child tax credit (CTC), additional child tax credit (ACTC), the other dependents (ODC), the American opportunity tax credit (AOTC) and the head of household (HOH) filing status.

As a paid preparer the four most important due diligence requirements are:

Complete and submit form 8867 – for each return, you prepare that claims EITC, CTC, ACTC, ODC, AOTC and/or HOH filing status.

Compute the credits based on the facts – Complete the appropriate worksheets for each credit based on information provided by your client.

Ask all the right questions – Ask questions to your clients and document their answeres. also. take lots of notes on verbal interview process. Sometimes, this is not the most pleasant process and involves asking very personal questions but keep in mind the rule of thumb is the more information you get the better it is when it comes to preparer audits.

Keep records – Maintain copies of all documents your client gave you on which you relied on to determine eligibility for the credits or HOH filing status or to compute the amount of the credits.

We all have heard the saying “you can’t be too careful”. Your best option when it comes to Due Diligence Audit is knowing the rules and having the documentation/notes to back it all up!

Preparer Due Diligence Law – Here is the link to the IRS website, which will provide you with a lot more information on this topic.

blog&news

TEXT MESSAGE MARKETING

Come tax time your customers are being messaged nonstop by your competitors via T.V, radio, and even social media feeds. The only thing better than that is sending a personalized text message. It’s an affordable and effective strategy to reach your customers wherever they are.  

When you are evaluating your communication options, consider this:

90% of all text messages are read within three minutes of their delivery.  

Texting is direct and is more likely to be noticed.

Texting customers is less invasive, and customers are more likely to reply.

Texting can give you better exposure than Social Media

Texting can be done from anywhere. (Convenience is the key)

Texting is used by most demographics.

Most importantly… It can reduce your marketing costs… you can start messaging your customers now as long as you have a cell phone you are good to go. You can also sign up with a text message marketing company for a small fee which will let you send personalized text messages to all your customers in bulk. Companies like Netflix and Dell are now using text messages to communicate with their customers. Netflix uses text messages to reduce the load on their customer support team for password reset and Dell generates more online sales by keeping customers notified through text messages.

Large and small businesses, from all industries, have implemented text messages into their marketing strategy to make the most of this opportunity. So, what are you waiting for?

blog&news

TIME TO RENEW YOUR PTIN FOR 2020

Time to renew your PTIN again…IRS is urging tax return preparers to start the upcoming 2020 filing season smoothly by renewing their preparer Tax Identification Number (PTIN) now. all current PTINs will expire December 31, 2019

To renew a PTIN online:

Start at IRS.gov/tax-professionals.

Select the “Renew or Register” button.

Enter the user ID and password to login to the online PTIN account.

Follow the prompts to verify the information and answer a few questions.

Once completed, users will receive confirmation of their PTIN renewal. There is no fee for renewing or obtaining a PTIN for 2020.

To apply for a PTIN online:

Start at IRS.gov/tax-professionals.

Select the “Renew or Register” button and select “Create Account” in the “New User” box.

First-time users are issued a temporary password and will be prompted to change their password upon logging in.

Select “sign up with SSN” once logged in.

Follow the prompts to obtain the PTIN online.

Anyone who prepares or helps in preparing a federal tax return for compensation must have a valid PTIN from IRS before preparing returns, and they need to include the PTIN as the identifying number on any return file with the IRS.

blog&news

DEADLINE FOR FILING 2018 TAX RETURN

It’s almost here… Taxpayers who had previously requested an extension to file their 2018 tax return, this year’s deadline is Tuesday, October 15. If your client is getting a refund, there is no penalty for filing return after April 15th. FYI…they don’t even need to file extension! So, if you have clients for whom you filed an extension please make sure to submit their tax return before October 15.

What if the taxpayer owes the IRS but can’t pay?

If your client has a balance due but can’t afford to pay, there are a few options available to them. Your client can always file their return and wait for a bill in the mail, which is most certainly going to have some interest and penalties charges. They can pay the balance on a credit card, enter into an installment agreement or work out an “offer in compromise.”

blog&news

IRS WARNS ABOUT PROPERTY LIEN SCAM

This is a new version of tax-related scams. This scam involves fake property liens. It threatens taxpayers with a tax bill from a fictional government agency. 

Here are some details about the property lien scam that will help taxpayers recognize it:

This scheme involves a letter threatening an IRS lien or levy. The scammer mails the letter to a taxpayer.The lien or levy is based on bogus overdue taxes owed to a non-existent agency.The non-existent agencies might have a legitimate-sounding name like the “Bureau of Tax Enforcement.” There is no such agency. This scam may also reference the IRS to confuse potential victims into thinking the letter is from a real agency.

For anyone who does owe tax or thinks they might owe should review their tax account information and payment options at IRS.gov. Reviewing tax account information online will show the taxpayer if they indeed owe the IRS and how much. This is the fastest way to get this information. Additionally, they can call the IRS at 800-829-1040 to confirm the notice if they are still not sure.