The IRS Tax Season: Why You Need a Consultant

5g6554Living in the technology era, various software programs are available, to enable you to prepare your own tax returns. However, we advise you to hire the services of a tax professional for the betterment of your business.

Tax professional or tax consultants are trained person of law field. An entrepreneur always requires a tax consultant to corroborate the balance sheets of companies above a certain size and they usually entail tax consultants to reduce taxation, to avoid learning the details of tax law in complicated financial situations and to generate an appropriate statement of revenue.

Tax info for Professionals

  1. Identity Theft

Businesses and individuals who fell victims to identity theft which is tax-related, require the expertise of a tax professional to resolve this serious issue. Now the state tax-agencies, IRS & tax-industry are working on a solution, detecting and preventing identity theft. It is also their vision to minimize the time necessary to reconcile such cases. In another definition, identity theft is also called identity fraud or scam and in this crime, an imposter acquires key pieces of the identifiable personal information such as your proof of identity as well as proof of address that can be Driving License, Social Security Card or National Identity Card numbers. So you always should be careful regarding the security of said documents to remain safe from such scam.

  1. What does Identity Theft related to tax entails?

This happens when somebody uses an SSN (Social Security number) of a dependent, spouse or client when filing a tax return with the intention to claim an illegal refund. An EIN (Employer Identification Number) can be stolen, creating fraudulent W-2 forms to substantiate some fraud schemes refunds.

However, even tax pros can be unsuspecting that his/her client fall victim to identity theft. However, trying to file such a return, it will be declined as duplication.

  1. More indicators include
  • State or IRS records stipulate that the client acquired income from an undisclosed employer.
  • A client’s Social Security Number was used for more than one filed return.
  • Got hold of a collection action, balance due or refund offset for a year within there was no return filed.
  • For business clients: Fictitious employees, altered tax return or regarding an inoperative, dormant or closed business.
  1. Was a W-2 or tax return filed using the SSN of a Client?

If the SSN of a client had been implicated, from a stolen wallet, data breach or computer hack, pros can take under-mentioned steps:

  • Respond promptly when the client gets a state or IRS notice.
  • Complete an Affidavit for Identity theft (IRS Form-14039) when the IRS acquired it or when your client’s return via e-filing was rejected due to a SSN which was duplicated and no other mistakes occurred.
  • Professionals inquiring about a particular client’s return information must obtain on file the power of attorney. Furthermore, they have to validate their identity to the representative of state-customer services or IRS.
  • Pursue the procedures to report identity theft. This will appear on the website of their client’s revenue agency.

AllIRS Tax Filing Season Statisticscan be found online where each season’s statistics are available.

Taxinfo for Eas(enrolled agents)

Tax forums nationwide will be held for 2017 as scheduled below. So take in mind to pre-register now. Internal Revenue Service will host these forums

  • July 11 to 13 inOrlando. Registration byJune 27
  • July 25 to 27 inDallas, Texas. Registration by July 11
  • August 22 to 24; Washington, DC-area (National Harbour MD) – Registration byAugust 8
  • August 29 to 31 inLas Vegas. Registration by August 15
  • September 12 to 14 inCalif, San Diego. Registration by August 29.
  • The early bird rate for pre-registering tax pros will be $235 p/p. whilst $255 is the general rate which will start onJune 1, and will terminate 2-weeks before the initiation date of the forums. Tax Pros who register late or onsite will be paying $370 approximately.

If you have any questions, please ask below!