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The “Dirty Dozen” Tax Scams

By Joe Beige | Published July 27, 2021

In all the years that we at Beige Law have been representing taxpayers and solving their issues with the IRS or New York State some types of tax issues stand out more than others.

None more so than the innocent taxpayer who falls victim to a tax scam. Usually, it’s a hardworking, honest person who believed that they were receiving legitimate tax guidance from a reputable person or business when in fact they were being roped into a tax scam.

Recently the IRS published their list of the “Dirty Dozen” Tax Scams for 2021 on their website.

As the IRS points out, if it sounds too good to be true, it probably is.

IRS To Reduce Customer Service

By Joe Beige | Published January 13, 2016

Despite being the target of jokes for late night comedians the IRS has in the past done a fairly remarkable job of handling the 150 million individual and 11 million business taxpayers. The IRS did this through extensive telephone and face-to-face contact with taxpayers.

Unfortunately, this appears to be ending.

On the heels of the IRS’ National Taxpayer Advocate informing taxpayers in 2015 that the many phone calls to the IRS would go unanswered we now get the news that there is “an intention on the part of the IRS to substantially reduce telephone and face-to-face interaction with taxpayers.” No doubt that cuts to the IRS budget (approximately 19 percent in inflation-adjusted terms since fiscal year (FY) 2010 ) have exacerbated the situation.

What this means for taxpayers is that they will find it increasingly difficult to communicate with the IRS and will be faced with the added costs of having to retain professional help.

The IRS Gets Hacked!

By Joe Beige | Published May 27, 2015

It can happen to anyone and now it seems it’s happened to the Internal Revenue Service as well.

The IRS announced that it will be notifying taxpayers after criminals gained unauthorized access to information on about 100,000 accounts through their “Get Transcript” online application. This information included Social Security information, date of birth and street address. According to the IRS these attempts were quite complex in nature and appear to have started in February and ran through mid-May. In all, about 200,000 attempts were made from questionable email domains, with more than 100,000 of those attempts successfully clearing authentication hurdles.

The IRS will be notifying all taxpayers who’s accounts where unauthorized access was attempting and will be offering free credit monitoring for the approximately 100,000 taxpayers whose “Get Transcript” accounts were accessed to ensure this information isn’t being used through other financial avenues.

While the IRS is investigating this situation we would advise taxpayers to be extra vigilant in monitoring their financial and credit activity. In addition, we would advise taxpayers to review the IRS website for information on tax scams.

What happend to my tax refund?

By Joe Beige | Published March 30, 2015

This is a question that many taxpayers find themselves asking every year. After having taxes withdrawn from their weekly paychecks or having made quarterly estimated payments they are shocked to find out that their refund is being seized.

Under the Treasury Offset Program the IRS can use all or part of your federal refund to settle certain unpaid federal or state debts. Besides retaining your tax refund to pay past due federal tax debt, your tax refund may be used to pay certain other debts such as:

Past-due child and parent support.
Federal agency non-tax debts, such as a delinquent student loan.
State income tax obligations.Certain unemployment compensation debts owed to a state.

However, you may have certain defenses to the seizure of your tax refund, such as an “injured spouse,” that may protect your tax refund.

If your tax refund is being seized by the IRS under the Treasury Offset Program or you having any questions regarding Federal or State tax issues please contact a tax professional.

Home Office Deduction?

By Joe Beige | Published March 19, 2015

The snow is melting, motorcycles are hitting the road (please watch out for them) and the April 15th deadline to file your 2014 Federal and State tax returns is right around the corner.

Do you work from home? You may be permitted to deduct certain home office expenses.

If you qualify you can claim the deduction whether you rent or own your home. If you qualify for the deduction you may use either the simplified method or the regular method to claim your deduction.

As a general rule, you must use a part of your home regularly and exclusively for business purposes. The part of your home used for business must also be:

Your principal place of business, or
A place where you meet clients or customers in the normal course of business, or
A separate structure not attached to your home. Examples could include a garage or a studio.

As always it is best to get the advice of a tax professional to determine if you qualify for any deductions, including the home office expense deduction, and if it’s in your best interest to apply for it.

Did You Collect Unemployment Benefits This Year?

By Joe Beige | Published March 3, 2015

Did you or your spouse collect unemployment benefits this past year?

If you or your spouse lost their job unemployment benefits may serve as much needed relief. But did you know unemployment benefits are taxable?

They are and if you didn’t know and aren’t prepared for it you may find yourself owing State and Federal taxes and at time when you can least afford it.

Unemployment is taxable and you must include all unemployment compensation as income for the year. You should receive a Form 1099-G, Certain Government Payments by Jan. 31 of 2015. This form will show the amount paid to you and the amount of any federal income tax withheld, if any.

If you owe State or Federal taxes and can’t pay them don’t wait, call our office today and learn about the options that may be available to you.

Beware Of Scams Using the IRS or USA.gov Identities

By Joe Beige | Published February 9, 2015

Beware of scams artists using the IRS or USA.gov identities!

Besides death and taxes one thing that can be counted on is that as tax season rolls around scammers and con artist come out of the wood work.

Scammers are using the USA.gov name as part of an e-mail phishing scam to collect
personal information from unsuspecting taxpayers on a fake IRS website.

Remember the IRS o any other entity using “USA.gov” will never contact you to request your personal information!

If your receive an e-mail that’s supposedly from a government program, no matter how legitimate it seems, do no respond before doing the following:

Step 1: Double check any offers or demands by contacting the agency mentioned in the claim.
Step 2: Use the contact information listed in the USA.gov Index of U.S. Government Departments and Agencies to contact the agency and not the contact information provided in the e-mail.
Step 3: Forward tax related phishing e-mails to the IRS at [email protected].

New Warnings from the National Taxpayer Advocate regarding the IRS

By Joe Beige | Published January 14, 2015

Today the National Taxpayer Advocate released her 2014 annual report to Congress and if you’re a taxpayer you have a lot to be concerned with. The National Taxpayer Advocate warned that taxpayers this year are likely to receive the worst levels of taxpayer service from the IRS since at least 2001.

According to the report taxpayers in 2015 should expect:

The IRS is unlikely to answer even half the telephone calls it receives, and levels of service may average as low as 43%.
Taxpayers who manage to get through are expected to wait on hold for 30 minutes on average and considerably longer at peak times.
The IRS will answer far fewer tax-law questions than in past years. During the upcoming filing season, it will not answer any tax-law questions except “basic” ones. After the filing season, it will not answer any tax-law questions at all, leaving the roughly 15 million taxpayers who file later in the year unable to get answers to their questions by calling or visiting IRS offices.
Tax return preparation assistance has been eliminated.

In the preface to the report the National Taxpayer Advocate emphasized four points:

“First, the budget environment of the last five years has brought about a devastating erosion of taxpayer service, harming taxpayers individually and collectively;
“Second, the lack of effective administrative and congressional oversight, in conjunction with the failure to pass taxpayer rights legislation, has eroded taxpayer protections enacted 16 or more years ago;
“Third, the combined effect of these trends is reshaping U.S. tax administration in ways that are not positive for future tax compliance or for public trust in the fairness of the tax system; and
“Fourth, this downward slide can be addressed if Congress makes an investment in the IRS and holds it accountable for how it applies that investment.”

The National Taxpayer Advocates report to Congress doesn’t bode well for taxpayers in 2015 and very likely beyond.

Post Appeal Mediation for Offers in Compromise

By Joe Beige | Published December 19, 2014

The Internal Revenue Service (IRS) has recently announced the nationwide rollout of post-Appeals mediation for Offer in Compromise (OIC) and Trust Fund Recovery Penalty (TFRP) cases. This is a nationwide expansion of an IRS pilot program instituted in 2008 and previously only available in select cities.

Under this program post-Appeals mediation will be available to taxpayers to help resolve disputes after unsuccessful negotiations with the IRS Office of Appeals. The mediator’s role is to assist the parties in reaching their own agreement collaboratively and the mediator does not have settlement authority over any issue. Appeals Officers trained in mediation techniques will serve as mediators at no cost to taxpayers.

If you have had an Offer in Compromise denied by the IRS contact the Law Office of Jack Stuart Beige & Associates, P.C. to discuss the eligibility criteria and complete procedures for initiating a post-Appeals mediation request and your options.

The IRS, YouTube and Healthcare?

By Joe Beige | Published November 26, 2014

That’s right. As unlikely a pairing as that may sound it really does exist and may be an invaluable resource for taxpayers.

The announced the availability of several new YouTube videos to help taxpayers get important information about the Affordable Care Act and their tax return filing.

The IRS videos explain the premium tax credit, the individual shared responsibility provision, and the small business health care tax credit. The IRS says that additional videos about the Affordable Care Act will be available soon.

If you have questions about how the Affordable Care Act and your tax filings the IRS and YouTube may have the answers.