RocketBlog

A Safe Haven in a Choatic Industry. A blog about the tax relief industry, tax compliance, tax return preparation, tax advice, and tax innovations.

Tax Identity Theft Enforcement

by Admin on March 1, 2013

The IRS has recently ratcheted up its investigations of identity theft across the country. In January 2013, the IRS and local law enforcement cracked down on 389 identity theft suspects, resulting in over 700 enforcement actions from coast to coast.

Identity thieves often steal taxpayer identities to complete and receive tax refunds from the federal and state governments.  The thieves then attempt to cash the refund checks and defraud not only the taxpayer victim but also the government.

In 2012, the IRS deployed 3000 new revenue officers to combat the huge number of identity theft cases the IRS faces each year.

Taxpayers victimized by fraud should contact the IRS directly and report any suspicion or actual identity theft immediately. Unwinding the effects of identity theft can be daunting and time consuming.

More information on IRS Criminal Investigation efforts is available on IRS fact sheet FS-2013-4.

Share and Enjoy:
  • Digg
  • StumbleUpon
  • del.icio.us
  • Twitter
  • Reddit

{ 0 comments }

Hurricane Sandy Tax Relief

by Admin on February 27, 2013

In the aftermath of Hurricane Sandy, the IRS announced that it will be sending tax relief to individuals and businesses affected by the hurricane. The deadlines are being extended to April 1 for the following localities:

  • In New Jersey (starting Oct. 26): Monmouth and Ocean counties.
  • In New York (starting Oct. 27): Nassau, Queens, Richmond and Suffolk counties.

In addition, if a taxpayer resides outside the counties identified above but has books, records, or tax professional located inside the county,  the IRS will work with those people.

Share and Enjoy:
  • Digg
  • StumbleUpon
  • del.icio.us
  • Twitter
  • Reddit

{ 0 comments }

IRS’s Online Platform Puts Taxpayer Information At Risk

January 18, 2013

Before a representative may act on a taxpayer’s behalf, the IRS requires the representative to file with the IRS a power of attorney or tax information authorization.  However, in a recent audit, the government found that its E-Services Platform for tax professionals, may put taxpayer information in jeopardy. According to the report, the controls with [...]

Share and Enjoy:
  • Digg
  • StumbleUpon
  • del.icio.us
  • Twitter
  • Reddit
Read the full article →

IRS’s New Phone System Improved, Still Far From Perfect

January 15, 2013

The IRS has implemented a new telephone system that is intended to improve a taxpayer’s interaction with the IRS.  The Intelligent Contact Management System is a toll-free routing system that the Small Business/Self Employed Division incorporated into its correspondence audit process to make it more responsive and less burdensome from the taxpayer’s point of view. [...]

Share and Enjoy:
  • Digg
  • StumbleUpon
  • del.icio.us
  • Twitter
  • Reddit
Read the full article →

Justice Department to Increase Tax Fraud Prosecutions

January 12, 2013

At Rocket Relief, we are concerned with making sure are clients are well aware of tax fraud-related incidents.  Numerous times we are posted articles dealing with tax fraud: Fraudulent Tax Returns on the Rise, Identity Theft Leads to a Rise in Tax Fraud, The IRS Does Not Initiate Contact by E-Mail, Beware Tax Scam, Tax [...]

Share and Enjoy:
  • Digg
  • StumbleUpon
  • del.icio.us
  • Twitter
  • Reddit
Read the full article →

IRS Changes Stance on Unpaid Refund Claims and Civil Penalties

January 5, 2013

A taxpayer may be subject to civil penalties for accuracy-related errors, including for understatement, and thus payment, of the tax.  As discussed previously (here and here), the amount of the tax is between 20 and 40 percent, depending on the facts of the case. Recently, the IRS has reconsidered its position in regard to application [...]

Share and Enjoy:
  • Digg
  • StumbleUpon
  • del.icio.us
  • Twitter
  • Reddit
Read the full article →

IRS Employees Fail to Contact Taxpayers’ Representatives

January 1, 2013

The IRS has a number of policies and procedures in place to help ensure taxpayers are afforded the right to designate a qualified representative to act on their behalf in dealing with IRS personnel in a variety of tax matters.  For example, IRS employees are required to stop an interview if the taxpayer requests to [...]

Share and Enjoy:
  • Digg
  • StumbleUpon
  • del.icio.us
  • Twitter
  • Reddit
Read the full article →

Only One Spouse In a Joint Return Needs To Consent to Offshore Account Disclosure Program

December 27, 2012

In early 2012, the IRS announced another offshore account disclosure program.   As discussion in prior posts, a taxpayer may come forward with information about their offshore accounts to minimize possible penalties they would be required to pay if the IRS discovered their accounts.  But what happens if a taxpayer has filed a return with their [...]

Share and Enjoy:
  • Digg
  • StumbleUpon
  • del.icio.us
  • Twitter
  • Reddit
Read the full article →

Prudent for Taxpayers To Request A Collection Due Process Hearing Be Recorded

December 22, 2012

A Collection due process (CDP) hearing is an important step for taxpayers to challenge a collection effort by the IRS.  As described previously, before the IRS can levy on a taxpayer’s property, it must give the taxpayer an opportunity for administrative review of the IRS’s collection actions.  At the CDP hearing, the Appeals office will [...]

Share and Enjoy:
  • Digg
  • StumbleUpon
  • del.icio.us
  • Twitter
  • Reddit
Read the full article →

IRS Volunteer Programs Have Low Accuracy for Prepared Returns

December 18, 2012

The Volunteer Income Tax Program provides no-cost Federal tax return preparation and filing to lower-income taxpayers.  However, the Treasury Inspector General for Tax Administration has recently discovered that accuracy remained below 50% at these sites.   In 2012, the accuracy of these free sites increased to 49%, up from 39% in 2011.   In comparison, in a [...]

Share and Enjoy:
  • Digg
  • StumbleUpon
  • del.icio.us
  • Twitter
  • Reddit
Read the full article →