Quarterly Returns Due…

Just a quick reminder to our business clients… the 3rd quarter tax return is due at the end of the month.  If you need help making any last minute adjustments, just let us know.

For our self-employed clients… estimated tax payments were due last week so be sure those were made to avoid any penalties or fees from the IRS.

New Membership Options

Dickmann Tax Group is excited to announce new membership options coming soon.  We’re going to be offering these memberships as a way to expand our services to include many of the things you’ve requested from us.  A few things to expect as part of membership will be: free tax returns, private 1 on 1 time set aside to discuss any tax topic you like, discounts on future books and course offerings, ability to cancel at any time, and much more.

We’re really excited about what’s coming next and can’t wait to share it with you!

Identity Theft

Six Things to Know about Identity Theft and Your Taxes

Learning you are a victim of identity theft can be a stressful event.  Identity theft is also a challenge to businesses, organizations and government agencies, including the IRS.  Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund.  Many times, you may not be aware that someone has stolen your identity. The IRS may be the first to let you know you’re a victim of ID theft after you try to file your taxes.  The IRS combats tax-related identity theft with a strategy of prevention, detection and victim assistance. The IRS is making progress against this crime and it remains one of the agency’s highest priorities.

Here are six things to know about ID Theft:

1. Protect your Records.  Do not carry your Social Security card or other documents with your SSN on them. Only provide your SSN if it’s necessary and you know the person requesting it.   Routinely change passwords for Internet accounts.

2. Don’t Fall for Scams.  The IRS will not call you to demand immediate payment, nor will it call about taxes owed without first mailing you a bill.

3. Report ID Theft to Law Enforcement.  If your SSN was compromised and you think you may be the victim of tax-related ID theft, file a police report.  You can also file a report with the Federal Trade Commission using the FTC Complaint Assistant.  It’s also important to contact one of the three credit bureaus so they can place a freeze on your account.

4. Understand IRS Notices.  Once the IRS verifies a taxpayer’s identity, the agency will mail a particular letter to the taxpayer. The notice says that the IRS is monitoring the taxpayer’s account. Some notices may contain a unique Identity Protection Personal Identification Number (IP PIN) for tax filing purposes.

5. Report Suspicious Activity.  If you suspect or know of an individual or business that is committing tax fraud, contact the IRS immediately.

6. Combating ID Theft.  Over the past few years, nearly 2,000 people were convicted in connection with refund fraud related to identity theft. The average prison sentence for identity theft-related tax refund fraud grew to 43 months in 2014 from 38 months in 2013, with the longest sentence being 27 years.   During 2014, the IRS stopped more than $15 billion of fraudulent refunds, including those related to identity theft.  Additionally, as the IRS improves its processing filters, the agency has also been able to halt more suspicious returns before they are processed. So far this year, new fraud filters stopped about 3 million suspicious returns for review, an increase of more than 700,000 from the year before.

How the ACA applies to ALEs

Get to Know the Health Care Law’s Employer Shared Responsibility Payment

Under the Affordable Care Act, applicable large employers – those with 50 or more full-time employees, including full-time equivalent employees – are required to take some new actions.  To prepare for 2016, if your organization is an ALE, you need to track information each month in 2015, including:

  • Whether you offered full-time employees and their dependents minimum essential coverage that meets the minimum value requirements and is affordable
  • Whether your employees enrolled in the minimum essential coverage you offered

You need to track this information because you could be subject to an employer shared responsibility payment if your organization falls into either of these circumstances:

  • You offered coverage to fewer than 70 percent of your full-time employees and their dependents in 2015 and at least one full-time employee enrolled in coverage through the Health Insurance Marketplace and receives a premium tax credit. The 70 percent threshold is for 2015, after 2015 this increases to 95 percent.
  • You offered coverage to at least 70 percent of your full-time employees and their dependents in 2015, but at least one full-time employee receives a premium tax credit because coverage offered was not affordable, did not provide minimum value or the full-time employee was not offered coverage. After 2015, this threshold increases to 95 percent.

Not sure how this change affects you?  Call us at (888)266-0962.

Summer Jobs

Students often get a job in the summer and if it’s your first job… then you’re about to learn all about taxes.  Here are some tips you should know about summer jobs and taxes:

  • Withholding and Estimated Tax.  If you are an employee, then your employer will be withholding tax from your paycheck.  If you are self-employed, then you may have to make estimated tax payments directly to the IRS on set dates during the year.
  • New Employees.  When you get a new job, you will be filling a Form W-4 and employers use it to figure how much federal income tax to withhold from your pay.
  • Self-Employment.  Money you earn doing work for others is taxable.  Some work you do may count as self-employment (like baby-sitting or law care) so be sure to keep good records of your income and expenses related to your work (hint deductions!).
  • Tip Income.  All income earned in the form of tips is taxable.  Keep a daily log to report them as you must report $20 or more in cash tips in any one month to your employer.

Have any questions or concerns?  Call us (888)266-0962… its MUCH easier to help you before you owe money to the IRS…