IRS Warns of Tax Scams

Each year, the IRS publishes a list of the 12 most pervasive tax-related scams, nicknamed the “Dirty Dozen”.  For 2014, 3 of them involve some form of identity theft.

Basic identity theft is something many people don’t associate with taxes, but mostly with thieves opening credit cards, taking out loans, or fraudulently using stolen bank information to make purchases.  For the past few years though, fraudsters have been using the IRS E-File system, along with the direct deposit option for refunds, to file fraudulent tax returns, claim false income and withholding, and get refunds deposited to their accounts before the IRS or taxpayer can take notice.  Most only find out once they try to file their own, legitimate tax return and find that one has already been filed.

The next two are the same scam in different forms.  The scammers reach out to taxpayers, either via phone or e-mail, and try to trick their targets into revealing personal information about themselves that can then be used to steal the victim’s identity.  These scams have become increasingly complex in the last couple of years, with scammers now “spoofing” caller ID systems to show the call is coming from a legitimate IRS call center, and that e-mails are coming from actual IRS e-mail addresses.

The best defense in these cases is still a good offense.  Shred or otherwise destroy any documents that you no longer need and which have your name, address, date of birth, or especially social security number on them. Keep documents you need to retain with that kind of information in a safe place.

Know that the IRS almost always reaches out via a letter through the mail, and not via phone or e-mail.  If you get a call or e-mail stating it’s from the IRS and you have no reason to think they would be trying to get in touch with you, don’t provide any information, and instead call the IRS back on one of their published contact numbers, such as 1-800-829-1040, to confirm the contact is legitimate.

About the author

Brady is the owner of Ramsay & Associates. He specializes in financial statement preparation and personal, fiduciary and corporate tax and accounting.

His professional experience includes seven years' experience for local and national CPA firms before joining Ramsay & Associates in 2006.

He has a Bachelor of Accounting degree from the University of Minnesota Duluth. He is a Certified Public Accountant, a member of the Minnesota Society of CPA's, an Eagle Scout, as well as an active volunteer in the community.

Best Wishes!

For any of you that have been through our doors over the last couple of decades, you’ve probably at least met Margie Horning.  After a long, highly accomplished career in public accounting, with the great majority of it spent at Ramsay, Margie has decided it’s time to retire.

Margie has added a great deal of depth to our knowledge over the years, especially in the areas of estate, trust, and high net worth individuals. She has a nearly unbelievable memory for detail, and has mentored all of the associates that have passed through the firm, including those that are here today.

Her presence will be missed, but she has certainly earned some time with her family.  To Margie, we send best wishes for a retirement that is exciting as the career that came before it.

About the author

Brady is the owner of Ramsay & Associates. He specializes in financial statement preparation and personal, fiduciary and corporate tax and accounting.

His professional experience includes seven years' experience for local and national CPA firms before joining Ramsay & Associates in 2006.

He has a Bachelor of Accounting degree from the University of Minnesota Duluth. He is a Certified Public Accountant, a member of the Minnesota Society of CPA's, an Eagle Scout, as well as an active volunteer in the community.

Increase in Minnesota Minimum Wage

At the height of busy season in early April,  the Legislature passed, and Governor Dayton signed, a bill to significantly increase the minimum wage paid in the state of Minnesota. As May tends to be a month of catching up on what we missed while we were clipping through tax returns, here is a brief summary of the law.

The minimum wage level is split based on the size of the business in question.

  • For businesses with gross sales over $500,000, the minimum wage increases to
    • $8.00 per hour in August, 2014
    • $9.00 per hour in August, 2015
    • $9.50 per hour in 2016
  • For business with gross sales under $500,000, the minimum wage increases to
    • $6.50 per hour in August, 2014
    • $7.25 in August, 2015
    • $7.75 in 2016

For both groups, the minimum wage will be tied to inflation starting January 1, 2018, unless the state determines the economy cannot support such an increase.

 

About the author

Brady is the owner of Ramsay & Associates. He specializes in financial statement preparation and personal, fiduciary and corporate tax and accounting.

His professional experience includes seven years' experience for local and national CPA firms before joining Ramsay & Associates in 2006.

He has a Bachelor of Accounting degree from the University of Minnesota Duluth. He is a Certified Public Accountant, a member of the Minnesota Society of CPA's, an Eagle Scout, as well as an active volunteer in the community.