Tax Scam Alert from Minnesota Department of Revenue

The Minnesota Department of Revenue is warning customers about a scammer knocking on doors posing as an agent from the Department of Revenue. The scammer demands that the victim make immediate payment of back taxes owed.

state-of-Minnesota

SCAM ALERT in Minnesota: Scammers are knocking on doors posing as Department of Revenue agents.

The department never contacts customers demanding immediate payment without first mailing a letter, and the department will not threaten to send the police to a customer’s home.

Here are four things a scammer may do, but the department does not:

  1. Contact you about your balance due without contacting you by mail first.
  2. Demand payments without contacting you by mail first.
  3. Require that you provide payment information over the phone.
  4. Threaten to send the police or law enforcement.

If you encounter a similar scam, immediately contact your local law enforcement.

If you suspect a potentially fraudulent visit, call, or email from someone who represents themselves as being from the Minnesota Department of Revenue, call the department at 651-296-3003 or 1-800-657-3909. An authorized Minnesota Department of Revenue staff member will be able to determine if the contact you received was legitimate.
Use caution and only provide personal information, including credit card information, when you are absolutely sure the situation is legitimate.

The Minnesota Department of Revenue has more info on frauds and tax scams, and how to report suspicious calls or messages you may have received here: http://bit.ly/1co9gbh

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.

Hackers steal tax refunds of 100,000 taxpayers

Cyber thieves have hacked the tax returns of over 100,000 taxpayers, resulting in over $50 million in stolen tax refunds.

According to a CNN report (http://www.cnn.com/2015/05/27/politics/irs-cyber-breach-russia), the IRS suspects Russian hackers.

The Criminal Investigation Unit of the IRS is investigating the possibility that Russian crime syndicates were involved.

Rep. Peter Roskam (R.-Ill.), chairman of a House committee with IRS oversight, told CNN that hackers “went in the front door of the IRS and unlocked it with the key.”

Rep. Peter Roskam (R.-Ill.), chairman of a House committee with IRS oversight, told CNN that hackers “went in the front door of the IRS and unlocked it with the key.”

Rep. Peter Roskam (R-Ill.) told CNN that the IRS website wasn’t hacked; instead, the thieves used taxpayers’ personal information obtained elsewhere. Using the stolen identities, they “went in the front door of the IRS and unlocked it with the key.”

The Treasury Inspector General for Tax Administration is also looking into the incident, and the Department of Homeland Security has also been alerted. Additionally, the FBI announced on Thursday that it has opened an investigation.

The IRS has posted a Youtube video with tips on what to do if you believe you’ve been the victim of an identity theft:
https://www.youtube.com/watch?v=yB8RtjHSpZw&index=5&list=PL388D1AC3B539E4F1

With more and more business being transacted online, identity theft is a growing threat for individuals and businesses everywhere. The IRS lists some basic tips on how you can protect your identity: https://www.youtube.com/watch?v=nOt7U23n5lc&list=PL388D1AC3B539E4F1&index=4

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.

IRS Says Taxpayers Have Extra Time to File in 2016

A statue of Alexander Hamilton, the first Secretary of the Treasury, stands in front of the southern façade of the Treasury Building in Washington, D.C.

A statue of Alexander Hamilton, the first Secretary of the Treasury, stands in front of the southern façade of the Treasury Building in Washington, D.C.

In 2016, if filing or payment deadlines fall on a Saturday, Sunday, or legal holiday, individuals will meet the deadline if it is met by the next business day (under IRC Sec. 7503).

On Friday, April 15, 2016, the District of Columbia officially observes the Emancipation Day holiday. Therefore, most taxpayers will have until the next business day (Monday, 4/18/16) to file their Form 1040s. In Maine and Massachusetts, Monday, 4/18/16 is officially Patriot’s Day, which means that taxpayers in this state will have until Tuesday, 4/19/16.

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.

Celebrating Memorial Day, and a Note on Military Tax Breaks

flagAs we look forward to some R&R this holiday weekend, and perhaps a cookout with family and friends, we remember that Memorial Day is a day to honor those Americans who gave the ultimate sacrifice. We also thank the men and women who are now serving in the Armed Forces.

Members of the military and their families have a number of tax breaks available. These include:

  1. Income exclusion of combat pay (within certain parameters);
  2. Extra time to file federal income tax returns: Until June 15 if serving abroad, or longer if serving in combat zone;
  3. More time to delay income tax payment due before or during service;
  4. Travel expense deduction for U.S. Armed Forces Reservists.

The IRS has posted more details online, including a “Military Tax Tips” video: https://www.youtube.com/watch?v=Co6cNQqJHx0

Memorial Day is one of the oldest Federal holidays. Historians trace the holiday’s beginnings to decoration of Civil War soldiers’ graves as early as 1861. First known as “Decoration Day,” the late May date was chosen because it was deemed the optimal time for flowers to be in bloom.

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.

The Affordable Care Act and Employers: Why Workforce Size Matters

A recent bulletin from the IRS provides a nice summary of how the number of employees determines the Affordable Care Act’s employer tax provisions.

Under the ACA, the size and structure of a workforce – small, or large – helps determine which parts of the law apply to which employers.doc exam

An employer’s size is determined by the number of its employees.
• An employer with 50 or more full-time employees or full-time equivalents is considered an applicable large employer – also known as an ALE – under the ACA.
• For purposes of the employer shared responsibility provision, the number of employees a business had during the prior year determines whether it is an ALE the current year. Employers make this calculation by averaging the number of employees they had throughout the year, which takes into account workforce fluctuations many employers experience.
• Employers with fewer than 50 full-time or full-time equivalent employees are not applicable large employers.
• Calculating the number of employees is especially important for employers that have close to 50 employees or whose work force fluctuates during the year.

Two provisions of the Affordable Care Act apply only to applicable large employers: the employer shared responsibility provision, and the employer information reporting provisions for offers of minimum essential coverage.

The IRS has posted more information on the Determining if an Employer is an Applicable Large Employer page on its website, IRS.gov/aca.

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.