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- The IRS warns not to trust fraudulent tax preparers.tax forms image by Chad McDermott from Fotolia.com
Many taxpayers benefit from economic stimulus funds dispersed in tax refunds, while others pay more in taxes than they planned to pay. Scam artists and opportunistic tax preparers earn extra money at tax time by tricking taxpayers out of a percentage of their refund. Taxpayers who are not professional accountants may not know how to itemize their tax deductions, missing out on refund payments. Resources such as the Internal Revenue Service (IRS) website provide instructions on receiving as much money as possible after filing federal income taxes. - The phishing scam tactic employs phony email messages, tweets or websites that obtain personal financial information deceptively. According to IRS.gov, phishing scams sometimes use a fake IRS web page offering tax refunds and asking for personal information. Scam artists then use the information to undertake identity theft or bank account fraud. The IRS website states that the IRS does not send unsolicited emails to taxpayers, and that anyone who receives a fraudulent email should forward it to the IRS at phishing@irs.gov.
- Members of the armed forces who move because of a permanent change of station can deduct moving expenses from their taxes. Any enlisted person or warrant officer who serves in a combat zone during any part of the month receives a 100 percent non-taxable salary for that month. Military members also receive automatic tax deadline extensions, reimbursement for cost of upkeep of unworn uniforms and free help filing taxes during tax season.
- Unemployed taxpayers looking for employment in the field of their current profession qualify for a deduction of their job-seeking expenses from their tax return. (See References 3) Job-searching in a new career field does not qualify taxpayers for the deduction of expenses. Other job-seeking tax deductions include employment and outplacement agency fees, resume-mailing expenses and travel costs for all employment-seeking travel. Taxpayers deducting employment agency fees must claim the fees as income when and if their employer reimburses them for the fees.
- The IRS recommends that new business owners first decide what type of business entity to establish as this will determine the type of tax file the business owner will use. The four business tax types include income tax, self-employment tax, employment tax and excise tax. Other IRS tax tips for new business owners include sound record keeping and consistent accounting. Sufficient records must show a business's income and expenses, although tax law does not specify any certain method of record keeping.
Avoid Scams
Military Tax Tips
Job Seeker Deductions
New Business Owners
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