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Old 02-02-2016, 12:32 PM
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Identity Theft an Ongoing Concern on the IRS Annual "Dirty Dozen" List of Tax Scams to Avoid

The IRS today issued a filing season alert warning taxpayers to watch out for identity theft at tax time and highlighted the crime as the first scam in the agency?s ?Dirty Dozen? series.

Over the course of the past year, as part of the Security Summit initiative, the IRS partnered with states and the tax industry to enhance coordination and create a more secure system for taxpayers.

Security Summit participants, including the IRS, will regularly share details of fraudulent schemes detected this season so industry and government have the same information and can adjust accordingly to provide increased protection. Many changes will be invisible to the taxpayer, but the more than 20 shared data elements are critical to making sure the IRS, states and industry can better verify the taxpayer and the legitimacy of the tax return.
?Our collaborative efforts with the Security Summit have given the IRS additional tools to stop fraudulent returns at the door," said IRS Commissioner John Koskinen. "The criminals continue to look for increasingly sophisticated ways to breach the tax system. While the IRS has improved prevention and detection efforts, we?re calling on taxpayers to protect their private information so thieves can?t steal personal data to file fraudulent returns."

The IRS also joined with industry and states on a public awareness campaign to provide taxpayers with easy tips to better protect themselves. The ?Taxes. Security. Together.? campaign includes YouTube videos, Tax Tips and fact sheets to help taxpayers stay safe online.

The Dirty Dozen is compiled annually by the IRS and lists a variety of common scams taxpayers may encounter any time during the year. Many of these con games peak during filing season as people prepare their tax returns or hire someone to do so.

?We urge people to use caution when viewing e-mails, receiving telephone calls or getting advice on tax issues because scams can take on many sophisticated forms," Koskinen said. "Keep your personal information secure by protecting your computers and only giving out your Social Security numbers when absolutely necessary."

Tax-related identity theft occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund. While the IRS has made significant strides over the past several years to address this issue, it remains a top concern for the IRS, which is why identity theft remains on the Dirty Dozen list again this year as the IRS works to protect taxpayers and help victims.

In the most recent three fiscal years, Criminal Investigation (CI) helped convict approximately 2,000 identity thieves. In fiscal year 2015, the IRS initiated 776 identity theft related investigations, which resulted in 774 sentencings through CI enforcement efforts. The courts continue to impose significant jail time with the average months to serve in fiscal year 2015 at 38 months ? the longest sentencing being over 27 years.

The IRS understands that identity theft is a frustrating, complex process for victims. While identity thieves steal information from sources outside the tax system, the IRS is often the first to inform a victim that identity theft occurred. .

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Old 08-01-2016, 10:20 PM
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My wife and i are 50/50 owners of an S-Corp. The revenues are approximately $1000/month. I take a salary of approximately $800/month and the remaining balance pays the business credit card each month. We have business expenses of approximately $200/month (cell phone, gas) which is paid using the business credit card. How do we file taxes for the business?=>Basically, you need to file form 1120S and pass thru gains to SCh K1 s of 1120S and need to report it on your joint return on 1040 or your home state return form; corps are subject to the C corp tax rules, which include double taxation. This means that the business is responsible for paying income tax on its earnings, and then the shareholders are responsible for paying a second tax when they receive after-tax dividends from the corporation. However, an S corp doesn?t pay any tax to the IRS. It is treated similarly to a LLC or partnership in that the income and deductions ?pass-through? to each shareholder/employee to be reported on their personal income tax returns in proportion to their respective shares of ownership. as compared to a sole proprietorship or a one-member LLC operating as a sole proprietorship for tax purposes, an S corp requires quite bit of additional tax accounting. you need to file form 1120S and pass thru gains to SCh K1 s of 1120S and need to report it on your joint return on 1040. The first bit of tax accounting required for an S corp is payroll accounting for the corp's employees, I mean you and your spouse As a general rule, an active S corp must pay its employees a reasonable wage. This requirement remains true even when the S corp has a single employee who happens to be sole shareholder of the corporation.At a federal level, payroll accounting requires your S corp to file quarterly 941 payroll tax returns which report on the wages paid to you and spouse, employees, the Social Security and Medicare taxes that you owe on those wages, and the taxes withheld from your gross wages for federal income taxes, Social Security taxes, and Medicare taxes. S corp payroll accounting also requires the filing of an annual 940 payroll tax return to report and pay federal unemployment tax AKA FUTA. Finally, S corp payroll requires the preparation and distribution of W-2 and W-3 forms which report to you, the Social Security Administration, and to the IRS what wages and taxes an employer has paid over the year. a good CPA or enrolled agent should be able to help you set a low but still reasonable salary. A good CPA or enrolled agent should also be able to identify and exploit S corporation tax saving opportunities such as a SEP-IRA pension plan or a Sec. 105(b) healthcare reimbursement arrangement.


Does the business file a return?==-=-=-=-=-=-=->>>>>>>>>.
Yes as said you need to file irs form 1120S for your S corp with the IRS and also need to file your home state form with your state Dept of reveneue; a good CPA or enrolled agent in your local area should be able to help you

How are the business expenses deducted?====>You may claim them I mean only biz related expenses on your form 1120S.



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