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New IRS Portal for Reporting Fraud and Scams

The IRS has launched a new portal that makes it easier to report instances of tax fraud, identity theft, IRS impersonation and other tax-related scams. On the new webpage (link below), people and businesses can report:

- Fake IRS phone calls, emails, and text and social media messages. Scammers posing as government agents often threaten people with arrest unless they submit immediate payments, often in a specific format like gift cards. The IRS does not operate in this way.
- Suspected tax fraud, such as tax evasion schemes or illegal use of offshore accounts.
- Identity theft, which should always be reported to the IRS immediately, even if other government and law enforcement agencies know about the crime.
- Suspicious tax preparation practices, such as a paid tax preparer refusing to sign your return or altering your income figures.

Citizen reporting often plays a critical role in catching scammers and bringing them to justice. This new system makes the process of filing a report less confusing and much more convenient.

IRS Fraud Reporting Site: https://www.irs.gov/help/report-fraud

Receiving Online Payments - Did You Know?

If you are self-employed and receive payments through online payment processing platforms, take care to separate business and personal transactions. You can do this by setting up separate business accounts on the platforms, or by using features that allow you to specify the purpose of payments. Otherwise, the platforms may overreport your income.

Avoiding Costly Tax Problems - Did You Know?

As the April 15 federal tax filing deadline approaches, some people may find themselves unable to pay the full amount of tax they owe. In that circumstance, it is important to pay as much as possible by the deadline, as doing so will help keep IRS penalties and interest charges to a minimum. For any remaining balance, many people may qualify to set up a monthly payment plan that fits within their budgets. Typically, interest fees will accumulate over the course of an installment plan, but the balance owed will not spiral upward, and penalties will not escalate as long as monthly payments are made on time.

During the weeks and months after they file, some people may receive an IRS notice in the mail. The notice may request payment, especially if an installment plan has not been established. In other cases, IRS letters ask for additional information like the basis for a deduction amount, or require action to correct a filing mistake like omitting a form. A tax professional can help you properly respond to an IRS notice if you receive one, or help you set up a manageable payment plan if you cannot pay your tax balance in full.