Tax season 2023 has officially started and along comes an increased risk of falling victim to tax scams. These scams involve fraudsters who use a variety of tactics to impersonate the Internal Revenue System (IRS) and trick individuals into giving up their personal information or money.

Common Tax Scams

IRS letter Scam:  Scammers send letters or notices that look like official IRS communication. These letters may demand immediate payment for unpaid taxes, jeopardize legal action or request personal information such as social security numbers or bank details.

Tax Transcript Scam: Fraudsters are sending fake email communications about tax transcripts claiming to be from “IRS Online”. A tax transcript is a summary of your tax records and history. IRS will never send such confidential information over email. IRS warns taxpayers not to open these emails as they contain malware that infects their devices to extract sensitive information like Social Security Numbers, Bank Account Details, and Passwords.

Ghost Tax Preparers: Ghost tax preparers are individuals who prepare tax returns but do not sign such documents. Unreliable ghost preparers frequently print the return, have the taxpayer sign it, and send it to the IRS. The ghost will prepare e-filed returns, but they refuse to digitally sign as the paid preparer. But IRS makes it mandatory for tax preparers to provide a digital signature and PTIN at the end of the tax filing form. Thus, taxpayers avoid such ghost preparers as they can file false information claiming to get more refund simply to satisfy you of their services.

Natural Disaster Relief: Natural disaster fraud is the deliberate use of deception to trick people and the government for personal gain. Natural disaster fraud comes in many forms including price gouging, insurance fraud, and forgery/impersonation. These scammers reach out to victims via phone, mail, or social media offering to help in relief funds in exchange for personal information.

IRS Telephone Scams: Scammers impersonate IRS agents and make unsolicited phone calls to individuals demanding immediate payment for unpaid taxes. They use tactics to make the call seem more legitimate such as spoofing the caller ID to make it appear that the call is from IRS. The IRS will never call the taxpayers demanding money in any form to pay them immediately. IRS will usually send a letter by mail informing about any tax owed or any IRS Audit to be done. IRS will always provide the opportunity to taxpayers for questioning or appealing on the tax owed. IRS will also never ask for debit or credit card details over the phone and will not threaten to bring local police or law enforcement agents.

What to do When You Encounter Such Scams?

• Do not provide any personal and financial information if received an unsolicited mail, call, or text message requesting payment.
• Verify the legitimacy of the request by contacting IRS directly at the phone number listed on the official website to verify the authenticity of the request.
• Visit the identity protection page if clicked on links in a suspicious email or website and entered confidential information.
• Report the W2 variant to the IRS – if a victim or not – and should also report any BEC/BES variants to the Internet Crime Complaint Center.
• Contact the Treasury Inspector General for Tax Administration (TIGTA) if an IRS imposter has contacted you. Report IRS imposter scams online by calling TIGTA at 1-800-366-4484. Forward email messages that claim to be from the IRS to [email protected].
• File a complaint with the Federal Trade Commission (FTC) via their online complaint form and Federal Communications Commission (FCC) by visiting the Consumer Complaint Centre.

How to Avoid Such Scams?

Be aware of unsolicited communications, IRS will not initiate contact with taxpayers via email, text, or social media. Use a secure method to submit tax returns such as an authorized tax preparer, IRS e-file, or a secure mailbox. Do not send tax returns or payments via email. Stay up to date on the latest scams and fraud tactics by regularly checking the IRS website, news, and other resources.  Installing call-blocking software for smartphones will avoid unwanted phone calls. Work with a reputable tax preparer who is properly licensed and registered with IRS. The IRS is aware of these scams and provides guidance on how to avoid and identify them. By taking these steps taxpayers can protect themselves from IRS scams and other types of fraudulent activity.

IRS Audit Group is a team of tax professionals, CPAs, Enrolled Agents, and Tax Attorneys, specializing in IRS Tax Audit Representation.  We will file a power of attorney and contact the IRS or state agency to represent our clients. We will ease your stress-out IRS audit with our expertise in seamlessly resolving your case with IRS. Contact us for a free consultation to understand your tax situation. https://irsauditgroup.com/contact/

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Internal Revenue Service announced that the interest rates will remain the same for the calendar quarter beginning April 1, 2023.  The rate for overpayment and underpayment for individuals will be 7% annually, compounded daily.

What is Overpayment?

An overpayment occurs when a taxpayer pays more than the amount of tax owed. Taxpayers may overpay due to various reasons such as errors in calculating taxes, administrative errors, delayed terminations, incomplete job records, incorrectly completed work schedules or default hours, duplicate transactions, irregularly processed unpaid leaves of absence, changes in percent time, or errors in time reporting.

The overpayment interest rate for the second quarter of tax season 2023 is 7% for individuals and 6% for corporations. Also, the portion of the amount exceeding $10,000 will get 4.5% for the corporations. This interest rate was the same as in the first quarter of 2023. Previously the interest rate in the fourth quarter of 2022 for overpayments was 6% per year. It increased by 1% for both individuals and corporations in the first quarter of 2023.

What is Underpayment? 

Underpayment occurs when a taxpayer doesn’t pay enough taxes during a year, either through withholding or estimated taxes. IRS charges underpayment when taxpayers don’t pay their taxes, penalties, and additions to tax or interest by the deadline. Even if the taxpayer requests an extension, the interest in underpayment still applies.

The current interest rate for underpayment beginning April 2023 is 7% (taxes owed but not fully paid) and 9% for large corporate underpayments. The interest rate has been increased by 1% for underpayments from the first quarter of 2023. Previously the interest rate in the fourth quarter of 2022 for underpayments was 6% per year and 8% for large corporate underpayments.

How to Dispute?

If there is any dispute regarding the overpayment, taxpayers can request a refund from IRS. If a taxpayer believes the IRS assessment is incorrect, he can provide additional documents or evidence to support the claim. The IRS reduces the amount of interest owed by taxpayers only if the interest is applied because of any unreasonable error or delay by an IRS officer. For dispute interest due to unreasonable error or IRS delay, the taxpayer can submit a Claim for Refund and Request for Abatement form or send a signed letter requesting to reduce or adjust the overcharged interest.  If the taxpayer feels that IRS has underpaid the interest or credits that they are eligible for, they can request an Informal Conference and Appeals Review. The dispute will be reviewed by the IRS Examination or Collection office that made your tax assessment. If they cannot resolve it, the appeal will be considered for an IRS audit.

Taxpayers can represent themselves on the appeal or hire a tax professional. The tax professional must be eligible as:

• An attorney
• A certified public accountant, or
• An enrolled agent authorized to practice before the IRS.

Interest rates for underpayments and overpayments vary and may change quarterly. The interest rate charged for earlier quarters or years is unaffected by the changes. Therefore taxpayers should make sure to pay taxes on time to avoid interest charges and those who are unable to pay in full should work with IRS to set up a payment plan.

IRS Audit Group can be at your service in representing your case for federal or state tax audit. We are a tax audit representation company in Los Angeles, California. We serve across the country with all the states as IRS is a federal agency and we could request IRS to transfer your case to California. Contact us for a free consultation to understand your case.

https://irsauditgroup.com/contact/

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Emergency Number: (310) 498-7508

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Tax Season 2023 started and one of the important questions that come up during tax season is if you opt to prepare your tax statement or hire a tax professional. It really depends on several factors including financial situation, tax knowledge, time, patience, and effort needed to prepare a tax return. Both of these two options have their own pros and cons, the choice ultimately depends on the personal comfort level with taxes of an individual.

When To File by Yourself?

Preparing your own taxes can be done using tax software or through the IRS website. It is a good option to save a few bucks, but it is not always the best choice.  Here are a set of situations where you can do your own tax filing are:

• The tax situation is simple.
• Financial limitation to save money.
• Good understanding of tax laws and tax preparation process
• Comfortable using tax software.
• Have patience and time to deal with tax preparation.

Disadvantages of Filing Your Own Taxes

There are potential disadvantages while filing your own taxes. Tax filing is more time-consuming especially when there is trouble understanding tax laws. If you have multiple income sources, then it adds more complexity due to numerous tax laws. Using online tax software speeds up the process but it can be difficult to get help if any question arises. Filing your own tax increases the risk of errors which lead to penalties, interest, or even an IRS audit.

Why Hire a Tax Professional?

Hiring a professional tax preparer can be a wise choice for individuals as well as for businesses. Tax Professionals have the knowledge and expertise to minimize the complex tax code and they ensure maximum tax savings and thus minimize the risk of the tax audit. Hiring a professional tax preparer may be necessary for a few scenarios as follows/

• Don’t have time and patience to deal with tax preparations!
• Multiple income sources
• Owning a business or rental property and having a complicated situation.
• Planning to itemize deductions.
• Experienced major life events.
• Have foreign accounts and investments or active stock traders.

Disadvantages of Hiring a Professional

The only crucial disadvantage of choosing a tax professional can be difficulty in finding a trustworthy and experienced tax preparer. Not all tax preparers are equal, some may not have expertise in handling complex tax situations. There are many scammers who pose as legitimate tax preparers.  Hence, it is important to do proper research about potential tax preparers by reviewing their credentials, client testimonials, etc.

To do filing by your own effort or hire a professional depends on personal circumstances and level of comfort with tax laws and the tax preparation process. Doing your own taxes is the finest method to save money if you are confident in your capacity to comprehend the tax rules. If not, it’s likely time to spend the money and employ a tax professional. In the end, you have to balance the worth of your time and money versus your mental health.

IRS Audit Group is a tax audit representation company in Los Angeles, California. We offer a free initial consultation to assist you to comprehend your tax concerns completely and effectively, regardless of whether they are related to California state income taxes or taxes from another jurisdiction. If you need assistance or counseling with tax issues in California or another state, please contact the IRS Audit Group to learn more about our services.

https://irsauditgroup.com/contact/

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Emergency Number: (310) 498-7508

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Who are Tax Professionals?

Tax professionals are experts who offer tax-related services to individuals, businesses, and organizations. They are knowledgeable and trained in tax laws, rules, and procedures. They can be tax advisors, tax lawyers, enrolled agents, certified public accountants (CPAs), and tax preparers. These experts assist taxpayers in understanding their requirements, preparing and filing tax returns, resolving tax concerns, and making tax-saving plans. They also can help customers with a variety of tax-related concerns, including tax optimization, tax negotiations, tax compliance, and tax audits.

Why do We Need Them?

Filing taxes can be a more confusing and overwhelming process, especially for individuals and businesses that are not familiar with tax codes. This is where tax professionals help clients to solve their queries in filing tax returns. They provide guidance on tax planning and help identify tax-saving opportunities. Working with tax professionals is time-saving as they analyze tax structures, prepare strategies, and finalize the right documents and forms for filing. Tax professionals make sure that the filed returns are accurate and complete to minimize the risk of an IRS audit. They also provide tax audit representation services for the clients if there is any dispute with the IRS to resolve the issue. Tax professionals can reduce your financial burden by assisting in negotiating payment plans or settling debts. An experienced tax professional can help to face the complex world of taxes with confidence.

What are their Qualifications, and Eligibility?

Tax professionals should have IRS Preparer Tax Identification Number (PTIN) that is authorized to prepare federal tax returns. Enrolled agents, certified public accountants, and tax attorneys have unlimited representation rights before the IRS. The eligibility and skills required are as follows.

• Enrolled agents should pass a three-part Special Enrollment Examination and they must complete 72 hours of continuing education every 3 years. They have proficiency in federal tax planning, individual and business tax return preparation, and representation.
• Certified Public Accountants should complete their study in accounting in school or college and clear the Uniform CPA Examination In addition, CPAs must comply with ethical requirements and complete specified levels of continuing education in order to maintain an active CPA license.
• Attorneys should clearly state bar exams and they generally have ongoing continuing education and professional character standards.

Some prepare who don’t have the above credentials have limited representation rights. They can represent only the people for whom they have prepared returns and signed. Annual Filing Season Program Participants who have completed their course program and PTIN holders can also prepare tax returns.

How to Check Tax Preparer Credentials?

There are many individuals who claim to provide services as tax preparers. It is important to know their credentials before engaging in one. Choosing an incorrect tax preparer can result in poor tax filing and can even lead to disputes and tax audits. The IRS maintains a public list of specific tax professionals in order to assist taxpayers in determining the credentials and training of return preparers. Attorneys, CPAs, enrolled agents, enrolled retirement plan agents, enrolled actuaries, and Annual Filing Season Program Record of Completion recipients having valid PTINs for 2022 are listed in the searchable, sortable database along with their names, cities, states, and zip codes.

Who are Ghost Tax Preparers?

Ghost preparers are those who refuse and don’t sign the tax returns they prepare and pretend to be invisible. They refuse to digitally sign it as the paid preparer. prefer taking payment in cash and refusing to provide a receipt. They invent income to qualify their clients for tax credits. They also claim fake deductions to boost the size of the refund and direct the refund into their own bank accounts. IRS advises to beware of such tax preparers. They add more complexity to your filings than simplifying them. All tax preparers must have a valid Prepare Tax Identification Number (PTIN). IRS also makes it mandatory for tax preparers to provide a digital signature and PTIN at the end of the tax filing form.

 How to Select the Suitable One Among the Many Tax Preparers?

When looking for a tax preparer, it is necessary to choose who is knowledgeable, reliable, and professional. Some of the measures to take before selecting a tax preparer are.

• Make sure to choose a tax preparer who can be available in case the IRS examines, returns, and has questions regarding how the filing was prepared.
• Avoid tax preparers who claim they can obtain larger funds.
• Ensure the preparer has PTIN with them.
• Choose the tax preparers who enter the PTIN on tax returns and sign them.
• Consider a Tax preparer who is available around months or years after filing the return so that they can represent on behalf of you if there is an IRS audit.
• Make sure the credentials are checked through the IRS official website.

IRS Audit Group is a tax representation company that has a group of expert tax professionals like layers, enrolled agents, and CPAs. They help clients in resolving their state audits and IRS audits by representing them. IRS Audit Group has its proprietary audit process from the beginning of free consultation with the clients until resolving the issue in favor of the taxpayers. Please contact us for more information. https://irsauditgroup.com/contact/

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The Internal Revenue Service has provided taxpayers with a checklist of reminders to assist them with filing tax returns for the tax season 2023. These quick practices will simplify tax preparation from collecting documents to completing a tax return. But if your tax filing is complex and doesn’t have enough time, it is better to reach a tax professional. Tax professionals know how to file tax returns without any further chances for any IRS audit by filing with accuracy. Engaging a tax professional has various benefits like

• They don’t miss any deductions and tax credits available for you.
• They have up-to-date information on tax codes and new changes. Saves ample time.
• Help eliminate errors and avoid IRS Audit
• Provide the best tax-saving strategies for upcoming tax seasons.
• Investigate past tax returns and amend any missed deductions.

IRS Audit Group is a tax audit representation company in Los Angeles, California. With 15 years of experience, the certified tax professionals, lawyers, and experts of the company have successfully helped clients’ audit processes and understand their IRS taxing authority. IRS Audit Group has a process to follow while doing the tax filing as follows.

• Remember To Report All Types of Income on The Tax Return
• List out income from possible sources such as
• Online platforms that created and sold goods.
• Income from investments
• Part-time or seasonal employment, self-employment, or other business ventures
• Services offered by mobile apps.

Here Are A Few Tips from The IRS Audit Group for All Taxpayers

There are options to use Free Resources for Tax Filing.  The IRS’s Free File program, which is only accessible at www.irs.gov, enables individuals who made $73,000 or less in 2022 to electronically file their taxes for free. Also, there are Free File Fillable Forms, with limited features that anyone may fill out and submit on their own, likewise without cost, regardless of their financial level.

As part of a 21-year agreement with the IRS, top tax software firms make their online products freely accessible through IRS Free File. Seven products are available this year in English and one in Spanish. These products can only be accessed by taxpayers on the IRS website.

The IRS advises using IRS.gov to pay taxes, get refund status updates, and get tax issues answered without having to wait. There is no wait time and no need for an appointment because online tools and information are accessible every day of the year. Particularly useful resources from the IRS include Let Us Help You and the Interactive Tax Assistant.

Individuals can securely log in to their IRS Online Account to obtain personal tax account information, such as the balance, payments made, and tax records, such as adjusted gross income.

For the most recent information on tax changes, scam alerts, programs, goods, and services, download the IRS2Go mobile app, view IRS YouTube videos, or follow the IRS on Twitter, Facebook, LinkedIn, and Instagram.

IRS Audit Group is a tax audit representation company in Los Angeles, California. We can transfer your IRS case to Los Angeles irrespective of your state as IRS is a federal agency. Contact us for a free consultation to review your severity of tax debt. https://irsauditgroup.com/contact/

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The due date for filing Tax Year 2022 Form W-2 and other wage statements (including Forms W-2AS, W-2CM, W-2GU, W-2VI, W-3SS, W-2c, and W-3c) with the SSA were January 31, 2023.  This deadline was applicable for filing under paper forms or electronically. Anyone with one or more employees to whom payments ($600 or more in wages even if there was no withheld income, social security, or Medicare tax) are made must file forms W-2 and W-3.  This includes non-cash payments also for the employee’s services in the trade or business during 2022. Anyone required to file Form W-2 must file Form W-3 to transmit Copy A of Form W-2. Even employers with only one household employee must file Form W-3 to transmit Copy A of Form W-2. If an error is discovered on an employee’s Form W-2 after sending it to the SSA, submit a Form W-2c, Corrected Wage, and Tax Statement. File Form W-3c, Transmittal of Corrected Wage, and Tax Statement whenever the employer files a Form W-2c with the SSA.

Extension Available for 30 Days

One can request a 30-day extension to file Form W-2 by submitting a complete application on Form 8809. However, the extension is not automatic, and it will be granted only in “extraordinary circumstances or catastrophe”.

Penalties for Failure to File

It’s important for employers to send W-2s to their employees and file them to SSA by the W-2 deadline (Jan 31, 2023) otherwise heavy penalties for late submissions or wrong information will be imposed. Penalties apply to the person or employer required to file Form W-2. The penalties apply to both paper filers and e-filers. The IRS can impose penalties for one or a combination of the below reasons.

• Failure to file correct information returns by the due date.
• Failure to furnish correct payee statements and /or Civil damages for fraudulent filing of Forms W-2.
• Failure to file and failure to furnish penalties.

Penalties for intentional disregard of filing and payee statement requirements are $580 and, have increased due to adjustments for inflation. The higher penalty amounts apply to returns required to be filed after December 31, 2022. The penalties for each information return or payee statement for the tax season 2023 are clearly stated by IRS in this link. Taxpayers will receive an IRS notice through mail about the penalties if imposed.  If one likes to dispute the penalty, one can still contact the IRS explaining the reason through a formal letter. But it is advisable to engage a tax professional who can understand your situation and guide you accordingly.

Generally, an employer needs to furnish Copies B, C, and 2 of Form W-2 to their employees by January 31, 2023. The employer will meet the “furnish” requirement if the form is properly addressed and mailed on or before the due date. If employment ends before December 31, 2022, an employer may furnish copies to the employee at any time after employment ends, but no later than January 31, 2023. Employers may furnish Forms W-2 to employees on IRS official forms or on acceptable substitute forms.

IRS Audit Group is a tax audit representation firm from Los Angeles, California. The Company has a team of certified tax lawyers experienced in state tax and federal tax. Regardless of client location, the tax experts can review your audit situation and we represent the IRS on behalf of the taxpayers for a better outcome in favor of the client. Please contact us for more information. https://irsauditgroup.com/contact/

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Tax Season 2023 has already started, and the deadline is Apr 18, 2023, for the 2022 tax filing.  While preparing tax returns, taxpayers are expected to have completed all relevant and important paperwork in hand.  This aids in the accuracy of tax filing.  There are chances of errors and omissions in the tax filing which results in the delayed filing as well as delayed tax refunds.  A tax preparation checklist will keep you organized and help you feel less stressed when it’s time to file your taxes.  There are multiple benefits if you engage a Certified Tax Professional as well.

Benefits of Engaging a Certified Tax Professional

Numerous credits, exemptions, and deductions can significantly reduce your tax obligation.  It is good to hire a tax professional who goes through such minute details and prepares the tax return to reduce obligation in compliance with IRS rules.  Such tax professionals will thoroughly examine the tax details,  and at the same time, the tax professional will take all care to avoid the burden of an IRS audit at a later stage.  If you own a business or have a complicated personal tax return, engaging a tax professional is especially advantageous. Here are a few advantages of engaging tax professionals.

• Helps to develop a Tax Strategy
• Knows how to represent clients for tax audits.
• Knows how to make a report taking into account the audit.
• Reduce errors.

Tax Filing Modes

Whether you’re an individual or a business owner, you need to pay taxes under every head of income received.  IRS recommends filing taxes electronically to get accurate filing and faster refunds.  Two ways to transmit tax returns electronically are:

• By personal computer with online filing using tax prep software
• Through an e-file provider or tax professional who is an electronic return originator (ERO).
• Use IRS Free File or Fillable Forms for individuals with an adjusted gross income is $73,000 or less.
• Use a Free Tax Return Preparation website for Qualifying Taxpayers

Basic Documents Required to File Your Tax

• Personal Information includes your name, Social Security Card and number, Date of Birth, Home address, copy of last year’s federal and state tax returns, Bank Account number, and routing number to receive your refund by direct deposit.
• Dependent Information is needed when you claim someone is dependent on you. You need the dependent’s name, Social Security Number, and Date of Birth.
• Sources of Income include several different forms documenting the income you received in 2022. Some common ones include:
• W2s from your employer
• 1099-G for unemployment income and state and local tax refunds.
• 1099-R and SSA-1099 for retirement plan distributions and Social Security benefits.
• Records of any transition involving cryptocurrency
• Self-Employment and Business include the documents showing income earned as an independent contractor, record of all business income and expenses, documentation of home expenses, and records of business assets to be depreciated along with date and cost placed in service.
• Deductions lower your taxable income and increase your refund or decrease the amount of tax you owe. If you itemize deductions, you need information on medical expenses, premium paid for long-term insurance, real estate taxes, tax paid with your vehicle registration, documentation of casualty loss, and charitable donations.
• Tax Credits show expenses for higher education, Child Care costs, Adoption costs, and purchase of Health Insurance.
• Estimated Tax Payments are when you are self-employed and earn money that doesn’t have federal and state income tax withheld; you may have to make estimated tax payments. It includes estimated payments made during the year, prior year refunds applied to the current year, and any amounts paid with an extension.
• Proof of Losses is various financial losses faced that can be deductible. It may be stocks or other investments or records of any non-business bad debts that are not collectible.

IRS Audit Group is a Tax Audit Representation Firm located in Los Angeles, California.  Irrespective of the location, our tax audit experts help clients across the country by representing them during IRS audits.  With 15 years of experience in the industry, we do not outsource our services.  A dedicated tax professional will be engaged with you from the beginning till resolving the case.  Please contact us for further queries https://irsauditgroup.com/contact/

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IRS announces an extension of the deadline for filing tax returns to victims of severe winter storms, flooding, and mudslides in California beginning January 8, 2023. Taxpayers from the FEMA announced designated areas now have until May 15, 2023, to file for returns or request extensions.

Who is Eligible?

• Individuals who reside and businesses whose principal place of operations falls under these designated areas are eligible for such an extended deadline.
• Also, workers and volunteers affiliated with government-recognized organizations who assist the relief activities are also eligible, if they are injured or killed as a result of a disaster.
• Apart from the taxpayers within the affected areas, individuals and businesses not located in the IRS-designated disaster area can call the disaster assistance hotline at 1-866-562-5227, and explain their situation to the assistor. After self-identifying, telephone assistors will manually code the accounts for relief.
• Even individuals and businesses who suffered uninsured and unreimbursed disaster-related losses can choose to claim on the tax filing for 2022 or tax returns for 2023 (next year). Again, they should be eligible based on the FEMA-declared designated areas.

These eligible taxpayers will have until May 15 to make 2022 contributions to their IRAs and health savings accounts. They will not get penalties for failure to pay estimated tax installments as long as such payments are paid on or before May 15, 2023. Further to the new deadline, taxpayers can also make their fourth quarter estimated tax payments on May 15 normally due on January 17, 2023, and April 18, 2023.

What is Relief?

This relief helps taxpayers to claim a deduction for the disaster loss, additional time to file the tax returns for 2022 and waive penalties for late filing. Taxpayers with an IRS address of record located in the designated area will automatically receive such relief. Despite this, if they receive notice of late filing or late payment penalty, IRS advises calling the number on the notice to abate the penalty.

How to Apply?

While filing their returns, eligible taxpayers should notify the name of the disaster by writing it in blue or black ink at the top of the form. California Taxpayers can mention “California, severe winter storms, flooding, and mudslides” on top of their forms. If filing electronically, taxpayers should submit disaster information according to the software instructions. They can also seek certified tax professionals who will assist in reviewing the tax situation and help to file to ensure accuracy. In a few cases, the IRS may contact the affected taxpayers for collection and examination of the matter. They are obligated to explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case. Therefore, engaging a tax professional is advisable to avoid an IRS audit notice later.

Additional information and instructions are provided in this FTB publication on the procedure to claim the tax deductions. Further California’s Franchise Tax Board (FTB) has detailed explanations of disaster types, application instructions, and claiming procedures in this link to help taxpayers and businesses. IRS also recommends that taxpayers visit the FAQ section for disaster victims before applying under the tax circumstances for accurate filing.

IRS Audit Group is a tax audit representation firm in Los Angeles, California. Usually, in a few cases, the IRS may ask for more information to validate the tax return filings. But rarely, IRS may like to audit your tax information through a letter of notice via Mail. In such cases, it is important to engage a tax professional like ours to represent your audit. Our licensed professionals comprise qualified CPAs and IRS Enrolled Agents. They can analyze your tax situation and help alleviate your burden. Please contact us for more information. https://irsauditgroup.com/contact/

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The Internal Revenue Service (IRS) will begin accepting tax filings on January 23, 2023. This time IRS has hired more employees to help the taxpayers for a seamless experience. Taxpayers can contact IRS customer representatives through telephone and online tools as given in this link. People can also visit the IRS official website to check on the basic question under the FAQ section before contacting the customer representative team.

IRS Free Service Programs

IRS has various free services to help taxpayers with tax filing.

• The IRS’s Volunteer Income Tax Assistance and Tax Counselling for the Elderly programs are few that offer free basic tax return preparation to qualified individuals. Eligibility for the same can be checked on the above links.
• IRS Free File Program also opened on Jan 13, 2023. The service providers in this program will accept completed returns and file them electronically once it is open on Jan 23. This free file program is available only for taxpayers with AGI (Adjusted Gross Income) of $73,000 or less in 2022.
• For people in the service like the military community, the department of defense provides a free tax resource called MilTax. It includes software for tax preparation and electronic filing. It offers individualized assistance from tax advisers and up-to-date tax filing information. With MilTax, qualified taxpayers can file a federal tax return and up to three state taxes electronically for free.

Many software providers and tax professionals are already preparing taxpayers’ returns and will file them once the window is open. Therefore, IRS advises taxpayers to choose their tax professionals wisely. There are various types of tax return preparers, including enrolled agents, certified public accountants, tax attorneys, and others who don’t have professional credentials. It has even provided guidelines on selecting tax preparers through this link.

Importance of IRS Tax Credits

The IRS recommends individuals and tax professionals review their tax situations, so they don’t miss out on important tax credits like Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). IRS even set an awareness day on Jan 27, 2023, to make them understand the benefits of the EITC program. EITC helps low- and moderate-income workers and families.

Information on IRS Refunds

Taxpayers are advised to collect and submit accurate information for error-free returns filing. This will avoid delays in processing refunds if any. If taxpayers choose direct deposit and there are no issues with their tax return, then IRS expects that most taxpayers will get their refund within 21 days of filing electronically. But taxpayers with EITC and ACTC will receive their refunds in mid-February due to processing time in identifying fraudulent refunds under the 2015 PATH Act. Taxpayers can check their refund status through Where’s My Refund? Link. This link will show an updated status by February 18, 2023, for early EITC/ACTC filers. Further, individuals can securely log in to their IRS Online Account to access personal tax account information, such as the balance, payments made, and tax records, including adjusted gross income.

National Due Date to File a 2022 Tax Return

This year the due date for tax season 2023 will be April 18, instead of April 15, unlike last year. Weekends and the District of Columbia’s Emancipation Day holiday affect the deadline, and thus the extension is given for the individuals. The taxpayers also need to file for an extension before Apr 18, if they need time to file the tax returns. Taxpayers requesting an extension will have until Monday, October 16, 2023, to file.

Key Deadlines to Remember

IRS Audit Group

IRS Audit Group consists of tax professionals, CPAs, enrolled agents, and tax attorneys. We are located in Los Angeles; California and our primary area of expertise is IRS Tax Audit Representation. But our certified professionals cooperate and work with all IRS offices across the country. Please contact us for more information. https://irsauditgroup.com/contact/

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The Work Opportunity Tax Credit (WOTC) is a federal tax credit that businesses can use to offset the cost of hiring people from specific target groups who have consistently encountered significant barriers to employment. WOTC initiatives help to improve workplace diversity and make it easier for all citizens to acquire decent jobs.

The Consolidated Appropriation Act, 2021 authorized the extension of the Work Opportunity Tax Credit until December 31, 2025. This means taxpayers can claim the credit on or before Dec 31, 2025, for such eligible hiring. Needless to say, WOTC is only for one time per employee and cannot be claimed for re-hired.

Eligible Businesses for WOTC

There is no specific limit on business size to be eligible under this scheme. Any size of business is eligible for the work opportunity tax credit if it hires candidates from qualified groups. This credit is available to both taxpayers and certain tax-exempt employers operating in the United States and some U.S. territories. Basically, the employers must fall under the below criteria as

• Taxpayers that can claim the credit against income taxes
• Tax-exempt employers can claim the credit only against payroll taxes and only for wages paid to members of the qualified veteran targeted group.

Target Groups Qualified under WOTC

Any employers can claim WOTC for the below-targeted groups under section 51 of the Code. The employee must be a certified member of any one of the following groups to proceed with the claim.

• Veterans
• Recipients state assistance under part A of title IV of the Social Security Act (SSA)
• Individuals who have previously served time in prison or who have been convicted of a felony
• People who live in empowerment zones or rural renewal counties
• Individuals who have been referred to an employer after completing a rehabilitation plan or program
• People whose families receive supplemental nutrition assistance under the Food and Nutrition Act of 2000
• Recipients of supplemental security income benefits under title XVI of the SSA
• Individuals experiencing long-term unemployment

How much can be claimed?

The amount of tax credit under the WOTC program varies based on the employee’s target group, total hours worked, and total qualified wages earned. For instance,

• If the qualified employee has worked for at least 400 hours and is still in the first year of employment, WOTC is equal to 40% of up to $6,000 wages paid or incurred with a maximum credit of $2,400 for an employee
• If the eligible employee has 120 to 399 hours of service, then a 25% rate applies to wages
• Up to $24,000 in wages may be considered in determining the WOTC for certain qualified veteran targeted group

 Procedure to Claim WOTC

Taxpayers and Tax-exempt organizations can apply through different IRS Forms to claim WOTC. But all need to complete Form 8850 which is a Pre-Screening Notice and Certification Request to certify that the employee is qualified under the target group. These documents must be submitted to the State Workforce Agency not the IRS within 28 days of the new employee’s start date. Once the State Workforce Agency certifies the employee, Taxpayers can file Form 5884 (Work Opportunity Credit) and tax-exempt employers file Form 5884-C (Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans) to claim the WOTC.

IRS Audit Group is a Tax Audit Representation Firm in Los Angeles, California. Our Tax professionals act on the behalf of the taxpayer during an IRS audit. The IRS audit process can terrify some taxpayers but the Taxpayer Bill of Rights states that individuals can seek help from an IRS tax representative like us to represent them during the IRS audit. Don’t Panic, if you have received a mail for IRS Audit but act fast by contacting us immediately for the next step.

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