IRS “Dirty Dozen” Tax Scams for 2019

tax evasion

The IRS “Dirty Dozen” List

The IRS released their yearly Dirty Dozen tax scams for 2019.

This year’s “Dirty Dozen” list highlights a wide variety of schemes that taxpayers may encounter at any time, although many may peak during tax-filing season. The schemes run the gamut from simple refund inflation scams to complex tax shelter deals. A common theme throughout all: Scams put taxpayers at risk.

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Oklahoma 2019 Storm Victims Get Tax Relief

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President Trump declared a major disaster in Muskogee, Tulsa and Wagoner counties.

Residents who live or have a business in these counties may qualify for the following tax relief:

  • Certain deadlines falling between May 7 and September 16 are granted additional time to file through September 16th. This would include quarterly estimated tax payments that are due on June 17, and employment and excise returns due on July 31.
  • Taxpayers will qualify for penalty abatement on payroll and excise tax deposits due between May 7 and May 22.
  • If an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date that falls within the postponement period, the taxpayer should call the telephone number on the notice to have the IRS abate the penalty.
  • The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 866-562-5227 to request this tax relief.

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IRS is Developing a New W-4 for Tax Withholding

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The Treasury Department and the IRS are working to incorporate changes into the Form W-4, Employee’s Withholding Allowance Certificate, for 2020. The current 2019 version of the Form W-4  is similar to last year’s 2018 version.

The IRS is working closely with the payroll and the tax community as it makes additional changes to the Form W-4 for use in 2020.

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Tax Court Says Spouse Was Not So Innocent

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In Constance H. Briley v. Commissioner of Internal Revenue, docket number 7782-17 (T.C. Memo. 2019-55), the Tax Court denied innocent spouse relief to a Virginia woman, who the court said had reason to know of an error on her joint tax returns.

Findings of Fact

Constance H. Briley married Mr. Briley in 1988. They were married during the years involved; and although they separated in 2013, they remained married as of the date of trial.

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Where’s my IRS Refund?!

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It’s that time of the year. We’ve just finished sending in our tax returns and doing our happy refund dances. We sit patiently for that crisp, green refund check – thinking of all the things we can do with it. A week becomes two, and then a month. …Still no check in the mail. Where … Read more

IRS Payment Plan

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The most common way to resolve tax debt issues by entering into a payment plan with the IRS. There are several types of payment plans. 1 Do you qualify for a payment plan?2 Guaranteed and Streamlined Installment Agreements3 Partial payment installment agreements4 How to set up a payment plan4.1 You should always consult with a … Read more

How to Settle IRS Debt

Offer in compromise, IRS refund, pay federal estimated taxes online, Cloverdell ESA vs. 529 Plan, farm deductions hobby loss

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles a taxpayer’s tax liabilities for less than the full amount owed. However, few taxpayers are good candidates for offer in compromise. To learn why, read on. 1 Step 1: Determine if you are Current on your Tax … Read more

The Five Biggest Mistakes Made When Filing an Offer-in-Compromise!

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The Internal Revenue Service’s (“IRS”) Offer-in-Compromise program continues to be one of the most popular programs with both practitioners and taxpayers when they are considering a way to resolve their back tax issue.  Yet, only 42% of Offers filed by taxpayers are ultimately accepted.  Why are less than half of the Offers filed being accepted? Read more about common offer in compromise mistakes.

Mistake #1: Not Checking the Statute of Limitations

There is a ten-year collection statute.  What this means is the IRS has ten years from the date it assesses the tax liability to collect that tax.  Easy enough.  However, taxpayers often do things that may toll or freeze the statute, preventing it from running.  These actions include anything that prevents the IRS from taking collection action, including:

  • Filing an Offer-in-Compromise
  • Filing bankruptcy
  • Filing a request for an installment agreement (payment plan)

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