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IRS, Security Summit Partners Urge People to Watch Out for Bad Tax Advice on Social Media

The Internal Revenue Service and the Security Summit partners issued a consumer alert about the growing threat of bad tax advice on social media that continues to dupe people into filing inaccurate tax returns.

The IRS and the Security Summit partners are spotlighting the wildly inaccurate tax claims that continue building across social media. These scams take many different forms and make outlandish promises to inflate refunds.

“The growth of bad tax advice on social media continues to grow, luring unsuspecting taxpayers into filing bad tax returns,” said IRS Commissioner Danny Werfel. “We urge people to do some research before falling for these scams. Finding a trusted tax professional or visiting IRS.gov is a better way to research a tax issue than relying on someone talking in their car or their kitchen about a non-existent tax hack.”

For years, members of the Security Summit – representing state tax agencies, tax professionals, tax software companies, and the financial industry – have worked to raise awareness about tax-related identity theft and related tax scams. To counter this growing threat of tax scams, many of the Summit members have joined together to launch a related group, the Coalition […]

By Linkenheimer LLP|2024-12-17T19:16:41+00:00December 17th, 2024|irs, IT, Tech|0 Comments

IRS ERC Disallowance Notices: What You Need to Know

The IRS has announced a significant development regarding the Employee Retention Credit (ERC). If you or your business filed an ERC claim, you may receive a disallowance notice or a request for repayment. The IRS is issuing these notices automatically or based on a preliminary calculation that may not fully account for the complexities of the program’s rules. With 840,000 to 980,000 notices expected to be sent in the coming months, here’s what you need to know.

What’s Happening?

The IRS initially projected the ERC program to pay out $77 billion; however, over $230 billion has already been distributed. Additionally, 1.4 million claims remain pending. Of these, 60–70% are expected to receive additional scrutiny or notices.

Using time during the recent moratorium, the IRS digitized its ERC claims process and is now sending automated disallowance notices, including:

Notice 105C
Notice 106C
Notice 6577

Expect waves of 30,000 to 40,000 disallowance notices every 4–8 weeks, affecting both partial and full claims. These notices require swift action as response deadlines are often short—ranging from 15 days to a few weeks.

IRS Investigations and Audits

The IRS is also […]

By Linkenheimer LLP|2024-12-06T04:27:53+00:00December 6th, 2024|irs|0 Comments

IRS Encourages All Taxpayers to Sign Up for an IP PIN for the 2025 Tax Season

As the 2025 tax season approaches, the IRS encourages all taxpayers to take an important step to safeguard their identity by signing up for an Identity Protection Personal Identification Number (IP PIN).

This simple yet crucial step can provide an added layer of security, helping protect against tax-related identity theft.

The IRS encourages taxpayers to sign up for IRS Online Account, which provides a quick and easy way to obtain an IP PIN. Signing up early will ensure taxpayers have extra safety by having an IP PIN to electronically file their returns when the filing season begins in 2025.

The IRS encourages people to sign up for an IP PIN before Nov. 23, 2024. After this date, the IP PIN system will undergo maintenance and will not be available again until early January 2025. Signing up for an IP PIN now will ensure that a taxpayer’s identity is protected when the filing season begins. New IP PINs are generated for the 2025 filing season during this period, so online enrollees must retrieve their new IP PIN starting early January 2025.

An IP PIN is a six-digit number that prevents someone else from filing […]

By Linkenheimer LLP|2024-10-30T14:21:56+00:00October 28th, 2024|irs, Tech|0 Comments

Protect Yourself from Identity Theft with IRS Online Accounts and IP PINs

In today’s digital world, identity theft and fraud are on the rise, especially during tax season and in light of the recent hack of the largest number of social security numbers to date. To help protect taxpayers from these threats, the IRS offers an important tool known as the Identity Protection PIN (IP PIN). Combined with setting up an IRS Online Account, these resources create an extra layer of security that can help safeguard your personal and financial information.

Why You Need an IRS Identity Protection PIN

The IP PIN is a six-digit number that provides protection against tax-related identity theft. It prevents someone else from filing a tax return in your name. The IRS encourages all taxpayers to obtain an IP PIN and establish an online account to ensure their identity and financial data remain secure. While the program is voluntary, it’s a strong line of defense against scammers attempting to steal your identity.

Important things to know about an IP PIN

It’s a six-digit number known only to the taxpayer and the IRS.
The program is voluntary, though it’s strongly encouraged.
In cases of proven identity theft, taxpayers will be assigned an IP […]

By Linkenheimer LLP|2024-09-09T13:51:40+00:00September 9th, 2024|fraud, irs, Tech|0 Comments

For California Storm Victims, IRS and California FTB Postpones Tax-Filing and Tax-Payment Deadline to November 16th.

This morning, the IRS extended tax deadlines for most California residents to Nov. 16, 2023, due to recent natural disasters. This relief covers multiple 2022 tax returns, payments, and other time-sensitive actions, and it automatically applies to taxpayers in the affected counties without the need for contacting the IRS. The California Franchise Tax Board today confirmed that most Californians have until November 16, 2023, to file and pay their tax year 2022 taxes to avoid penalties. More information here on CA FTB updates.

Most individuals and businesses in California will now have until Nov. 16 to file their 2022 returns and pay any tax due. Fifty-five of California’s 58 counties—all except Lassen, Modoc and Shasta counties—qualify. IRS relief is based on three different FEMA disaster declarations covering severe winter storms, flooding, landslides, and mudslides over a period of several months.

The IRS normally provides relief, including postponing various tax filing and payment deadlines, for any area designated by the Federal Emergency Management Agency (FEMA). As long as their address of record is in a disaster-area locality, individual and business taxpayers automatically get the extra […]

By Linkenheimer LLP|2023-10-18T20:25:07+00:00October 16th, 2023|irs, tax deadlines|0 Comments