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IRS Reminds Businesses of Cash Transaction Reporting Requirement

Businesses, including sole proprietors, in any U.S. possession or territory must report a cash transaction exceeding $10,000. The transactions are reported on Form 8300, which must be filed within 15 days of the transaction. A transaction can include two or more related transactions if the recipient knows, or has reason to know, that each transaction is one of a series of connected transactions. Transactions conducted between a payer (or its agent) and the recipient within a 24-hour period are considered related. Cash includes coins and currency (domestic and foreign), cashier’s checks, bank drafts, traveler’s checks, and money orders. U.S. possessions and territories include American Samoa, the Commonwealth of Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Islands. Businesses required to file Form 8300 can include pawnbrokers, attorneys, real estate brokers, insurance companies, and travel agents, as well as those that sell jewelry, furniture, boats, aircraft, or automobiles.

By Linkenheimer LLP|2015-06-17T19:54:18+00:00May 28th, 2015|irs|0 Comments

IRS Ignoring Taxpayers’ Phone Calls

IRS Ignoring Taxpayers’ Phone Calls, But Reducing Application Backlog for Tax Exempts: Speaking at the National Press Club on 3/31/15, IRS Commissioner John Koskinen said the IRS is ignoring more than 60% of taxpayers’ phone calls during this tax season. He indicated that the IRS’s limited budget is responsible for understaffing and pleaded for a budget increase to help staff the agency’s overwhelmed customer service lines. On a more positive note, Mr. Koskinen reported that the IRS has eliminated a huge processing backlog of groups seeking tax-exempt status.

By Linkenheimer LLP|2020-09-03T20:05:29+00:00April 2nd, 2015|irs|0 Comments

IRS Sending out ID Verification Letters

IRS Is Sending out Identity Verification Letters to Possible Identity Theft Victims: In its efforts to combat identity theft, the IRS is stopping suspicious tax returns that have indications of being identity theft, but contain a real taxpayer’s name and/or social security number and sending out (by US Postal Service) Letter 5071C to request that the taxpayer verify his or her identity. (The IRS will not email or telephone the taxpayer directly to request this information so please be cautious of anyone calling or emailing claiming to be from the IRS.) Taxpayers may use the idverify.irs.gov site or call a toll-free number on the letter to confirm their identity, but the IRS is encouraging the use of idverify.irs.gov as the safest, fastest option. Once their identity is verified, the taxpayers can confirm whether or not they filed the return in question. If so, it will take approximately six weeks to process it and issue a refund. If not, the IRS can take steps at that time to assist them. If you have any questions, please contact your Linkenheimer CPA.

By Linkenheimer LLP|2020-09-03T20:05:30+00:00March 24th, 2015|irs|0 Comments

Beware: IRS Scams in Full Swing

Does the above email look familiar? Hope not, because what might look like a legit email from the IRS is nothing more than another phishing attempt by people looking to collect personal information, credit cards and more. The emails contain what may appear to be an IRS email address, along with their logo (easily found online), but the fact is, you will never receive an email like this. The IRS isn’t in the business of sending emails. In the past, some people have also received phone calls from “the IRS” saying they owe back taxes and if they don’t provide a credit card or wire transfer, the police will be called to seize property. These fraudulent “IRS agents” tend to have heavy accents, blocked numbers and attempt to instill fear in those they speak to, in exchange for credit cards, bank account numbers and other information. Once again, that isn’t how the IRS operates. And should you ever receive an email or a call like that, disregard. If you are convinced it’s legit, call your Linkenheimer CPA and we will work with you to resolve any confusion.

By Linkenheimer LLP|2020-09-03T20:05:32+00:00February 17th, 2015|fraud, irs|0 Comments

Avoiding the 6-year Statute of Limitation

Many taxpayers are unaware that the normal statute of limitation that generally requires the IRS to assess tax within three years after taxpayers file their returns can be extended to six years if an item omitted from a tax return is more than 25% of gross income. For more information or questions, contact your Linkenheimer CPA.

By Linkenheimer LLP|2015-02-04T19:00:38+00:00February 4th, 2015|irs|0 Comments