Beware of Unscrupulous Tax Return Preparers

It is after the holiday season, and your funds are running low. You receive your W-2s from your job and other tax documents, and you are ready to file your tax returns so that you can get some relief for your household budget. Plus, there’s this new gadget that you have had your eye on that nobody got you for Christmas. Valentine’s Day is coming up, and you still have not gotten your sweetie a present yet. Wait! You remember seeing a sign down the street for this tax office that promises to get you back at least $5,000 and that you will have your money within 3 days. In your mind they have signs out front, are in a building, and come to the same spot each year. Well, you think that’s the same company that shows up each year. They have to be legit, right? You begin to gather your things to head to that tax office to get the $5,000 that they promise.

Many taxpayers similar to the one in the scenario above face this issue year after year. Matter of fact, the Internal Revenue Service (IRS) states that 60 percent of taxpayers use tax professionals to prepare their returns each year. With the increased volume of identity theft issues and tax scams, it is more important than ever that taxpayers use reputable and honest professionals to give their personal information to during the tax preparation process.

Return Preparer Fraud continues to reside on the IRS’s “Dirty Dozen” list of Tax Scams to Avoid this year. To aid taxpayers in avoiding the unscrupulous tax preparers that steal from their clients and misfile their returns, the IRS has provided a list of tips that taxpayers should use when choosing a tax preparer. Here are a few of those tips:

• Ask if the preparer has an IRS Preparer Tax Identification Number (PTIN). Paid tax return preparers are required to register with the IRS, have a PTIN and include it on your filed tax return.
• Ask about service fees.  Preparers are not allowed to base fees on a percentage of their client’s refund. Also avoid those who boast bigger refunds than their competition. Make sure that your refund goes directly to you – not into your preparer’s bank account.
• Ask to e-file your return.  Make sure your preparer offers IRS e-file. Paid preparers who do taxes for more than 10 clients generally must offer electronic filing. The IRS has processed more than 1.5 billion e-filed tax returns. It’s the safest and most accurate way to file a return.
• Provide records and receipts. Good preparers will ask to see your records and receipts. They’ll ask questions to determine your total income, deductions, tax credits and other items. Do not rely on a preparer who is willing to e-file your return using your last pay stub instead of your Form W-2. This is against IRS e-file rules.
• Make sure the preparer is available.  In the event questions come up about your tax return, you may need to contact your preparer after the return is filed. Avoid fly-by-night preparers.
• Understand who can represent you. Attorneys, CPAs, and enrolled agents can represent any client before the IRS in any situation. Non-credentialed tax return preparers can represent clients before the IRS in only limited situations, depending upon when the tax return was prepared and signed.  For all returns prepared and signed after Dec. 31, 2015, a non-credentialed tax return preparer can represent clients before the IRS in limited situations only if the preparer is a participant in the IRS Annual Filing Season Program
• Never sign a blank return.  Don’t use a tax preparer that asks you to sign an incomplete or blank tax form.
• Review your return before signing.  Before you sign your tax return, review it and ask questions if something is not clear. Make sure you’re comfortable with the accuracy of the return before you sign it.
• Report tax preparer misconduct to the IRS. You can report improper activities by tax return preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or changed the return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit. You can get these forms on IRS.gov.

Here's a video from the IRS on how to choose a tax preparer. 

If you suspect that a tax preparer has committed fraud or violated the rules in some other way, learn how to submit a complaint here. Good luck this season!

It’s Tax Time Again Everyone!

Wait! 

Did somebody say taxes? 

While some people may moan and groan about the 2016 Tax Season that is just under way as of January 19th (likely the tax professionals such as myself that can mainly look forward to lots of late nights and communications with clients), most of the country cannot wait to file their taxes in anticipation of tax refunds. Per IR-2016-05 posted on The Internal Revenue Service (IRS) website last week, “The IRS expects more than 70 percent of taxpayers to again receive tax refunds this year. Last year, the IRS issued 109 million refunds, with an average refund of $2,797.” For those individuals that consider themselves savvy enough to accurately prepare their own taxes without leaving money on the table in the form of missing deductions, the IRS offers brand-name software through some of their commercial partners to about 100 million individuals and families with incomes of $62,000 or less to file their taxes for free using their Free File Program.

Although they may be anticipating tax refunds, many taxpayers still dread this time of the year, especially if they have not been diligent throughout the tax year keeping their receipts and other tax documents organized. Such filers will likely be claiming itemized deductions in the form of mortgage interest, real estate taxes, charitable deductions, casualty and losses, and the biggest time consumers of all, business and rental income. The associated tax forms for these types of items can get pretty complicated, so it is best that people seek out assistance from a trusted tax advisor that is well-versed in the tax laws and one that stays on top of the many changes that occur throughout the year. This area alone can cost you several hundred dollars in missed deductions if you are not careful. Also, when in doubt, seek a second opinion. Most information can be found on the IRS website if you know where to look. I would advise against doing generic online web searches that do not point you to specific documentation on the IRS website or a specific section of the tax code. Random information that you find on a blog or tax website will not hold up in the U.S. Tax Court if called into question, so tread lightly.

The best news of all for those looking to wait until the last possible day to pay any outstanding tax balances or that seek to turn over every rock to find additional deductions, is that you have THREE additional days before your tax return is due. That’s right! The filing deadline is April 18, 2016 because of the Emancipation Day holiday in Washington, D.C. Even better news for taxpayers in Maine and Massachusetts is that Patriot’s Day gives them an extra day to file, making their deadline April 19^th. 

Don’t you just love “the little gifts” like that?   :-) 

Your Delinquent Tax Debt Can Now Result in Your Passport Getting Revoked

The Fixing America's Surface Transportation Act, H.R. 22, was passed by Congress on Thursday and signed into law by President Obama on Friday. This new law includes provisions (See SEC. 7345) that require the secretary of State to revoke, deny, or limit the passport of anyone deemed to have seriously delinquent tax debt. According to the Journal of Accountancy, "seriously delinquent tax debt is defined as an outstanding tax debt in excess of $50,000 (adjusted for inflation) for which a notice of lien or a levy has been filed, unless the individual is making timely payments under an agreement with the IRS or collection is suspended because a Collection Due Process hearing or innocent spouse relief has been requested or is pending."

Fixing America’s Surface Transportation Act, H.R. 22, which Congress passed on Thursday - See more at: http://www.journalofaccountancy.com/news/2015/dec/third-party-tax-collection-provisions-201513492.html#sthash.01wkBgBW.dpuf

Fixing America’s Surface Transportation Act, H.R. 22, which Congress passed on Thursday - See more at: http://www.journalofaccountancy.com/news/2015/dec/third-party-tax-collection-provisions-201513492.html#sthash.01wkBgBW.dpuf

Possible loss of passport will be included in notices the IRS sends to taxpayers to inform them of potential collection activities. Taxpayers will also be notified when the IRS sends a certification of serious delinquency to Treasury. That certification will then be sent to State Departments for use in determining whether to issue, renew, or revoke a taxpayer’s passport. Taxpayers are considered ineligible for a passport if their names appear on the certification lists. 

The new law also requires the IRS to enlist the assistance of third parties for debt collection actions on certain outstanding accounts (See SEC. 32102). In the past, the decreasing IRS budget might have hindered those efforts, so taxpayers may have had limited interaction with them about their debt. That will likely no longer be the case. The inactive tax receivables that are included in the new law's provisions are those that (1) have been removed from the IRS’s active inventory due to lack of resources or the inability to find the taxpayer; (2) for which more than one-third of the applicable limitation period has passed and no IRS employee has been assigned to collect the receivable; or (3) that have been assigned for collection, but more than 365 days have passed without interaction with taxpayers in order to collect on the debt.

Tax debts relating to pending or active offers in compromise or installment agreements as well as those under examination, litigation, criminal investigation, or levy or currently subject to a right of appeal are not to be included in the collection efforts under the new qualified tax collection contracts.

For questions about how this new law impacts your specific situation, please reach out to your Certified Public Accountant (CPA).

Making It Happen: Atlanta International Fashion Week

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Atlanta International Fashion Week (AIFW) appeared on the scene in 2007 as a result of Paula Whittle’s efforts. She is the Founder and Director of the annual event that has become a major staple to Atlanta, Georgia’s Arts and Culture community. Paula started her career as a radio personality and quickly moved through the ranks in different areas of the entertainment industry. She has gone from entertainment executive, to fashion mogul, to PR maven, to event extraordinaire, to marketing guru, to mother, teacher, visionary, and community leader and her clientele has included the likes of Sony, BET, VIBE, VH1, Virgin Records, SoSo Def, Rockmond Dunbar, R. Kelly, RHWOA Husband Peter Thomas and many more.

Paula came on the fashion scene initially as a modeling agent. She saw a void in the fashion community in Atlanta and wanted to create a platform for independent designers and independent models to showcase their talent and advance their careers. This is a platform that she sought to have on the same level as New York Fashion Week. Now that AIFW is in its 9^th year, that dream is becoming a reality. She has since been featured in both the Atlanta Tribune magazine and Encore HD magazine for her efforts.

FORBES Accounting & Consulting, Inc. CEO/President, Jeri M. Forbes, CPA CGMA sat down with Paula Whittle to discuss how she makes things happen for Atlanta International Fashion Week when it comes to negotiating deals with potential sponsors and strategic partners.

Atlanta: Becoming Home to Some "New Big Things"

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Atlanta, GA is among the top contenders in several categories, one of which is the Forbes list of best places for business and careers with many companies including automotive companies Kia, Porshe and Mercedes-Benz making Atlanta the home of their North American HeadQuarters. Georgia is number 3 in the United States and number 5 in the world for film production. With 40+ projects currently in production, the boost to the local economy has been quite a positive change for the residents that have been working on getting into the entertainment industry or that have a love for touring the sets. 

In a recent interview, Georgia Governor Nathan Deal discusses economic development and the film industry in Georgia. He stated that the film industry brought over $6 billion to the state. This is largely due to the huge tax credits offered to entice companies to produce film projects in Georgia. To encourage the use of Georgians as employees on these projects, the state is offering 100% scholarships to the state's technical colleges to train people to work on the sets of these projects.

In addition to the automotive and film additions to the area, Atlanta is also now home to the first woman CEO of a Fortune 500 company based in Georgia. Her name is Mary Laschinger and she runs Veritiv Corp, a company formed as a result of a merger between Unisource Worldwide and International Paper's xpedx division. The company has annual sales of over $9 billion and is located in Northpark Town Center. Atlanta beat out 3 other cities (Cincinnati, Dallas, and Charlotte, NC) because the city's airport with its MARTA connection, the ability to recruit people to the city, and the availability of the skilled and educated workforce.


With all of the great things to do and see and the many companies that provide moderate to high-salaried jobs to the residents to the area, is there any wonder why we see so many transplants from other areas?

TED Talk: Amanda Palmer and The Art of Asking

Musician and blogger Amanda Palmer explains “The Art of Asking” in her TED Talk filmed February 2013. Amanda became widely known for having the largest selling music crowdfunding project when nearly 25,000 fans pre-ordered her album Theatre is Evil for approximately $1.2 million via KickStarter.  When asked how she made people pay $1.2 million for her music, she answers that she didn’t make them…..she asked them.

Amanda began her career in the public eye right out of college as a street performer known as The Eight-Foot Bride by standing on the street with a hat laid out in front of her podium to get people to give her money. Although Amanda called this performance “her job”, she spoke of the people that would yell at her often to “Get a job!” as they passed her on the street. She also spoke fondly of the many others that she connected with during her time working on the street. Some she felt were lonely and just in need of human contact and for someone to actually SEE them. Amanda fell in love with that aspect and has continued her pursuit of that level of closeness with her fans by signing autographs, giving hugs, crowd-surfing, couch-surfing, etc. as she shares her music with the world.

Amanda has received flack for advocating piracy by giving away her music and encouraging people to share it. She was even publicly and bitterly criticized for additional crowdfunding efforts when she sought to crowdsource additional local backup musicians in each tour stop, offering to pay them in hugs, merchandise and beer. This hasn’t stopped her efforts because she feels that “In order for artists to survive and create, their audiences need to step up and directly support them”. With the promise of “constant communication” thru her Patreon profile, Amanda’s fans are doing just that by donating anywhere from $1 to $100 for each new item that she posts whether song, video, or a piece of writing. The Guardian reports the various offerings that Amanda will give her fans that support her with donations of differing amounts. Some of these offerings include photos and poetry, invitations to monthly webcasts with her, guest-list entry to all of her gigs and even hand drawn cards from Palmer herself.

Via the Internet and Social Media, Amanda Palmer (along with other popular artists) is helping change the concept of “celebrity” where fans are used to reaching to connect with their favorite stars from a distance in the crowd to now being able to interact and respond in seconds to posts. I personally find this to be an important trait because not everyone can afford to go to some of the expensive concerts in their city, if it’s big enough to draw celebrity performers there. Others can’t afford to travel to the bigger cities if they don’t live there and often can’t afford the merchandise that these celebrities sell or advertise. As a consumer, I think it’s great to random acts of silliness by Trey Songz or to almost feel as though I’m at one of the random vacation spots that Beyoncé goes to with her family. Although it could be looked at as risky by not having a firm price attached to Amanda’s products, “just asking” wouldn’t even leave an artist like Beyoncé or Madonna with light pockets because their individual followings are large enough where even $1 per person would still have them grossing more than 80% of the U.S citizens in a given year.

What do you think? How has “The Art of Asking” worked for you in your life?

Happy Father's Day!

We'd like to wish all of the fathers out there a happy and safe Father's Day weekend. Not everyone is blessed to still have their father around, so treasure yours while you still can. Peace and many blessings! :-)