As we all know, Identity Theft continues to be a problem. The IRS has established a page on their website: https://www.irs.gov/individuals/identity-protection to assist those who were victims of the crime. This page is actually very good, and it provides guidance on how to avoid, what to do if you are a victim, who you should contact, as well as a number of other links to help.
If you notice fraudulent behavior on any of your accounts, please notify your account holders, the IRS, as well as the authorities to get the activity stopped as soon as possible.
Personally, I wish we could catch every one of the low-lifes who victimize people, and send them to the big house (not the white collar kind, and not the University of Michigan football stadium) without a trial. I classify these people with the worst of the worst lowest of low of offenders. Maybe that’s because I’ve had my debit card hacked in the past. Luckily, my bank worked with me and refunded the money that was taken. Sorry, just a quick rant….
IRS Placing Hold on certain Returns:
To comply with the Protecting Americans from Tax Hikes (PATH), the IRS will be holding returns that claim the Earned Income Credit (EIC) or the Additional Child Tax Credit (ACTC) until Feb 15, 2017. All filers should file as they normally do. They want those filers to be aware that they will not have their payments processed until then. Their goal remains to have payments sent within the normal 21 days for all other filers.
The reason is to help prevent lost revenues due to identity theft and fraud related to false income and withholding claims.
If you know that you qualify for one of these tax credits, please make sure to have all of the documents with you when you go to your tax preparer, and just know that there are specific forms that they need to fill out. The fines for tax preparers who do not comply with the IRS can be fined a minimum of $501 per return. I would hope that they all do it correctly and don’t put themselves in that position.
Mileage Rates for 2016:
Here is a list of mileage rates for this year. Please note that this is in Cents and NOT dollars:
Business Rate per mile
Medical and moving rate per mile
Charitable Rate per mile
Depreciation rate per mile
For my California Followers:
The State Sales Tax Rate is set to decrease on January 1, 2017. Yay!!! Or maybe Yay…… The 2012 voter approved (Prop 30) increase of .25% is set to expire and the state sales and use tax will decrease to 7.25% from 7.50%. Keep in mind that cities and counties will still probably be higher than the 7.25% because of their voter approved district taxes…. Boooo!
The Motor Vehicle Fuel and Diesel Fuel Tax Rates are still as confusing as ever, but the rates that are in effect as of today will remain there until July 1, 2017. Then expect changes…
If you want more information, see the State Board of Equalization website at www.boe.ca.gov.
These are just a few items that I thought would be interesting. I receive news and information items almost daily. If you have questions about anything, shoot me an email (firstname.lastname@example.org), or give me a call. If you have any other topics you want to see covered that my help others, I’m always open for suggestions.
My September Newsletter is posted on the “Tax Resolution Newsletter” tab. Take a look.
My new tax organizer for 2016 tax year will be posted soon. It's never too early to start preparing your tax documents.
Please follow me on Twitter @SDTaxDude, and like my Facebook page All County Tax Services.
Until next week, keep your personal information safe, and have a great week.