Category Archives: Tax Fraud

Benefit of Filing Separately?

Today TaxMama® hears from AK in the TaxQuips Forum, who is trying to understand. “My wife and I have 1 child who is 3 years old. We recently received our W2’s and I started the process through Turbotax online.  With just my income, it looked like we were going to receive the Earned Income Credit […]

National Taxpayer Advocate’s Annual Report

National Taxpayer Advocate Delivers Annual Report to Congress; Focuses on Tax Reform, IRS Funding and Identity Theft IR-2013-3, Jan. 9, 2013 WASHINGTON — National Taxpayer Advocate Nina E. Olson today released her 2012 annual report to Congress, identifying the need for tax reform as the overriding priority in tax administration. The Advocate also expressed concern […]

Making up Info

Today TaxMama® hears from Tasha with a disturbing problem. “My girlfriend is thinking of filing for an education tax credit even though she is not enrolled in school at the moment. She says the person doing her taxes can issue a 1098T form if and when the IRS was to ask for proof, which will […]

Fight for Your Rights

Today TaxMama® will be speaking with Bob McCormick on KFWB’s Money 101 program at 9:00 am Pacific time. Bob’s theme this week is “Fight for your right to money.” You can listen live in Southern California at 980-AM or via the Internet if you visit the CBS radio website. Your questions are welcome – just […]

If You Love me

Today TaxMama® hears from Cheryl in the TaxQuips Forum who triggers a line of thought. Her client has under-reported income for many years. And it reminded me of other tax pros, including myself, who were asked by family members to help them under-report their income. The usual argument is “If you love me, you’ll file […]

IRS Identity Theft Crackdown Sweeps Across the Nation; More than 200 Actions Taken in Past Week in 23 States

Courtesy of the IRS.  For more information, see the Special Identity Theft Enforcement Efforts – 2012 page. See related article about IP PIN at MarketWatch.com this weekend. WASHINGTON – The Internal Revenue Service and the Justice Department today announced the results of a massive national sweep cracking down on suspected identity theft perpetrators as part […]

IRS Releases New Tax Gap Estimates; Compliance Rates Remain Statistically Unchanged From Previous Study

Courtesy of IRS. WASHINGTON — The Internal Revenue Service today released a new set of tax gap estimates for tax year 2006. The tax gap is defined as the amount of tax liability faced by taxpayers that is not paid on time.  The new tax gap estimate represents the first full update of the report […]

Really Innocent Spouse

Today TaxMama hears from Fred in the TaxQuips Forum, with this problem. “My ex-wife and I were legally divorced in Sept. 2008.  For the tax year 2008, she filed as married, filing jointly.  She withdrew her entire 401(k) fund and was penalized for early withdrawal.  She now owes the IRS over $10,000. Because she filed […]

Five Tax Scams to Avoid this Summer

Courtesy of IRS Hiding income offshore, identity theft and return preparer fraud topped the IRS’s list of tax scams in 2011. The Internal Revenue Service issues an annual list of the top 12 tax scams, known as the “Dirty Dozen.” These scams are illegal and can lead to significant penalties and interest and possible criminal […]

Return Changed by Preparer Prior to E-Filing

Courtesy of David & Mary Mellem, EAs A PMTA is a document that contains legal advice signed by attorneys in the National Office of the Office of Chief Counsel and issued to IRS personnel who are national program executives and managers.  They are useful for taxpayers since they explain what the rules are in certain […]