As 2023 draws closer to the end, it means the 2024 tax season will be coming soon. During and before a tax season can be a stressful time for many taxpayers, especially when they have to deal with complex and confusing tax laws and regulations.

However, pre-tax season, tax season, and post-tax season is also prime time for scammers, who prey on the fear and anxiety of unsuspecting taxpayers. One of the most common and dangerous types of tax scams is the IRS impersonation scam, where fraudsters pretend to be IRS agents or other government officials and demand money or personal information from their victims.

These scammers use various tactics, such as phone calls, emails, text messages, or social media, to contact their targets and threaten them with legal action, arrest, deportation, or license revocation if they don’t pay or comply. They may also try to trick their victims into clicking on links or opening attachments that contain malware or phishing sites.

However, these are all signs of a scam. The IRS and other government agencies will never contact taxpayers in these ways and ask for money or personal information. In this article, we will share some tips on how to recognize and avoid IRS impersonation scams.

How to recognize IRS impersonation scams

The first step to protect yourself from IRS impersonation scams is to recognize the red flags that indicate a scam. Here are some of the common signs of an IRS impersonation scam:

• The caller or sender claims to be from the IRS or another government agency and demands immediate payment of taxes or penalties that you owe. They may also claim that you have a refund or a stimulus check waiting for you, but you need to pay a fee or verify your information first.
• The caller or sender asks you to pay by wire transfer, cash, gift card, cryptocurrency, or any other method that is hard to trace and recover. They may also ask you for your bank account, credit card, Social Security number, or other personal information.
• The caller or sender threatens you with harsh consequences if you don’t pay or cooperate, such as suing you, arresting you, deporting you, revoking your license, or freezing your assets. They may also try to intimidate you by using fake names, badge numbers, case numbers, or caller ID information.
• The caller or sender pressures you to act quickly and not to contact anyone else about the matter. They may also tell you not to hang up the phone until you make the payment or provide the information.
• The caller or sender sends you an email or a text message that contains links or attachments that claim to be official documents, forms, invoices, receipts, or notices from the IRS or another government agency. They may also use logos, seals, signatures, or other elements that look authentic.

How to avoid IRS impersonation scams

The second step to protect yourself from IRS impersonation scams is to avoid falling for their tricks and traps. Here are some of the best practices to avoid IRS impersonation scams:

• Don’t trust your caller ID. Scammers can spoof caller ID to make it look like they are calling from a real IRS or government phone number. Even if the caller ID says “IRS” or shows a real phone number, don’t believe it. It could be anyone calling from anywhere in the world.
• Don’t wire money, send cash, or use gift cards or cryptocurrency to pay someone who claims to be from the IRS or the government. Scammers ask you to pay these ways because they are hard to trace and almost impossible to recover. They will take your money and disappear.
• Don’t give your financial or other personal information to someone who calls, texts, or emails you and says they are from the IRS or the government. If you think the contact could be legitimate, hang up and call the agency directly using a phone number that you know is correct. Don’t use any phone number or link that the caller or sender provides.
• Don’t click on links or open attachments in unexpected emails or text messages that claim to be from the IRS or the government. Scammers send these messages to steal your money and your personal information. They may also infect your device with malware that can harm your data and security. Delete these messages and don’t forward them to anyone else.
• Report any IRS or government impersonation scams that you encounter to the appropriate authorities. You can report IRS impersonation scams to the Treasury Inspector General for Tax Administration (TIGTA) at [tigta.gov] or by calling 1-800-366-4484. You can also report them to the Federal Trade Commission (FTC) at [ReportFraud.ftc.gov]. You can also forward any suspicious emails or text messages to phishing@irs.gov.

By following these tips, you can protect yourself and your money from IRS impersonation scams. Remember, the IRS and other government agencies will never contact you in these ways and ask for money or personal information. Only scammers will do that.

If you need help with your taxes or are going through an IS audit, contact us for representation.

Frequently Asked Questions

1. Are there any IRS scams going around?

Yes, IRS scams are unfortunately common. Scammers often impersonate IRS officials, threatening individuals with fines or legal action for unpaid taxes. They might demand immediate payment via phone calls, emails, or text messages. It’s crucial to be cautious and verify any communication claiming to be from the IRS.

2. What are government impersonation scams involving?

Government impersonation scams involve fraudsters posing as representatives of government agencies, such as the IRS or Social Security Administration. They use various tactics, including phone calls, emails, or official-looking letters, to deceive people into providing personal information or money under false pretenses.

3. How do I protect myself from impersonation scams?

To protect yourself from impersonation scams:

• Verify Contacts: Confirm the identity of callers or email senders by directly contacting the official agency using publicly available contact information.
• Guard Personal Information: Avoid sharing sensitive information like Social Security numbers or financial details unless you’re certain of the recipient’s legitimacy.
• Use Security Software: Maintain up-to-date security software on your devices to prevent phishing attempts.
• Be Skeptical: Be cautious of unsolicited communications, especially if they demand immediate action or threaten consequences.

4. Who are fraudsters likely to impersonate?

Fraudsters often impersonate government officials, financial institutions, tech support companies, or charitable organizations. They choose entities that instill trust and authority, making it easier to deceive victims.

5. What are the three most common scams?

The three most common scams include:

• Phishing Scams: Fraudsters use fake emails, websites, or phone calls to trick individuals into revealing personal information.
• Impersonation Scams: Scammers pose as trusted entities, such as government officials or utility companies, to deceive victims into providing money or sensitive information.
• Tech Support Scams: Scammers claim to be tech support personnel, tricking individuals into granting remote access to their computers or paying for unnecessary services.

6. Does impersonation count as identity theft?

Yes, impersonation can be considered a form of identity theft. When someone impersonates another person, especially for financial gain or to commit fraud, it involves misusing someone’s identity, which falls under the broader category of identity theft. Impersonation scams can lead to severe consequences for the victims, both financially and emotionally.

The post IRS Impersonation Scams: How to Recognize and Avoid Them first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post IRS Impersonation Scams: How to Recognize and Avoid Them appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The 2023 tax season came and went, but we are still left to deal with a number of tax deadlines in 2023. Because of natural disasters, extensions, and other reasons, such as late filing, some taxpayers haven’t filed their 2022 returns. Some, like businesses and hustlers, pay estimated taxes each quarter and submit payroll taxes. These all come with deadlines.

You may be wondering when you need to file your federal income tax return, pay any taxes you owe, or honor your requested extension in 2023. In this article, we provide some important dates and tips to keep in mind as you navigate this year for tax purposes.

When to file your tax return

The deadline to file federal tax returns for most Americans is April 18, 2023, due to April 15 being on a weekend and April 17 being recognized as a holiday in Washington, DC. However, some taxpayers may have different or later filing deadlines depending on their circumstances. For example:

• If you live in Alabama, California, or Georgia and were affected by the severe storms and flooding that occurred in March 2023, you have until October 16, 2023, to file your federal tax return and pay any taxes due.
• If you are a U.S. citizen or resident alien living and working outside the U.S. or Puerto Rico or serving in the military outside the U.S. or Puerto Rico on the regular due date of your return, you had until June 15, 2023, to file your federal tax return and pay any taxes due.
• Those who requested an automatic extension have until October 16, 2023, to file federal returns and pay taxes due.

You can check the IRS website for more information on filing deadlines for specific situations.

When to pay your taxes

Any taxes you owe are still due by the April 15 deadline each year. In 2023, the deadline was April 18. You can, however, pay at a later date if you qualify for a different or later payment deadline based on your circumstances (see above).

Unpaid balances may be penalized and accrue interest. You can pay your taxes online, by phone, by mail, or in person using various methods such as electronic funds withdrawal, credit or debit card, check or money order, cash, or IRS Direct Pay. You can also apply for an online payment agreement if you need more time to pay your taxes.

If you pay quarterly estimated taxes, your deadlines for tax year 2023 are: April 18, June 15, Sept. 15, or Jan. 16, 2024. If you fail to pay your estimated taxes by the deadline, you will be charged a penalty of 0.5% of your unpaid balance per month or partial month, up to a maximum of 25%, plus interest.

When to request an extension

If you need more time to file your tax return, you can request an automatic six-month extension by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, by the April 15 deadline (April 18 in 2023), or by the applicable deadline for your situation. 

However, as you read this article, the above options are no longer applicable this year; but you can use this information to prepare for your 2023 tax return filing (to be filed in 2024). For now, if you have requested an extension to file, there will be no other extension granted after the October 16, 2023 deadline.

Please note that an extension of time to file does not extend the time to pay your taxes. You still need to pay at least 90% of your estimated tax liability by the April 15, 2024, deadline (or by the applicable deadline for your situation) to avoid penalties and interest. Use this information to prepare to file or pay your taxes owed during next year’s tax season.

There are various tools you can use to estimate taxes you will owe; for example, our Estimated Tax Calculator Workbook is a handy tool.

How to get help with your taxes

If you need help with preparing and filing your tax return, there are several free or low-cost options available to you. For example:

• You can use IRS Free File on IRS.gov to file your tax return electronically for free if your adjusted gross income is $72,000 or less.
• You can get free basic tax return preparation from IRS-certified volunteers through the Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) programs if you are eligible based on your income, age, disability, or language.
• You can get free electronic filing of your federal tax return and up to three state tax returns through MilTax if you are a member of the armed forces or a qualifying veteran.
• You can use other tax software or hire a trusted tax professional to prepare and file your tax return for a fee.

You can also visit IRS.gov for more information and resources on various tax topics, such as credits and deductions, stimulus payments, identity protection, and more. You can also check the status of your refund online or by phone after you file your tax return.

HOWEVER: It is highly recommended to hire a trusted tax professional, especially if you work two jobs or more, or have more than one stream of income. This is because more streams of income are a recipe for complicated taxes, which easily lead to mistakes that result in IRS audits or penalties.

Thus, hiring a tax pro keeps you safe.

Conclusion

Tax season can be stressful, but it doesn’t have to be if you plan ahead and take advantage of the available options and assistance. By knowing the important dates and deadlines for filing, paying, and requesting extensions for your taxes, you can avoid unnecessary delays and penalties and get your refund faster. Remember to file electronically with direct deposit for the fastest and most secure way to receive your refund. And if you have any questions or concerns about your taxes, don’t hesitate to contact my office.

Frequently Asked Questions

1. What is the extended due date for 2023?

The extended due date for 2023 is October 16, 2023. This is the deadline to file your 2022 federal income tax return if you requested an extension before the original due date of April 18, 2023.

2. What is an extended deadline?

An extended deadline is a later date that you can file your tax return by, without incurring a failure-to-file penalty. However, an extension to file is not an extension to pay taxes. You still need to pay at least 90% of your tax liability by the original due date to avoid interest and penalties from the IRS.

3. Can we file an extension after the deadline?

No, you cannot file an extension after the deadline. You must file your extension request no later than the regular due date of your return, which is April 18, 2023, for the 2022 tax year. If you miss the deadline, you will be subject to a failure-to-file penalty, which is usually 5% of the unpaid taxes for each month or part of a month that a tax return is late, up to a maximum of 25%.

4. How do you ask for an extended deadline?

To ask for an extended deadline, you can use IRS Free File at IRS.gov/freefile to request an automatic filing extension or file Form 4868, Application for Automatic Extension of Time to File.

You will need basic information like name, address, Social Security number, estimated tax liability, and payment if you owe anything. You can also get an extension by electronically paying all or part of your estimated income tax due and indicating the payment is for an extension. A payment can be scheduled with Direct Pay using the Electronic Federal Tax Payment System (EFTPS) or with a credit or debit card.

The post What You Need to Know About Remaining Tax Deadlines for 2023: When to File, Pay, and Request Extensions first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post What You Need to Know About Remaining Tax Deadlines for 2023: When to File, Pay, and Request Extensions appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

Introduction

The IRS officially opens the 2023 tax season on January 23^rd, and taxpayers need to understand the key dates and deadlines for filing and paying their taxes. Additionally, knowing the tax numbers, such as bracket rates and contribution limits, can help with planning and organization.

This article discusses deadlines and other tax numbers that should be of interest to all taxpayers. Each tax season is an opportunity to learn one or more things about how we are taxed. Such knowledge helps you plan for your taxes going forward. And taxpayers who plan their taxes in advance save more money and increase their financial literacy. This is good for anyone willing to build generational wealth.

Nevertheless, before delving much into more tax numbers and dates, let us look at some of the IRS’ expectations this tax season. In 2023, the IRS expects to receive more than 168 million individual tax returns for the 2022 tax year.

However, this is not far from the 2021 tax year individual returns that stood at 167,9 million. It is worth noting that the difference between the tax year 2021 and 2020 individual returns was rather bigger. 2020 individual returns filed were 157,1 million.

Key Tax Dates and Deadlines for the 2023 tax season and tax year 2023

The deadline for filing federal income tax returns for 2023 is Tuesday, April 18th.

It’s also important to note that the deadline for making contributions to certain retirement accounts, like Traditional IRA and Roth IRA, is April 18th, 2023. But the deadline for 401(k) contributions was December 31, 2022. This means you can only contribute to this type of retirement account within the same tax year to affect those tax returns.

Here are some key tax dates and deadlines for the whole of 2023:

• January 23, 2023. Tax season begins (to file 2022 tax returns).
• February 15, 2023. Reclaim exemption from withholding in 2023 if you were exempt from federal income tax withholding in 2022.
• April 3, 2023. Take your first required minimum distribution from your traditional IRA or 401(k) if you turned 72 in 2022. Usually, this deadline is April 1, but it will be on a Saturday this year.
• April 18, 2023. Tax Day! Deadline for filing personal income tax returns (for the tax year 2022). It’s also the deadline to pay owed taxes.
• April 18, 2023. File Form 4868 to request an extension to file. Do this even if you don’t owe taxes and can’t catch the filing deadline.
• April 18, 2023. The first quarter estimated tax payment is due.
• June 15, 2023. Second quarter estimated taxes are due.
• September 15, 2023. Third-quarter estimated taxes are due.
• October 16, 2023. Extension deadline for personal income tax returns (for the tax year 2022)
• December 31, 2023. Take any remaining required minimum distributions
• December 31, 2023. Last day to contribute to your 401(k).

Tax Numbers to Know

The tax year 2022 brings brought traditional changes for taxpayers to be aware of. Use this information as you file your 2022 tax return this tax season.

One of the key changes is the income tax brackets, which have been adjusted for inflation.

The new tax brackets for 2022 are as follows.

This means that the income thresholds for each bracket were increased from the tax year 2021. As a result, some taxpayers may find themselves in a lower tax bracket. This can have a positive impact on the amount of taxes owed. Use this table to determine if you owe taxes this tax season.

Another important change to know for Tax Year 2022 was the increase in the standard deduction. The standard deduction for single filers for the tax year 2022 is $12,950, and for married filing jointly is $25,900. Heads of household have theirs at $18,800. If you take it, this is what you will deduct when filing this tax season.

The standard deduction can significantly reduce taxable income for those who do not itemize their deductions. For tax season 2022, the Child Tax Credit amount went back to the original after being temporarily increased as a COVID incentive.

Thus, the 2022 CTC is up to $2,000 per qualifying child. Take this in mind while you file your 2022 tax returns during this tax season. $1,500 of that credit may be refundable

Tips for Staying Organized and On Top of Taxes

Staying organized and on top of your taxes can make the process less daunting. Gather all necessary documents, such as W-2s and 1099s, and hire a tax preparer like me for assistance with filing. It’s also important to plan for any potential tax payments or refunds.

In conclusion, being aware of the key tax dates and deadlines and the tax numbers to know can help with the tax filing process. Additionally, staying organized and utilizing resources can make the process less overwhelming. For further information and assistance, contact me via my website or follow my social media accounts.

Frequently Asked Questions

1. When are taxes due in 2023?

The last day to file 2022 tax returns and pay taxes owed is April 18, 2023.

2. What will be the final day of the 2023 tax year for income tax?

The final day of the 2023 tax year will be December 31, 2023. Tax returns for this year will be filed starting in late January 2024.

3. What is the first day to file taxes in 2023?

The IRS announced that the 2023 tax season officially begins on Monday, January 23, 2023. This will be the first day to file taxes this year (for 2022 tax returns). However, as a taxpayer, you are free to engage the services of a tax professional to prepare your taxes before this day (official opening). It helps to keep you prepared so that you file as soon as filing commences.

4. Are we getting taxes back in 2023?

Indeed, we will get refunds. However, as the IRS warned in November 2022, refunds may be smaller this year. This is because of the removal of government incentives such as the enhanced child tax credit that taxpayers enjoyed in the tax year 2021. However, with excellent tax planning, your tax refunds, and overall tax savings will not depend on government incentives because you will always be ahead of the tax game.

5. How soon can I file taxes?

The tax filing season starts on January 23, 2023. You can file your taxes then until the deadline of April 18, 2023. However, because of so many changes that are still coming in from the IRS, I am advising my followers not to rush into filing until they are certain that everything is in order.

The post Our Taxes in Numbers and Deadlines as the IRS officially Opens the 2023 Tax Season first appeared on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.

The post Our Taxes in Numbers and Deadlines as the IRS officially Opens the 2023 Tax Season appeared first on Suncrest Financial Services | Tax Preparer in Upper Marlboro Md.