IR-2013-90: IRS Warns Consumers of Possible Scams Relating to Relief of Typhoon Victims

IR-2013-90: IRS Warns Consumers of Possible Scams Relating to Relief of Typhoon Victims

IRS Warns Consumers of Possible Scams Relating to Relief of Typhoon Victims

WASHINGTON ― The Internal Revenue Service today issued a consumer alert about possible scams taking place in the wake of Typhoon Haiyan. On Nov. 8, 2013, Typhoon Haiyan – known as Yolanda in the Philippines – made landfall in the central Philippines, bringing strong winds and heavy rains that have resulted in flooding, landslides, and widespread damage.

Following major disasters, it is common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers. Such fraudulent schemes may involve contact by telephone, social media, email or in-person solicitations.

The IRS cautions people wishing to make disaster-related charitable donations to avoid scam artists by following these tips:

• To help disaster victims, donate to recognized charities.
• Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. The IRS website at IRS.gov has a search feature, Exempt Organizations Select Check, through which people may find legitimate, qualified charities; donations to these charities may be tax-deductible. Legitimate charities may also be found on the Federal Emergency Management Agency (FEMA) website at fema.gov.
• Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution from you. Scam artists may use this information to steal your identity and money.
• Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift.
• If you plan to make a contribution for which you would like to claim a deduction, see IRS Publication 526, Charitable Contributions, to read about the kinds of organizations that can receive deductible contributions.

Bogus websites may solicit funds for disaster victims. Such fraudulent sites frequently mimic the sites of, or use names similar to, legitimate charities, or claim to be affiliated with legitimate charities in order to persuade members of the public to send money or provide personal financial information that can be used to steal identities or financial resources.   Additionally, scammers often send e-mail that steers the recipient to bogus websites that appear to be affiliated with legitimate charitable causes.

Taxpayers suspecting disaster-related frauds should visit IRS.gov and search for the keywords “Report Phishing.” More information about tax scams and schemes may be found at IRS.gov using the keywords “scams and schemes.”

 



 

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2014 PTIN Renewal OPENED

1.  2014 PTIN Renewal Period Underway for Tax Professionals

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The Internal Revenue Service reminded the nation’s almost 690,000 federal tax return preparers that they must renew their Preparer Tax Identification Numbers (PTINs) for 2014. All current PTINs will expire on Dec. 31, 2013.

IR-2013-85, Oct. 31, 2013

WASHINGTON — The Internal Revenue Service today reminded the nation’s almost 690,000 federal tax return preparers that they must renew their Preparer Tax Identification Numbers (PTINs) for 2014. All current PTINs will expire on Dec. 31, 2013.

Anyone who, for compensation, prepares or helps prepare any federal return or claim for refund must have a valid PTIN from the IRS. The PTIN must be used as the identifying number on returns prepared.

“We ask that you renew your PTIN as soon as possible to avoid a last-minute rush. It’s easy to let this slip as the holiday season approaches,” said Carol A. Campbell, Director, IRS Return Preparer Office.

The PTIN system is ready to accept applications for 2014.

For those who already have a 2013 PTIN, the renewal process can be completed online and only takes a few moments. The renewal fee is $63. If you can’t remember your user ID and password, there are online tools to assist you. Preparers can get started at www.irs.gov/ptin.

If you are registering for the first time, the PTIN application fee is $64.25 and the process may also be completed online.

Form W-12, IRS Paid Preparer Tax Identification Number Application and Renewal, is available for paper applications and renewals, but takes four to six weeks to process. Failure to have and use a valid PTIN may result in penalties. All enrolled agents, regardless of whether they prepare returns, must have a PTIN in order to maintain their status.

There have been a number of enhancements to the online PTIN system since last year. They include:

• The fully functional "Manage My Account" tool allowing preparers to self-correct almost any field at any time (including professional credentials). Previously, most changes had to be made during renewal. A phone call was required for users to make changes during the rest of the year. However, for security reasons, name changes still require written documentation.
• Preparers can now view completed continuing education programs reported by IRS-approved providers beginning with 2013 courses. Providers report completed CE programs to the IRS based on your PTIN number. Enrolled agents must have a minimum of 16 CE hours annually and a total of 72 hours every  three years. Others can also view voluntary programs completed. If something is missing, contact your provider directly as we only display what providers send to us.
• Planning to take a year off for any reason? A new function allows certain preparers to inactivate their PTINs voluntarily and then reactivate the same number when they return to work. This is only for those preparers who plan to take a full year off. If you are paid to prepare tax returns during any part of a year, you must have a valid PTIN. Note: Enrolled agents must maintain a valid PTIN each year in order to maintain their EA credential and therefore are not eligible to inactivate their PTIN.

For more information about requirements for federal tax professionals and access to the online PTIN system, go to www.irs.gov/for-Tax-Pros.
http://www.irs.gov/uac/Newsroom/2014-PTIN-Renewal-Period-Underway-for-Tax-Professionals

Selling your home ? Find out what you need to know about taxes

Selling your home?
Find out what you need to know about taxes

If you're selling your home, there are a few things you need to know about federal taxes.

If you make a profit on the sale of your home, you may need to report the profit as a capital gain

when you file your taxes. However, if you owned and lived in the home as your main home for at

least two out of the past five years, you may be able to exclude up to $250,000 of the gain

($500,000 for married couples filing jointly). This excluded gain is also not subject to the new Net

Investment Income Tax, which is effective in 2013. If you are eligible to exclude the gain, you

don’t need to report the sale on your tax return unless you receive a Form 1099-S, Proceeds

from Real Estate Transactions.

Here are some other points to remember:

•  You cannot deduct a loss from the sale of your main home.
  
•  Special rules may apply when you sell a home for which you received the first-time  homebuyer credit. See Publication 523, Selling Your Home, for details.
•  If the home was used for business or rental purposes, special rules apply.
•  When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.
  
•  If you or your spouse is on qualified official extended duty in the Uniformed Services, the Foreign Service or the intelligence community, you may elect to suspend the 5-year test period for up to 10 years.

 

Publication 523 provides more information about selling your home and is available at IRS.gov

or by calling 800-TAX-FORM (800-829-3676). This publication includes worksheets to help you

figure the adjusted basis of the home you sold, the gain (or loss) on the sale and the gain that

you can exclude.

For more information please refer to the following link. http://www.irs.gov/pub/irs-utl/OC-SellingyourhomeFindoutwhatyouneedtoknowabouttaxesFINAL9.pdf

Six important tips on gambling income and losses

Six important tips on gambling income and losses

It’s a common misconception that unless you receive a Form W-2G, Certain Gambling Winnings, at a casino, your gambling winnings don’t have to be reported on your federal tax return. Whether you roll the dice, play cards or bet on races, all your winnings are taxable. Gambling winnings, like any other income not specifically exempted from law, are taxable and must be reported on your federal tax return, regardless of whether or not documentation was provided at the time the money was earned (or won). Fortunately, if you itemize your deductions, there are ways to offset your gambling winnings with any losses that you may have incurred up to the amount of your winnings. Below are six tips that you should know:

 

1. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races

and casinos. It includes cash winnings and the fair market value of prizes, such as cars and

trips.

2. If you receive a certain amount of gambling winnings, or have any winnings subject to federal

tax withholding, the payer is required to issue you a Form W-2G. The payer must give you this

form if you receive:

•  $1,200 or more in gambling winnings from bingo or slot machines;
•  $1,500 or more in proceeds (the amount of winnings minus the amount of the wager) from keno;
  
•  More than $5,000 in winnings (reduced by the wager or buy-in) from a poker tournament;
•  $600 or more in gambling winnings (except winnings from bingo, keno, slot machines and poker tournaments), and the payout is at least 300 times the amount of the wager; or Any other gambling winnings subject to federal income tax withholding.

3. Generally, you report all gambling winnings as income on line 21 of Form 1040, U.S. Federal

Income Tax Return. This is true even if you do not receive a Form W-2G.

 

4. If you are a casual gambler, report all your gambling winnings as income on your federal

income tax return. This is true even if you do not receive a Form W-2G.

 

5. You can claim your gambling losses, up to the amount of your winnings, on Form 1040,

Schedule A, Itemized Deductions, under Other Miscellaneous Deductions. You must report

the full amount of your winnings as income and claim your allowable losses separately. You

cannot deduct gambling losses that are more than your winnings. You cannot reduce your

gambling winnings by your gambling losses and report the difference.

 

6. Keep accurate records. If you are going to deduct gambling losses, you must have receipts,

tickets, statements and documentation, such as a diary or similar record of your losses and

winnings. Your records should show your winnings separately from your losses. Refer to IRS

Publication 529, Miscellaneous Deductions, for more details about the type of information you

should write in your diary and what kinds of proof you should retain in your records.

For more information on gambling income and losses, see IRS Publication 529, Miscellaneous

Deductions or Publication 525, Taxable and Nontaxable Income, both available at IRS.gov or by

calling 800-TAX-FORM (800-829-3676). For more information please refer to this link. http://www.irs.gov/pub/irs-utl/OC-SixImportantTipsonGamblingWinningsandLossesFINAL9.pdf

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