Tax News You Can Use – Fall 2014

Be reminded that 3rd Quarter Estimated Tax payments are due Friday, September 15.

If you have had a significant change in income due to retirement or a move, it may be necessary to make adjustments in your estimated payments for the remainder of 2014.

The IRS has ramped up its efforts to fight tax identity theft and tax fraud. Here are some tips to help you avoid problems:

  • Several of my clients had their returns rejected for efile in 2013 because the EIN on their W-2 did not match the name of the employer in the IRS database. This typically happened with the smaller churches. My suspicion is that, as a fraud prevention measure, the IRS no longer accepts any EIN which is a duplicate. Encourage your treasurer to use only an ORIGINAL EIN on your W-2.
  • File early. If your Social Security number happens to get stolen, an identity thief could file a fraudulent return for an early refund, using your name and SSN. Your return will be rejected as a duplicate when you later file.
  • Scam phone calls continue. The caller pretends to be with the IRS and either demands money, or may say you have a refund due and ask you for personal information. Remember, the IRS will NEVER call you about taxes without first mailing you an official notice. The IRS will never ask for card numbers over the phone or threaten to have you arrested for not paying. Report any incidents to www.tigta.gov .

If you, your spouse, or your dependents are headed back to school for higher education, you may be eligible for an education tax credit:

  • The American Opportunity Tax Credit applies for the first four years of higher education.
  • The Lifetime Learning Tax Credit is for those seeking education beyond the college years.

Specific rules apply. If you think you might be eligible, check out the IRS website at www.irs.gov.

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