New York SBDC Research Network

From USA.gov IRS Imposter Scams IRS imposter scams occur when someone contacts you pretending to work for the IRS. The imposter may contact you by phone, email, postal mail, or even a text message. There are two common types of scams: Tax collection - You receive a phone call or letter, claiming that you owe taxes. They will demand that you pay the amount immediately often with a prepaid debit card or wire transfer. They may even threaten to arrest you if you don’t pay. Verification - You receive an email or text message that requires you to verify your personal information. The message often includes a hyperlink phrase "click here" or a button to a fraudulent form or website. Report IRS Imposter Scams Contact the Treasury Inspector General for Tax Administration (TIGTA) if you believe that an IRS imposter has contacted you. Report IRS imposter scams online or by calling TIGTA at 1-800-366-4484. Forward email messages that claim to be from the IRS to phishing@irs.g...

Obtained From:  Fortune Large digital companies operating in the European Union, such as Alphabet Inc. or Twitter Inc., could face a 3 percent tax on their gross revenues based on where their users are located, according to a draft proposal by the European Commission.  The draft, seen by Bloomberg, was circulated on Friday and outlines how a targeted levy on gross revenues would increase the tax bill digital giants face, as the bloc seeks to raise money from an industry it says provides less than it should to public coffers. EU countries have been looking into methods to tax digital companies, including Amazon.com Inc. and Facebook Inc., in a way that captures the true value created in the region.  The commission’s planned revenue tax, which is expected to be proposed on March 21, would only represent a targeted, short-term solution. The bloc also plans to propose a more comprehensive, longer-term approach that will focus on a digital permanent establishment. ...

Obtained From:   New York Times If you weren’t expecting an income tax refund but discover a big deposit from the Internal Revenue Service in your bank account, don’t be quick to celebrate. You may have been the target of a clever new scam. The latest twist in tax-time identity fraud involves thieves who pilfer personal and financial information, often from professional tax preparers. They then use those details to file fake tax returns and have refunds — sometimes as large as $20,000 — sent electronically to your account with plans to collect it later.  The I.R.S. initially warned about the scam on Feb. 2, urging tax professionals to “step up security and beware of phishing emails that can secretly download malicious software that can help cybercriminals steal client data.”

Obtained From:   Federal Trade Comission The Federal Trade Commission has charged a business opportunity scheme with falsely claiming that people who buy the defendants’ expensive  “Amazing Wealth System”  will learn “secrets for making money on Amazon” and likely earn thousands of dollars a month. According to the FTC, the defendants, who have no affiliation with Amazon.com, have made false or unsubstantiated earnings claims, such as, “Get started on Amazon and Make $5,000-$10,000 in the next 30 days. . . even if you have never sold anything online before.”  They charge from $995 to more than $35,000 for a purported exclusive “plug-and-play system” that allows consumers to create a profitable online business selling products on Amazon.com. Contrary to the defendants’ promises, most, if not virtually all, purchasers do not earn the advertised income. Many of the strategies and techniques included in the “system,” such as posting fake product reviews, are dec...

Obtained from:   IRS Learning the A-Zs of taxes seems overwhelming. But with a little planning, research, and attention to detail, it can be easier than you think. Credits and deductions are an important part of the process—though sometimes it's difficult to tell them apart.  You s ubtract tax credits from the amount of tax you owe. There are two types of tax credits: A nonrefundable tax credit means you get a refund only up to the amount you owe. A refundable tax credit means you get a refund, even if it's more than what you owe. An example is  the Child Tax Credit. You s ubtract tax deductions from your income before you figure the amount of tax you owe.  Deductions, such as the Tuition and Fees Deduction for qualified education expenses, can help lower the amount of your taxable income

Because of a Republican-held Congress, and the new Trump administration, there has been talk on a new tax reform. In fact, according to Steven Mnuchin , Trump's [now confirmed] pick to head the Treasury department[now confirmed],that there will be   two comprehensive tax reform plans under this administration. But how will all this affect small business?  President Trump has repeatedly said that he will cut corporate taxes down to 15%. But most small businesses are in the form of S-corps- partnerships and limited liability corporations (LLC). In response to this, the two plans propose three tax brackets- 12%,25%,and 33%. And to repeal the Net Investment Income Tax (NIIT)- which, according to the IRS , "   applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above the statutory threshold amounts." With the Trump plan,businesses will be able to elect a max rate for business income at 15%. "The Blueprint...