the Tax Industry news and information
New Rollover 529 Accounts to Roth IRAs
New rule allows for rollover
of 529 accounts to Roth IRAs
Tax-advantaged educational savings accounts, also known as 529 plans, provide a way for parents to help their children or other family members save for college or to pay other educational expenses.
But not every beneficiary uses the full amount they paid into the plan. Beginning in 2024, the SECURE 2.0 Act allows beneficiaries to roll over unused funds into a Roth IRA without having to pay a penalty.
However, there is a lifetime limit of $35,000
per beneficiary and the 529 account must have been open for at least 15 years. The rollover amount cannot exceed the beneficiary’s annual IRA contribution limit.
IRS Stepping up Enforcement for High-Income Individuals
IRS stepping up enforcement for high-income individuals
Using the extra funding it received in the 2022
Inflation Reduction Act, the IRS is moving
forward with its plans to prioritize enforcement
efforts against high-income earners, partnerships,
large corporations and promoters abusing U.S.
tax laws. The agency is touting this increased
enforcement as part of its efforts to restore fairness
to the U.S. tax system and will focus its efforts on
taxpayers with more than $1 million in income
and more than $250,000 in recognized tax debt
New IRS Requirement for Money Transfer and Payment Apps
New IRS Requirement for Money Transfer and Payment Apps
New IRS Requirement for Money Transfer and Payment Apps
411-Tax Services LLC recommends that taxpayers began making notes/remarks as to what monies are for on all monies sent and received by money transfer and payment apps such as Cash-App, Zelle, Paypal or Venmo, etc. By placing notes/remarks such as personal loan, tax fee, for goods or services provided "repaired window", gift, charity, etc. on these money transfer and payments apps will make the gathering of your tax documents expenses and income easier at year-end. The IRS will be lowering the reporting threshold amount for issuing Form 1099-K to $600.00; the requirement for businesses such as "money transfer and payment apps" referred to as "third-party payment platforms" by the IRS was delayed this year by the IRS.
Maryland Information for Individual Taxpayers
New IRS Requirement for Money Transfer and Payment Apps
New IRS Requirement for Money Transfer and Payment Apps
Maryland announces to file and pay your state individual taxes without any state penalty or interest by the deadline for this tax year.
411-Tax Services LLC and Maryland recommend that Taxpayers file their tax returns electronically and request direct deposit for the fastest possible processing and to ensure they receive all possible refunds and to avoid postal service delays.
Tax Scams the Old and New
Tax Scams Targeting Seniors
IRS warns senior citizens of scams targeting them to steal their sensitive information by posing as representatives from the IRS; these fraudsters are using fear and deceit to exploit their victims.
Scammers Targeting Car Dealers and Sellers
IRS reminds car dealers and sellers of scammers using emails targeting them for in their relentless "attempts to obtain sensitive financial and personal information, and impersonating the IRS remains a favorite tactic. The IRS urges car dealerships to be extra cautious about unsolicited messages and avoid clicking any links in an unsolicited email or text if they are uncertain".
IRS Warns of Fake Charities Soliciting Donations
IRS Warns of Fake Charities Soliciting Donations
The IRS is reporting that scammers are taking advantage of the large numbers of recent natural disasters and international conflicts to fraudulently solicit donations to help victims. In addition to lining the pockets of criminals, donating to these fraudulent charities can get you in trouble with the IRS if you try to claim a deduction that ends up being disallowed. The best way to keep from being a victim of this
kind of fraud is to check with the Tax-Exempt Organization Search tool on the IRS’s website. Using the tool will both ensure that you are donating to a legitimate charity and that you will be allowed to deduct the donation.
New Scam Related to Unclaimed Refunds
Beware of Offer in Compromise (OIC) Programs
IRS Warns of Fake Charities Soliciting Donations
The IRS warns taxpayers to be on the lookout for a new scam mailing that tries to mislead people into believing they are owed a refund.
The new scheme involves a mailing coming in a cardboard envelope from a delivery service. The enclosed letter includes the IRS masthead with contact information and a phone number that do not belong to the IRS and wording that the notice is "in relation to your unclaimed refund.”
Beware of Offer in Compromise (OIC) Programs
Beware of Offer in Compromise (OIC) Programs
Beware of Offer in Compromise (OIC) Programs
The IRS reminds taxpayers to beware of promoters claiming their services are needed to settle with the IRS, that their debts can be settled for “pennies-on-the-dollar” or that there is a limited window of time to resolve tax debts through the Offer in Compromise (OIC) program. These promoters are often referred to as “OIC Mills.” Find information on OIC Mills in the news release IRS “Dirty Dozen” list warns people to watch out for Offer in Compromise ‘mills’ where promoters claim their services are needed to settle IRS debts.
IRS Tax Scams and Consumer Alerts
Beware of Offer in Compromise (OIC) Programs
Beware of Offer in Compromise (OIC) Programs
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