The Internal Revenue Service is issuing a warning about a new tax scam that uses a website that mimics the IRS e-Services online registration page.

The actual IRS e-Services page offers web-based products for tax preparers and payers, not the general public. The phony web page looks almost identical to the real one.

The IRS gets many reports of fake websites like this. Criminals use these sites to lure people into providing personal and financial information that may be used to steal the victim’s money or identity.

The address of the official IRS website is www.irs.gov. Don’t be misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov.

If you find a suspicious website that claims to be the IRS, send the site’s URL by email to phishing@irs.gov. Use the subject line, ‘Suspicious website’.

Be aware that the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

If you get an unsolicited email that appears to be from the IRS, report it by sending it to phishing@irs.gov.

The IRS has information at www.irs.gov that can help you protect yourself from tax scams of all kinds. Search the site using the term “phishing.”

If you discover an error after you file your tax return, you can correct it by amending your return. Here are 10 tips from the Internal Revenue Service about amending your federal tax return:

1. When to amend a return Generally, you should file an amended return if your filing status, number of dependents, total income, tax deductions or tax credits were reported incorrectly or omitted.  Additional reasons for amending a return are listed in the instructions.

2. When NOT to amend a return In some cases, you do not need to amend your tax return.  The IRS usually corrects math errors or requests missing forms – such as Forms W-2 or schedules – when processing an original return.  In these instances, do not amend your return.

3. Form to use Use Form 1040X, Amended U.S. Individual Income Tax Return, to amend a previously filed Form 1040, 1040A, 1040EZ, 1040NR or 1040NR-EZ.  Make sure you check the box for the year of the return you are amending on the Form 1040X.  An amended tax return cannot be filed electronically.

4. Multiple amended returns If you are amending more than one year’s tax return, prepare a separate 1040X for each return and mail them in separate envelopes to the appropriate IRS processing center (see “Where to File” in the instructions for Form 1040X).

5. Form 1040X The Form 1040X has three columns. Column A shows original figures from the original return. Column B shown the changes you are making.   Column C shows the corrected figures. There is an area on the back of the form to explain the specific changes and the reasons for the changes.

6. Other forms or schedules If the changes involve other schedules or forms, attach them to the Form 1040X.  Failure to do this will cause a delay in processing.

7. Additional refund If you are amending your return to get an additional refund, wait until you have received your original refund before filing Form 1040X.  You may cash that check while waiting for any additional refund.

8. Additional tax If you owe additional tax, you should file Form 1040X and pay the tax as soon as possible to limit interest and penalty charges.

9. When to file Generally, to claim a refund, you must file Form 1040X within three years from the date you filed your original tax return or within two years from the date you paid the tax, whichever is later.

10. Processing time Normal processing time for amended returns is 8 to 12 weeks.

Each year, the Internal Revenue Service sends millions of letters and notices to taxpayers for a variety of reasons. Here are eight things to know about IRS notices – just in case one shows up in your mailbox.

1. Don’t panic. Many of these letters can be dealt with simply and painlessly.
2. There are a number of reasons why the IRS might send you a notice. Notices may request payment of taxes, notify you of changes to your account, or request additional information. The notice you receive normally covers a very specific issue about your account or tax return.
3. Each letter and notice offers specific instructions on what you are asked to do to satisfy the inquiry.
4. If you receive a correction notice, you should review the correspondence and compare it with the information on your return.
5. If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.
6. If you do not agree with the correction the IRS made, it is important that you respond as requested. You should send a written explanation of why you disagree and include any documents and information you want the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.
7. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the correspondence available when you call to help us respond to your inquiry.
8. It’s important that you keep copies of any correspondence with your records.

You may need to pay estimated taxes to the IRS during the year if you have income that is not subject to withholding. This depends on what you do for a living and the types of income you receive.

These six tips from the IRS explain estimated taxes and how to pay them.

1. If you have income from sources such as self-employment, interest, dividends, alimony, rent, gains from the sales of assets, prizes or awards, then you may have to pay estimated tax.

2. As a general rule, you must pay estimated taxes in 2012 if both of these statements apply: 1) You expect to owe at least $1,000 in tax after subtracting your tax withholding (if you have any) and tax credits, and 2) You expect your withholding and credits to be less than the smaller of 90 percent of your 2012 taxes or 100 percent of the tax on your 2011 return. Special rules apply for farmers, fishermen, certain household employers and certain higher income taxpayers.

3. For Sole Proprietors, Partners and S Corporation shareholders, you generally have to make estimated tax payments if you expect to owe $1,000 or more in tax when you file your return.

4. To figure your estimated tax, include your expected gross income, taxable income, taxes, deductions and credits for the year. Use the worksheet in Form 1040-ES, Estimated Tax for Individuals, for this. You want to be as accurate as possible to avoid penalties. Also, consider changes in your situation and recent tax law changes.

5. The year is divided into four payment periods, or due dates, for estimated tax purposes. Those dates generally are April 15, June 15, Sept. 15 and Jan. 15 of the next or following year.

6. Form 1040-ES, Estimated Tax for Individuals, has everything you need to pay estimated taxes. It includes instructions, worksheets, schedules and payment vouchers. However, the easiest way to pay estimated taxes is electronically through the Electronic Federal Tax Payment System, or EFTPS, at www.irs.gov. You can also pay estimated taxes by check or money order using the Estimated Tax Payment Voucher or by credit or debit card.

The Internal Revenue Service has expanded its “Fresh Start”
initiative to help struggling taxpayers who owe taxes. The following four tips
explain the expanded relief for taxpayers.

Penalty relief Part of the initiative relieves some unemployed taxpayers
from failure-to-pay penalties. Penalties are one of the biggest factors a
financially distressed taxpayer faces on a tax bill.The Fresh Start Penalty
Relief Initiative gives eligible taxpayers a six-month extension to fully pay
2011 taxes. Interest still applies on the 2011 taxes from April 15, 2012 until
the tax is paid, but you won’t face failure-to-pay penalties if you pay your
tax, interest and any other penalties in full by Oct. 15, 2012.

1. The penalty relief is available to two categories of
taxpayers:

* Wage earners who have been unemployed at least 30 consecutive days during
2011 or in 2012 up to this year’s April 17 tax deadline.

* Self-employed individuals who experienced a 25 percent or greater
reduction in business income in 2011 due to the economy.

To qualify for this penalty relief, your adjusted gross income must not
exceed $200,000 if married filing jointly or $100,000 if your filing status is
single, married filing separately, head of household, or qualifying widower.
Your 2011 balance due can not exceed $50,000.

Taxpayers who qualify need to complete a new Form 1127A to request the 2011
penalty relief. The new form is available on www.irs.gov
or by calling 1-800-829-3676 (TAX FORM).

2. Installment agreements An installment agreement is a
payment option for those who cannot pay their entire tax bill by the due date.
The Fresh Start provisions give more taxpayers the ability to use streamlined
installment agreements to catch up on back taxes and also more time to pay.

The new threshold for requesting an installment agreement has been raised
from $25,000 to $50,000. This option requires limited financial information,
meaning far less burden to the taxpayer. The maximum term for streamlined
installment agreements has been raised to six years from the current five-year
maximum.

If your debt is more than $50,000, you’ll still need to supply the IRS with
a Collection Information Statement (Form 433-A or Form 433-F). You also can pay
your balance down to $50,000 or less to qualify for this payment option.

With an installment agreement, you’ll pay less in penalties, but interest
continues to accrue on the outstanding balance. In order to qualify for the new
expanded streamlined installment agreement, you must agree to monthly direct
debit payments.

You can set up an installment agreement with the IRS through the On-line
Payment Agreement (OPA) page at www.irs.gov

3. Offer in Compromise Under the first round of Fresh Start
in 2011, the IRS expanded the Offer in Compromise (OIC) program to cover a
larger group of struggling taxpayers. An Offer in Compromise is an agreement
between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for
less than the full amount owed.

The IRS recognizes many taxpayers are still struggling to pay their bills so
the agency has been working on more common-sense changes to the OIC program to
more closely reflect real-world situations.

Generally, an offer will not be accepted if the IRS believes that the
liability can be paid in full as a lump sum or through a payment agreement. The
IRS looks at the taxpayer’s income and assets to make a determination regarding
the taxpayer’s ability to pay.

4. More information A series of eight short videos are
available to familiarize taxpayers and practitioners with the IRS collection
process. The series “Owe Taxes? Understanding IRS Collection
Efforts,” is available on the IRS website, www.irs.gov.

A tax credit is a dollar-for-dollar reduction of taxes owed. Some tax
credits are refundable meaning if you are eligible and claim one, you can get
the rest of it in the form of a tax refund even after your tax liability has
been reduced to zero.

Here are four refundable tax credits you should consider to increase your
refund on your 2011 federal income tax return:

1. The Earned Income Tax Credit is for people earning less
than $49,078 from wages, self-employment or farming. Millions of workers who
saw their earnings drop in 2011 may qualify for the first time. Income, age and
the number of qualifying children determine the amount of the credit, which can
be up to $5,751. Workers without children also may qualify. For more
information, see IRS Publication 596, Earned Income Credit.

2. The Child and Dependent Care Credit is for expenses paid
for the care of your qualifying children under age 13, or for a disabled spouse
or dependent, while you work or look for work. For more information, see IRS
Publication 503, Child and Dependent Care Expenses.

3. The Child Tax Credit is for people who have a qualifying
child. The maximum credit is $1,000 for each qualifying child. You can claim
this credit in addition to the Child and Dependent Care Credit. For more
information on the Child Tax Credit, see IRS Publication 972, Child Tax Credit.

4. The Retirement Savings Contributions Credit, also known
as the Saver’s Credit, is designed to help low-to-moderate income workers save
for retirement. You may qualify if your income is below a certain limit and you
contribute to an IRA or workplace retirement plan, such as a 401(k) plan. The
Saver’s Credit is available in addition to any other tax savings that apply.
For more information, see IRS Publication 590, Individual Retirement
Arrangements (IRAs).

The Internal Revenue Service has issued its annual “Dirty Dozen” tax scams
list, reminding taxpayers to use caution during tax season to protect
themselves against a wide range of schemes ranging from identity theft to
return preparer fraud.

The Dirty Dozen listing, compiled by the IRS each year, lists a variety of
common scams taxpayers can encounter at any point during the year. But many of
these schemes peak during filing season as people prepare their tax returns.

Illegal scams can lead to significant penalties and interest and possible
criminal prosecution. The IRS Criminal Investigation Division works closely
with the Department of Justice to shut down scams and prosecute the criminals behind
them.

Here are five of the Dirty Dozen tax scams for 2012:

Identity theft  In response to growing identity theft
concerns, the IRS has embarked on a comprehensive strategy focused on
preventing, detecting and resolving identity theft cases as soon as possible.
In addition to the law-enforcement crackdown, the IRS has stepped up its
internal reviews to spot false tax returns before tax refunds are issued and is
working to help victims of identity theft refund schemes.

Identity theft cases are among the most complex ones the IRS handles, but
the agency is committed to working with taxpayers who have become victims of
identity theft.

The IRS is increasingly seeing identity thieves looking for ways to use a
legitimate taxpayer’s identity and personal information to file a tax return
and claim a fraudulent refund.

An IRS notice informing a taxpayer that more than one return was filed in
the taxpayer’s name or that the taxpayer received wages from an unknown
employer may be the first tip off the individual receives that he or she has
been victimized. Anyone who believes his or her personal information has been
stolen and used for tax purposes should immediately contact the IRS Identity
Protection Specialized Unit. For more information, visit the special identity
theft page on this website.

Phishing  These scams are typically carried out with
the help of unsolicited email or a fake website that poses as a legitimate site
to lure potential victims into providing valuable personal and financial
information. Armed with this information, a criminal can commit identity theft
or financial theft.

If you receive an unsolicited email that appears to be from either the IRS
or an organization closely linked to the IRS, such as the Electronic Federal
Tax Payment System (EFTPS), report it by sending it to phishing@irs.gov.

It is important to keep in mind the IRS does not initiate contact with
taxpayers by email to request personal or financial information. This includes
any type of electronic communication, such as text messages and social media
channels. The IRS has information that can help you protect yourself from email
scams.

Return preparer fraud  About 60 percent of taxpayers
will use tax professionals this year to prepare and file their tax returns.
Most return preparers provide honest service to their clients. But as in any
other business, there are also some who prey on unsuspecting taxpayers.

Questionable return preparers have been known to skim off their clients’
refunds, charge inflated fees for return preparation services and attract new
clients by promising guaranteed or inflated refunds. Taxpayers should choose
carefully when hiring a tax preparer. Federal courts have issued hundreds of
injunctions ordering individuals to cease preparing returns, and the Department
of Justice has pending complaints against many others.

In 2012, every paid preparer needs to have a Preparer Tax Identification
Number (PTIN) and must enter it on the returns he or she prepares.

Signals to watch for when you are dealing with an unscrupulous return
preparer would include that they:

• Do not sign the return or will not include a Preparer
       Tax identification Number on it.
• Do not give you a copy of your tax return.
• Promise larger-than-normal tax refunds.
• Charge a percentage of the refund amount as preparation
  fee.
• Require you to split the refund to pay the preparation
  fee.
• Add forms to the return you have never filed before.
• Encourage you to place false information on your
  return, such as false income, expenses and/or credits.

For advice on how to find a competent tax professional, see Tips for
Choosing a Tax Preparer.

Hiding income offshore  Over the years, numerous
individuals have been identified as evading U.S. taxes by hiding income in
offshore banks, brokerage accounts or nominee entities and then using debit
cards, credit cards or wire transfers to access the funds. Others have employed
foreign trusts, employee-leasing schemes, private annuities or insurance plans
for the same purpose.

The IRS uses information gained from its investigations to pursue taxpayers
with undeclared accounts, as well as the banks and bankers suspected of helping
clients hide their assets overseas. The IRS works closely with the Department
of Justice to prosecute tax evasion cases.

While there are legitimate reasons for maintaining financial accounts abroad,
there are reporting requirements that need to be fulfilled. U.S. taxpayers who
maintain such accounts and who do not comply with reporting and disclosure
requirements are breaking the law and risk significant penalties and fines, as
well as the possibility of criminal prosecution.

“Free money” from the IRS & tax scams involving Social
Security  Fliers and advertisements for free money from the IRS,
suggesting that the taxpayer can file a tax return with little or no
documentation, have been appearing in community churches around the country.
These schemes are also often spread by word of mouth as unsuspecting and
well-intentioned people tell their friends and relatives. Scammers prey on
low-income individuals and the elderly. They build false hopes and charge
people good money for bad advice. In the end, the victims discover their claims
are rejected. Meanwhile, the promoters are long gone. The IRS warns all
taxpayers to remain vigilant.

There are a number of tax scams involving Social Security. For example,
scammers have been known to lure the unsuspecting with promises of non-existent
Social Security refunds or rebates. In another situation, a taxpayer may really
be due a credit or refund but the scammer uses inflated amounts to complete the
return for a larger refund they’ll run off with.

These are some of the Dirty Dozen Tax Scams for 2012. For a complete list,
see IRS Releases the Dirty Dozen Tax Scams for 2012.

If you, your spouse or dependents had significant medical or dental costs in
2011, you may be able to deduct those expenses when you file your tax return.
Here are eight things the IRS wants you to know about medical and dental
expenses and other benefits.

1. You must itemize You deduct qualifying medical and dental
expenses if you itemize on Form 1040, Schedule A.

2. Deduction is limited You can deduct total medical care
expenses that exceed 7.5 percent of your adjusted gross income for the year.
You figure this on Form 1040, Schedule A.

3. Expenses must have been paid in 2011 You can include the
medical and dental expenses you paid during the year, regardless of when the
services were provided. You’ll need to have good receipts or records to
substantiate your expenses.

4. You can’t deduct reimbursed expenses Your total medical
expenses for the year must be reduced by any reimbursement. Normally, it makes
no difference if you receive the reimbursement or if it is paid directly to the
doctor or hospital.

5. Whose expenses qualify You may include qualified medical
expenses you pay for yourself, your spouse and your dependents. Some exceptions
and special rules apply to divorced or separated parents, taxpayers with a
multiple support agreement or those with a qualifying relative who is not your
child.

6. Types of expenses that qualify You can deduct expenses
primarily paid for the diagnosis, cure, mitigation, treatment or prevention of
disease, or treatment affecting any structure or function of the body. For
drugs, you can only deduct prescription medication and insulin. You can also
include premiums for medical, dental and some long-term care insurance in your
expenses. Starting in 2011, you can also include lactation supplies.

7. Transportation costs may qualify You may deduct
transportation costs primarily for and essential to medical care that qualify
as medical expenses. You can deduct the actual fare for a taxi, bus, train,
plane or ambulance as well as tolls and parking fees. If you use your car for
medical transportation, you can deduct actual out-of-pocket expenses such as
gas and oil, or you can deduct the standard mileage rate for medical expenses,
which is 19 cents per mile for 2011.

8. Tax-favored saving for medical expenses Distributions from Health Savings Accounts and
withdrawals from Flexible Spending Arrangements may be tax free if used to pay
qualified medical expenses including prescription medication and insulin.

If you need any more information give us a call. We are always happy to help.

Sometimes taxpayers need a copy of an old tax return, but can’t find or
don’t have their own records. There are three easy and convenient options for
getting tax return transcripts and tax account transcripts from the IRS: on the
web, by phone or by mail. There are eight things you need to know about getting
federal tax return information from a previously filed tax return.

1. You can order transcripts online or by phone for the current tax year as
well as the past three tax years. Earlier tax years must be requested with Form
4506T-EZ, Short Form Request for Individual Tax Return Transcript.

2. A tax return transcript shows most line items from your tax return as it
was originally filed, including any accompanying forms and schedules. It does
not reflect any changes made after the return was filed.

3. A tax account transcript shows any later adjustments either you or the
IRS made after the tax return was filed. This transcript shows basic data,
including marital status, type of return filed, adjusted gross income and
taxable income.

4. To request either transcript online from this website use our online tool
called Order a Transcript. To order by phone, call 800-908-9946 and follow the
prompts in the recorded message. When you use these automated self-service
options, the selected transcript will be mailed to your current address of
record. To have your transcript mailed to a different address, complete and
mail Form 4506-T, Request for Transcript of Tax Return. The IRS does not charge
a fee for transcripts.

5. To request a 1040, 1040A or 1040EZ tax return transcript through the
mail, complete IRS Form 4506T-EZ. Businesses, partnerships and individuals who
need transcript information from other forms or need a tax account transcript
must use the Form 4506T.

6. If you order online or by phone, you should receive your tax return
transcript within five to 10 calendar days from the time the IRS receives your
request. Allow 30 calendar days for delivery of a tax account transcript if you
order by mail using Form 4506T or Form 4506T-EZ.

7. If you still need an actual copy of a previously processed tax return, it
will cost $57 for each tax year you order. Complete Form 4506, Request for Copy
of Tax Return, and mail it to the IRS address listed on the form for your
area.  Copies are generally available for the current year as well as the
past six years. Please allow 60 days for actual copies of your return.

8. Visit this website to determine which form will meet your needs. Forms
4506, 4506T and 4506T-EZ can be downloaded or by calling the IRS forms and
publications order line at 800-TAX-FORM (800-829-3676).

If your pay from work involves compensation through tips, then the IRS would like you to be aware of a few facts about tip income. Here are four key points to keep in mind:

1. Tips are taxable Tips are subject to federal income, Social Security and Medicare taxes.  The value of non-cash tips, such as tickets, passes or other items of value, is also considered income and subject to tax.

2. Include tips on your tax return You must include in gross income all cash tips you receive directly from customers, tips added to credit cards, and your share of any tips you receive under a tip-splitting arrangement with fellow employees.

3. Report tips to your employer If you receive $20 or more in tips in any one month, you should report all of your tips to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes.

4. Keep a running daily log of your tip income. You can use IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record your tip income.