Are You Aware of These Tax Penalties?

Common Tax Penalties 

Even though most people don’t intentionally incur tax penalties, however, many are penalized because they are not aware of the penalties or the impact they can have on their wallet.  Before tax season approaches, here are some of the more commonly encountered penalties and how they may be avoided.  Keep in mind that there are more severe penalties not mentioned here that apply to fraudulent actions or claims.  

W-2 and 1099-MISC Filing Dates Moved Up

Two New Fraud-Prevention Measures from the IRS

The first will purposely delay until February 15 the issuance of refunds for tax returns where there is an earned income tax credit (EITC) and/or a refundable child tax credit (CTC), giving the IRS more time to match the income reported on these returns to the income reported by employers. These two tax credits have been the favorite target of scammers who have been filing fraudulent returns with stolen IDs and fabricated income before the IRS is able to verify the income and withholding claimed on the returns.

Scam Targets Taxpayers

Fake IRS Mail Notices 

Crooks have tried all sorts of e-mails scams, but almost everyone has figured out that the IRS does not send out notices by e-mail.  So crooks have changed their tactics.  Now, there are reports of taxpayers receiving by mail (or email) fake notices requiring immediate payment to a P.O. Box.  The P.O. Boxes are located in cities where the IRS has service centers, but of course are not IRS P.O. Box addresses.