Posts

Showing posts from September, 2014

IRS to Consider Earlier W-2 Filing Deadline

In the 2013 filing season, identity thieves attempted to steal almost $30 billion. The IRS paid $5.2 billion in fraudulent returns. The IRS prevented identity thieves from stealing the remaining $24.2 billion. Fraudulent refund requests represent over 9% of total refunds paid. While the IRS paid only 1.6% of the refunds, the total sum is large.

The Department of Treasury recommended some changes in filing procedures. First, the department recommended an earlier filing deadline. Second, the department recommended a lower threshold for mandatory e-filing. Reconciling Refund Requests Currently, businesses provide their employees with copies of the W-2 by January 31. Many employees immediately file their taxes to claim a refund. The reports aren't sent to the Social Security Administration until much later. Last year, the deadline for paper filers was the end of February. The deadline for e-filers was the end of March. 

The IRS cannot reconcile refund requests until July, under the cur…

Password Security

At Tax1099.com, we take security very seriously. Our 256-bit bank-grade encryption does a lot in the way of keeping your data secure. Tax1099.com is also SSAE-16 certified. However, all that security can be endangered if your password is compromised. Following these password guidelines can help lock down your account's security. Password Guidelines Do: Create a unique password for Tax1099.com. Don't use the same password for all your logins.Create a long, complicated password. (This is where it's good to use letters, numbers, and symbols.)Set up password recovery options.Use two-factor authentication.Change your passwords often.Don't: Don't use predictable personal information for your password. Don't use a common phrase that other people would be able to guess.Don't post your password list where someone could find it. Keeping Track of Passwords There's only one problem with making a hard-to-guess password: it's hard for you to guess, too. Complex pass…

Affordable Care Act May Make Personal Tax Reporting More Complex

The new Affordable Care Act reporting requirements may complicate personal tax reporting. H&R Block CEO Bill Cobb says his firm expects confusion. This comment came during H&R Block's September the 3rd meeting.

According to Cobb, tax filers may see added complexity from different aspects of the ACA: New forms, based on income and household No 1040-EZ filing for taxpayers receiving an advanced tax credit Possible penalties for filers with no health coverage H&R Block is preparing to handle the increased needs of filers. Cobb says, “We’re making smart investments now to ensure we’re prepared to serve our clients and meet their needs when they turn to us for help in understanding how the new law impacts them.” Voluntary Reporting The IRS instituted voluntary reporting for the 2014 tax year. The voluntary nature of this filing may cause more confusion. For example: George mentions to Sally that his employer provided reporting information. Sally hasn't received anything fr…

IRS Releases Draft Instructions for Affordable Care Act Compliance

Aren't you glad that Affordable Care Act (ACA) reporting isn't official until 2015? The IRS released drafts of 1095 forms in late July. At that time, there was concern about the instructions.

The IRS is encouraging employers to treat 2014 as a trial run for ACA filing. The draft of instructions for form 1095-C is now available. What do I need to know about these instructions? Your filing requirements depend on your situation. 

Are you a large employer, according to the ACA? If so, you will report on form 1095-C. This form reports the offer of health coverage given to your employees.

Are you, the employer, also the insurer? If so, the information that insurers file on form 1095-B should be filed with form 1095-C. What else is in the instructions?Terms As you may have heard, the ACA is a very lengthy document. As an employer, many of the pages are not applicable to you. What is applicable? The instructions included in the ACA define specific terms. If you are unfamiliar with the AC…