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December 2023

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IRS Announces Penalty Relief on Millions of 2020 and 2021 Tax Returns

The Internal Revenue Service (IRS) has announced that it will ofer penalty relief to approximately 4.7 million individuals and corporations that didn’t receive automated collection reminder notices during the COVID-19 pandemic. Keep reading to learn more.

Penalty Relief: What You Need To Know

The IRS announced that it will offer penalty relief to about 4.7 million individuals, businesses, and tax-exempt corporations that didn’t receive automated collection reminder notices due to the disruptions caused by the pandemic.

In total, the agency expects to provide about $1 billion in penalty relief, with most of it going to taxpayers who make under $400,000 a year.

Starting from February 2022 the IRS temporarily stopped mailing notices reminding tax payers to pay overdue taxes. The failure-to-pay penalties, however, continue to accrue, which can result in substantial tax bills.  

How To Take Advantage of the Penalty Relief?

This penalty relief is automatic, so eligible taxpayers are not required to take any action.

If you already paid the failure-to-pay penalties related to the 2020 and 2021 tax years, the IRS will issue a refund or credit the payment you made toward other outstanding tax debts. 

Note that the penalty relief only applies to eligible taxpayers with assessed tax under $100,000. 

Eligible taxpayers include individuals, businesses, trusts, estates and tax-exempt organizations that filed certain Forms 1040, 1120, 1041 and 990-T income tax returns for tax years 2020 or 2021, with an assessed tax of less than $100,000, and that were in the IRS collection notice process — or were issued an initial balance due notice between Feb. 5, 2022, and Dec. 7, 2023. 

The IRS estimates tha five million tax returns are eligible for the penalty relief.

JT Tax Services: Taxes Made Easy

When it comes to taxes, knowledge is power. That’s why at At JT Tax Services, we give you the peace of mind that comes with knowing that you are working with experienced professionals with in-depth knowledge of all applicable tax laws and regulations.

We are located in Oxnard, California, contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services. Feel free to contact us today!

Man looking at laptop illustrates blog "What You Need To Know About Fake Charities"

What You Need To Know About Fake Charities

During the holidays, many people give generously to charities that claim to provide relief and aid to those in need. However, not all charities are created equal. In fact, some organizations collect money under the guise of helping others, but their intentions are far from genuine. These are known as fake charities, and they’re becoming increasingly common. Here’s what you need to know about them. 

What Are Fake Charities?

A fake charity is a type of scam designed to look like a legitimate charitable organization. 

The main purpose of a fake charity is to deceive people into donating money, believing they are contributing to a good cause, when in fact the funds are being collected for personal gain or illegal activities.

Fake charities often use names and logos that closely resemble those of well-known, reputable organizations to confuse potential donors. 

How Do Fake Charities Operate?

Fake charities often exploit the goodwill of the public by setting up websites that mimic the appearance of legitimate charities. 

They may also use social media or cold-calling to solicit funds. Fake charities often use names that suggest they are legitimate, but they may not be registered with the relevant authorities..

How To Spot Fake Charities?

There are a few ways to spot a fake charity. The first is to do your research. Take the time to look up the charity online and read reviews or articles about its history. 

Be particularly cautious about charities that seem to have arisen suddenly after a recent disaster or crisis. 

Additionally, fake charities often collect funds quickly and without any transparency about how the money will be used. This is why it’s important to scrutinize the charity’s website and donation process.

How Does Donating to a Fake Charity Affect You?

Donating to a fake charity not only means the money goes to waste, but it also puts your personal and financial information at risk. Fake charities may use this information to steal your identity or engage in credit card fraud. Moreover, the money you donate won’t be used for the intended purpose, which often means those in need do not receive the help they require.

How Do I Report Fake Charities?

If you suspect there’s a fake charity, it’s important to report it. The Federal Trade Commission (FTC) and your state’s Ddepartment of Justice are two organizations you can contact to file reports of charity scams. 

Make sure to provide all the information you have, including the name of the organization, its website, phone number, and other relevant details.

Wrapping It Up

We all want to do our part to help those in need, especially during the season of giving. However, it’s crucial to remember that not all charities are genuine.

Fake charities are becoming increasingly commonplace, which is why it’s important to stay vigilant. Always do your research before donating to any charity, and don’t hesitate to report any suspicious activity. With your help, we can all work to shut down fake charities and ensure that our donations actually go to those in need.

JT Tax Services: Taxes Made Easy

When it comes to taxes, knowledge is power. That’s why at At JT Tax Services, we give you the peace of mind that comes with knowing that you are working with experienced professionals with in-depth knowledge of all applicable tax laws and regulations.

We are located in Oxnard, California, contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services. Feel free to contact us today!

Young couple looking at laptop at home

All You Need to Know About the Identity Protection Personal Identification Number (IP PIN)

In today’s digital age, protecting your personal information is more critical than ever before. That is why the IRS came up with an Identity Protection Personal Identification Number (IP PIN) to help protect taxpayers from identity theft. But what is an IP PIN, and how does it work? In this blog post, we will explore everything you need to know.

What is an IP PIN?

An IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security Number (SSN) on fraudulent federal income tax returns. An IP PIN is valid for one calendar year.

Once assigned, you must use your IP PIN to confirm your identity when you file your tax returns. 

If you haven’t received your IP PIN or lost it, you can retrieve it using the IRS’s Get an IP PIN tool on their website.

Who is eligible for an IP PIN?

The IRS automatically enrolls some taxpayers who were victims of identity theft and resolved the issue with the IRS in the prior tax year. 

However, starting in the 2021 filing season, the IP PIN program will expand to all eligible taxpayers who opt-in. 

To be eligible for an IP PIN, you must have a valid SSN, be able to verify your identity, and have an adjusted gross income of $73,000 or less (or $146,000 for married couples filing jointly.)

How does an IP PIN work?

When you get an IP PIN, you must use it to file your tax returns. You will enter the six-digit number in the appropriate box, and the IRS will verify the number before accepting your return. If someone else files a tax return using your SSN, they will not know your IP PIN, and the IRS will reject their filing. If the IRS rejects your tax return due to an incorrect IP PIN, you can try to correct the error, but it may lead to delays and additional scrutiny.

What are the benefits of an IP PIN?

The primary benefit of an IP PIN is that it provides an extra layer of security to prevent identity thieves from using your SSN to file fraudulent tax returns and claim your refund. Additionally, the IRS plans to expand the e-file PIN program to more taxpayers who wish to opt-in to the program, making it available to more people.

Wrapping It Up

In conclusion, an IP PIN is a critical tool in protecting your identity and financial well-being. It helps prevent fraudsters from using your SSN to file a fraudulent tax return and claim your refund. The IRS automatically enrolls some victims of identity theft in the IP PIN program and plans to expand the opt-in program to all eligible taxpayers. If you’re eligible, we highly recommend opting into the IP PIN program to help keep your identity safe and secure.

JT Tax Services: Taxes Made Easy

When it comes to taxes, knowledge is power. That’s why at At JT Tax Services, we give you the peace of mind that comes with knowing that you are working with experienced professionals with in-depth knowledge of all applicable tax laws and regulations.

We are located in Oxnard, California, contact us today by email (info@jttaxservices.com), telephone (805-984-8890), or through our social media accounts on Facebook, Twitter, and LinkedIn to schedule a consultation or to learn more about our services. Feel free to contact us today!

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