Tax help in Oxnard California Archives

Closeup of a man talking on the phone illustrates blog "Scammers Impersonating the IRS on the Phone: What You Need To Know"

What You Need To Know About Scammers Impersonating the IRS on the Phone

September 28, 2023

The Internal Revenue Service (IRS) is the federal agency responsible for administering and enforcing the nation’s tax laws. Unfortunately, scammers and fraudsters have found a way to exploit the agency’s reputation and use it to perpetrate fraud schemes. Here’s what you need to know about this scheme.

How IRS Phone Scams Work

Scammers use different tactics to defraud taxpayers, but the most common method is to mimic the IRS. They call unsuspecting victims, often telling them they owe back taxes or claiming there is an issue with their tax return.

The scammer then demands immediate payment or threatens legal action, including arrest, deportation, or revocation of their driver’s license.

They may also ask for personal or financial information to “verify” the target’s identity or eligibility for a refund. These calls often use scare tactics or urgency to get the victim to act quickly without verifying the validity of the caller or the information provided.

How To Spot an IRS Phone Scam

Knowing the red flags of a scam call can help you avoid becoming a victim. Some common signs of an IRS phone scam include:

A caller who demands immediate payment over the phone or threatens legal action.
A caller who uses aggressive or abusive language, or speaks in a robotic or scripted tone.
A caller who claims to be from the IRS but doesn’t know your name or other personal details.
A caller who asks for sensitive information, such as your Social Security number, bank account number, or credit card information.
A caller who asks you to transfer money or buy gift cards or other prepaid cards.

What To Do if You Receive an IRS Phone Scam Call

If you receive a call from someone who claims to be from the IRS and you suspect it’s a fraudulent call, don’t panic or engage with the caller. Here are some steps you can take to protect yourself:

Hang up immediately
Don’t give out any personal information
Don’t make any payment or transfer money
If possible, note the caller ID information or the number the caller used
Report the call to the IRS and the Federal Trade Commission (FTC)
How to report an IRS phone scam

Reporting IRS phone scams is essential to help law enforcement catch the perpetrators and prevent them from defrauding others.

If you think you’ve been targeted by an IRS phone scam, report it to the IRS by email at phishing@irs.gov (Subject: IRS Phone Scam). Make sure to include the number of the caller, any phone number you are instructed to call, and a brief description of the communication.

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!

Understanding Double Taxation: What It Is and How It Affects You

By: UNIKO Media Group

September 20, 2023

If you’re a business owner or an employee of a company, you have probably heard of the term “double taxation.” It can be a confusing and complex concept to grasp, but understanding it is crucial, especially when it comes to handling taxes.

What Is Double Taxation?

Simply put, double taxation refers to the imposition of two or more tax obligations on the same income, asset, or financial transaction.

This can happen in several situations; one of the most common is when a business earns profits, and the earnings are taxed at both the corporate and personal levels. In other words, the profit generated by the company is taxed at the corporate level, and the dividends paid to shareholders are subject to personal taxes.

Another situation where double taxation occurs is in international trade. When a foreign company does business in a particular country, the profits they make are taxed in both the country of origin and the country where they operate.

Double Taxation: What You Need To Keep in Mind

Double taxation may seem unfair, but it is standard practice in many countries. The US, for example, is known to have one of the highest corporate tax rates globally, which makes it essential for businesses to consider double taxation when planning their investments.

To avoid double taxation, several strategies can be employed. For businesses, choosing a legal entity, such as a partnership or a limited liability company (LLC), can help lower the tax burden.

For individuals, it’s essential to take advantage of any tax allowances or credits that may apply.

Wrapping It Up

In summary, double taxation is a complex issue that can affect both businesses and individuals.

Understanding the basics of double taxation and implementing strategies to reduce the tax burden can help businesses and individuals stay compliant while maximizing their tax savings.

So it’s crucial to seek the advice of a tax professional who can help navigate through different tax jurisdictions and ensure you comply with all relevant tax laws.

JT Tax Services: Taxes Made Easy

What Is a Limited Liability Company (LLC)?

By: UNIKO Media Group

September 12, 2023

One of the most popular business structures, especially for small business owners, is a Limited Liability Company, or LLC for short. If you’re unfamiliar with what an LLC is or how it operates, don’t worry! This guide will provide you with a comprehensive overview of what an LLC is, how it works, and why it might be the right option for your business.

What is an LLC?

A limited liability company, or LLC, is a legal structure that combines the benefits of a partnership or sole proprietorship with those of a corporation.

Essentially, it’s a way to structure your business that offers both personal liability protection and flexibility.

By forming an LLC, you are creating a separate legal entity that can own property, enter into contracts, and conduct business.

However, unlike corporations, there are no shareholders or boards of directors to answer to – instead, owners of an LLC are referred to as members and can manage the company themselves.

How does an LLC work?

To form an LLC, you will need to file paperwork with your state’s Secretary of State and pay a registration fee.

Typically, this involves providing basic information about your company, such as its name, address, and the names of its members.

Once your LLC is registered, you’ll need to draft an operating agreement, which outlines how the business will be run, how profits and losses will be divided among members, and other important information.

An LLC is typically taxed as a pass-through entity, meaning that the profits and losses are reported on the individual tax returns of members and not at the business level.

Why choose an LLC?

There are several benefits to choosing an LLC as your business structure.

One of the most significant advantages is that LLCs provide personal liability protection to their owners. This means that if your business is sued or incurs debt, your personal assets (such as your home or car) cannot be used to satisfy those debts.

Additionally, LLCs offer flexibility in terms of management structure, and there are typically fewer formalities required than with a corporation. This means that you can operate your business more informally while still enjoying the legal benefits of being a separate entity.

LLCs: What You Need To Keep in Mind

While LLCs offer many benefits, there are also some potential drawbacks to consider.

One of the most notable is that LLCs can be more expensive to form and maintain than sole proprietorships or partnerships.

Additionally, the process of forming an LLC can be complex, and it may be beneficial to work with a lawyer or tax professional to ensure that you’re complying with all applicable laws and regulations.

Finally, while LLCs provide personal liability protection, there are limits. For example, members can still be held personally liable if they engage in fraudulent or illegal activities on behalf of the company.

Wrapping It Up

Overall, a Limited Liability Company is a popular legal structure for entrepreneurs looking to start a business.

It offers personal liability protection, flexibility, and a relatively easy process to set up and maintain.

However, there are also some potential drawbacks to consider, such as the cost of formation and maintenance.

By understanding how an LLC works and weighing the pros and cons, you can make an informed decision about whether it’s the right structure for your business.

JT Tax Services: Taxes Made Easy

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!

What Is a C Corporation and How Does It Work?

By: UNIKO Media Group

September 8, 2023

When starting a new business, it’s important to choose the right structure for your company. One popular option is a C Corporation. But what are they, exactly? Read on to learn more about C corporations, from a basic definition to their pros and cons.

Definition of a C Corporation

A C Corporation is a type of business structure in which the company is owned by shareholders who have limited liability for the company’s debts and obligations.

The corporation operates as a separate legal entity that can conduct business, own assets, and enter into contracts.

This means that the corporation can sue and be sued, enter into agreements, and pay taxes separately from its owners.

How a C Corporation Works

A C Corporation is managed by a board of directors who are elected by the shareholders.

The board of directors is responsible for making major business decisions, such as choosing the company’s officers, approving budgets, and setting corporate policies. The officers of the corporation, such as the CEO and CFO, are responsible for the day-to-day operations of the business.

C Corporations issue stock to shareholders, which represents their ownership in the business. Shareholders are not involved in the day-to-day operations of the business and do not have liability for the debts and obligations of the corporation.

Advantages of a C Corporation

One of the main advantages of a C Corporation is that it offers limited liability to its shareholders.

This means that the personal assets of the shareholders are protected from the corporation’s debts and obligations. Additionally, the corporation can raise capital by issuing stock to investors, which can help the business grow and expand.

Another advantage of a C Corporation is that it can deduct certain business expenses, such as salaries, benefits, and property taxes. This can help reduce the company’s tax liability and increase its profits.

Disadvantages of a C Corporation

One of the main disadvantages of a C Corporation is that it is subject to double taxation. This means that the corporation pays taxes on its profits, and then the shareholders pay taxes on any dividends they receive. This can result in a higher overall tax liability for the company and its shareholders.

Another disadvantage of a C Corporation is that it requires more formalities and paperwork than other business structures, such as a sole proprietorship or partnership. This can result in higher administrative costs and more time spent on compliance.

JT Tax Services: Taxes Made Easy

Did You Receive Unemployment Compensation in 2020? You May Qualify for a Tax Refund

By: UNIKO Media Group

June 17, 2021

If you received unemployment compensation in 2020 then you may qualify for a tax refund.

The IRS is reviewing the tax returns filed before the American Rescue Plan became law in March of this year to determine the taxable amount of unemployment compensation.

The American Rescue Plan excluded up to $10,200 in unemployment compensation per tax payer from taxable income paid in 2020. Please note that this is only the limit of taxable unemployment compensation, not the refund you would receive.

This adjustment is important, because a record number of Americans applied for unemployment benefits in 2020 due to the coronavirus pandemic.

Depending on their individual situation, some taxpayers will receive refunds, while others will have the exceeding amount applied to taxes due or other debt. For some taxpayers there will be no change.

Other Adjustments

Taxpayers may also have their return corrected for other credits that were also affected by the American Rescue Plan: the earned income tax credit, the premium tax credit, and the recovery rebate credit.

You don’t have to take any action to benefit from these adjustments. The IRS will review your return to calculate the correct taxable amount.

If the IRS adjusts your tax return, you will receive a letter from them within about 30 days. The letter will detail what adjustments were made to your return as well as the amount of the adjustment.

And by the way, here’s an extra tip to keep in mind: don’t forget to keep for your records any letter from the IRS.

Contact the Experts at JT Tax Services

Do you need help preparing your taxes? Do you want to learn more about refunds and credits? At JT Tax Services, we give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all 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.

This Important Tax Deadline Is Less Than One Month Away

By: UNIKO Media Group

January 8, 2021

The year has just begun, but an important tax deadline is already less than one month away. If you are an employer, don’t forget that you should issue and file wage statements by Monday, February 1, 2021. Keep reading to discover what are the statements and forms you should keep in mind.

Form W-2

Companies should complete and file a W-2 form for every employee to whom they pay a salary. Don’t forget that you should also send your employees copies of their W-2 forms by February 1, 2021, so that they can file their taxes before the due date (April 15, 2021).

Form W-3

This form (official name: Transmittal of Wages and Tax Statements) is a detailed summary of all the W-2 forms filed by your company. This form is used by the Social Security Administration (SSA) to keep track of the salaries, commissions, tips, and other compensations that employees receive throughout the year.

Form 1099-MISC

File a 1099-MISC Form for every person to whom you paid the following during the last year:

At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
At least $600 in:
- Prizes and awards.
- Other income payments.
- Medical and health care payments.
- Crop insurance proceeds.
- Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
- Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
- Payments to an attorney.
- Any fishing boat proceeds.

As is the case with Forms W-2, you should also send Forms 1099-MISC to recipients before February 1, 2021.

Form 1099-NEC

You should file Form 1099-NEC, Nonemployee Compensation, if all the following statements apply:

You made the payment to a person who is not your employee
The payment was for services in the course of your trade or business
You made the payment to an individual, a partnership, an estate, or a corporation
Payments were at least $600 during the year

Also in this case, keep in mind that recipients of Forms 1099-NEC should receive their copies by February 1, 2021.

More Tips About Taxes

Do you want to learn more about taxes and Economic Impact Payments? Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

At JT Tax Services we have the experience, the knowledge, and the drive to assist you in the preparation of your taxes. We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email (info@jttaxservices.com), telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

The IRS Begins Delivering Second Round of Economic Impact Payments

By: UNIKO Media Group

December 30, 2020

The Internal Revenue Service (IRS) announced that it has begun delivering a second round of Economic Impact Payments (EIP) as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021.

The agency began sending payments through direct deposit yesterday (Tuesday), and it will begin sending paper checks today.

Do I Have to Take Any Actions to Receive my Economic Impact Payment?

Economic Impact Payments are automatic. This means that no action is needed on the part of recipients. The IRS has requested taxpayers not to contact financial institutions or the IRS itself with payment timing questions.

Keep in mind that the delivery method may be different for the second stimulus payment. If you received the previous Economic Impact Payment, but don’t receive a direct deposit, then you will receive a check or a debit card.

On the other hand, if you were eligible but didn’t receive either the first or the second payment, you will be able to claim it when you file your taxes for 2020.

How Much is the Second Stimulus Check?

The amounts of the second stimulus payment will be determined as follows: up to $600 for individuals; up to $1,200 for married couples filing jointly: and up to $600 for every qualifying child

Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing jointly and surviving spouses, you will receive the full amount of the second payment.

How Can I Check the Status of My EIP?

You will be able to check the status of your payment using the online tool Get my Payment. The service is offline at the moment as the information is being updated. However, the IRS expects that the tool will be available again shortly.

More Tips About Taxes

Do you want to learn more about taxes and Economic Impact Payments? Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

We are located in Oxnard, California. Contact us today by email, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

This Christmas, Beware of Hacking Attempts

By: UNIKO Media Group

December 24, 2020

Christmas is the merriest season of the year, but it also offers ideal conditions for hacking attempts. Keep reading to learn why you should be especially careful these days, and what steps you can take to protect your data.

Why Are Hacking Attempts Common During the Holidays?

The holidays, and in particular the days around Christmas, have become a hunting ground for hackers looking to steal personal information. This phenomenon is caused by a combination of circumstances that favor cyber-criminals:

Many employees are on vacation, which means that many companies have to let their guard down.
People are more willing to open unsolicited emails, especially if they promise holiday deals/discounts.
The holiday season offers myriad opportunities to trick unsuspecting victims through email: virtual greeting cards, invitations, and other holiday-related content.

How to Protect Yourself

In order for most hacking attempts to succeed, you must be tricked into performing certain actions, such as clicking on a link or downloading a file. This means that being cautious when you use the internet is your best line of defense. Other steps you can take include:

Use safe passwords. Choose passwords of at least eight characters that include a mix of upper and lower case, special characters and numbers.
Use multi-factor authentication. When available, use this feature, where a website asks you for two pieces of information before granting access. This is not a silver bullet but makes hacking attacks less likely.
Be extremely careful with links and attachments. These are the resources that hackers use more often, so don’t click on a link or download an attachment unless you know the sender.
Backup your data. In itself, this doesn’t prevent hacking attacks, but it can make all the difference if you can’t access your data after a breach.

More Tips About Taxes

Learning more about taxes is always a smart move, as it helps you avoid fines and missed deductions. Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

Need help preparing your taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

3 New Things to Consider When You File Your 2020 Tax Return

By: UNIKO Media Group

December 18, 2020

This year has been out of the ordinary from every point of view, including taxes. There are some new things you should consider when you file your 2020 tax return. Keep reading to learn more.

Recovery Rebate Credit

You may be able to claim this credit if you met the eligibility requirements for an Economic Impact Payment in 2020 and one of the following applies to you:

You didn’t receive an Economic Impact Payment in 2020.
You are single and your payment was less than $1,200.
You are married, filed jointly for 2018 or 2019 and your payment was less than $2,400.
You didn’t receive $500 for each qualifying child.

Refund Interest Payment

If you received a federal tax refund in 2020, keep in mind that interest payments are taxable and must be returned on your 2020 federal tax return. Next January, the IRS will send a form to any person who received interest payments of at least $10 during the last year.

New Charitable Deduction

If you don’t itemize your deductions, you can take this year a new charitable deduction of up to $300 for donations made during 2020 to qualifying institutions. If you are interested in this deduction, check out this previous post where we take a closer look at this interesting topic.

Finally, remember that you shouldn’t rely on receiving your refund by a certain date. This is particularly important if you are planning to make a big purchase or pay important bills. While the IRS processes tax returns as soon as possible, some returns require more time, so your refund may take longer than you expect.

More Tips About Taxes

Learning more about taxes is always a smart move, as it helps you avoid fines and missed deductions. Here are some previous posts you may find interesting.

Contact the Experts at JT Tax Services

We are located in Oxnard, California. Contact us today by email, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.

The Scam You Should be Aware of During This Holiday Season

Remember: Gift Cards are NOT to Be Used to Make Tax Payments

By: UNIKO Media Group

November 11, 2020

Gift cards are a convenient option people use every holiday season. It makes sense: these cards allow you to give a gift to someone you care about without running the risk of giving them something they don’t like. However, gift cards are NOT to be used to make tax payments. Read on to learn how to identify, avoid, and report this type of scam.

How the Scam Works

Scammers often impersonate the IRS or other reputable institution and try to get people to pay fake tax bills with prepaid gift cards. This may sound absurd on its face (and it is), but a lot of people fall for this scheme every year, so it’s better to be prepared.

Criminals prefer gift cards because they are difficult to trace or recover when the transaction has been completed. So once you have provided them with the information they need, it’s very difficult to get your money back.

Pay Attention to These Red Flags

These are some red flags that can help you identify scammers using this scheme:

The contact you unsolicited either by phone, email, text, or social media.
Scammers may tell you that you are somehow linked to illegal activity (for example, that your identity has been stolen and used for fraudulent purposes).
They use threats and/or harassment to get you to pay a fake tax penalty.
They instruct you to buy gift cards from different stores.
Once you buy the gift cards, they ask you to provide the gift card number and PIN.

How to Report a Gift Card Scam Attempt

If you believe you have been targeted by scammers, you can use the IRS Impersonation Scam Reporting website or call 800-366-4484.

In the case of phone scams, you can report them to the Federal Trade Commission, making sure to add “IRS phone scam” in the notes.

If you receive threatening or harassing phone calls, you can report them directly to the IRS to phishing@IRS.gov, including the phrase “IRS phone scam” in the subject line.

More Tips About Taxes

Learning more about the options available to you as a taxpayer is more important than ever. Check out these previous posts for more useful tax tips:

Contact the Experts at JT Tax Services

Looking for expert, dependable advice on taxes? At JT Tax Services we have the experience, the knowledge, and the drive to assist you. We give you the peace of mind that comes with knowing that you are limiting your liability while staying compliant with all regulations.

We are located in Oxnard, California. Contact us today by email, telephone, or through our social media accounts on Facebook, Twitter, and LinkedIn to learn more about our services.