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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!

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

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!

Tax Filing Tips for Small Businesses

By: UNIKO Media Group

March 27, 2023

For many small business owners, tax season may seem like a daunting task. The rules and regulations surrounding taxes can be overwhelming and intimidating. But with the right information and preparation, filing taxes doesn’t have to be a headache. Keep reading to learn some helpful tips for small business owners so you can file your taxes with confidence!

Start Early

When it comes to your taxes, it’s never too early to start preparing. By getting a head start on your taxes, you’ll have plenty of time to make sure you’re taking advantage of all available deductions and credits that could save you money. Plus, if there’s an issue or mistake on your return, you’ll have plenty of time to resolve it before the deadline.

Take Advantage of All Available Deductions

One of the most important things small business owners should do is take full advantage of all available deductions and credits. This means researching what types of expenses are deductible as well as which tax credits can help reduce your overall tax burden

There are also numerous tax credits available for businesses. Get in touch with a tax professional to discover how to best take advantage of all these opportunities.

Keep Accurate Records

Wait! Before you can take full advantage of the deductions available to you, it’s essential to keep accurate records throughout the year — not just during tax season!

This will ensure that you don’t miss out on any potential deductions when filing your return. Make sure you accurately track each expense throughout the year so that you don’t end up paying more than it’s necessary when filing your return.

Work With a Tax Pro

If you feel that taxes are just too tricky for you, consider hiring a professional accountant or tax preparer who can help make sense of all the paperwork and regulations associated with filing a business return correctly and on time each year – especially if you’re dealing with state-level taxation issues in addition to Federal ones!

A tax pro not only can help ensure that everything is filed correctly but they’ll also be able to provide helpful advice about how best to structure your finances going forward so that next year’s return isn’t nearly as painful!

JT Tax Services Is Here To Answer Your Tax Questions

Charitable Donations and Taxes: What You Need To Know

By: UNIKO Media Group

December 21, 2022

Christmas is a time of giving, so chances are good that you are considering making a donation to lighten up someone’s Christmas. If that’s the case, read on to discover some useful tax tips to keep in mind this holiday season.

Charitable Donations and Taxes: What You Need To Know

First things first: remember that in order to claim a deduction on your 2022 tax return, you must donate to a tax-exempt organization by December 31 2022.

Another important point to consider is that, in general, you can only deduct charitable contributions if you itemize deductions on schedule A (although an exception was made for 2021 returns).

While most charitable tax donations qualify for the deduction, there are some exceptions. For example, donations that are not tax deductible include those:

Made to a supporting organization
Intended to help establish or maintain a donor advised fund
Carried forward from prior years
Made to most private foundations
Made to charitable remainder trusts

A charity must have something known as 501(c)3 status if you want to deduct your donation on your federal tax return. You can check an organization’s 501(c)3 status by using the IRS’ Tax Exempt Organization Search tool.

For most people, making a donation means donating funds. However, If you donate property other than cash, you may generally deduct the fair market value of the property.

It’s also worth noting that the term “cash” doesn’t refer to physical money only. For tax purposes, cash contributions include those made by check, credit card or debit card as well as unreimbursed out-of-pocket expenses in connection with volunteer services to a qualifying charitable organization.

If you need help making sense of charitable donations and how to claim them on your tax return, feel free to contact our experts. We’ll be happy to offer assistance and answer all your questions.

Have Tax Questions? At JT Tax Services, We’ve Got Answers

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.

FBI Warns About New Strategy Used by Cybercriminals

By: UNIKO Media Group

December 5, 2022

More and more people are turning to the internet to seek tax advice or even make tax-related payments. However, the FBI is recommending users to stay cautious when they search for information online, as they may become the unsuspecting victims of cybercriminals.

FBI Warns About New Strategy Used by Cybercriminals

The internet is a vast place, and the most efficient way to make sense of it is by using a search engine. However, cybercriminals are aware of this fact and have found a way to lure unsuspecting victims using the advertising features of search engines.

According to a public service announcement released by the FBI, cybercriminals are using search engine advertisement services to impersonate brands and direct users to malicious sites that may steal their personal information.

As the name suggests, search engine advertising is a type of marketing that appears when a user looks for information on a search engine. While the vast majority of information displayed on search engines is legitimate and useful, criminals are paying for ads that appear alongside other results with the purpose of misleading users.

How To Protect Yourself

As the FBI points out, search engines “are not malicious in nature.” However, you should exercise caution when using them. Here are some tips to keep you safe:

If you know the internet address of the website you want to visit, use it instead of looking up the name of the company or institution on a search engine (a strategy some people use to save time)

Before clicking on a search engine result, check the address carefully for words misspelled with malicious intent (for example “yourbnak.com” instead of “yourbank.com”)

Use an ad blocking extension when performing internet searches. An ad blocking extension is a small piece of software that prevents ads from appearing on your browser. In most cases you can customize which websites are allowed to display ads.

Have Tax Questions? At JT Tax Services, We’ve Got Answers

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.

Are Car Expenses Tax Deductible?

By: UNIKO Media Group

August 24, 2022

When it comes to tax deductions, you want to take advantage of as many of them as possible. But are car expenses tax deductible? In today’s blog post, we answer this and other common questions about cars and tax deductions.

What Is a Tax Deduction?

Before we explain if car expenses are tax deductible, let’s take a closer look at what a tax deduction is.

Simply put, a deduction is an expense you can use to lower your taxable income. In other words, tax deductions help you save on taxes.

For example, donations to qualified charitable institutions are tax deductible.So if you earn $70,000 a year, and you make a $1,000 donation, then your taxable income for that year won’t be $70,000 but $69,000

Are Car Expenses Tax Deductible?

The simple answer is that car expenses are deductible — but only in some cases. Let’s see what this means.

First off, you can write off your car-related expenses only in certain cases. If you use your vehicle only for personal purposes or to commute to and from work, then you probably won’t be able to claim your car expenses as a deduction on your car return.

However, if you can prove that you use your car for business purposes, then you can deduct some car expenses.

Taxpayers who use their car for business have two options to deduct the expenses related to their vehicles:

Use the actual car expenses
Use the standard mileage rates set by the IRS

There are three categories of standard mileage rates: business, charitable, and medical/move. The rates are adjusted every year and you can check them on the IRS website (click here the 2022 standard mileage rates).

If you decide to use your actual car expenses, you have to keep an accurate records of expenses like:

Oil
Tires
Repairs
Maintenance
Insurance
Business-related garage fees

If you have questions about the car expenses you can deduct or want to discover which deductions you qualify for, contact the experts at JT Taxes. We’ll be glad to answer all your questions and make sure you pay only the tax you owe.

Have Tax Questions? JT Tax Services Is Here To Help!

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.

Can Taxes Be Filed After the Official Deadline?

By: UNIKO Media Group

August 11, 2022

In case it passed you by, Tax Day this year was on April 18. If you said “Oops!” after reading that, you’ll be interested in today’s blog: can you file your taxes after the official deadline? Keep reading to find out.

Can Taxes Be Filed After the Official Deadline?

The short and simple answer is yes, you can file your tax return even after the official deadline has passed.

Ideally, you should always file and pay your taxes by the due date. However, even though taxes are a priority for most people, it’s not uncommon to find yourself in a situation when you can’t file on time.

Here are some good reasons to file your taxes even if you missed the original deadline:

Avoid interests and penalties. These can add up fast, so filing and paying even a part of what you owe can make a big difference.
Claim your refund. In addition to giving you peace of mind, filing a past due tax return is als an opportunity to claim a refund
Protect your social security benefits. If you are self-employed and don’t file a federal tax return, any self-employment income will not be reported to the Social Security Administration.
Avoid issues with loans. When you apply for a loan, most financial institutions will require you to provide copies of filed tax returns.

Filing Back Tax Returns

If you didn’t file your taxes on time, seek the assistance of a tax professional to file and pay as soon as possible. This will save you headaches and will limit any failure-to-file and failure-to-pay penalties.

It’s worth keeping in mind that there are no penalties for late filing if you are owed a refund.

As always, remember that all this information refers to federal taxes. Local taxes have different rules and deadlines.

If you need help filing a past due return, contact the IRS or get in touch with JT Tax Services. We’ll be glad to offer assistance and answer all your questions.

Have Tax Questions? JT Tax Services Is Here To Help!

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.

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How To Contact the IRS

By: UNIKO Media Group

June 1, 2022

From refunds to tax transcripts, there are many reasons why you may want to contact the IRS. In this post, we talk about how to contact the IRS and give you some tools to make things easier when dealing with some common tax needs.

How To Contact the IRS

How to contact the IRS by phone. If you are a taxpayer with questions about federal taxes, you can get answers at 1-800-829-1040. The help line is open Monday through Friday, from 8:00 am to 8:00 pm local time.

To request a transcript by phone, call 800-908-9946.

For assistance in a language other than English or Spanish, call 833-553-9895.

Make sure to have the following ready when you call the IRS:

Social Security Number (SSN) and birth date
Individual Taxpayer Identification Number (ITIN) if you don’t have a Social Security Number
Filing status (single, married filing jointly, married filing separately, ec.)
Prior-year tax return
Tax return you’re calling about
Any letter you may have received

When to contact the IRS by email. The IRS encourages taxpayers to contact the agency through its electronic tools (see below). Calling by phone is recommended only in certain cases. But in the specific case of phishing emails, the IRS asks taxpayers to report suspicious emails at phishing@irs.gov (make sure to forward the email with full email headers included).

How To Get Information About Your Tax Refund

If you need information about the status of your tax return, you don’t have to call the IRS.

Instead of waiting on the phone, use the online tool Where’s My Refund, which has information for the 2021, 2020, and 2019 tax years.

To open the tool, just click the link provided above and make sure to have the following ready:

Your Social Security number or ITIN
Your filing status
Your exact refund amount

You should call the IRS (again, the number is 1-800-829-1040) only if:

It’s been 21 days or more since you e-filed
It’s been more than 6 weeks since you mailed your paper return
Where’s My Refund says the IRS can provide more information to you over the phone

How To Get a Tax Transcript

We covered this topic in a previous post, but here’s a summary of what you need to know:

You can request an IRS transcript online, but first you’ll need to create an online account here.

Once you have created an account, you can request your transcript here

Alternatively, you can request to get your transcript by mail. All you have to do is to fill out this form.
As a third alternative, you can order your transcript by phone at 800-908-9946

How To Get an EIN

People looking to apply for an Employer Identification Number (EIN) can do it easily without calling the IRS by using this online assistant.

The system operates Monday through Friday, 7:00 am to 10:00 pm Eastern Standard Time.

How to Contact the IRS in Languages Other Than English

The IRS makes it a point to offer information in different languages other than English to help as many taxpayers as possible.

People who need assistance in other languages can get the support of a professional interpreter over the phone.

For assistance in Spanish, call 800-829-1040
For all other languages (including Chinese, Vietnamese, Russian, Farsi, and others), call 833-553-9895

Need Help With Your Taxes? Contact JT Tax Services

If you need help with your taxes, you’ve come to the right place. At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you.

We maximize your refund and help you stay compliant with all applicable rules and laws. 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 wide array of tax services.

How to Get an IRS Transcript?

By: UNIKO Media Group

May 19, 2022

Do you need an IRS Transcript? Then keep reading! In this article, we answer the most common questions about IRS transcripts, from a basic definition of IRS transcript, to who needs a transcript, and how to get a transcript from the IRS.

What Is an IRS Transcript?

Simply put, an IRS transcript is a record of your previous tax returns that shows different kinds of information, depending on the type of transcript.

There are five types of IRS transcripts:

Tax return transcript. Includes most line items from your original Form 1040 tax return, along with any forms and schedules. Note that it doesn’t include changes made after you filed the original return. This type of transcript is available for the current and three previous tax years.
Tax account transcript. Provides basic information such as filing status, taxable income, and payment types. It shows changes made after you filed your original return. It’s available for the current and nine previous tax years (online) or the current and three previous tax years (by mail).
Record of account transcript. Combines the two previous transcripts into one. It’s available for the current and three previous tax years.
Wage and income transcript. Shows data from forms such as Forms W-2, 1098, 1099, and 5498. It’s available for the current year and nine previous tax years.
Verification of non-filing letter. Shows that the IRS has no record of a processed Form 1040-series tax return as of the date of the request. It’s available for the current year and the three previous tax years.

It’s worth remembering that an IRS transcript isn’t the same as a photocopy of your return. If you need a photocopy, you’ll have to submit Form 4506, Request for Photocopy of Tax Return, and pay a fee of $50 per copy.

Who Needs an IRS Transcript?

The most common use of IRS transcripts is to provide information to lending institutions when you apply for a loan or mortgage.

IRS transcripts are also helpful when it comes to retrieving information you may need to apply for housing assistance or federal programs.

How to Get an IRS Transcript?

The IRS recommends taxpayers to request their transcripts online.

To do this, you’ll have to visit or create your online account here. If you don’t have an existing IRS username, have your photo identification ready.

If you can’t request your transcript online, you can get your tax return or tax account transcript by mail by clicking on this link or by calling the IRS at 800-908-9946.

Have Tax Questions? Contact JT Tax Services

Need help getting a tax transcript? Want to learn more about the tax obligations of businesses? At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you.

What You Need To Know About the Employer Identification Number (EIN)

By: UNIKO Media Group

May 12, 2022

If you are a business owner, sole proprietor, or run a non-profit, you are required to have an Employer Identification Number. In today’s post, we tell you everything you need to know about EINs, from a basic definition to how to get yours online.

What Is an EIN?

The term “EIN” stands for Employer Identification Number, and as the name suggests, this is a unique number assigned to employers by the IRS.

EINs are useful because they help the IRS identify taxpayers who have to file certain business tax returns.

Some of the organizations that usually must have an EIN include:

Employers
Sole proprietors
Corporations
Non-profit associations
Partnerships
Trusts
Estates
Government agencies
Other business entities

How Do I Request My EIN?

While the IRS accepts requests by fax or email, the internet is the most popular option to get your Employer Identification Number.

To apply for your EIN online, just visit this website and provide all the information the system requests.

Before you get started, it’s important to remember that:

You may apply online for an EIN if your main business is located in the United States or its territories.

The person applying online must have a valid tax identification number (ITIN, EIN, SSN).

There’s a limit of one EIN per responsible party (the person who exercises effective control over the business entity) per day.

Make Sure to Keep Your EIN Information Up to Date

As with any other form of identification, it’s important to ensure that the information associated with your EIN is always up to date.

The IRS asks holders of EINs to report any new information within 60 days of the change taking place.

Most changes (like changing the name of your business, for example) do NOT result in you having to get a new EIN. However, if the structure or the ownership of the business changes, then you’ll probably have to request a new number.

Have Tax Questions? Contact JT Tax Services

Need help with your EIN? Want to learn more about the tax obligations of businesses? At JT Taxes, we have made it our mission to take the stress of tax filing off your hands so you can focus on what matters most to you.