Safeguard data from natural disasters

Tuesday, June 26th, 2012

If your local meteorologist says a Category 3 hurricane is coming tomorrow, are you prepared? You may have shutters on your windows and a stockpile of canned food and bottled water, but what about your financial records?  The IRS identified several steps that individuals and businesses should take to protect themselves against losses from natural disasters.

• Create an electronic set of backup records (e.g. bank statements, tax returns, insurance policies).
• Document valuables with photographs or videos of home contents and store with a friend or family member who lives outside the area.
• Update personal and company emergency plans.
• Check on fiduciary bonds if you are an employer who uses payroll service providers; a bond could offer protection if the provider defaults.

IRS specialists trained to handle disaster-related issues can be reached by calling 1-866-562-5227, and copies of previously filed tax returns can be requested by filing Form 4506 (Request for Copy of Tax Return).

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Scott F. Berger is a tax and accounting services principal at Kaufman, Rossin’s Boca Raton office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.

Another IRS email scam

Tuesday, June 5th, 2012

The IRS will never initiate contact via email. If you receive an email claiming to be from the IRS, it is a SCAM!

Below is a screenshot of one of the scam emails being sent.

If you have any concerns or questions, feel free to contact your Kaufman, Rossin professional.

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Scott F. Berger is a tax and accounting services principal at Kaufman, Rossin’s Boca Raton office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.

Identity Theft and Tax Fraud – Are You a Victim?

Tuesday, December 6th, 2011

Identity theft and tax fraud are serious problems that continue to increase in number and complexity as each tax season rolls by.  Don’t think you will ever be affected? Accounting Today recently reported that the IRS identified 775,723 tax returns with $4.6 billion claimed in fraudulent refunds, as of April 30, 2011. The good news – the IRS prevented the issuance of $4.4 billion (96%) of those claims which is an increase of 171% over the previous year. Unfortunately, 4% of those victims were not so lucky.

Becoming a victim of identity theft and tax fraud can cause great hardship for you and your family. The Miami Herald recently wrote about a Miami Shores family who are struggling with the IRS to obtain their $8,000 tax refund after falling victim. Indeed, my colleagues and I have witnessed many falsified returns this past tax season, and although the IRS has implemented the IRS Identity Theft Program, there is no quick and easy solution to overcome this unfortunate circumstance.

While there is no guarantee that a thief won’t steal your identity, there are certain precautions you can take to prevent becoming victimized:

• Safeguard your personal information
• Monitor your credit report
• File early
• Respond immediately to IRS notices

If you have questions about preventing identity theft and tax fraud, or if you have already been targeted and need assistance, please contact me at sberger@kaufmanrossin.com or 561.620.1722.

Scott F. Berger is a tax principal at Kaufman, Rossin’s Boca Raton office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.

Is the IRS targeting you?

Wednesday, September 28th, 2011

If you make more than $1 million, watch out.  Seems like the IRS is targeting wealthy taxpayers.  8.4% of taxpayers making more than $1 million were audited last year, compared to 1.1% of the general population. For those with more than $10 million, the audit rate was %18.4.

Barron’s recently posted an article online called “How the IRS Is Probing the Rich.” “…Folks with fat bank accounts, pricey properties, big incomes, large investments and complex tax profiles” should be on the lookout. The federal government is trying to recoup some of the billions in taxes that is estimated due, but not collected.

The new “wealth unit” may have you in their sights. Red flags:

• property transfers
• certain investment losses
• home-loan interest deductions
• foreign income
• big spenders

The IRS is getting a nice return on their investment. The IRS estimates that for every dollar they spend on enforcement, they bring in as much as $10.

This article is definitely worth browsing, especially if you fall into the category of “rich.”

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Scott F. Berger is a tax principal at Kaufman, Rossin’s Boca Raton office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.

2011 Real Estate Tax Appeal Deadlines

Thursday, August 25th, 2011

Miami-Dade, Palm Beach and Broward counties have all recently issued their annual Truth in Millage (“TRIM”) notices.  Property owners wishing to appeal the assessed valuations and tax liabilities reflected on their 2011 TRIM notices have a very limited time to do so.

If you feel that your assessment may be too high, the deadlines to appeal your property taxes are approaching. After the following deadlines, appeals for 2011 will not be permitted: 

• September 16, 2011 – Palm Beach
• September 19, 2011 – Broward
• September 19, 2011 – Miami-Dade

The steps to appeal your property assessment can be challenging. If you need assistance with this process, please contact a Kaufman, Rossin professional or contact the following resources directly who specialize in these tax appeals:

Mitchell Feldman – FBS Property Tax Abatement, LLC
305.350.7360 or mfeldman@fbstaxabatement.com

Michelle Cohen – LeaseGuard, Inc.
561.998.2800 Ext. 1 or info@leaseguardusa.com

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Scott F. Berger is a tax principal at Kaufman, Rossin’s Miami office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.

Taxpayers aren’t always receiving timely and quality responses from IRS

Thursday, August 11th, 2011

Most taxpayers aren’t getting timely responses to written inquiries to the IRS, and not all responses are completely accurate says a recent report by the Treasury Inspector General for Tax Administration (TIGTA). 

The IRS received about 20 million letters, forms and other written correspondence from taxpayers in 2010. The TIGTA found that most final responses from the IRS were accurate; however, the interim responses were not clear as to what taxpayers should do.

The report examined random correspondence cases and found that only 19 percent of the cases received timely and accurate responses. The report also showed that the IRS is not following its own policy guidelines and has not implemented any measures or processes to monitor and evaluate the correspondence to make sure taxpayers are receiving timely responses. The IRS’s goal is to respond within 30 days. The IRS disagreed with the outcome measures the TIGTA stated in the report.

 Click here to read the full report by the TIGTA. 

What does this mean for you? Taxpayers should exercise patience when dealing with the IRS.

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Scott F. Berger, CPA is a tax principal at Kaufman, Rossin’s Boca Raton office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.

Attorneys Audit Technique Guide

Monday, August 8th, 2011

The IRS published the Attorneys Audit Technique Guide to help examiners audit an attorney’s tax return. However, the document is not an official pronouncement of the law or the position of the IRS, and cannot be relied upon as such.

The Guide notes in part that:

1. the identity of a client and the nature of his or her fee arrangement generally is not protected by the attorney-client privilege.
2. attorneys who base their fees on hours worked plus case-related costs should be able to provide detailed records of their time and costs since that is how they bill their clients.
3. attorneys working on a contingency fee basis use either a gross fee contract (where court costs, expert fees, etc. are deductible business expenses) or a net fee contract (where expense advances are treated as loans until settlement).

To view the entire Guide, click here. If you have questions, please don’t hesitate to contact me at 561.394.5100 or sberger@kaufmanrossin.com or any Kaufman, Rossin professional.

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Scott F. Berger, CPA is a tax principal at Kaufman, Rossin’s Boca Raton office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.

Real Estate Tax Appeal Deadlines

Thursday, September 2nd, 2010

Many times, we find that clients’ property assessments are incorrect. With the South Florida real estate market being so volatile this past year, it is important to make sure that your property tax assessments are accurate.

If you feel that your assessment may be too high, the deadlines to appeal your property taxes are approaching.

• September 16, 2010 – Palm Beach
• September 20, 2010 – Broward
• September 20, 2010 – Miami-Dade

The steps to appeal your property assessment can be challenging. For example, you’ll need to be able to document the market value of your property as of January 1st of the current year by showing its value relative to the qualified comparable sales. And you’ll need to make your case to the Special Magistrate at the Value Adjustment Board hearing.

If you need assistance with this process, please contact a Kaufman, Rossin accountant or contact the following resources directly who specialize in these tax appeals:

Mitchell Feldman – President of FBS Property Tax Abatement, LLC
305.350.7360 or mfeldman@fbstaxabatement.com

Todd M. Wolff – President of LeaseGuard, Inc.
561.998.2800 or toddwolff@leaseguardusa.com

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Scott F. Berger is a tax principal at Kaufman, Rossin’s Miami office.  Kaufman, Rossin & Co. is one of the top CPA firms in the country.  He can be reached at sberger@kaufmanrossin.com.