IRS warns of new impersonation scam

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The IRS has issued a warning concerning a scam linked to the Electronic Federal Tax Payment System (EFTPS). The scam involves fraudsters calling potential victims and demanding an immediate payment through a prepaid debit card. The scammers impersonate IRS employees and tell the victims about certified letters that purportedly were mailed to the taxpayer but returned as undeliverable. Targets of the scam are told that the prepaid debit card is linked to the EFTPS and they’re threatened with arrest if a payment isn’t made

Is there anything I can do to avoid filing an extension if I know I am missing some information now?

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If you already know you will be waiting until the last minute for one or two documents, you may be able to minimize the chance of having to file an extension by providing all other available documents to us as soon as you receive them. By doing so, we can prepare a draft return for you to review and discuss in advance. We may be able to add the missing piece of data or last-minute information and still be able to complete your returns by April 18 (depending on our workload).

Am I more likely to be audited if I extend?

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Extending will NOT increase your likelihood of being audited by the IRS.  It is better to file an extension rather than to file a return that is incomplete or that you have not had time to review carefully before signing.

Can I claim my 26-year old daughter as a dependent

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This article part of our 2017 Tax Season FAQ Series – If you have a question submit it to FAQ@rmfcpallc.com, and it may become part of a future post.

The answer is going to most likely come down to where the child lives and how much money they earn during the year.

The age excludes the child from meeting IRS “Qualifying Child” eligibility, so the determination comes down to whether or not they qualify as a qualifying relative. If the child lives with you and you provide at least 1/2 of his support, you can claim an exemption if the child earned less than $4050 in 2016. If they earned more than that, the exemption is not allowed.

Check back here for many more answers to your tax questions. Or call our office (717) 337-1414 to schedule an appointment with one of our CPA’s to help you prepare your tax return and maximize your benefits.