New scam targets the hearing-impaired

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The IRS warns that con artists are using “video relay services” (VRS) to scam deaf and hard-of-hearing people who utilize this technology for communication. Scammers may claim to be IRS agents to demand money or collect personal information which can be used to steal identities. The IRS says it’s critical to verify the identities of callers requesting personal data. “Do not automatically trust calls just because they are made through VRS,” the IRS cautions. For more information: http://bit.ly/2kQdQbB

Taxpayer wins

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A retired police officer received a monthly pension. During the year in question, $448,671 of his mortgage debt was canceled. He excluded most of the amount from income under the tax code’s insolvency exception. The IRS said the pension plan should be counted when determining whether he was insolvent. However, the U.S. Tax Court sided with the taxpayer, stating that the plan wasn’t an asset because it couldn’t be used to pay the tax on cancellation of debt income immediately. For example, he couldn’t convert it to cash. (TC Memo 2017-32)

IRS updates the research credit form

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Final versions of Form 6765, “Credit for Increasing Research Activities,” and its instructions have recently been issued. The form contains new lines and directions on the following rules applying to tax years beginning after Dec. 31, 2015: the rules allowing an eligible small business to have the research credit offset alternative minimum tax liability and those allowing a qualifying small business to elect to have a portion of the credit be a payroll tax credit.

Raffensperger, Martin & Finkenbiner has been recognized as top accounting firm by readers of the Gettysburg Times Pick of the Counties for the last five years.

Supreme Court Denies Damages Claim

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The U.S. Supreme Court has declined to hear two conservative groups’ claim for damages. The groups (True the Vote, Inc., and Linchpins of Liberty) were seeking relief on the basis that they were singled out for additional scrutiny and delayed consideration of their applications with the IRS for tax-exempt status. They alleged their 1st Amendment rights were violated. A U.S. District Court and the Court of Appeals for the District of Columbia held that the groups couldn’t receive damages. The Supreme Court refused to review the case. The decision is final.