Persall Income Tax Service

07/20/2024

IRS Dispels False Claims on "Self Employment Tax Credit"

he IRS issued a warning to taxpayers following false information surfacing on social media about a non-existent “Self-Employment Tax Credit.” Misinformation is leading taxpayers into filing false claims. These bad promoters claim the credit is offered to self-employed people and gig workers and suggest they may be entitled to upwards of $32,000 in payments. Credits for Sick Leave and Family Leave, a far more specialized and technical credit, is actually the underlying credit that is being discussed on social media instead of the “Self-Employment Tax Credit.” Many people do not qualify for this credit, and the IRS is carefully reviewing claims coming in under this provision so people filing claims do so at their own risk.

“This is another misleading social media claim that’s fooling well-meaning taxpayers into thinking they’re due a big payday,” said IRS Commissioner Danny Werfel. “People shouldn’t be misled by outlandish claims they see on social media. Before paying someone to file these claims, taxpayers should consult with a trusted tax professional to see if they meet the very limited eligibility scenarios.”

07/11/2024

New Info From the IRS

High-Wealth Collections Top $1 Billion

IRS efforts to collect past-due taxes from wealthy taxpayers have netted more than $1 billion since the fall of 2023, the agency announced. The stepped-up IRS collection efforts made possible by the additional funding included in the Inflation Reduction Act have included a focus on 1,600 individuals with incomes of more than $1 million per year who each had more than $250,000 in tax debt. The $1 billion number represents collections from more than 1,200 individuals and the IRS expects more collections in the months ahead through its stepped-up enforcement efforts.

“With this collection activity, the IRS passed an important milestone in our effort to improve compliance and ensure fairness in the tax system,” said IRS Commissioner Danny Werfel. “Our increased work in this area means these past-due tax bills from high-end taxpayers are no longer being left on the table, like they were too often in the past.”

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06/27/2023

This is why you should know your tax preparer. This guy not only is going to jail, but each of those tax payers whose return he prepared is getting audited and will have to pay back the IRS for their inflated refunds. If you are using a California preparer go to www.CTEC.org and confirm they are legit. Mr. Hansack had not registered with CTEC since 2020. Buyer beware.

He was accused of filing tax returns with false itemized deductions, including mortgage payments on homes for clients who were not actually homeowners.

04/20/2023

IR-2023-76, April 11, 2023 — With the April 18 deadline quickly approaching, the Internal Revenue Service wants to debunk common myths with facts about filing taxes, finding refund information and adjusting withholding.

04/13/2023

The State of California has extended their deadline for filing and paying to Oct. 16, 2023.

Riverside County is NOT included in the Federal Disaster Declaration for the IRS filing deadline.

Your FEDERAL return and payment is due by April 18, 2023.

Please do not wait to file your return. If you can not file before April 18th, please ask your tax professional to file an extension. You will still need to pay before the 18th.

03/25/2023

IR-2023-56, March 23, 2023 — The Internal Revenue Service reaches out in multiple ways to educate taxpayers while ensuring it fairly enforces the nation’s tax laws. There are important factors to keep in mind about when the IRS may initiate direct contact with a taxpayer.

03/19/2023

Here is some good, easy to understand information on the failure of Silicon Valley and Signature bank last week.

On March 10, 2023, Silicon Valley Bank (SVB), one of the leading lenders to the tech sector, was shut down by regulators over concerns about its solvency. Then on March 12, regulators announced that New York’s Signature Bank had also collapsed.

09/02/2022

California's Middle Income Tax Break is coming. Check the page below to determine how much you and your family may be receiving.

Middle Class Tax Refund for Californians

09/02/2022

Residents of New York, Virginia and 11 other states could end up with a surprise tax hit of hundreds of dollars next year on forgiven student loans.

09/02/2022

IRS provides an automatic penalty relief to most people who file certain 2019 or 2020 tax returns late. 1.6 million taxpayers who already paid penalties automatically receiving refunds. More on this relief at: http://ow.ly/zNjL50Krvs7