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Tax Scams – English | Spanish | ASL
Dirty Dozen – English | Spanish | ASL

WASHINGTON — As the April filing deadline approaches, the Internal Revenue Service today warned taxpayers to be alert to tax time phone scams where aggressive criminals pose as IRS agents in hopes of stealing money or personal information.

Phone scams or “vishing” (voice phishing) continue to pose a major threat. The scam has cost thousands of people millions of dollars in recent years, and the IRS continues to see variations on these aggressive calling schemes.

Phone scams again made the IRS’ Dirty Dozen list, an annual compilation of some of the schemes that threaten taxpayers not only during filing season but throughout the year.

The IRS is highlighting each of these scams on consecutive days to help raise awareness and protect taxpayers. The IRS also urges taxpayers to help protect themselves against phone scams and identity theft by reviewing safety tips prepared by the Security Summit, a collaborative effort between the IRS, states and the private-sector tax community.

“Taxpayers should be on the lookout for unexpected and aggressive phone calls purportedly coming from the IRS,” said IRS Commissioner Chuck Rettig. “These calls can feature scam artists aggressively ordering immediate payment and making threats against a person. Don’t fall for these.”

Beginning early in the filing season, the IRS generally sees an upswing in scam phone calls threatening arrest, deportation or license revocation, if the victim doesn’t pay a bogus tax bill. These calls most often take the form of a “robo-call” (a text-to-speech recorded voicemail with instructions to call back a specific telephone number), but in some cases may be made by a real person. These con artists may have some of the taxpayer’s information, including their address, the last four digits of their Social Security number or other personal details.

The Treasury Inspector General for Tax Administration (TIGTA), the federal agency that investigates tax-related phone scams, says these types of scams have cost 14,700 victims a total of more than $72 million since October 2013

How do the scams work?

Criminals make unsolicited calls and leave voicemails with urgent callback requests claiming to be IRS officials. They demand that the victim pay a bogus tax bill by sending cash through a wire transfer, prepaid debit card or gift card.

Many phone scammers use threats to intimidate and bully a victim into paying. The phone scammers may alter or “spoof” their caller ID to make it look like the IRS or another agency is calling. The callers may use IRS employee titles and fake badge numbers to appear legitimate.

The IRS also reminds taxpayers that scammers often change tactics. Variations of the IRS impersonation scam continue year-round and tend to peak when scammers find prime opportunities to strike. Tax scams can be more believable during the tax filing season when people are thinking about their taxes.

Here are some things the scammers often do, but the IRS will not do. Taxpayers should remember that any one of these is a tell-tale sign of a scam.

The IRS will never:

• Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes.
• Threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying.
• Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
• Ask for credit or debit card numbers over the phone.
• Call about an unexpected refund.

For taxpayers who don’t owe taxes or don’t think they do:

• Please report IRS or Treasury-related fraudulent calls to phishing@irs.gov (Subject: IRS Phone Scam).
• Do not give out any information. Hang up immediately. The longer the con artist is engaged; the more opportunity he/she believes exists, potentially prompting more calls.
• Contact TIGTA to report the call. Use their IRS Impersonation Scam Reporting web page. Alternatively, call 800-366-4484.
• Report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov. Please add “IRS Telephone Scam” in the notes.

For those who owe taxes or think they do:

• Call the IRS at 800-829-1040. IRS workers can help.
• View tax account online. Taxpayers can see their past 24 months of payment history, payoff amount and balance of each tax year owed.

Stay alert to scams that use the IRS or other legitimate companies and agencies as a lure. Tax scams can happen any time of year, not just at tax time. For more information visit Tax Scams and Consumer Alerts on IRS.gov.

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WASHINGTON — The Internal Revenue Service issued proposed regulations under section 250 of the Internal Revenue Code, which offers domestic corporations deductions for foreign-derived intangible income (FDII) and global intangible low-taxed income. Section 250, as well as section 951A dealing with global intangible low-taxed income, was added by the 2017 Tax Cuts and Jobs Act (TCJA).

These proposed regulations provide guidance on both the computation of the deductions available under section 250 and determination of FDII. In addition, the proposed regulations provide rules for the computation of FDII in the consolidated return context. Proposed guidance on the computation of global intangible low-taxed income was published in the Federal Register on Oct. 10, 2018.

New reporting rules requiring the filing of Form 8993, Section 250 Deduction for Foreign-Derived Intangible Income and Global Intangible Low-Taxed Income, are also described in the proposed regulations.

Treasury and IRS welcome public comments on these proposed regulations. For details on submitting comments, see the proposed regulations.

Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.

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When someone legally changes their name, there are tax consequences they need to know about., especially at tax time. People change their names for several reasons:

• Taking their spouse’s last name after a marriage
• Hyphenating their last name with their spouse’s after getting married
• Going back to their former name after a divorce
• Giving an adopted child the last name of their new family

The IRS wants people experiencing a name change to remember these important things:

Reporting change to SSA. Taxpayers should notify the Social Security Administration of a name change ASAP. When a taxpayer files their taxes, the IRS checks SSA records to ensure names and social security numbers on the forms match.

Failing to report a name change. If a name on a taxpayer’s tax return doesn’t match SSA records, it can delay the IRS processing of that return. In that case, if the taxpayer is due a refund, it will take longer for them to get their money.
 
Name Change Due to Adoption. In the case of an adoption, if the child has a Social Security number, the taxpayer should be sure to inform the SSA of a name change. If the child does not have a Social Security number, the taxpayer may use an Adoption Taxpayer Identification Number on their tax return. An ATIN is a temporary number. Taxpayers can apply for an ATIN by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions. Taxpayers file this form with the IRS. 
 
Getting a New SS Card. After a name change, a taxpayer should file Form SS-5, Application for a Social Security Card. The form is available on SSA.gov or by calling 800-772-1213. The taxpayer’s new Social Security card will reflect the name change.

Share this tip on social media — #IRSTaxTip: Here’s how a name change affects a tax return  https://go.usa.gov/xEdw9

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The IRS has several videos that can help individual and business taxpayers learn more about the tax reform legislation. The IRS posts these videos on the IRS Video Portal and to their YouTube channel. Aside from these sites, the IRS offers tax reform information on its other social media channels, such as Twitter and their new Instagram account. Taxpayers can visit the Multimedia Center on IRS.gov for links to all the agency’s social media sites.

Here are some of the tax reform videos taxpayers can watch on their computer or on their smartphone when they’re on the go.

IRS Video Portal
The IRS produces and posts videos to post on the Video Portal. These videos can help individual and business taxpayers better understand how the tax reform law affects them and their taxes.

• Tax Reform Basics for the Qualified Business Income Deduction, 199A
  This webinar provides an overview of who will be eligible for the new tax reform provisions of the Qualified Business Income Deduction under Section 199A. It also shows calculations and basics for reporting. 
  
  
• Tax Reform Basics for Employers
  This provides an overview of tax reform changes for employers. Topics covered include changes to employer credit for family and medical leave, employee achievement awards, and qualified transportation fringe benefits.
  
  
• Tax Reform Basics for Individuals and Families
  Addresses tax reform changes that affect individual taxpayers. Topics include standard deductions, personal exemptions, itemized deductions, and the child tax credit.
  
  
• Understanding How to Use the IRS Withholding Calculator to Check & Correct Withholding 
  This video explains why many taxpayers may need to change their withholding. It also helps tax professionals understand how to use the IRS withholding calculator to help taxpayers change their withholding.

IRS YouTube Channel
These videos are all in English, with several also being offered in Spanish and American Sign Language.

• Paycheck Checkup: English | Spanish | ASL 
  Taxpayers can watch this video to find out why they should do a Paycheck Checkup after tax reform legislation changed how much tax is taken out of individuals’ paychecks.
  
  
• IRS Withholding Calculator Tips: English | Spanish | ASL
  This video gives taxpayers tips for using the calculator, including what documents to have on hand before starting their Paycheck Checkup.
  
  
• Paid Family and Medical Leave:  English
  If employers provide paid family and medical leave for their employees, they may be eligible for a tax credit. This video has more information about this credit.

Share this tip on social media — #IRSTaxTip: Videos help taxpayers learn more about tax reform  https://go.usa.gov/xERDc

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WASHINGTON –The Treasury Department and the Internal Revenue Service issued guidance today that provides a safe harbor method for determining depreciation deductions for passenger automobiles that qualify for the 100-percent additional first year depreciation deduction and that are subject to the depreciation limitations for passenger automobiles. 

Under the Tax Cuts and Jobs Act (TCJA), the additional first year depreciation deduction applies to qualified property, including passenger automobiles, acquired and placed in service after September 27, 2017, and before January 1, 2027. 

In general, the section 179 and depreciation deductions for passenger automobiles are subject to dollar limitations for the year the taxpayer places the passenger automobile in service and for each succeeding year.  For a passenger automobile that qualifies for the 100-percent additional first year depreciation deduction, TCJA increased the first-year limitation amount by $8,000.  If the depreciable basis of a passenger automobile for which the 100-percent additional first year depreciation deduction is allowable exceeds the first-year limitation, the excess amount is deductible in the first taxable year after the end of the recovery period.

The guidance provides a safe harbor method of accounting for passenger automobiles. The safe harbor allows depreciation deductions for the excess amount during the recovery period subject to the depreciation limitations applicable to passenger automobiles.  To apply the safe-harbor method, the taxpayer must use the applicable depreciation table in Appendix A of IRS Publication 946.  The safe harbor method does not apply to a passenger automobile placed in service by the taxpayer after 2022, or to a passenger automobile for which the taxpayer elected out of the 100-percent additional first year depreciation deduction or elected under section 179 to expense all or a portion of the cost of the passenger automobile. 

Taxpayers adopt the safe harbor method of accounting by applying it to deduct depreciation of a passenger automobile on their return for the first taxable year following the placed-in-service year.

For more information on the additional first year depreciation deduction, see TCJA, Depreciation. For information about other TCJA provisions, visit IRS.gov/taxreform.

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