Macy Mark Morris, CPA

Revisited IRS Publication 4553 "Safeguarding Taxpayer Data." Happy to say that my procedures and practices continue to meet or exceed the IRS requirements and recommendations to protect client data.

Following the news on all the local fires, I wonder if any of my clients or others I know homes are in danger or worse already lost. The smoke and heat when these large fires happen create such a surreal atmosphere. I put the firefighter association tax return I prepare on extension. I hope they are all safe.

I posted last week about an IRS notice that claimed a trust had not paid its 2013 balance due when in fact the trust had paid timely. Apparently the IRS had a system problem for all trust payments paid during the days leading to April 15th. The notices were sent out without allowing time for the payments to be processed. I received another IRS notice that there was no balance due.

College financial aid and IRS conundrum. FAFSA processes college student financial aid based on need. Part of the FAFSA requirements are an IRS transcript of ones 2013 tax return. If a taxpayer filed a balance due tax return, the IRS will not be processing the return until May so no transcript is available. May is past FAFSA deadlines. If you need college financial aid, don't owe the IRS.

Received an IRS notice that a trust I administer has not paid 2013 tax due. Copy of cancelled check shows IRS received payment, ID number is on the check and the check was mailed with the payment voucher. What more can one do? Was in the phone queue for 45 minutes when the transfer to agent message came and then silence until the dial tone come on. Mailed documents.

Identity theft can lead to a scammer filing a tax return in your name requesting a bogus refund. If you think your personal information has been compromised, be proactive and contact the IRS and your state tax office. The IRS issues PIN numbers to affected taxpayers so the IRS can identify the real taxpayer. More information is available on the IRS website. http://www.irs.gov/uac/Taxpayer-Guide-to-Identity-Theft

As tax season heated up, I received a notice at the office from the Franchise Tax Board asking if I filed a tax return. They listed income from one client from a 1099 and another client as from "other sources". Apparently I sent them enough paper since they eventually wrote back that they were satisfied -- at this time.

IRS has a notice about phone call scams. http://www.irs.gov//IRS-Reiterates-Warning-of-Pervasive-Te The IRS supports the post office and communicates by mail. IRS Collections is the only ones who call and you would be well aware of the issue from previous mail. They do not use e-mail.

This last tax season I saw a number of high W2 wage earners whose paycheck Federal income tax withholding rate was 25% and still had a balance due. The new 3.9% Medicare tax and the new limitation on itemized deduction is squeezing these tax payers from both directions.

A day late maybe but don't be a dollar short. Here is a link to the IRS web page about making payments or an installment plan. http://www.irs.gov/Payments Here is the same thing for California which they describe as "popular." https://www.ftb.ca.gov/online/payment_choices.shtml

April 15 and they are all done. Well, except for the tax returns on extension.