Munson, Cronick & Associates, LLP

Governor provides 60-day filing extension to coronavirus victims (03-13-20): In his March 12, 2020, executive order, the Governor extended the deadline for state tax filing by 60 days for individuals and businesses unable to file on time based on compliance with public health requirements related to COVID-19. It appears the Governor's order may be much broader and may provide relief for payments as well as other deadlines (e.g. refund and protest claims). We are following up with the FTB and the CDTFA regarding the scope of the order. We are also anticipating that the IRS will be providing similar relief shortly. We will keep you updated as more information becomes available.

New Social Security Number Suspension Scam One very aggressive phone scam informed taxpayers that due to suspicious or criminal activity, the Social Security Administration suspended their Social Security number. The IRS and SSA both released fraud advisories related to this scam. As with most scams, clients should be reminded that:... Social Security number cannot be suspended, revoked, frozen, or blocked; SSA and IRS employees will never threaten to have you arrested or send the police to your home; Neither the SSA nor any government agency will ask you to wire money, send cash, or buy gift cards as a form of payment over the phone; and Never verify your Social Security number with someone who makes an unsolicited call to you. To be sure it’s actually the SSA calling with a legitimate issue, hang up and call the SSA’s main number: (800) 772 1213.

Always stay alert!

Taxpayers be aware!

Where's My Refund??? Click the link - all you need to fill out is your social security number, your filing status and the exact amount of your refund. The website updates daily. You can check the status 24 hours after efiling or 4 weeks after you mailed your paper return. Generally, the IRS issues most refunds in less than 21 days, but some may take longer. If you have questions, give us a call!

MCA, LLP is pleased to announce that Ellie Eisenman, CPA, MST is now a partner of the firm. Ellie joined MCA, LLP in 2005. She graduated California State University, Fullerton with a Bachelor of Arts in Business Administration with an emphasis in Accounting. She then received her Master of Science in Taxation from Golden Gate University in 2008. Ellie specializes in both individual and business returns, including Form 706. She is also involved in the technical review of returns, tax consulting and planning.

IRS Confirms Tax Filing Season to Begin January 28 January 7, 2019 - IRS Notice IR-2019-01 WASHINGTON Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019, and provide refunds to taxpayers as scheduled.... We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period, said IRS Commissioner Chuck Rettig. Congress directed the payment of all tax refunds through a permanent, indefinite appropriation (31 U.S.C. 1324), and the IRS has consistently been of the view that it has authority to pay refunds despite a lapse in annual appropriations. Although in 2011 the Office of Management and Budget (OMB) directed the IRS not to pay refunds during a lapse, OMB has reviewed the relevant law at Treasury’s request and concluded that IRS may pay tax refunds during a lapse. The IRS will be recalling a significant portion of its workforce, currently furloughed as part of the government shutdown, to work. Additional details for the IRS filing season will be included in an updated FY2019 Lapsed Appropriations Contingency Plan to be released publicly in the coming days. IRS employees have been hard at work over the past year to implement the biggest tax law changes the nation has seen in more than 30 years, said Rettig. As in past years, the IRS will begin accepting and processing individual tax returns once the filing season begins. For taxpayers who usually file early in the year and have all of the needed documentation, there is no need to wait to file. They should file when they are ready to submit a complete and accurate tax return. The filing deadline to submit 2018 tax returns is Monday, April 15, 2019 for most taxpayers. Because of the Patriots’ Day holiday on April 15 in Maine and Massachusetts and the Emancipation Day holiday on April 16 in the District of Columbia, taxpayers who live in Maine or Massachusetts have until April 17, 2019 to file their returns. Software companies and tax professionals will be accepting and preparing tax returns before Jan. 28 and then will submit the returns when the IRS systems open later this month. The IRS strongly encourages people to file their tax returns electronically to minimize errors and for faster refunds. Reference: https://www.irs.gov//irs-confirms-tax-filing-season-to-beg

Please click the link to see security tips from the U.S. Government for more information on social engineering attacks like phishing, malicious websites and email.

Here’s how taxpayers can protect themselves from scammers: Knowledge is power, especially when it comes to avoiding tax scams. Here’s what taxpayers need to know to determine whether an encounter in person, over the phone or by email is an imposter or an actual IRS employee: The IRS Does Not:... Call to demand immediate payment using a specific payment method, such as a prepaid debit card, gift card or wire transfer. Demand taxpayers pay taxes without the opportunity to question or appeal the amount owed. Threaten to bring in local police, immigration officers or other law enforcement to have someone arrested for not paying. Threaten to revoke someone’s driver’s license, business licenses or immigration status. The IRS Does: In general, first mail a bill to any taxpayer who owes taxes. Normally initiate contact with taxpayers through mail delivered by the United States Postal Service. Present official identification when visiting a taxpayer. Taxpayers have the right to see these credentials, and if they would like the representative will provide them with a dedicated IRS phone number for verifying the information and confirming their identity. Call or visit a home or business under certain circumstances. This includes when a taxpayer has an overdue tax bill, to secure a delinquent tax return or a delinquent employment tax payment, or to tour a business as part of an audit or criminal investigation. Even then, taxpayers will generally receive several letters from the IRS in the mail first. Assign certain cases to private debt collectors, but only after written notice is given to the taxpayer and their appointed representative. Offer several payment options. Payment by check should be payable to the U.S. Treasury and sent directly to the IRS, not a private collection agency.

Released April 24, 2018: WASHINGTON The Internal Revenue Service today warned of a new twist on an old phone scam as criminals use telephone numbers that mimic IRS Taxpayer Assistance Centers to trick taxpayers into paying non-existent tax bills. The IRS and its Security Summit partners the state tax agencies and tax industry urge taxpayers to remain alert to tax scams year-round, especially immediately after the tax filing season ends. Even after the April deadline pas...Continue reading

IRS Phone Scam Intensifies During Filing Season As taxpayers are working to file their taxes, criminals are also hard at work attempting to steal their money. While there are several versions of tax scams, the classic telephone con continues to thrive, especially during filing season. As a reminder, here’s how the scam works: Scammers call taxpayers telling them they owe taxes and face arrest if they don’t pay. Sometimes, the first call is a recording, asking taxpayers to... call back to clear up a tax matter or face arrest. When taxpayers call back, the scammers often use threatening and hostile language. The thief claims the taxpayers may pay their debts using a gift card, other pre-paid cards or wire transfers. Taxpayers who comply lose their money to the scammers. Taxpayers should remember that the IRS does not: Call taxpayers demanding immediate payment using a specific payment method, but will first mail a bill. Threaten to have taxpayers arrested for not paying taxes. Demand payment without giving taxpayers an opportunity to question or appeal the amount the IRS believes they owe. Ask for credit or debit card numbers over the phone. Taxpayers who receive these phone calls should: Hang up the phone immediately, without providing any information. Report these calls to the: o Treasury Inspector General for Tax Administration, using the IRS Impersonation Scam Reporting form, or by calling 800-366-4484. o Federal Trade Commission, using the FTC Complaint Assistant on FTC.gov, being sure to include IRS Telephone Scam in the notes.

Avoid the Rush: Track Tax Refunds Online at IRS.gov WASHINGTON With millions of tax refunds being processed, the Internal Revenue Service reminds taxpayers they can get fast answers about their refund by using the Where’s My Refund? tool available on IRS.gov and through the IRS2Go app. More than 70 percent of taxpayers will receive a refund this year. The Internal Revenue Service issues nine out of 10 refunds in less than 21 days, and the fastest way to get a refund is to... use IRS e-file and direct deposit. Questions about tax refunds are the most frequent reason people call the IRS. But the time around Presidents Day is a peak period for telephone calls to the IRS, resulting in longer than normal hold times. IRS telephone assistors can only research a refund’s status if it has been 21 days or more since the taxpayer filed electronically, six weeks since they mailed a paper return or if Where’s My Refund? directs a taxpayer to call. Taxpayers can avoid the rush by using the Where’s My Refund? tool. All that is needed is the taxpayer’s Social Security number, tax filing status (single, married, head of household) and exact amount of the tax refund claimed on the return. Alternatively, taxpayers may call 800-829-1954 for the same information. Within 24 hours of filing a return electronically, the tool can tell taxpayers that their returns have been received. That time extends to four weeks if a paper return is mailed to the IRS, which is another reason to use IRS e-file and direct deposit. Once the tax return is processed, Where’s My Refund? will tell a taxpayer when their refund is approved and provide a date when they can expect to receive it. Where’s My Refund? is updated once daily, usually overnight, so checking it more often will not produce a different result. By law, the IRS cannot release refunds containing the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February. Where’s My Refund? will be updated Feb. 17 for most early filers who claimed the EITC or ACTC. These taxpayers will not see a refund date on Where's My Refund? or through their software packages until then. EITC and ACTC refunds should be available in taxpayer bank accounts and debit cards starting Feb. 27, if taxpayers used direct deposit and there are no other issues with their tax returns. As a reminder, taxpayers should remember that ordering a tax transcript will not speed delivery of tax refunds. Transcripts are best used to validate past income and tax-filing status for mortgage, student and small business loan applications as well as help with tax preparation.

What the Tax Reform Act Means for You Congress has passed a tax reform act that will take effect in 2018, ushering in some of the most significant tax changes in three decades. There are a lot of changes in the new act, which was signed into law on Dec. 22, 2017. Here are some of the key items in the tax reform act that affect individuals:...Continue reading