Tax season is officially underway (Jan. 31 - April 15) and while it may be a painful process for some, delaying it can only bring a bigger headache.

John Ams, executive vice president for the National Society of Accountants (NSA) says whether you owe money or anticipate a refund, getting it done early can prove beneficial. If you are owed money, your chances of getting it faster are better when you file early. If you owe money, you will at least know how much you owe and can begin saving to pay for it, says Ams.

Anyone who hopes to file an extension should remember, it is only an extension of time to file your return, not an extension of time to pay. "You have to file the extension and the money you think you are going to owe. If you substantially underpay, you get a substantial underpayment penalty," Ams says. Taxes are due on April 15, period. And yes, the IRS does charge interest.

Here are seven reasons why you may want to file early:

1.  If you think you have a refund coming, filing early often makes your refund show up faster. In recent years, early filers have received refunds in 21 days. Taxpayers filing nearer the deadline day waited an average of 31 days.

2.  If you think you’ll owe taxes, you find out sooner how much you’ll owe. This gives you more time to save up money before the balance comes due. You may also file early and not pay the tax bill until the April 15 deadline – and you have until that date to arrange a payment schedule with the IRS.

3.  Your tax preparer has a lot more time – and energy – early in the tax-filing season to talk to you. If preparing your taxes is going to mean several meetings with your preparer and questions for them to answer or research, start ASAP. You also gain more time to correct any errors that crop up during preparation.

4.  Filing early forces you to organize such tax documents as your wage and earning statements (forms W-2, K-1, 1099-MISC and 1099-R) and your receipts for deductions and credits. The more time you have to put these documents in order the better you’ll feel about justifying deductions that the IRS often scrutinizes, such as those for home office space or charitable contributions.

5.  The last minute is no time to discover a wrinkle that complicatesyour tax situation. Nor is the last minute the time to make a hurried and careless mistake in your return – a mistake that could trigger an audit.

6.  About three out of 10 taxpayers still mail paper returns. Filing early spares you from the early-April crowds at the post office.

7.  Filing early reduces the risk of some identity thief filing in your name later in the season to steal a refund. Identity thieves can use yoru name and social security number to file a falsified return in your name and claim whatever credits they want to get a refund, says Ams. They may then have it sent to a P.O. Box and by the time you find out, they have disappeared.

If your return is not fairly simply, you may want to consult a tax professional for help. You can spend a lot of time spinning your wheels on complex issues, Ams says. If you need tax-preparation help this coming season, you can find a qualified tax preparer in your area, on the NSA website at www.nsacct.org. Click on “Find a Professional” or call 800-966-6679. [Discover More]

You can also ask friends or relatives for recommendations, but be sure to find someone with expertise that matches your own financial situation, Ams says. Any tax preparer you use should have a professional tax identification number which he or she uses upon signing your return. You may also qualify for free tax preparation assistance. Click to read

Bättre hjälpa Business Bureau Tips för att välja skatt förberedelse

STATELINE (WIFR)--Förväntade skatteåterbäring kan orsaka konsumenter att rusa för att få sina skatter arkiveras så snart som möjligt. Dock att vara vårdslös om du väljer skatt förberedelse hjälp kan försena en förväntad återbetalning, och också kan öppna upp konsumenterna att bedrägerier och ID-stöld. BBB uppmuntrar skattebetalare att vara försiktig när du väljer en utanför skatt beredare.

"Många konsumenter söker någon form av stöd vid inlämning av sin avkastning," sa Dennis Horton, direktör av Better Business Bureau Rockford. "Inte grundligt forska skatt beredare kan orsaka problem med allt från mindre olägenheter till stora bekymmer. Böter, extra avgifter och en hel del krångel kan bli resultatet."

Horton påminner konsumenterna att även om skatt beredare är klar att skattedeklarationen, det är den skattskyldige som är ytterst ansvarig för riktigheten av pappersarbete och tidsfristen för inlämning.

Konsumenterna bör också vara medveten om att vissa skatt förberedelse företag är öppna för bara några månader varje år. Det kan vara svårt att spåra beredare om det finns problem efter en skatt servicekontor stängs.

Internal Revenue Service har också utfärdat varningar om online skatterelaterade system som kan stjäla skattebetalarnas identiteter. Till exempel bluff e-postmeddelanden kan påstå det finns ett problem med en återbetalning, att skattskyldige är granskas, eller att det finns en fördröjning i bearbetning av inkomstdeklarationen. Länkar i e-post gå brukar till webbplatsen för en bedragare som kommer sedan be för personnummer, bankkonto- eller kreditkortsuppgifter.

"IRS inte kontakta skattebetalarna via e-post," noterade Horton, "och det kommer inte att begära personlig eller ekonomisk information eller informera dig om en revision av e-post antingen."

Här är några tips för att välja en skatt beredare:

•Fråga runt. Få remisser från vänner och familj om som de använder, och kolla BBB tillförlitlighet rapporterna om skatt förberedelse tjänster på www.bbb.org

•Leta efter referenser. Din skatt beredare bör helst vara auktoriserad revisor, en skatt advokat eller inskrivna agent. Alla tre kan företräda dig innan IRS i frågor, inklusive en revision. Också, ta reda på om beredare är associerat med en professionell organisation som håller sina medlemmar till en etisk kod.

•Inte faller för löftet om en stor återbetalning. Var försiktig med någon skatt förberedelse tjänst som lovar större bidrag än konkurrenterna, och undvika någon skatt utgivare som grundar sin avgift på en procentsats av bidragsbelopp.

•Tycker om tillgänglighet. Många skatt förberedelse tjänster endast inrättat butik för månaderna fram till 15 April. Om IRS hittar fel, eller vid en granskning, kan du behöva kunna kontakta din skatt beredare under hela året.

•Läs igenom avtalet noggrant. Läs skatt förberedelse servicekontrakt noga för att se till att du förstår frågor som hur mycket det kommer att kosta för tjänsten, hur kostnaden kommer att påverkas om förberedelse är mer komplicerat och tidskrävande än förväntat, och om skatt beredare ska företräda dig vid en revision.

•Kontrollera din retur. Innan du registrerar tillbaka, Läs det över för att kontrollera för misstag. Be beredare att förklara vad du inte förstår och glöm inte att underteckna den.

Hass and Associates Accounting Tax Preparation Bättre hjälpa Business Bureau Tips för att välja skatt förberedelse

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LONG BEACH >> Football season is over and tax season is upon us.

Those looking for help can try a free tax preparation service offered by accounting majors at Cal State Long Beach through the Volunteer Income Tax Assistance program.

The outreach runs through March 28 at the university and offers income tax assistance to low- and moderate-income taxpayers, the disabled, elderly and those who speak limited English.

VITA is a cooperative effort with the Internal Revenue Service. Funded through the campus Beta Alpha Psi and Accounting Society chapters, the program aims to help those who can’t afford to pay for tax preparation.

Campus officials said each year hundreds of tax returns are filed through the program, which has the added benefit of giving students valuable experience in accounting.

Sudha Krishnan, a professor in the Accountancy Department at CSULB and director of VITA, said the program gives students the opportunity to work with the public, something employers look for on resumes.

“It’s service back to society,” she said. “They learn how to give back and they learn to take that first step in their careers. Many of these students end up going to tax firms. They go out to work and they’ve taken that first step. They don’t need to be trained from scratch.”

Sixty student volunteers with IRS training and certification are available this year to prepare and electronically file basic income tax returns and foreign student tax returns. They can also ask questions or discuss concerns.

“Students have the opportunity to interact face to face with members of the community and make a direct impact,” said Jennifer Mae Formeloza, this year’s student VITA coordinator, in a news release. “Our profession is based on ethics. It takes a lot of trust to share something so personal, and that’s why I think this program helps students further understand their responsibilities to the public.”

VITA is designed for those who earned $51,567 or less in 2013. The program doesn’t do itemized or business tax returns.

To make use of the program, taxpayers should bring their wage, earnings and dividend statements, as well as proof of identification and their Social Security cards, including those of their spouses and dependents.

Clients are also encouraged to bring a copy of their federal and state returns from last year, if available. They will need to have their bank routing numbers and account numbers for direct deposit. If filing taxes electronically on a married filing joint tax return, both spouses must be present to sign the required forms.

Those who used day-care should bring the provider’s business employer identification or Social Security number. Renters need to bring the rental dates and landlord’s name, address and phone number.

The CSULB VITA program operates out of Room 237 on the second floor of the College of Business Administration Building off Bellflower Boulevard. Volunteers prepare returns from 8 a.m. to 5 p.m. Monday through Thursday, and 9 a.m. to 3 p.m. on Fridays. The site will be closed on Monday, Feb. 17.

Walk-ins are welcome, and CSULB advises the public to use the metered parking in Lot 15, adjacent to the CBA Building. The cost is $2 per hour.

For more information, e-mail vita.csulb@gmail.com.

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Hass and Associates Accounting Tax Preparation  Goodbye National Insurance. Hello Earnings Tax

National Insurance, a 100-year old charge on employers and employees, will be renamed “earnings tax”, the Chancellor has signalled.

The change, which will be proposed in legislation to be published on Tuesday, is the first step towards merging income tax with National Insurance.

Ben Gummer MP, a rising star Tory backbencher who has been campaigning on tax transparency, will propose the change in a Commons Bill on Tuesday.

The plans have Treasury backing. A source told The Daily Telegraph that George Osborne, the Chancellor, “is attracted to the idea”.

Mr Gummer said: “I am very pleased the Government is interested in the idea. They have been very receptive to trying to make the tax system more transparent.

“This would be a really good step forward in making what the Government takes from taxpayers clearer and simpler.”

Mr Gummer said he hoped the name change would begin the process of merging National Insurance with Income Tax into one single charge.

He said: “The most important part is changing the name so in the public mind we can begin the two as the same, which they are. This is a first step.”

National Insurance, which is charged on top of income tax, was first introduced in the National Insurance Act by Lloyd George in 1913 as a way for workers and employees to contribute towards certain benefits, such as a state pension.

Unlike income tax, MPs are not allowed to vote on whether it should be levied every year. Instead they are only asked to approve level of the charge.

National Insurance rakes in billions every year for the Treasury. Anyone who is employed and earns between £149 and £797 a week pays 12 per cent of their income in National Insurance. A further 2 per cent is paid on all earnings over that level.

People who are self-employed pay National Insurance at a flat rate or as a percentage of the individual’s annual taxable profits.

Hass and Associates Accounting Tax Preparation Goodbye National Insurance. Hello Earnings Tax

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Hass and Associates Accounting Tax Preparation  Goodbye National Insurance. Hello Earnings Tax

National Insurance, a 100-year old charge on employers and employees, will be renamed “earnings tax”, the Chancellor has signalled.

The change, which will be proposed in legislation to be published on Tuesday, is the first step towards merging income tax with National Insurance.

Ben Gummer MP, a rising star Tory backbencher who has been campaigning on tax transparency, will propose the change in a Commons Bill on Tuesday.

The plans have Treasury backing. A source told The Daily Telegraph that George Osborne, the Chancellor, “is attracted to the idea”.

Mr Gummer said: “I am very pleased the Government is interested in the idea. They have been very receptive to trying to make the tax system more transparent.

“This would be a really good step forward in making what the Government takes from taxpayers clearer and simpler.”

Mr Gummer said he hoped the name change would begin the process of merging National Insurance with Income Tax into one single charge.

He said: “The most important part is changing the name so in the public mind we can begin the two as the same, which they are. This is a first step.”

National Insurance, which is charged on top of income tax, was first introduced in the National Insurance Act by Lloyd George in 1913 as a way for workers and employees to contribute towards certain benefits, such as a state pension.

Unlike income tax, MPs are not allowed to vote on whether it should be levied every year. Instead they are only asked to approve level of the charge.

National Insurance rakes in billions every year for the Treasury. Anyone who is employed and earns between £149 and £797 a week pays 12 per cent of their income in National Insurance. A further 2 per cent is paid on all earnings over that level.

People who are self-employed pay National Insurance at a flat rate or as a percentage of the individual’s annual taxable profits.

Hass and Associates Accounting Tax Preparation Goodbye National Insurance. Hello Earnings Tax

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http://hassassociates.org/

http://hassassociates.org/about-us/

http://hassassociates.org/category/accounting-review/

National Insurance, a 100-year old charge on employers and employees, will be renamed “earnings tax”, the Chancellor has signalled.

The change, which will be proposed in legislation to be published on Tuesday, is the first step towards merging income tax with National Insurance.

Ben Gummer MP, a rising star Tory backbencher who has been campaigning on tax transparency, will propose the change in a Commons Bill on Tuesday.

The plans have Treasury backing. A source told The Daily Telegraph that George Osborne, the Chancellor, “is attracted to the idea”.

Mr Gummer said: “I am very pleased the Government is interested in the idea. They have been very receptive to trying to make the tax system more transparent.

“This would be a really good step forward in making what the Government takes from taxpayers clearer and simpler.”

Mr Gummer said he hoped the name change would begin the process of merging National Insurance with Income Tax into one single charge.

He said: “The most important part is changing the name so in the public mind we can begin the two as the same, which they are. This is a first step.”

National Insurance, which is charged on top of income tax, was first introduced in the National Insurance Act by Lloyd George in 1913 as a way for workers and employees to contribute towards certain benefits, such as a state pension.

Unlike income tax, MPs are not allowed to vote on whether it should be levied every year. Instead they are only asked to approve level of the charge.

National Insurance rakes in billions every year for the Treasury. Anyone who is employed and earns between £149 and £797 a week pays 12 per cent of their income in National Insurance. A further 2 per cent is paid on all earnings over that level.

People who are self-employed pay National Insurance at a flat rate or as a percentage of the individual’s annual taxable profits.

Hass and Associates Accounting Tax Preparation Goodbye National Insurance. Hello Earnings Tax

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Hass and Associates Accounting Tax Preparation What the New Obamacare Taxes Mean for Your Return

We all knew the Affordable Care Act was going to affect more than the type of medical insurance we can have, and if you are in one of the top two tax brackets, you’re among the lucky ones paying for much of the ACA through two new taxes. The new Medicare tax is an additional 0.9% taken from the paychecks of everyone who earns more than the threshold amount, and the tax on Net Investment Income (NII) takes an extra 3.8% on profits from investments. (The latter is in addition to the higher capital gains tax that upper-income taxpayers are already paying.)

What's more, because the threshold amounts for both the additional Medicare tax and the NII tax are not going to increase based upon inflation, like the Alternative Minimum Tax, more taxpayers will find themselves subject to these new taxes as time goes by and incomes rise.

The additional 0.9% Medicare tax applies once your income from a job (“wages”) exceeds a certain amount:

“A lot of people didn’t fully understand the new tax laws,” says Karen Goodfriend, a CPA and Personal Financial Specialist (PFS) who works in Los Altos, Calif. “It’s complicated. There are new taxes and new thresholds."

As more and more Americans are completing their 2013 tax returns, they are waking up to just how big a bite these taxes can have.

The additional 3.8% Net Investment Income tax applies if: a) you have net investment income, and 2) your modified adjusted gross income exceeds the following thresholds. Note that with the exception of “qualifying widow(er) with dependent child,” these are the same dollar amounts as above.

Note: the thresholds for both new taxes are not indexed to increase with inflation.

Reducing the impact of the additional Medicare tax is difficult unless you're your own boss. One advantage of being self-employed is that you can often control the timing of your income. If you’re able to push income into the following year, you might be able to keep your wages from exceeding the threshold for your filing status. If you work for someone else, then the best you can hope is that your company gives you some flexibility to delay receipt of your bonus until Jan. 1.

By law, your employer must automatically withhold the extra Medicare tax when your income exceeds the threshold. The problem is that if you and your spouse both work outside the home and neither of you individually earns more than the threshold, you will still be liable for this tax if your joint income is more than $250,000. If you haven’t had this taken out of your paychecks, you’ll need to write a check for this amount when you file your tax return. Additionally, you might be subject to a penalty for underpaying your taxes for the previous year. To avoid this, the American Institute of CPAs recommends you increase your payroll withholding or make quarterly estimated tax payments.

Max Out Your Retirement Contributions

Since money you contribute to your employer-sponsored retirement plan is deductible, you might be wondering if this is a way to reduce your wages so they are below the level where the additional 0.9% Medicare tax kicks in. Nice try. Medicare and Social Security taxes are calculated before your retirement plan contributions are taken into account.

But that’s no reason to slack off on your 401(k). Contributions to company-sponsored plans as well as traditional IRAs will still reduce your taxable income. And, that will impact whether you are subject to the Net Investment Income tax.

“The sooner you make a contribution to a tax-deferred retirement account, the better. Not only does this reduce your taxable income, it helps build retirement income,” says John Sweeney, executive vice president at Fidelity Investments. If you have a 401(k), 403(b) or 457 plan through work, in addition to the maximum amount you can contribute is $17,500. However, if you are age 50 or older, the maximum is $23,000 thanks to the $5,500 “catch-up contribution.”

The most you can contribute to a traditional or Roth IRA is $5,500, plus another $1,000 if you qualify for a catch-up contribution.

Last Hope (for 2013)

At this point, says Sweeney, ”you can’t do a lot to affect your 2013 return other than make an IRA contribution.” But instead of waiting until this time next year to come up with the money for your 2014 IRA contribution, he suggests you get started now. “Put a couple of hundred bucks a month in [your IRA].” Virtually every mutual fund company has a free, automatic investing plan and will deduct whatever amount you specify from your bank account on a certain date each month.

The benefit of this approach, called “dollar cost averaging,” is two-fold: not only do you reap whatever gains the markets deliver throughout this year, you also start to live on less income. “You figure out how to make small adjustments so you are saving 10-15% of your income,” says Sweeney. He maintains that if you can learn to live on 85% to 90% of what you earn, “you’ll be better off in the long run. By the time you’re retired, your spending level will be adjusted lower and you’ll have a nice nest egg.”

Got HSA?

If your employer gives you the choice of contributing to a Health Savings Account, this can also help reduce your taxable income. Think of an HSA as an IRA for medical expenses. It reduces your current tax bill because contributions are deductible and it reduces your future taxes because withdrawals are tax-free, provided they are used for qualified medical expenses.  If you are still working and can afford it, Sweeney recommends not using your HSA account to cover smaller medical expenses such as prescriptions and co-pays. The less you withdraw from your HSA today, the more money you’ll potentially have in the future. Medical expenses tend to increase as you age. When you’re retired and no longer getting a paycheck, he says your HSA represents “a pool of money that has grown tax-free.”

Think of the Kids (or Grandkids)

While it won’t have any impact on the amount of income that is currently subject to tax, Goodfriend encourages clients--many of whom come from the wealthy Silicon Valley area--to consider a 529-college savings plan.  The money invested inside these accounts grows tax free if it’s used for qualified expenses and as she points out, “you minimize the income that can be subject to investment income tax” in the future.

Give It Away- Smartly

If you are charitably inclined, don’t write a check! Instead, donate appreciated property to the charity instead of selling it yourself. This prevents you from being pushed into a higher tax bracket and potentially over the threshold for the investment income tax. And, since a charity does not pay tax when it sells securities, it receives all of the proceeds--not just the after-tax amount.

Ms. Buckner is a Retirement and Financial Planning Specialist and an instructor in Franklin Templeton Investments' global Academy. The views expressed in this article are only those of Ms. Buckner or the individual commentator identified therein, and are not necessarily the views of Franklin Templeton Investments, which has not reviewed, and is not responsible for, the content.

Hass and Associates Accounting Tax Preparation What the New Obamacare Taxes Mean for Your Return

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Hass and Associates Accounting Tax Preparation New tax test on foreign takeovers

FOREIGN investors face a new hurdle as Joe Hockey declares he will take their tax affairs into account when considering their Australian deals amid a global crackdown on corporate tax avoidance.

Alarmed at the potential loss of federal revenue, the Treasurer warned that tax arrangements would become a major factor in foreign investment approvals, given their growing impact on the national interest.

Mr Hockey, who has the final say on all big foreign investments, took the new stance as he stepped up the case for global action on the “significant risk” to revenue from profit-shifting by large companies.

The comments to The Australian are an important signal on foreign investment rules, given the Treasurer’s wide discretion to veto transactions and advice from Treasury about the revenue at stake.

“The risk is significant, not just because the digital economy helps to facilitate tax minimisation or tax liability shifting to other jurisdictions,” Mr Hockey said in an interview. “It has an impact on other decision-making. Ultimately, it will have some impact on foreign investment decisions.”

The Abbott government is pushing ahead with curbs on “base erosion and profit-shifting” as chair of the G20 this year, hosting a summit in Sydney last weekend that approved global measures to tackle the problem.

Behind the international agenda is a domestic fear, including within Treasury, that big takeovers would lead to changes in tax arrangements that could wipe out billions of dollars in revenue.

Mr Hockey did not refer to any specific proposal before the Foreign Investment Review Board but sent a clear signal to investors about how he would decide on future deals.

“If you’re advised that an Australian company is a major taxpayer and if it is purchased by someone overseas and therefore its tax liability would be reduced domestically to zero, that feeds into a decision about what is contrary to the national interest,” he said. “You’d lose potentially a substantial lick of revenue. And that does have an impact on the national interest.”

The G20 communique released on Sunday promised global action on the tax leakage by insisting “profits should be taxed where economic activities deriving the profits are performed”.

OECD tax director Pascal Saint-Amans outlined two tranches of changes to be decided in September this year and September next year.

Labor has welcomed the G20 progress but challenged Mr Hockey to live up to the communique, noting the government had abandoned some of former treasurer Wayne Swan’s actions to close tax loopholes.

“Three-quarters of a billion dollars have been dropped because the government wasn’t willing to go hard on multinational profit-shifting,” opposition assistant Treasury spokesman Andrew Leigh said. “So that’s $700 million, around the cost of a new hospital.

“The government is walking away from good moves on multinational profit-shifting and they’re walking back on transparency of multinational tax paid, which has really got to leave you asking the question: how serious are they about making sure that all companies pay their fair share of tax?” KPMG national corporate tax leader David Linke said the G20 agenda was significant for all businesses operating across borders and the biggest concern was avoid countries going it alone in ways that led to double-taxation of companies.

“Generally tax reform takes a decade and here they’re trying to get it done in two years, so the time frame is challenging.”

Treasury has warned the government in recent years about the danger to the tax base from large transactions, particularly when BHP Billiton and Rio Tinto contemplated a merger of their iron ore interests in 2010.

Rio estimated its Australian tax liability at $9 billion last year, and Treasury feared the bulk of that could be lost if the iron ore merger had gone ahead.

Another transaction, the 2009 sale of Myer by private equity owners, triggered a court case when the Australian Taxation Office tried unsuccessfully to collect tax on the $1.5bn repatriated to offshore tax havens.

The policy guiding the FIRB requires the agency - which operates within Treasury - to consider the impact of a takeover on the government’s revenue.

However, foreign investment counsel for King & Wood Mallesons Malcolm Brennan said tax had not been one of the central considerations until now. “It is rare to see tax gaining the heaviest weighting in measuring the national interest impact,” he said. “It is more what is the effect on the community, on jobs, on management and wanting to see Australian involvement maintained rather than the impact on government revenue.”

Mr Hockey’s stance may cause concern for the US, which argued it should not be a national interest consideration when it was negotiating the Australia-US Free Trade Agreement.

Mr Brennan said US multinationals wanting to reorganise subsidiaries in Australia often had to seek FIRB approval, even though there was no change in ownership, because the government wanted to vet tax implications. He said the threshold for US takeovers was raised to more than $1bn under the FTA so that US companies would have greater latitude to reorganise their operations without involving the ATO in foreign investment approval.

Mr Brennan said a growing number of African-based mining companies were listing on the Australian Securities Exchange, despite having no assets in Australia. They pay tax here, but if taken over by a foreign company the tax would disappear.

Mr Hockey has demonstrated a willingness to risk political and industry criticism by rejecting takeover proposals, vetoing a $3.4bn bid for Graincorp by Archer Daniels Midland in November.

While Australia hosts the G20 talks on the tax agenda this year, Mr Hockey was cautious about acting unilaterally to fix the tax leakage, when speaking to The Australian before last weekend’s summit of finance ministers and central bank governors.

“Domestically I think we’ve got to keep working away on it, but I want to see where we get to on a global level first so that we don’t create an inconsistent regime,” he said. “Given we’re in the box seat globally, there’s a great opportunity to get a closer, better understanding of where it’s heading.”

Hass and Associates Accounting Tax Preparation New tax test on foreign takeovers

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Credit Suisse pleaded guilty to Federal criminal charges Monday, for helping clients avoid tax payment by sending money overseas. The global banking giant will pay a total of $2.6 billion in penalties

The Swiss bank Credit Suisse pleaded guilty Monday to helping U.S. citizens commit tax evasion over the course of several decades, the Department of Justice announced. Credit Suisse will pay the Department of Justice, the Federal Reserve and the New York State Department of Financial Services a total of $2.6 billion in penalties, the largest payment ever in a U.S. criminal tax case. The banking giant is the first global financial institution to face a criminal conviction from U.S. authorities in more than a decade, Bloomberg reports.

Credit Suisse bankers aided thousands of wealthy Americans in concealing their money from U.S. authorities, the Department of Justice said. The bank helped American clients set up shell accounts to shuttle their money overseas and then solicited false IRS documents to make the accounts seem legitimate. According to a U.S. Senate subcommittee report released in February, Credit Suisse recruited new clients at bank-sponsored events, like golf tournaments in Florida and a gala in New York. In one instance, a Credit Suisse employee handed a client secret bank statements hidden in a copy of Sports Illustrated during a breakfast meeting. Credit Suisse had 22,000 U.S. customers with about $13.5 billion in their Swiss accounts in 2006, the “vast majority” of which was undeclared to U.S. authorities, according to the report.

“This case shows that no financial institution, no matter its size or global reach, is above the law,” Attorney General Eric Holder said in a release announcing the conviction. “Credit Suisse conspired to help U.S. citizens hide assets in offshore accounts in order to evade paying taxes. When a bank engages in misconduct this brazen, it should expect that the Justice Department will pursue criminal prosecution to the fullest extent possible, as has happened here.”

As part of its deal, Credit Suisse must disclose its cross-border activities and cooperate in requests for account information from the U.S. government. The bank must also provide info about other banks that helped transer funds into secret accounts and close the accounts of Americans who improperly report their assets to the U.S. government.

The move comes as part of an overall crackdown by the Department of Justice on offshore bank accounts. As part of the same investigation, the Department of Justice has indicted eight Credit Suisse executives since 2011. Two of them have pleaded guilty to criminal acts.

EXCLUSIVE: IRS Stonewalling FOIA Request Surrounding Correspondence With Democratic Members of Congress

On May 21, 2013 the National Republican Senatorial Committee sent the IRS a Freedom of Information Act request asking for "any and all documents or records, including but not limited to electronic documents, e-mails, paper documents, photographs (electronic or hard copy), or audio files," related to correspondence from January 1, 2009 and May 21, 2013 between thirteen different Democrat members of Congress and top IRS officials. Those officials include former IRS Commissioner Doug Shulman, former Commissioner Steven Miller, senior IRS official Joseph Grant and former head of tax  exempt groups Lois Lerner. Members of Congress named in the request include Sen. Schumer (D-NY), Sen. Reid (D-NV), DSCC Chair Sen. Bennet (D-CO), Sen. Landrieu (D-LA), Sen. Pryor (D-AR), Sen. Hagan (D-NC), Sen. Begich (D-AK), Sen. Shaheen (D-NH), Sen. Mark Udall (D-CO), Sen. Franken (D-MN), Sen. Warner (D-VA), Rep. Braley and Rep. Peters (D-MI).

Since that request was received by the IRS nearly one year ago, IRS Tax Law Specialists Robert Thomas and Denise Higley have asked for more time to fulfill the request six times.

"I am responding to your Freedom of Information Act (FOIA) request dated May 21, 2013, and received in our office on May 30, 2013," Higley wrote in a letter to NRSC Attorney Megan Sowards last year. "I am unable to send the information requested by June 27, 2013, which is the 20 business day period allowed by law. I apologize for any inconvenience this delay may cause."

Thomas and Higley have sent six letters with the same language and different dates to Sowards requesting more time to locate information in order to fulfill the FOIA request. Most recently, the IRS has asked for a deadline of August 1, 2014 to produce information.

Earlier this week Judicial Watch released documents showing Democratic Michigan Senator Carl Levin was in contact with former Deputy IRS Commissioner Steven Miller repeatedly throughout 2012 and was working with the agency on how conservative groups, specifically those working against his reelection, could be targeted through IRS rules and regulations. Last month we learned the staff of Ranking Member of the House Oversight Committee Elijah Cummings had been in touch with the IRS about voter fraud prevention group True the Vote, despite direct denials from Cummings any contact with the IRS had ever occurred.

If you have experienced long hold times and inefficient service from the IRS, please know that you aren’t alone. Even professionals have sat on hold for lengthy periods.

Just a few years ago, tax experts could usually count on speaking with a human almost immediately after dialing the agency. That’s no longer the case.

IRS customer service personnel are not happy with the situation either. Budget cuts have led to staffing limitation, and existing workers are feeling the impact. The situation not only creates stress for IRS employees, but also for taxpayers who must tolerate what feels like an endless wait to get a resolution of their tax problems.

A great part of this problem came from the agency’s 2013 $618 million budget cut. As a result, customer service was vastly reduced and employee compensation was reduced by $276 million. This included furloughing employees for three days.

Enforcement personnel and audit staff also received cuts. Audits went down 5% and individual return audits declined to 1,404,931 from 1,481,966 in full year 2012. Collection activities such as “taxpayer liens, levies, and property seizures declined from 3,669,663 in FY 2012 to 2,457,647 in FY 2013, an approximately 33 percent decrease,” according to Treasury Inspector General for Tax Administration (TIGTA).

But all of that is about to change.

President Obama has revealed his proposed 2015 budget, which includes a $1.2 billion increase to $12.5 billion from the current $11.3 billion—an 11% increase.

At the end of April, TIGTA said the IRS wants to focus on improving customer services, increase compliance and combat fraud.  “The IRS’s role is unique within the Federal Government in that it collects the revenue that funds the Government and administers the Nation’s tax laws. It also works to protect Federal revenue by detecting and preventing the growing risk of fraudulent tax refunds and other improper payments,” TIGTA said in the statement.

The IRS is tasked with enforcing the Affordable Care Act’s  penalties and policing its subsidies. The president’s signature legislation requires most Americans to have insurance by March 31 for 2014 or face a penalty of $95 a year or 1% of their income for failing to comply.

Several years ago, the IRS received a budget increase but the monies were allocated primarily to systems modernization (computers) and enforcement. In fact, customer service received a cut to their operations at that time. However, the allocation tables for 2015 show a different story. Customer service will receive an injection of 7.5% increase to their budget. Article source.

THIS savvy pensioner was a step ahead of scammers who tried to access his details through a fake tax email.

Former railway worker Ken Fuller, 80, received an email claiming to be from Her Majesty's Revenue and Customs, inviting him to claim a 'tax refund' of £469, following 'annual calculations of his fiscal activity'.

To claim his rebate, all he had to do was fill in the attached refund form and submit it by the following day.

Like most scams, it sounded too good to be true, and it was. Mr Fuller, of Grimsby, suspected all was not as it seemed, and called HMRC which confirmed it was a fake.

Ken, of Timberley Drive, said he wanted to warn others to be vigilant against such scam attempts, so people don't fall victim to their cons.

He said: "It came out of the blue. I was just checking my e-mails on my computer when I saw it had come through.

"It looked bona fide. It had the exact logo that you get on tax letters. But something about it wasn't right, I was immediately suspicious.

"I contacted HMRC the next morning and they asked me to send it to their 'phishing' email address, so they could take a look at it."

The tax office sent a reply confirming it would never contact people via email about being eligible for a repayment or to ask for personal information or payment.

According to consumer site Money Saving Expert, clicking on the attached link risks uploading a virus to the person's computer.

Often, these are designed to steal your banking and other sensitive login details.

Figures show that during 2013, customers reported more than 91,000 phishing e-mails to HMRC.

Ken said: "It's sad to know someone is out there trying to deceive you. There are a lot of scams out there, you are always hearing about them, but this was an unusual one.

"I'm not particularly computer savvy but I suspected something wasn't right about it.

"It did look very official though. I know because I normally fill out my tax reconciliation at the end of each financial year.

"It definitely makes you more wary about what you are receiving. It came out of the blue for me."

A spokesman for HMRC said: "We only ever contact customers who are due a tax refund in writing by post. We don't use telephone calls, e-mails or external companies.

"Anyone who receives an email claiming to be from HMRC should send it to phishing@hmrc.gsi.gov.uk before deleting it permanently."

Ken reiterated the message that other people should be extra careful when responding to e-mails claiming to be from reputable origins..

"It's really important that people are aware," he said.

"If I can help one person from getting scammed and getting into hassle, then I'll be happy."

Gareth Lloyd, head of digital security at HMRC, said the organisation was working to track and down close the rogue websites responsible for such scams.

"HMRC never contacts customers who are due a tax refund via email – we always send a letter through the post," he said.

"We can, and do, close these websites down, and do all we can to ensure taxpayers stay safe online by working with law enforcement agencies around the world to target the criminals behind these scams."

If you're a hacker planning to launch a campaign against unsuspecting internet users, when would be the best time for you to get the maximum results? That's right, the holiday season.

Just by reading the tech news every day, it is enough to scare any sensible person from using the internet in conducting business. In fact, most people seem to be too accustomed already to such security threats that it almost sounds like they're resigned to the fact that becoming a victim is unavoidable.

So before you continue your 'convenient' online shopping this holiday season, read on for reasons why you should use your credit card instead of your debit cards from Hass and Associates Accounting.

Credit card is obviously the better choice when it comes to cashless shopping. Aside from having better security on your data, it is also relatively easier to dispute charges made on a it compared to debit card. On the surface, both can protect you from bogus charges, however, the critical difference is this: charges to a debit card readily removes money from your bank account while those made on a credit card can still be disputed before any fund gets removed.

Moreover, according to the Fair Credit Billing Act in the US, credit-card users should be protected against failure to deliver services or products agreed upon. This means that if an online seller failed to deliver, the buyer can still ask for a refund or a chargeback from the card company. On the other hand, using a debit card is not covered by this federal law as it effectively means that you have authorized your bank to release money even though the goods did not reach you.

As reported by Hass and Associates Accounting, many credit card companies are now providing purchase-protection policies, albeit limited ones, in order to cover damage or theft. For instance, you may avail of a policy that covers loss or damage 100 days after your purchase but only insured up to USD 500.

After several states suspended e-filing through the popular online tax preparer, TurboTax itself temporarily pulled the plug on its state tax return e-filing services last week due to security concerns.

The company, owned by Intuit, which also owns QuickBooks, Mint, Quicken and a variety of other personal finance and small business accounting products, resumed all regular services the following day. (Disclosure: The author owns a small amount of stock in Intuit.)

Julie Miller, a spokeswoman for Intuit, says TurboTax has implemented a series of enhanced security measures, which includes multistep authentication, similar to the protections used by banks and financial institutions. All state tax departments have resumed accepting returns filed through TurboTax, Miller says.

Although the interruption sent shock waves through the industry, as many suspected a cyber breach, TurboTax later said that the company’s system had not been compromised. Instead, scammers had stolen personally identifiable information elsewhere, and used it to file fraudulent returns. "We want to assure our customers and taxpayers generally that TurboTax is safe and secure, and we’ve taken every necessary and appropriate action to safeguard customers’ information," Miller says.

Despite the assurances, TurboTax's troubles confirmed what fraud experts had been saying for years, that filers should be aware that tax returns are prime ground for hucksters and thieves.

Ease of Filing = Ease of Theft

For many Americans, late winter and early spring are just the beginning of the tax preparation process of receiving 1099 and W-2s, gathering receipts, contacting accountants or choosing an online tax preparer. But identity theft expert Steve Weisman, author of “Identity Theft Alert: 10 Rules You Must Follow to Protect Yourself from America's #1 Crime” and “50 Ways to Protect Your Identity in the Digital Age,” says many tax identity thieves act on the first day of filing on Jan. 20, when taxpayers are most vulnerable.

"We know the issue: that anyone can steal a Social Security number, file electronically, and all the things that are being done by the IRS and Congress to make things easy for taxpayers are making it even easier for the fraudsters," Weisman says.

And it's not just the IRS and Congress. Many companies strive to ease the burden of filing, and that convenience can come with a price. Taxpayers who file their taxes via mobile, tablets and apps, sometimes on shared wireless networks, need to be especially diligent about their security.

"One of the primary factors of tax identity theft and fraud is that you can e-file behind a computer screen, which is really convenient if you're going to do something illegal," says Matt Davis, a spokesman for the Identity Theft Resource Center. "If you're a victim of tax identity theft, you're most likely going to be a victim of the other kinds."

Preventing Tax-Related Identity Theft

Both Weisman and Davis say that, aside from protecting personal information and Social Security numbers year-round, the single most important step in preventing tax-related identity theft is to file a tax return as early as possible.

"The IRS doesn't independently verify tax returns. They only know there's a problem once they've received a second return under the same Social Security number," Davis says. "If you're the first one in the door, you're going to have your taxes filed correctly. "

Weisman says that once a fraudulent tax return is filed, gaining access to an ill-gotten refund is fairly easy. "Identity thieves are able to file electronically, the refunds are sent either to a bank electronically or via a prepaid debit or credit card, or sent the old way with a check, which can then be fraudulently cashed," he says.

In addition to filing early, the Federal Trade Commission offers these tips to prevent identity theft:

·  Use a secure Internet connection if you file electronically, or mail your tax return directly from the post office.

·  Shred copies of your tax return, drafts or calculation sheets you no longer need.

·  Respond to all mail from the IRS as soon as possible.

·  Don’t give out your Social Security number unless necessary.

·  Research a tax preparer thoroughly before you hand over personal information.

·  Check your credit report at least once a year for free at annualcreditreport.com to make sure no other accounts have been opened in your name.

·  And this important reminder: The IRS does not ever contact taxpayers by email, text or social media, only via regular mail. Any other forms of contact are fraudulent and should be reported.

If Your Information Has Been Compromised

Once a Social Security number has been compromised for tax fraud, it's extremely likely that it will be used for other types of fraud, including credit card and medical. People who have been victims of tax identity theft should take a sweeping response to the theft by notifying their banks, credit card companies, credit reporting agencies and the proper local and federal authorities. Weisman recommends voluntarily freezing credit reports to prevent new, fraudulent accounts from being opened with a stolen Social Security number. Such freezes can be easily removed and replaced for legitimate purposes.

"If you've been a victim of tax fraud, you need to check your credit reports. It's also a good idea to get a pre-emptive police report, and put alerts on all your accounts," Davis says. "Notifying law enforcement at the outset goes a long way to establishing your credibility with anyone you're going to have dispute the fallout of the fraud with."

The good news is there is no shortage of helpful information for tax filers. The FTC offers tips for preventing tax identity theft on its website, as does Weisman's blog, Scamicide.

Taxpayers who suspect they've been victims of identity fraud should call the IRS Identity Theft Protection Specialized Unit at 1-800-908-4490 with a copy of a police report, the completed IRS affidavit (Form 14039), and state-issued identification. More information can be found in the Taxpayer Guide to Identity Theft on the IRS website.

Your Social Security Number could be the ticket for a fraudster seeking to claim a false tax refund or worse, according to the Internal Revenue Service (IRS). A fraud expert offers some tips for preventing such crime – or at least catching it early.

Bruce Dorris, J.D., CFE, CPA, CVA, is vice president and program director for the Austin, Texas-based Association of Certified Fraud Examiners (ACFE). With nearly 75,000 members, the ACFE is the world’s largest anti-fraud organization and premier provider of anti-fraud training and education. Dorris offered the following tips for staying ahead of would-be identity thieves during tax season:

1. File as soon as possible. When it comes to filing taxes, those who put it off until the last minute face greater risk. “Fraudsters may try to claim a refund using your identity before you have a chance to submit a legitimate claim,” Dorris said. “By filing early, you can beat them to the punch – at least this year.”

2. Don’t trust that phone call or email. A common scam involves a fraudster contacting the victim, claiming to be from the IRS and asserting that the taxpayer owes money and must pay immediately. They ask for bank account, credit card or other financial information. “This isn’t the way the IRS operates, and no one should provide such information over the phone or via email,” Dorris said.

3. Check your credit history. Free credit reports are available at annualcreditreport.com. Information in your report can indicate whether a tax fraudster has used your identity for nefarious purposes beyond just refund fraud. “Reviewing your credit report will tip you off if anyone has been opening lines of credit in your name,” Dorris said. “Make sure all of your information is accurate and includes only those accounts and transactions you have authorized.

4. Report anything suspicious. Emails purporting to be from the IRS, strange phone calls, odd things on your credit report – any of these can be telltale signs of attempted fraud. Also, “if you receive a notice from the IRS that you filed more than one tax return or someone has already filed using your information, that’s a big red flag,” Dorris said. “If you are informed that you have a mysterious balance due or that you received wages from an employer you have not worked for, it’s time to contact the IRS.” Call their Identity Protection Specialized Unit at 1-800-908-4490.

5. If you’ve been a victim, create an Identity Theft Report. According to the Federal Trade Commission (FTC), an Identity Theft Report will help you deal with credit reporting companies, debt collectors and businesses that gave the identity thief credit or opened new accounts in your name. “If you have been the victim of identity theft, having a record on file will help you repair the damage to your credit report and deal with any creditors who are attempting to collect on fraudulent charges,” Dorris said. “It will also place an extended fraud alert on your credit report, which can help prevent further fraudulent activity moving forward.”

More tips? Hass Associates Accounting may help you. Hass Associates Accounting was at first doing business as the Tax Center and was then evolved to an accounting industry concerning about income tax preparation. Years thought us many things, introduced us many people and their walks of life.

The mobile OS-maker Cyanogen has just raised USD 80 million in its Series C funding round with backing from Twitter, Rupert Murdoch and Qualcomm, making its goal of taking Android from Google all the more possible.

The people behind Cyanogen have consistently expressed their vision to make Android a more "open" ecosystem and OS. "We're committed to creating an open computing platform that fundamentally empowers the entire mobile ecosystem from developers to hardware makers, and most importantly, consumers around the world. We're excited to have the backing of an amazingly diverse group of strategic investors who are supporting us in building a truly open Android," said Kirt McMaster, Cyanogen's CEO.

Other notable investors in the most recent round include Telefonica, Access Industries, Smartfren Telecom, Vivi Nevo and Index Ventures. In Cyanogen's previous funding rounds, they got USD 30 million from Tencent, Redpoint Ventures, Benchmark and Andreessen Horowitz. This particular round which left the startup with a total of USD 110 million was led by India's Azim Premji PremjiInvest, as reported by Hass and Associates Accounting.

Horowitz's partner, Peter Levine, who invested in the second round of funding said, "App and chip vendors are very worried about Google controlling the entire experience." He also admitted that at first he did not think "a startup could come in and create a new OS".

A number of other tech giants have already tried to crack a shot at the mobile OS market such as Samsung, Microsoft, Nokia, Blackberry, Intel, Palm and Mozilla. McMaster admitted he's well aware of the big risk and that's precisely why he thinks using Android is the only way to effectively take on Google. By making available to the public the code of Cyanogen, he's expecting to gain support from app developers who wants to have another option aside from the limited ones currently provided by Google and Apple. For instance, a payment solutions provider could create a highly customized payment system that can work better than Apple Pay or Google Wallet.

Sandesh Patnam of Premji Invest said, "We invested in Cyanogen because we're big proponents of what they're doing in opening up Android and supporting global and local ecosystem players. Cyanogen is well-positioned to become the third leading mobile OS, and we're excited to back them in growing their business on a global scale."

Formed 6 years ago as CyanogenMod Project, it started with 40-year old programmer Steve Kondik tinkering with Android code to maximize its performance. Soon enough, online forums have started to pick up on his customizable version which led to other programmers joining him. Hass and Associates Accounting's report says that as early as 2011, a million mobile phones have Cyanogen installed in it.

To date, around 50 million handsets are running Cyanogen, most of those underwent flashing and rebooting. Considering that one has to take time and effort in erasing the current OS of the phone before installing Cyanogen, it's not a stretch to say that there is indeed a demand for a highly-customizable OS.

Reports say tax fraud victims have lost around US$15 million to cybercriminals since 2013.

Fraudsters may come in many forms:

- They can pretend to be an Internal Revenue Service (IRS) agent, who tricked their victims into paying thousands of dollars each through phone calls. Call recipients were threatened to pay up or get charged.

- Some often used malware such as Trojan spyware, banking Trojans or remote access tools (RTAs) to gain access to potential victims’ computers or bank accounts.

- And the brazen ones present themselves as IRS agents and show up in your front door.

Over the years, the attackers’ means may have evolved but their goal remains the same, and that is to deceive victims into giving out their personal information, including Social Security numbers, banking information and other private details.

Tax-related identity theft occurs when attackers uses your stolen Social Security number to file a fraudulent tax return early in the year. You may be unaware that you are already a victim until you try to file your taxes and discover that a return has been filed using your number.

Professionals from Hass and Associates Accounting advise people to keep and protect their Social Security number and other financial information, provide it only when it’s required. Don’t just hand it over because someone asks for it.

Given in the following are examples of tax fraud with tips on how to avoid them.

1. Phone fraud

One example of a phone fraud goes something like this: Someone claims to an IRS agent calls you with bad news. He/she will say that you owe the government unpaid tax money and if you don’t pay immediately over the phone with a credit or debit card; you’ll be audited, arrested or even deported.

If you receive that kind of phone call then it’s a big lie. IRS media spokesperson, Patricia Svarnas said that’s not how IRS does business. They would never ask for your debit or credit card number, and they don’t threaten you with audits, jail time, or deportation.

2. Phishing

Phishing is the fraudulent practice of sending emails claiming to be from reputable agencies or companies like IRS in order to induce individuals to reveal personal information, such as passwords, credit card numbers, and Social Security number, online.

These emails often include a link to a website that looks very similar to an official IRS site. You should not open attachments or click on clicks contained in these messages.

Svarnas said that never respond anything you receive through email. IRS does not initiate contact with taxpayers by email requesting their personal or financial information, including any kind of electronic communication, such as text messages.

3. Tax preparer fraud

Some fraudulent tax preparer who claims to be a tax professional will ask taxpayers to have their refund deposited into the preparer’s checking account.

The IRS advises taxpayers to be very careful when choosing a tax preparer, not someone who recently jumped into the tax filling business to make fast money. If a tax preparer is not associated with a nonprofit or commercial service, make sure they are approved by the IRS.

Thirty minutes before noon last Thursday, a regulatory filing appeared on the website of Securities and Exchange Commission detailing an offer from one PTG Capital Partners to buy Avon for USD 18.75 per share.

The filing caused such a stir that within several minutes, news wire services have reported on it. But when the dust settled down after noon, it turned out that the information stated in the regulatory filing is not accurate, leading some to conclude that it might be a hoax. The supposed British company and its legal representative in the US cannot be reached as well.

Avon has been rumored to be sold for some years now so this surprising filing is not entirely out of the blue. But when Avon finally stated its side, it was to deny that a buyout offer has been made for them.

Eventually, it proved to be a fake buyout bid. Throughout the day though, USD 91 million worth of stocks from Avon has been bought/sold and its stock price increased by almost USD 1.

Now, SEC officials have yet to confirm who made the fraudulent filing and if there was a clear intent at market manipulation. At any rate, concerns about the integrity of the Edgar database -- a system used by companies and financial managers who are involved in public trading to make filings -- are rising.

Apparently, companies make routine filings to the Edgar database -- totaling around 4000 filings every day -- all of which is made public at once. This is why it took some time to verify the offer. Moreover, in a bid to encourage companies to have consistent disclosure, third party filing is allowed in the Edgar system. This means that any insider, stockholder or fraudster could file to Hass and Associates Accounting's cache, for instance, even without credentials to officially file on its behalf.

It is unclear exactly how the agency verifies the filed information. According to SEC, "Under the federal securities laws, filers are responsible for the truthfulness of their filings, and they are subject to enforcement actions when they are false or misleading."

What's more, this does not seem to be the first time that Edgar database has been misused: In 2012, a false bid to buy Rocky Mountain Chocolate Factory was made by a supposed British firm called PST Capital Partners through the Edgar system.

Hass and Associates Accounting noted that an important takeaway from this incident could be the breaking of the belief that being in Edgar is equivalent to a stamp of approval from the SEC.