Tax Time Tips

by Tina on January 3, 2011

It’s a new year, 2011! WOW, I remember the angst waiting for 2000 and now it so many years later!

But… low and behold  it’s that time of the year again to begin preparing for the income tax filing season. All those important tax documents should be arriving in the mail.  The returns are  not due until April, but getting an early start will make filing easier. Here are the Internal Revenue Service’s top 10 tips that will help your tax filing process run smoother than ever this year.

1.     Start gathering your records Round up any documents or forms you’ll need when filing your taxes: receipts, canceled checks and other documents that support income or deductions you’re claiming on your return.

2.     Be on the lookout W-2s and 1099s will be coming soon; you’ll need these to file your tax return.

3.     Use Free File: Let Free File do the hard work for you with brand-name tax software or online fillable forms. It’s available exclusively at http://www.irs.gov. Everyone can find an option to prepare their tax return and e-file it for free. If you made $58,000 or less, you qualify for free tax software that is offered through a private-public partnership with manufacturers. If you made more or are comfortable preparing your own tax return, there’s Free File Fillable Forms, the electronic versions of IRS paper forms. Visit www.irs.gov/freefile to review your options.

4.     Try IRS e-file: After 21 years, IRS e-file has become the safe, easy and most common way to file a tax return. Last year, 70 percent of taxpayers – 99 million people – used IRS e-file. Starting in 2011, many tax preparers will be required to use e-file and will explain your filing options to you. This is your chance to give it a try. IRS e-file is approaching 1 billion returns processed safely and securely. If you owe taxes, you have payment options to file immediately and pay by the tax deadline. Best of all, combine e-file with direct deposit and you get your refund in as few as 10 days.

5.     Consider other filing options There are many different options for filing your tax return.You can prepare it yourself or go to a tax preparer.You may be eligible for free face-to-face help at an IRS office or volunteer site.Give yourself time to weigh all the different options and find the one that best suits your needs.

6.     Consider Direct Deposit If you elect to have your refund directly deposited into your bank account, you’ll receive it faster than waiting for a paper check.

7.     Visit the IRS website again and again The official IRS website is a great place to find everything you’ll need to file your tax return: forms, publications, tips, answers to frequently asked questions and updates on tax law changes.

8.     Remember this number: 17 Check out IRS Publication 17, Your Federal Income Tax on the IRS website. It’s a comprehensive collection of information for taxpayers highlighting everything you’ll need to know when filing your return.

9.     Review! Review! Review!Don’t rush. We all make mistakes when we rush.Mistakes will slow down the processing of your return. Be sure to double-check all the Social Security Numbers and math calculations on your return as these are the most common errors made by taxpayers.

10.   Don’t panic! If you run into a problem, remember the IRS is here to help. Try http://www.irs.gov or call toll-free at 800-829-1040.

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Red Flags for Fraud

by Tina on November 16, 2010

Some working situations create an environment where fraud is more likely. All business owners should be aware of these situations and strive to control the working conditions in order to reduce the opportunity for fraud. These include:

  • Inadequate training of employees
  • Gray areas of responsibility
  • Poor employee compensation
  • Unattainable goals or deadlines
  • Management’s lack of commitment to controls
  • Disorganization of work area
  • Close association with key employees, customers or vendors
  • Little or no review of employees work
  • Lack of physical controls inside a company
  • Lack of Information System access controls

These situations are not necessarily indications that fraud is being committed, but rather  an opportunity to commit fraud or make material mistakes.  There are additional warning signs that may be more of a “red flag” that fraud is happening such as:

  • • An employee’s behavior changes significantly. For example someone who is usually on time begins to be late, a clean person becomes disorganized, or a usually social person withdraws from coworkers.
  • • An employee begins to take a lot of “personal” calls on their cell phone, and takes these calls out of the office (in the parking lot, or lobby, for example)
  • • Employee has high personal debt or other financial pressures such as excessive medical bills
  • • Employee appears to be living a lifestyle that does not fit their current income level
  • • Excessive use of drugs or alcohol and/or excessive absences due to this use.
  • • Employee job dissatisfaction
  • • Significant outside pressures from home or other obligations

Managers/owners should be reviewing financial information and should understand the importance of doing so.  Because the business environment is constantly changing the internal control policies should be reviewed for thoroughness and adjustments should be made from time to time.

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