August: Date to remember; Phone scams; and Federal rates

Tax snacks

Tax Snacks: Bite-size tax news and information on the fly

Date to remember:

 

September 15:
  • Third quarter estimated tax payments are due (for calendar-year entities and individuals).
  • Extended corporate, trust and partnership returns are due (for calendar year-end entities).

Remain Suspicious of Phone Scams

Telephone scammers posing as IRS personnel have successfully victimized around 1,100 people and stolen close to $5,000,000, according to the government. Ninety-thousand complaints have been received and there appears to be no end in sight, in part because the scammers use caller ID that make the calls appear to originate from the IRS. Some more information and useful tips regarding how to avoid being duped can be found here. Of these tips, you generally can avoid being fooled by remembering two things: The IRS nearly always makes initial contact by mail, not by phone or e-mail. Also, they never demand immediate payment; a time frame (generally several weeks) is provided to pay or contest their claim.

Applicable Federal Rates

One of this month’s newsletter articles addresses the need for interest to apply to certain corporation/shareholder loans. It mentions the IRS “Applicable Federal Rates” (AFR). AFRs are published monthly by the IRS, and can be found here. Much more information on AFRs can be found in this article, which we published in June.

Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.

IRS CIRCULAR 230 DISCLOSURE:
Pursuant to requirements imposed by the Internal Revenue Service, any tax advice contained in this communication (including any attachment) is not intended to be used, and cannot be used, for purposes of avoiding penalties imposed under the United States Internal Revenue Code or promoting, marketing or recommending to another person any tax-related matter. Please contact us if you wish to have formal written advice on this matter.