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e-News for Tax Professionals June 10, 2022
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Issue Number: 2022-23
Inside This Issue
* Early bird rate for IRS Nationwide Tax Forum ends June 15 [ #First ]
* IRS offers face to face help in Puerto Rico this Saturday [ #Second ]
* Don?t be a victim: Know about the ?Dirty Dozen? tax scams for 2022 [ #Third ]
* IRS increases standard mileage rate [ #Fourth ]
* Second quarter estimated taxes due June 15 [ #Fifth ]
* Missed the tax deadline? File and pay by June 14 to avoid a larger penalty, interest [ #Sixth ]
* U.S. Court of Appeals ruling affirms abusive microcaptive insurance transactions are shams [ #Seventh ]
* News from the Justice Department?s Tax Division [ #Eighth ]
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*1.??Early bird rate for IRS Nationwide Tax Forum ends June 15*________________________________________________________________________
Register for the 2022 IRS Nationwide Tax Forum [ [link removed] ] and take advantage of the $240 early bird rate ? available now through June 15. Association members are eligible for an additional $10 off the early bird rate. After June 15, the rate goes up to $289 for all participants. For more information, check out Tax Talk Today?s episode about the 2022 IRS Nationwide Tax Forum [ [link removed] ] and visit the forum website [ [link removed] ].
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*2.??IRS offers face to face help in Puerto Rico this Saturday*________________________________________________________________________
To help taxpayers, the Taxpayer Assistance Center (TAC) in Guaynabo, Puerto Rico, will be open this Saturday, June 11, for face to face help [ [link removed] ].
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*3.??Don?t be a victim: Know about the ?Dirty Dozen? tax scams for 2022*________________________________________________________________________
This week, the IRS shared its remaining 2022 annual Dirty Dozen tax scams that you and your clients should be aware of, including:
* Criminals who still use the COVID-19 pandemic to steal people's money and identity [ [link removed] ].
* Unscrupulous tax firms that use local advertising and falsely claim they can resolve unpaid taxes [ [link removed] ] for pennies on the dollar.
* Suspicious communications [ [link removed] ] designed to trick, surprise or scare someone into responding before thinking.
* The email scam known as spear phishing [ [link removed] ], which attempts to steal the credentials of any small business with a client data base, such as a tax professional firm.
* Bogus tax avoidance strategies [ [link removed] ] promising too-good-to-be-true ways to reduce taxes or avoid taxes altogether.
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*4.??IRS increases standard mileage rate*________________________________________________________________________
The IRS this week announced an increase in the optional standard mileage rate [ [link removed] ] for the final six months of 2022. Taxpayers may use the optional standard mileage rate to calculate the deductible costs of operating an automobile for business and certain other purposes. Beginning July 1, the rates are 62.5 cents per mile for business use of an automobile and 22 cents per mile for costs of using an automobile as a medical or moving expense.
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*5.??Second quarter estimated taxes due June 15*________________________________________________________________________
If you have clients who pay estimated taxes, remind them that the deadline to pay their second quarter liability is June 15 [ [link removed] ]. This article is also available in Spanish [ [link removed] ] and Simplified Chinese [ [link removed] ].
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*6.??Missed the tax deadline? File and pay by June 14 to avoid a larger penalty, interest*________________________________________________________________________
Advise clients who missed the April tax deadline that they can usually avoid a larger penalty by filing their 2021 federal income tax return and paying any tax due by Tuesday, June 14 [ [link removed] ]. To avoid the larger penalty, the IRS must receive the return by June 14. A return mailed on that date will not qualify. This article is also available in Spanish [ [link removed] ] and?Simplified Chinese [ [link removed] ].
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*7.??U.S. Court of Appeals ruling affirms abusive microcaptive insurance transactions are shams*________________________________________________________________________
On May 12, in Reserve Mechanical Corp. v. Commissioner [ [link removed] ], the United States Court of Appeals for the Tenth Circuit affirmed the Tax Court's decision holding that the taxpayer was not engaged in the insurance business and that the purported insurance premiums it received were therefore taxable. The decision upholds the IRS?s long-standing position regarding abusive microcaptive insurance transactions [ [link removed] ].
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*8.??News from the Justice Department?s Tax Division*________________________________________________________________________
A federal grand jury in Detroit returned an indictment charging Raj Paruthi [ [link removed] ], a professional tax return preparer, with filing false tax returns for himself and his business, obstructing the IRS and other tax crimes.
The United States has filed a complaint in the U.S. District Court for the Southern District of Florida seeking to bar Cindy Odige, Rudy Aly, Rhonda Hudge and TUPS Tax LLC [ [link removed] ] from owning or operating a tax return preparation business and preparing federal income tax returns for others, as well as to require the defendants to disgorge the fees they received for fraudulently prepared returns.
Tax preparer King Isaac Umoren [ [link removed] ] of Las Vegas, Nev., pleaded guilty to aggravated identity theft, wire fraud and money laundering.
Michigan return preparer and co-owner of All Star Tax Services Daneilla Allen [ [link removed] ] admitted that from 2014 through 2018 she prepared and filed false tax returns with the IRS for clients. Allen also admitted to causing a total tax loss to the IRS of more than $815,000.
Orland Reed [ [link removed] ] of Gulfport, Miss., pleaded guilty to preparing false federal tax returns for clients. In addition to preparing false tax returns, on at least two occasions Reed diverted for his own use clients? refunds that were sent by the IRS to the tax preparation business in the form of prepaid debit cards.
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