Here are some important updates from the IRS that you should know this fall. Please contact Cray Kaiser if you have any specific questions or concerns.
Hurricane Season Disaster Scams are Here
Beware of charity scams during this year’s hurricane season. Criminals often take advantage of people who want to help natural disaster victims. It’s common for scammers to try to collect money and personal information by pretending to be a member of a charity or by creating a fake charity website.
Some scammers even pretend to work for the IRS to get natural disaster victims to work with them to file casualty loss claims. They then use that relationship to steal the victims’ tax refunds.
If you’d like to donate to a charity that supports hurricane or other natural disaster victims, use the IRS Tax Exempt Organization search tool to find a legitimate charity.
Beat the Rush and Renew Your ITIN
Don’t wait to renew your Individual Taxpayer Identification Number (ITIN) if it’s set to expire at the end of 2018. The IRS wants taxpayers to submit their renewal applications as soon as they can to beat the last-minute rush and avoid refund delays next year.
Taxpayers who will need to file a tax return in 2019 and have ITINs that are expiring will need to submit a renewal application. ITINs with the middle digits 73, 74, 75, 76, 77, 81 or 82 need to be renewed even if you haven’t used it in the last three years.
Third-Quarter Interest Rates Stay the Same
The third-quarter interest rates on overpayments are 5% for individuals and 4% for corporations. Corporate overpayments exceeding $10,000 have a 2.5% interest rate. The rate charged on underpayments is 5% and large corporate underpayments are charged 7%.
Please contact us if you have any questions or concerns.