THE IRS DOES NOT INITIATE CONTACT WITH TAXPAYERS
THROUGH E-MAIL -

Recently there have been a rash of emails being sent that appear to be coming from the IRS but if you got one or you get one don't follow the instructions, don't click on any links and don't worry that it really may be from the IRS and you'll be in trouble because you didn't respond.  There are various versions of scam emails currently circulating some that indicate that criminal charges are pending, some that indicate that a refund is due to the taxpayer, and so on and so on.  What they all have in common is that they are all malicious.  They are scammers tools such as phishing schemes to search for information for fraudulent use and Trojan horses designed to hijack your hard drive and remotely access it to steal or destroy your valuable information. 

The IRS states on their website that it does not send e-mails to taxpayers to advise them of refunds or to request financial information.

Also the IRS does not send out unsolicited e-mails or ask for detailed personal and financial information. Additionally, the IRS never asks people for the PIN numbers, passwords or similar secret access information for their credit card, bank or other financial accounts.

The IRS does not initiate contact with taxpayers through e-mail.

Recipients of questionable e-mails claiming to come from the IRS should not open any attachments or click on any links contained in the e-mails. Instead, they should forward the e-mails to phishing@irs.gov and (follow the instructions).

For the complete article on the IRS web site related to the above information click on the following link:

http://www.irs.gov/newsroom/article/0,,id=170894,00.html

IRS CAUTIONS CONSUMERS ON CREDIT COUNSELING FIRMS

In a departure from normal procedures, IRS has teamed up with the Federal Trade Commission (FTC) to warn consumers about nonprofit credit counseling firms.  IRS is also checking to see whether firms are meeting their obligations under the tax code if they are organized as a nonprofit.  In the IRS News Release IR-2003-120 titled "IRS, FTC, and State Regulators Urge Care When Seeking Help from Credit Counseling Organizations" the IRS and the FTC point out that many credit counseling organiztions provide valuable advice, educationa nd assistance to those seeking to better manage their debt; but that an increasing number of complaints to federal and state agencies indicates that some organizations are engaging in questionable activities.  There is concern that some of these organiztions are seeking tax-exempt status in order to circumvent state and federal consumer protection laws.  According to the IRS and FTC, consumers can help protect themselves from deceptive credit counseling practices by following these tips:

• Check that the organization will help you manage your finances better through counseling and education.

• Carefully read through any written agreement that a credit counseling organization offers.  It should describe in detail the services to be performed; the payment terms for these services, including their total cost; how long it will take to achieve results; any guarantees offered; and the organization's business name and address.

• Beware of high fees or required "voluntary contributions" that, with high monthly service charges, may add to your debt and defeat your efforts to pay your bills.  It is illegal to represent that negative information, such as bankruptcy, can be removed from your report.   Promises to "help you get out of debt easily" are a red flag.

• Make sure that your creditors are willing to work with the agency you choose.  If they are, follow up with those creditors regularly to make sure your debt is being paid off.

• Check with state agencies and your local Better Business Bureau to find out about a specific credit counseling organization's record. 
  .

*****************************************************************

*********************************************************

JOBS AND GROWTH TAX RELIEF RECONCILIATION ACT OF 2003

On May 23rd, Congress passed the third significant tax bill of the Bush presidency.  The changes are all favorable for tax payers with no increases in the bill at all.  All of the changes are subject to the sunset rules which means without additional action by congress they will expire in 2010.  But in the interim the changes are making tax rate reductions effective in the current year.  The new rates are 25%, 28%, 33% and 35%.  The 10% and 15% rates remain unchanged but the 10% rate bracket widens which means a bit more or your income will be taxed at the lower 10% rate unless your filing status is head of household, which was excluded from this break.

While the 2003 Act doesn't completely eliminate the marriage penalty it does deliver significant relief to joint filers as well as to married filers who file separately.

The child credit was kicked up to $1000, up from $600 in 2002, although it is still subject to the phase out rules for higher incomes. 

Other areas of the tax law that are affected are alternative minimum tax relief for individuals, dividend taxation, long term capital gains, and depreciation.

This is a very basic overview.  For more in-depth information contact your accountant.

FYI:

WE ARE LOCATED AT 2644 LEECHBURG ROAD LOWER BURRELL, PA

"RULE OF 72" IS A CONVENIENT TOOL FOR QUICK FINANCIAL CALCULATIONS
The Rule of 72 is a quick way of finding out how long it will take for your investment to double.  Divide an investment's annual return into 72, and you will have the number of years necessary to double your investment.

Example:  An investment's annual return is 10%.  Ten percent divided into 72 is 7.2, so your investment will double in 7.2 years.

SO YOU WANT TO DO YOUR PERSONAL OR
BUSINESS ACCOUNTING ON YOUR COMPUTER.
That's a very good idea as long as you don't believe that it's as easy as the advertisements all say it is. Using a computer to do your bookkeeping is an excellent idea. You'll notice I said your bookkeeping, not your accounting. There is a difference and you should be aware that some of the numbers that you generate from your data often have to be adjusted for tax purposes and if you start with incorrect unadjusted figures, pop them into your tax return and send it to the IRS it will probably be WRONG. So if you want to take advantage of a computerized checkbook product or bookkeeping product, please consult with your tax professional.

We specialize in QuickBooks® software and consulting.

Many people now seem to be dabbling with online investing in an effort to increase their wealth. If you are one of them, a few words of caution - be sure to keep accurate records of all of your purchases and sales for tax time. It is impossible to properly account for your transactions on your tax return without dates of the purchases and sales and the amounts associated with each of the transactions. Remember, all sales of investments that you make, online or not, must be reported on your tax return. So save yourself and your tax preparer a very large headache by keeping accurate records as you trade.

Call us for consultations and appointments at (724) 337- 8676

STAFF:

PAUL R. DEMHARTER, CPA
KATHLEEN HEASLEY, EA
DAVID SESTINI, SR. ACCT.
LORI SMAIL, ADM. ASST

Page written by Kathleen M. Heasley

Site Maintained by
Kathleen M. Heasley, EA.