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WASHINGTON — The Internal Revenue Service and its Security Summit partners today issued an alert to taxpayers and tax professionals to be on guard against fake emails purporting to contain an IRS tax bill related to the Affordable Care Act.
The IRS has received numerous reports around the country of scammers sending a fraudulent version of CP2000 notices for tax year 2015. Generally, the scam involves an email that includes the fake CP2000 as an attachment. The issue has been reported to the Treasury Inspector General for Tax Administration for investigation.
The CP2000 is a notice commonly mailed to taxpayers through the United States Postal Service. It is never sent as part of an email to taxpayers. The indicators are:
These notices are being sent electronically, even though the IRS does not initiate contact with taxpayers by email or through social media platforms;
The CP2000 notices appear to be issued from an Austin, Texas, address;
The underreported issue is related to the Affordable Care Act (ACA) requesting information regarding 2014 coverage;
The payment voucher lists the letter number as 105C.
The fraudulent CP2000 notice included a payment request that taxpayers mail a check made out to “I.R.S.” to the “Austin Processing Center” at a Post Office Box address. This is in addition to a “payment” link within the email itself.
IRS impersonation scams take many forms: threatening telephone calls, phishing emails and demanding letters. Learn more at Reporting Phishing and Online Scams.
Taxpayers or tax professionals who receive this scam email should forward it to phishing@irs.gov and then delete it from their email account.
Taxpayers and tax professionals generally can do a keyword search on IRS.gov for any notice they receive. Taxpayers who receive a notice or letter can view explanations and images of common correspondence on IRS.gov at Understanding Your IRS Notice or Letter.
To determine if a CP2000 notice you received in the mail is real, see the Understanding Your CP2000 Notice, which includes an image of a real notice.
A CP2000 is generated by the IRS Automated Underreporter Program when income reported from third-party sources such as an employer does not match the income reported on the tax return. It provides extensive instructions to taxpayers about what to do if they agree or disagree that additional tax is owed.
It also requests that a check be made out to “United States Treasury” if the taxpayer agrees additional tax is owed. Or, if taxpayers are unable to pay, it provides instructions for payment options such as installment payments.
The IRS and its Security Summit partners — the state tax agencies and the private-sector tax industry — are conducting a campaign to raise awareness among taxpayer and tax professionals about increasing their security and becoming familiar with various tax-related scams. Learn more at Taxes. Security. Together. or Protect Your Clients; Protect Yourself.
Taxpayers and tax professional should always beware of any unsolicited email purported to be from the IRS or any unknown source. They should never open an attachment or click on a link within an email sent by sources they do not know.
August 15, 2016
Department of Labor Overtime Regulations Effective December 1, 2016
On May 18, 2016 President Obama and Labor Secretary Perez announced the publication of the Department of Labor’s final rule updating the overtime regulations, which will automatically extend overtime pay protection to over 4 million workers within the first year of implementation. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek, at a rate not less than one and half their regular rates of pay.
Any worker making $47,476 or less must be paid overtime for hours worked in excess of 40 hours in a given week. This is true whether the employee receives a salary or hourly pay. The overtime rate must be at least one and half their regular rates of pay.
COMP time can not be used to satisfy overtime obligations of covered employees. If an employee qualifies for overtime, overtime must be paid.
Highly compensated employees (HCE) are now defined as $134,004 or higher. The previous rate was $100,000.
Up to 10% of the compensation amount can be in the form of nondiscretionary bonuses or incentives.
The new rule is effective December 1, 2016
The wage amount will automatically update every three years, next update will be January 1, 2020.
Actual implementation documentation has not been published yet. Final regulations could still change slightly.
For all WFS payroll clients, please account for these adjustments on your data entry worksheets starting December 1, 2016. If we do not process your payroll, please make the necessary adjustments. Please call our office if you have any questions about the minimum wage rate increase or need help with any other accounting matters.
Sincerely,
Walker, Fluke & Sheldon, PLC
Thank you for being a valued client of Walker, Fluke & Sheldon, PLC. Friday, April 15, 2016 will be the final day Walker, Fluke & Sheldon, PLC will electronically file completed 2015 tax returns. Any tax return not completed by the April 15th deadline will have an extension filed.
In addition, any tax return dropped off after Thursday, March 31, 2016 may have an extension filed. It is necessary to have this cut off so that we can continue to provide the quality service you have come to expect from us.
Please call your local Walker, Fluke, & Sheldon PLC office if you have any questions or concerns.
Thank you for your service to Manna’s Market. Your involvement in our charity has made a difference. The $125 discount for preparing The Market’s taxes buys 189 more meals for those in need in your community. We are excited to report that Manna’s Market is partnering with the Demmer Center for Business Transformation, The Eli Broad College of Business, Michigan State University. Jim Manley, Managing Director, and the students under his supervision, will be helping Manna’s Market develop a strategic business plan, operating system, and a method of continuous improvement. This is a process that will take several months and will culminate in the final design and organization of our new building, at 7180 Velte Road, Lake Odessa, Barry County, Michigan. The building and its 8 acres were donated to The Market by the Lakewood Baptist Church. We plan on moving to our new location in June of 2014.
Very truly yours,
Manna’s Market, Inc.
Jayne M. Flanigan, Treasurer
We are pleased to announce that, effective January 1, 2014, James Jasiak, CPA has merged with Walker, Fluke & Sheldon, PLC (WFS), a Hastings based tax and accounting firm with offices in Hastings, Ionia, and now Richland. WFS who have been in Hastings for over thirty-seven years are looking forward to servicing Mr. Jasiaks tax and accounting clients.
Jasiak stated, Our clients will continue to work with virtually the same staff and myself in the Richland office. Both clients and staff will have the added benefit of the support and expertise of a broader pool of talent as well as a more comprehensive array of services. Serving the tax and accounting needs of individuals, businesses, governmental and not-for-profit organizations throughout southwest Michigan continues as the focus of what we do. We will now offer a full array of new services including, monthly and quarterly bookkeeping and write up, business financial statement reviews and audits, payroll processing, not-for-profit and governmental audits. Personally I look forward to continuing the practice of accounting for many years and I know that our clients, who have generously supported us over the years, will have their tax and accounting needs capably addressed well into the future.
In a world where speed seems to be valued above all else, WFS will continue to strive in providing their existing and new clients with timely and valuable service and information. What sets WFS apart is their passion to build and maintain long-lasting business relationships. WFS offer specialized personal attention and take the time to get to know their clients. As your current and new advisor, WFS will work to find effective solutions for all of your business and personal accounting and financial needs.
Walker, Fluke & Sheldon, PLC (WFS), is pleased to announce they have acquired the tax and accounting practice of Paul D. Barker.
WFS who has been in Hastings for over thirty-seven years and opened their Ionia office seven years ago is looking forward to servicing Mr. Barkers? tax and accounting clients. To ensure a smooth transition, Mr. Barker and his bookkeeper, Denise Peabody, have joined the WFS Ionia staff at 1971 S. State Rd, Ionia, MI 48846. Mr. Barker will continue to offer investment services at his current location, 2031 S. State Road.
In a world where speed seems to be valued above all else, WFS will continue to strive in providing their existing and new clients with timely and valuable service and information. What sets WFS apart is their passion to build and maintain long-lasting business relationships. WFS offer specialized personal attention and take the time to get to know their clients. As your current and new advisor, WFS will work to find effective solutions for all of your business and personal accounting and financial needs.
Issue Number: IR-2013-93
Inside This Issue
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Plan Now to Get Full Benefit of Savers Credit; Tax Credit Helps Low- and Moderate-Income Workers Save for Retirement
WASHINGTON Low- and moderate-income workers can take steps now to save for retirement and earn a special tax credit in 2013 and the years ahead, according to the Internal Revenue Service.
The savers credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans and similar workplace retirement programs. Also known as the retirement savings contributions credit, the savers credit is available in addition to any other tax savings that apply.
Eligible workers still have time to make qualifying retirement contributions and get the savers credit on their 2013 tax return. People have until April 15, 2014, to set up a new individual retirement arrangement or add money to an existing IRA for 2013. However, elective deferrals (contributions) must be made by the end of the year to a 401(k) plan or similar workplace program, such as a 403(b) plan for employees of public schools and certain tax-exempt organizations, a governmental 457 plan for state or local government employees, and the Thrift Savings Plan for federal employees. Employees who are unable to set aside money for this year may want to schedule their 2014 contributions soon so their employer can begin withholding them in January.
The savers credit can be claimed by:
Like other tax credits, the savers credit can increase a taxpayers refund or reduce the tax owed. Though the maximum savers credit is $1,000, $2,000 for married couples, the IRS cautioned that it is often much less and, due in part to the impact of other deductions and credits, may, in fact, be zero for some taxpayers.
A taxpayers credit amount is based on his or her filing status, adjusted gross income, tax liability and amount contributed to qualifying retirement programs. Form 8880 is used to claim the savers credit, and its instructions have details on figuring the credit correctly.
In tax-year 2011, the most recent year for which complete figures are available, savers credits totaling just over $1.1 billion were claimed on nearly 6.4 million individual income tax returns. Savers credits claimed on these returns averaged $215 for joint filers, $166 for heads of household and $128 for single filers.
The savers credit supplements other tax benefits available to people who set money aside for retirement. For example, most workers may deduct their contributions to a traditional IRA. Though Roth IRA contributions are not deductible, qualifying withdrawals, usually after retirement, are tax-free. Normally, contributions to 401(k) and similar workplace plans are not taxed until withdrawn.
Other special rules that apply to the savers credit include the following:
Certain retirement plan distributions reduce the contribution amount used to figure the credit. For 2013, this rule applies to distributions received after 2010 and before the due date, including extensions, of the 2013 return. Form 8880 and its instructions have details on making this computation.
Begun in 2002 as a temporary provision, the savers credit was made a permanent part of the tax code in legislation enacted in 2006. To help preserve the value of the credit, income limits are now adjusted annually to keep pace with inflation. More information about the credit is on IRS.gov.
525 W. Apple Street
Hastings MI, 49058
p. 269-945-9452
f. 269-945-4890
1971 S. State Road
Ionia MI, 48846
p. 616-522-0792
f. 616-522-0873
8700 Gull Road
Richland MI, 49083
p. 269-629-9658
f. 269-629-3126