If you need tax help, the IRS has many online tools. You can e-file your tax return, check your refund status or get your tax questions answered.  Best of all, you can use the tools on IRS.gov any time.  Wayne Lai, a WNDE tax manager, said, “The IRS provides an assortment of filing tools on the website.  They provide sources for taxpayers to prepare and file their federal income taxes for free, sources for low income taxpayers to get free tax help and sources for taxpayers to locate paid tax preparers with select credentials and qualifications.”
Here’s a list of popular online, self-help tools that millions have used for free:

• IRS Free File.  Use IRS Free File to prepare and e-file your federal tax return at no cost. Free File will do much of the work for you with brand-name tax software or Fillable Forms. The only way to use IRS Free File is through IRS.gov.
• Where’s My Refund?  Checking the status of your tax refundis easy with Where’s My Refund? You can also use this tool with the IRS2Go mobile app.  This tool is the most useful on the IRS website, believes Wayne.  He said, “This tool allows taxpayers to check the status of their tax returns so they can find out whether their federal tax returns have been processed, when their tax refunds were approved and when they expect to receive their refunds via check o r direct deposit.”

The IRS also rolled out an app called “IRS2Go,” he noted, in which taxpayers can check the status of their refunds on their phones.

• Direct Pay.  Use IRS Direct Pay to pay your taxes or pay your estimated tax directly from your checking or savings account. Direct Pay is safe, easy and free. This tool walks you through five simple steps to pay your tax in a single online session. You can also use Direct Pay with the IRS2Go mobile app.
• Online Payment Agreement.  If you can’t pay your taxes in full, apply for an Online Payment Agreement. The Direct Debit payment plan option is a lower-cost, hassle-free way to make monthly payments.
• Withholding Calculator.  Did you get a larger refund or owe more tax than you expected the last time you filed taxes? If so, you may want to change the amount of tax withheld from your paycheck. The Withholding Calculator tool can help you determine if you need to give your employer a new Form W-4, Employee’s Withholding Allowance Certificate and provide information that will help you fill out the form too. Give the new Form W-4 to your employer to make the change.  Wayne believes the withholding calculator is another handy tool.  To have this calculator be as accurate as it can be, he said, users need to be as accurate as they can be in providing income and deduction estimates.  The calculator will provide users with their anticipated income tax amounts and compare those with their current withholding arrangements, and make appropriate recommendations to have the withholdings more closely match the anticipated tax amounts.  He remarked, “This is a very useful tool for W-2 taxpayers to estimate their federal tax liabilities and determine if their withholding arrangements are appropriate.”
• Interactive Tax Assistant.  The ITA tool is a tax-law resource that takes you through a series of questions and provides you with responses to tax law questions. For instance, you can find out if you may need to make an individual shared responsibility payment or if you are eligible for an exemption, when you file your taxes. You can also use the tool to find out if you may be eligible for the premium tax credit.
• IRS Select Check.  If you want to deduct your gift to charity, donate to a qualified organization. Use the IRS Select Check tool to see if a charity is qualified.
• Tax Map.  The IRS Tax Map offers tax law information by subject. It integrates web links, tax forms, instructions and publications related to your topic into one search result.

 
Wayne concluded, “These online tools are extremely helpful for individuals who like to be somewhat hands-on with their own taxes.  However, one should still consult a tax professionals for the best result.”
IRS Tax Tips provide valuable information throughout the year. IRS.gov offers tax help and info on various topics including common tax scams, taxpayer rights and more.
IRS YouTube Videos:

• Welcome to Free File – English
• When Will I Get My Refund? – English | Spanish | ASL
• IRS2Go Mobile App – English | Spanish | ASL
• IRS Tax Payment Options – English | Spanish | ASL
• IRS Withholding Calculator – English | Spanish | ASL
• Interactive Tax Assistant – English | ASL

IRS Podcasts:

• When Will I Get My Refund – English | Spanish
• IRS2Go Mobile App – English | Spanish
• IRS Tax Payment Options – Spanish
• IRS Withholding Calculator – English | Spanish
• Interactive Tax assistant – English

Share this tip on social media — #IRStaxtip: Find Easy-to-Use Online Tools on IRS.gov. http://go.usa.gov/xT2d4 #IRS.

Your Medical Expenses May Save You Money at Tax Time, But a Few Key Rules Apply

Due to the 10% AGI threshold for taxpayers less than 65 years old, explained Krystle Dean, CPA, a senior tax manager for WNDE, clients often are not able to take the available tax deduction for medical expenses.  For a taxpayer 65 or older, the AGI threshold is reduced to 7.5% through 2016, she continued, “so it is more common to see those clients receiving a tax deduction for their medical expenses.”
 

Here are some Tax Tips to help you determine if you can deduct medical and dental expenses on your tax return:

• Itemize. You can only claim your medical expenses on your taxes that you paid for in 2016, if you itemize deductions on your federal tax return.
• Income. Include all qualified medical costs that you paid for during the year, however, you only realize a tax benefit when your total amount is more than 10 percent of your adjusted gross income.
• Temporary Threshold for Age 65.  If you or your spouse is age 65 or older, then it’s 7.5 percent of your adjusted gross income. This exception applies through Dec. 31, 2016.
• Qualifying Expenses.  You can include most medical and dental costs that you paid for yourself, your spouse and your dependents including:
  • The costs of diagnosing, treating, easing or preventing disease.
  • The costs you pay for prescription drugs and insulin.
  • The costs you pay for insurance premiums for policies that cover medical care qualify.
  • Some long-term care insurance costs.

Some common examples of expenses that taxpayers can include in their medical expenses but they may not be aware of, Krystle noted, are acupuncture, chiropractic care, inpatient rehabilitation facilities, long-term care premiums (limited depending on age) and certain weight loss programs.  Some cosmetic surgeries, related to accident, disease or congenital abnormality, also can be deductible.  Krystle continued, “If there are certain treatments that your doctor recommends, it may be something that is a tax deduction, so please consult your CPA accountant.”
Costs reimbursed by insurance or other sources normally do not qualify for a deduction. For more examples of costs, you can and can not deduct, see IRS Publication 502, Medical and Dental Expenses. You can get it on IRS.gov/forms anytime.

• Travel Costs Count.  You may be able to deduct travel costs related to medical care. This includes costs such as public transportation, ambulance service, tolls and parking fees. If you use your car, you can deduct either the actual costs or the  standard mileage rate for medical travel. The rate is 19 cents per mile for 2015.
• No Double Benefit.  You can’t claim a tax deduction for medical expenses paid with funds from your Health Savings Accounts or Flexible Spending Arrangements. Amounts paid with funds from those plans are usually tax-free.
• Use the Tool.  Use the Interactive Tax Assistant tool on IRS.gov to see if you can deduct your medical expenses. It can answer many of your questions on a wide range of tax topics including the health care law.

“Keep all records of income and deductions until the statute of limitations runs out,” Krystle said, “which is three years from the date taxpayers file their tax returns for federal and four years for California.”
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.
Have more questions or looking to offset some of your filed taxes with medical and dental deductions? Contact a WNDE tax accountant and who can better assist you in maximizing your tax services to get the most savings possible.
 
 
Additional IRS Resources:

• Schedule A (Form 1040), Itemized Deductions
• Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans

IRS YouTube Video:

• Medical and Dental Expenses – English | Spanish | ASL

IRS Podcasts:

• Medical and Dental Expenses – English | Spanish

Mergers and acquisitions are an important part of the strategic long-term management of a company. So just what is a mergers and acquisition strategy?  A company merger is defined as the consolidation of companies or assets into one where the acquired company ceases to exist, and a company acquisition is when one company purchases another and the acquired company remains in place. The complexity of these strategies requires planning, deliberate process and thorough analysis.

Organizations use the M&A process for a number of reasons, including:

• Improving cost efficiencies/economies of scale
• Reducing or elimination of competition
• Increased market share & growth
• Diversification of risk
• Adding core competencies

Because mergers & acquisitions can be a complex and challenging process, it is important that a company has a well thought out strategy in place to help ensure that the objectives of the organization are going to be met. A mergers and acquisitions strategy is a specific plan that lays out a company’s developmental goals, identifies target acquisition candidates, evaluates those candidates, and once a merger or acquisition deal is completed, integrates the organizations seamlessly.
An important component of any successful M&A strategy is to identify the team of professional business and financial advisors that will assist management in the process.  This team should include a strong M&A attorney, banking or financial resources, and CPAs who can assist with financial due diligence and tax planning.
 

The First Step in Developing an M&A Strategy

Initially, the first thing you’ll want to do is to consider an organization’s overall corporate goals and objectives. The overall strategic plan should detail an organization’s current and desired profitability, product capabilities, market positioning, sales and distribution channels. Having clarity on your broader plan will help assure that strategic objectives are achieved through mergers or acquisitions. Your overall strategic business plan should be the foundation for all M&A initiatives.
The broader corporate strategy will help you to determine your target market, as well as your desired share of that market. After making these determinations, you can more easily identify the criteria of a potential transaction and the ways a merger or acquisition can help you achieve desired objectives. For example, when merging to achieve economies of scale, transactions will most likely result in a reduction of personnel where redundancy may exist. However, when merging to expand competencies, management may wish to retain the talent that comes with the targeted business.
 

The Next Moves in Building Your M&A Strategy

After the first initiatives are completed, you will next want to determine the enterprise value of the organization and identify potential sources for funding a planned transaction, which may include cash, equity, or debt. There are a variety of methodologies for determining valuation and the ultimate cost of a transaction. This is where a professional financial consulting firm can be worth its weight in gold. Understanding if your target business’ value is best based on a multiplier of EBITDA, Discounted Cash Flow, Multiple of Annual Recurring Revenue, etc. is essential to negotiating the best acquisition price or merger valuation.
Next, it is time to create a list of potential acquisition targets. For each candidate, it is necessary to determine the organization’s target market, main products or services, financial performance, and corporate value. Creating a model of your acquisition accounting including the estimated cost of acquisition and potential return on investment is the next step in developing your game plan. After the valuation and return models are developed, the candidates should be organized based on their potential merits and business impacts.
These can be complex transactions. Once a target has been identified and approached, it is important to identify and address any potential concerns at the front end of the deal. Avoiding hurdles downstream is the best way to keep a deal from imploding.

Closing the Deal on your Merger or Acquisition

The finalizing of a deal doesn’t mean the process is over. In fact, it may just be the beginning. The care and planning put into integrating an acquired company into the acquiring or surviving organization is often the key to determining the ultimate success or failure of M&A transactions. The benefits of integration may not be immediately apparent, and could potentially take up to a year or longer to be realized.
Without a strategy in place, mergers & acquisitions often fail to perform to their potential or worse, can be extremely costly. Careful planning related to mergers and acquisitions strategies is essential to M&A success, as it provides a process whereby any obstacles, concerns or potential issues can be addressed from the start. Putting the time and effort into carefully developing your M&A strategy will increase your chances of completing a successful transaction, and achieving corporate objectives through mergers and acquisitions activities.
 
At White Nelson Diehl Evans, we assist our clients in successful M&A transactions by providing advisory services such as business valuations, quality of earnings analysis, due diligence assistance and strategic planning associated with the potential tax ramifications of a planned transaction.  When considering the merger and acquisition process, consult your WNDE professional for help navigating these areas.

U.S. businesses and individuals are, for the most part, hopeful of tax reform legislation this year as both the White House and U.S. Congress are focused on improving productivity and growth.  With the GOP in control of the White House and both the House and Senate, it appears that comprehensive tax reform may be within reach.  Some pundits are hopeful that we may see tax reform legislation by mid-to-late spring, and a bill on the President’s desk before the August recess.
 
Paul Treinen, a tax accountant and partner with White Nelson Diehl Evans LLP, agreed that tax reform may actually become a reality in the near future.  Paul offered the following thoughts on pending tax reform:

• President Trump’s tax plan published in November 2016 was vague.  This was preceded by a House Republican plan in June 2016.  Both the President’s and the GOP plans attempted to reduce individual tax brackets into three main brackets. The top bracket was targeted at 33% for federal purposes.  This is 6.9% lower than the current highest federal rate of 39.6%.
• While President Trump has discussed lowering corporate tax rates from 35 to 15%, the GOP plan was “a little less lofty,” seeking to reduce corporate tax rates from 35% to 20%.
• Both President Trump and the GOP have discussed a specific tax rate on “pass through” income.  Under President Trump’s proposal, there is a proposed 25% tax rate on “pass-through income”.  Business income was broadly defined as income earned by small businesses, including sole proprietorships and other pass-through businesses (partnerships, limited liability companies and S corporations). Paul said that “reasonable compensation would probably be at the forefront of discussion as it pertains to this carve out.”
• There has been some “chatter” about repealing the Alternative Minimum Tax (AMT), this would probably be music to the ears of our clients.
• If lower tax rates were to become a reality, a reduction of some sort would potentially occur with itemized deductions.
• The fact that President Trump, Speaker of the House Paul Ryan and Senate Majority Leader Mitch McConnell have all put tax reform at or near the top of their priority list is very encouraging for our clients.  The fact that this is not a split House or Senate suggests it may actually come to fruition.  However, new tax reform will not come without its challenges, as evidenced by the recent Democratic Party push back on Cabinet nominees and executive orders.
• There has been a fair amount of talk about using budget reconciliation to pass the president’s and GOP’s agendas.  This process calls for expedited considerations of tax, spending, and debt limit items.  In the Senate, reconciliation is not subject to filibuster.  This is interesting because it would allow the Senate to quickly pass reconciliation bills with a simple rather than a three-fifths majority.
• In early February, after the GOP leaders’ Congressional retreat, they indicated they wanted a repeal of the ACA by March or April 2017. Speaker Ryan said that Republicans would tackle tax reform in the spring of 2017.  Paul observed, “It seems that there has been more talk about focusing on repealing the ACA than there has been about tax reform, at least of late.”

Paul concluded, “Although nothing definitive has been released, it appears that there is more of a concentrated effort than ever to engage in meaningful tax reform in 2017.”
 

Taxpayers who still file paper returns may find now is the best time to switch to e-file. Last year over 85 percent of taxpayers filed their taxes electronically. There are really no good reasons to paper file, said WNDE Partner Candace Huie, unless a filer is specifically prohibited from E-filing.  E-file is the fastest and safest way to file.
Here are the top seven reasons a taxpayer should file electronically in 2017:

1. Accurate and Easy. IRS e-file is the best way to file an accurate tax return. The tax software helps taxpayers avoid mistakes by doing the math for them. It guides users through each section of a tax return. E-file is easier than doing taxes by hand and mailing paper tax forms.
2. Safe and Secure. IRS e-file meets strict security guidelines. It uses modern encryption technology to protect tax returns. The IRS continues to work with states and tax industry leaders to protect tax returns from refund fraud. This new effort has put more safeguards in place to make tax filing safer than ever before. The IRS has processed more than one billion e-filed returns safely and securely.  Candy said, “Tax software companies and the taxing authorities are on the cutting edge of security for the efiling process.  Taxpayers have a higher risk of exposure to identity theft when mailing their paper filed returns.”
3. Convenient and Often Free. Taxpayers can e-file for free through IRS Free File. Free File is only available on IRS.gov. Taxpayers may qualify to have their taxes e-filed for free through IRS volunteer programs. Volunteer Income Tax Assistance offers free tax preparation for those earning $54,000 or less. Tax Counseling for the Elderly generally helps people who are age 60 or older. Taxpayers can buy commercial tax software or ask their tax preparer to e-file their tax return. Most paid preparers have to file their clients’ returns electronically.
4. Faster Refunds. In most cases, e-file prevents mistakes and helps people get their refund faster. The quickest way to get a refund is to combine e-file with direct deposit into a bank account. The IRS issues more than nine out of 10 refunds in less than 21 days – however, some returns need further review and take longer.  Candy noted, “E-filing gives you the ability to track the timeliness of filing your tax return and make getting your refunds much quicker.”
5. Prior-Year Tax Return. Taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.
6. Health Care Coverage Reporting. IRS e-file can help with tax provisions of the health care law. The software will walk users through each line on the tax form that relate to the Affordable Care Act.
7. Payment Options. If taxpayers owe taxes, they can e-file early and set up an automatic payment on any day until the April 18 deadline. They can pay electronically from their bank account with IRS Direct Pay. Other payment options include electronic funds withdrawal and payment by debit or credit card. Visit IRS.gov/payments for details.

Candy concluded, “E-filing has made the overall tax filing process quicker, more efficient, and much more secure while nearly eliminating the room for “human error” by the taxing authorities when manually processing paper filed returns.”
IRS YouTube Videos:

• Welcome to Free File – English
• IRS Taxes: Three Easy Ways to Pay – English | Spanish | ASL

Share this tip on social media — Seven Reasons Taxpayers Should E-file Their Taxes in 2017. http://go.usa.gov/x9ye3#IRS

 
“All income is taxable unless there is a specific law that states the particular type of income is not taxable,” said Christina Wenk, a senior tax manager with WNDE. She offered some basic rules you should know to help you file an accurate tax return:

• Taxable income.  Taxable income includes money you earn, like wages and tips. It also includes bartering, an exchange of property or services. The fair market value of property or services received is normally taxable.

Some types of income are not taxable except under certain conditions, including:

• Life insurance.  Proceeds paid to you upon the death of an insured person are usually not taxable. However, if you redeem a life insurance policy for cash, any amount you get that is more than the cost of the policy is taxable.
• Qualified scholarship.  In most cases, income from a scholarship is not taxable. This includes amounts used for certain costs, such as tuition and required books. On the other hand, amounts you use for room and board are taxable.
• Other income tax refunds.  State or local income tax refunds may be taxable. You should receive a Form 1099-G from the agency that paid you. They may have sent the form by mail or electronically. Contact them to find out how to get the form. Report any taxable refund you got even if you did not receive Form 1099-G.

Here are some items that are usually not taxable:

• Gifts and inheritances
• Child support payments
• Welfare benefits
• Damage awards for physical injury or sickness
• Cash rebates from a dealer or manufacturer for an item you buy
• Reimbursements for qualified adoption expenses

Christina also noted that some income items are taxable for federal purposes and not taxable for California purposes, such as state tax refunds being only taxable for federal purposes and only if you received a benefit from the deduction in a prior year.  Some income items are taxable for California purposes and not taxable for federal purposes.  For example, HSA contributions are deducted from wages when figuring your W2 taxable federal wages but HSA contributions are not allowed as a reduction to California W2 wages or as any kind of a deduction for California income tax purposes.  When preparing your California income tax return, you must add your HSA contributions to your federal wages to obtain your California wages.   You also have to include the interest or other earnings earned by your HSA account (not taxable for federal purposes) in California taxable income.  It is important to know what to include and not to include in your taxable income as it directly affects your tax liability.

The More You Know: Income Tax Edition

If you are uncertain whether an item of income is taxable or nontaxable, consult your WNDE tax advisor, Christina advised.   If you would like to read more on the subject of taxable and nontaxable income, see IRS Publication 525, “Taxable and Nontaxable Income.” Be sure to consider you are reading about federal tax law when reading this publication and that state laws may vary and often do.
Additionally, Christina offered “five interesting things you may not know about 2016 taxable vs. non-taxable income for individuals”:

• Some people who receive Social Security must pay federal income taxes on their benefits.  A portion of Social Security benefits is taxed if income above a “base amount” (based on filing status) is received in addition to Social Security Benefits (IRS Sec. 86).  However, no one pays federal income taxes on more than 85% of their Social Security benefits.  Social security benefits are not subject to California income tax.

• Gambling winnings are fully taxable for federal and California purposes and you must report them on your tax return.  For individuals who are not professional gamblers, gambling losses to the extent of gambling winnings are tax deductible as a miscellaneous itemized tax deduction and are not subject to the  2% floor of adjusted gross income.  However, individuals who are not professional gamblers do not receive a deduction for losses at all if they don’t itemize deductions.

• In most cases, prepaid income, such as compensation for future services and advanced commissions is included in your income in the year you receive it.  However, if you use an accrual method of accounting, you can defer prepaid income you receive for services to be performed before the end of the next tax year.

• Fringe benefits received from your employer are included in your income as compensation, unless you pay fair market value for them, or they are specifically excluded by law.

• Amounts you receive as workers’ compensation for a work injury or sickness are not taxable if they are paid under a workers’ compensation act or a statute like a workers’ compensation act.  However, retirement benefits you receive based on your length of service, age, or prior contributions to the plan are taxable even if you retired because of a work injury or sickness.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.
IRS YouTube Videos:

• Taxable and Nontaxable Income – English | Spanish | ASL

IRS Podcasts:

• Taxable and Nontaxable Income – English | Spanish

Tax-related identity theft normally occurs when someone uses your stolen Social Security number to file a tax return claiming a fraudulent refund.  Many people first discover the fraud after they file their taxes.  It’s becoming a bigger and bigger problem every year, said Erin Johnson, a senior tax manager at White Nelson Diehl Evans.  She said, “In recent months we have seen a large amount of clients receiving letters either from the IRS or realizing from other channels that they are victim of identity theft.”
The IRS is working hard to stop identity theft with a strategy of prevention, detection and victim assistance. Here are nine key points:

1. Taxes. Security. Together. The IRS, the states and the tax industry need your help. We can’t fight identity theft alone. The Taxes. Security. Together. awareness campaign is an effort to better inform you about the need to protect your personal, tax and financial data online and at home.
2. Protect your Records. Keep your Social Security card at home and not in your wallet or purse. Only provide your Social Security number if it’s absolutely necessary. Protect your personal information at home and protect your computers with anti-spam and anti-virus software. Routinely change passwords for internet accounts.  While people are becoming more aware of threats to security related to identity theft, most have not done enough, believes Johnson.  Noting hackers have broken into files of such large organizations as retailer Target and the IRS, she observed, “Unfortunately, in these instances there is not a lot you can do as a consumer.  However, ways you can help stop identity theft is having strong passwords on computers and mobile devices. You can also pay a monthly fee to have an identity theft monitoring system as well.”
3. Don’t Fall for Scams.  Criminals often try to impersonate your bank, your credit card company,even the IRS in order to steal your personal data. Learn to recognize and avoid those fake emails and texts. Also, the IRS will not call you threatening a lawsuit, arrest or to demand an immediate tax payment. Normal correspondence is a letter in the mail. Beware of threatening phone calls from someone claiming to be from the IRS.  In her years with the IRS, Johnson has seen repeated mail and refund fraud, and “even a client’s movers stealing their filing cabinet with all their personal information.”
4. IRS Letters. If the IRS identifies a suspicious tax return with your SSN, it may send you a letter asking you to verify your identity by calling a special number or visiting a Taxpayer Assistance Center. This is to protect you from tax-related identity theft. This call will take approximately 30 minutes and your tax advisor can also be on the call to help assist with questions.
5. Report Tax-Related ID Theft to the IRS. If you cannot e-file your return because a tax return already was filed using your SSN, consider the following steps: a)  File your taxes by paper and pay any taxes owed. b) File an IRS Form 14039 Identity Theft Affidavit and for California file Form 3552. Print the form and mail or fax it according to the instructions. It will also require you to mail a copy of identification such as a driver’s license, social security card, or passport. You may include it with your paper return. c) File a report with the Federal Trade Commission using the FTC Complaint Assistant; d) Contact one of the three credit bureaus so they can place a fraud alert or credit freeze on your account;
6. IP PIN. If you are a confirmed ID theft victim, the IRS may issue an IP PIN. The IP PIN is a unique six-digit number that you will use to e-file your tax return. Each year, you will receive an IRS letter with a new IP PIN.
7. Service Options. Information about tax-related identity theft is available online. There is a special section on IRS.gov devoted to identity theft and a phone number available for victims to obtain assistance.
8. Combating ID Theft.  In 2015, the IRS stopped 1.4 million confirmed ID theft returns and protected $8.7 billion. In the past couple of years, more than 2,000 people have been convicted of filing fraudulent ID theft returns.  Johnson noted that WNDE has protocols in place to secure its clients’ information, whether it be from sending encrypted emails to WNDE’s IT security systems sophistication.  She said, “We really view protecting our client’s personal information as priority number one.”
9. Report Suspicious Activity. If you suspect or know of an individual or business that is committing tax fraud, you can visit IRS.gov and follow the chart on
   

Johnson concluded, “The threat is real and more and more people are becoming victims so protect your personal information as much as possible.”
For more on this Topic, see the Taxpayer Guide to Identity Theft.
IRS Tax Tips provide valuable information throughout the year. IRS.gov offers tax help and info on various topics including common tax scams, taxpayer rights and more.
Additional IRS Resources:

• Publication 5027, Identity Theft Information for Taxpayers
• Publication 5199, Tax Preparer Guide to Identity Theft
• Publication 4524, Security Awareness-Identity Theft Flyer
• Publication 4523, Beware of Phishing Schemes

IRS YouTube Videos:

• IRS Identity Theft FAQ: Going After the Bad Guys – English | ASL
• Phishing-Malware – English | ASL

Share this tip on social media — #IRStaxtip; How Identity Theft Can Affect Your #Taxes. http://go.usa.gov/xTc6J, #IRS