Tax Scams – How to Report Them

Participating in an illegal scheme to avoid paying taxes can result in imprisonment and fines, as well as the repayment of taxes owed with penalties and interest. If you become aware of any abusive tax scams, please report them to the appropriate contact below.

Reporting Tax Scams

Promoters of Abusive Tax Schemes or Preparers of Fraudulent Returns

Common abusive tax scams include anti-tax law, home-based business, trust, and off-shore schemes.

To report promoters of these scheme types or any other types you are aware of that are not listed here, please send a completed referral form, along with any promotional materials to the Lead Development Center:

Mail:
Internal Revenue Service Lead Development Center
Stop MS5040
24000 Avila Road
Laguna Niguel, California 92677-3405

Fax: (949) 389-5083

Abusive Transaction Involving a Retirement Plan
The Abusive Transaction Hotline provides people a way to share information (anonymously, if preferred) about abusive tax shelters and emerging issues that may be abusive in retirement plans.

Find out which listed transactions have been determined by the IRS to be tax avoidance transactions and how to report them.
Abusive Transaction Involving an Exempt Organization
Exempt organizations are, at times, used by for-profit entities as accommodation parties in abusive tax avoidance transactions.

Visit the Exempt Organization Abusive Tax Avoidance Transactions page for information on how to report these schemes using Form 13909, Tax-Exempt Organization Complaint (Referral) Form.
IRS Tax Shelter Hotline
IRS maintains a hotline that people can use to provide information (anonymously, if preferred) about abusive tax shelters. Office of Tax Shelter Analysis is primarily interested in potentially abusive transactions that may be employed by many taxpayers and could pose a significant compliance risk to the IRS.

Information for Tax Professionals on the Common Types of Schemes

References/Related Topics

ORIGINAL POST – IRS Tax Site

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e-News from the IRS

  1.  Starting a new business?

The Small Business and Self-Employed Tax Center is a one-stop resource for information.

  2.  Owe tax and need payment options?

Updated information on collection procedures for taxpayers who owe taxes.

  3.  Health care benefits reporting information for employers

The Form W-2 Reporting of Employer-Sponsored Health Coverage page of IRS.gov has new information including:

  • A chart detailing the types of coverage to report
  • Transition relief for many employers
  • Q&As about the reporting requirements

Back to top

  4.  USA.gov: the U.S. government’s official web portal

Business USA has hundreds of resources for entrepreneurs and small businesses.

  5.  Responding to a notice or letter from the IRS

IRS.gov has information to help taxpayers understand IRS letters and notices without having to call or visit an IRS office.

SOURCE – IRS email e-News for Small Businesses 5/9/2012

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Survey: Small business not using full accounting services

Efforts to get accountants more fully engaged with clients have found limited success with small businesses in the U.S. and Canada. According to a new survey by business management software provider Sage North America, 40 percent of small businesses surveyed in the U.S. and Canada do not use an outside accountant. A majority of small businesses that use outside accountants are engaging them only for specific services and support according to the web-based survey of 472 small businesses. The business owners who use outside accountants rely on them most for accounting services (76%), bookkeeping services (49%) and tax support (46% personal; 43% business tax compliance; and 43% corporate tax).

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2012 review of professional tax preparation systems

During the past few years, some tax and accounting professionals — and even some thought leaders — have started to wonder openly about the profitability of tax preparation services. While tax compliance for individuals remains a major revenue center for most small and mid-sized practices, other services have been taking some of the spotlight off of taxes.

Over the past several years, the most significant advances in tax preparation systems have come through what has been collectively called “tax document automation.”

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Editor’s Note: This review section focuses on traditional tax compliance systems for small and mid-sized firms. This year’s review of “advanced workflow” systems is at www.CPAPracticeAdvisor.com/10668560. Our definitions of these categories is at the end of this article.


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Estimated Tax Payments

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5 Things to Consider When Branding Your Business

When you brand your business you enable potential clients to recognize your services and the manner in which you promote them. But your efforts at branding must be deliberate and focused in order for them to be successful. Here are five things to consider as you build your business brand.

If you “brand” cattle, you take a hot iron and burn a symbol onto the backsides of your animals so that anyone can recognize a stray belonging to you.  If you “brand” your small business, you market it in such a way that anyone seeing your promotions will recognize them as belonging to your products and services.

How you brand your business is important.  It is how the public perceives your business; and for most, perception is reality.  Here are five things to consider when building a business brand:

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Rx for Marketing Success: E-Blast Twice Monthly

Email launch frequency

A new study by an email marketing agency for accounting firms finds that “bi-weekly newsletter launches are the most common sending frequency.”

Some 44% of accounting firms launch email maketing blasts to clients, prospects and referral sources about every two weeks.

GET THE INSTANT DOWNLOAD: Click here for the complete report (19 pages, PDF)

That’s followed closely by weekly newsletter launches, at 35%, according to the agency, BizActions, a Thomson Reuters company.

Monthly launches are less common, at only 12%, with the smallest percentage, 9%, of BizActions’ CPA firms either scheduling their newsletters to go out every three weeks or on an ad hoc basis.

BizActions says clients report “bi-weekly newsletters provide excellent top-of-mind awareness and the ability to share timely information without cluttering their contacts’ inboxes.”

Bizactions also reports that accounting firms prefer Wednesdays and Thursdays for launching their newsletters. BizActions says:

CONTINUE READING – SOURCE CPA Trendlines email 5/2/2012

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4 Places to Look for New Clients

Sure, you’ve searched for new clients the old fashioned way, using referrals from friends and family, networking with local business owners and giving your elevator speech again and again and again. But sometimes, in order to find business, you need to use new and improved search methods. Here we share 4 places you may have never thought to look for prospective clients.

Small-business owners should always be on the lookout for new clients.  But in order to expand your reach, sometimes you have to employ creative search techniques.  In a recent CBS Money Watch article, author Tom Searcy shares “7 Hidden Places to Find New Business,” of which we share 4 here:

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Become a Profit and Growth Expert

Your practice grows when you add complementary services to your menu. Small-business accounting is a financial service that is always in demand. Use information from the accounting system to help your clients increase their revenue and make informed business decisions. Only then can you promote yourself as an accountant AND a Profit and Growth Expert.

Accountants offer valuable services—services every business needs.  In fact, businesses are required by law to keep books.  So, by adding accounting and bookkeeping services to your offerings, you increase the value of your business.  And by using your accounting skills as a Profit and Growth Expert, you become invaluable to your clientele!

What is a Profit and Growth Expert?

A Profit and Growth Expert uses information from the accounting system to analyze a business’s fiscal standing, sharing that analysis with those who can use it to make more profitable financial decisions.

A Profit and Growth Expert is a proactive accountant who realizes that the information he/she generates provides crucial data that can make or break a business.  It’s the accountant’s job to share this data with business owners, explaining it in such a way that they both understand what the information indicates and use it to inform important business decisions.

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How Often Should Small Business Clients See You?

Half of all accountants say monthly.

About 47% of accountants think small business clients should check in with them at least once a month in order to keep their business in good financial standing, according to new research findings. Another 22% are happy with once a week and 19% are fine with quarterly.

Accountants say the two most common mistakes that small business owners make are not having ongoing insight into their financials and only talking to their accountant during tax time, according to a new survey from Xero, the online accounting software maker.

Other findings:

CONTINUE READING - SOURCE CPA Trendlines email 4/25/2012

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