2012 Happy Holidays...

Yajnik & Mehta Associates wish their Clients and Friends 
" Happy, Joyous, And Fun Filled Holidays "

For Tax Q & A, call Kash @ Yajnik and Mehta Associates (925) 963 4891

Dirty Dozen Tax Scams: #5 Frivolous Arguements

2011 Dirty Dozen Tax Scams According to IRS, will be listed and explained to the informed Tax Payer.

#5 Frivolous Arguments  - Promoters Of Frivolous Schemes encourage Tax Payers to make unreasonable and outlandish claims to avoid paying taxes they owe. IRS Has a list  of Frivolous Tax Positions that Tax Payers should avoid.  These arguments are false and have been thrown out by Tax Courts. Tax Payers have Right to dispute their Tax Liabilities in courts, but there is no justification to disobey the Tax Laws and avoid paying fair share of their taxes.
For Q & A, call Kash @Yajnik And Mehta Associates - (925) 963 4891

Dirty Dozen Tax Scams: #4 Filling False or Misleading Forms

2011 Dirty Dozen Tax Scams According to IRS, will be listed and explained to the informed Tax Payer.

#4 Filling False or Misleading Forms - Such forms are used to claim Refunds the Tax payer is not entitled to. A Variation of this scheme involves fabricating information return and falsely claiming the corresponding as withholding.  Generate Fake Form 1099 claiming false withholding, credits to legitimize the Refunds.
IRS Takes Refund fraud seriously and has programs in place to stop such practices.  Don't be a victim to people who encourage you you to claim deductions or credits you are not entitled or willingly allow others to use the information to file the false returns.
For Q & A, call Kash @ Yajnik & Mehta Associates (925) 963 4891.

Dirty Dozen Tax Scams: #3 Tax Return Preparer Fraud...

2011 Dirty Dozen Tax Scams According to IRS, will be listed and explained to the informed Tax Payer.

#3 Tax Return Preparer Fraud -
Attempt to skim a portion of their client's Refunds, Charge Inflated Fees for Tax Return Preparation. They attract new clients by making false promises of larger refunds or using fake credits and filing fraudulent returns. Beware of Tax preparers who don't sign their name or don't give Tax Payers a Copy of their Tax Return. 
IRS has introduced new standards including Preparer Identification ID (PTIN) tracking and monitoring Continuing Education Credits with mandatory Education in Ethics. Paid Preparers need to sign their name and Put their PTIN on the Tax Return. This should lead to better Tax Service experience for the Tax payers. For Q & A Call Kash @yajnikandmehta.com (925) 931 0863 

Dirty Dozen Tax Scams: #2 Identity Theft & Phishing...

2011 Dirty Dozen Tax Scams According to IRS, will be listed and explained to the informed Tax Payer.

#2 Identity Theft & Phishing - Attempt to Steal Tax Payer's Identity by Securing Name, Social Security Number, Credit Card Number Or Other Personal information without permission to commit Fraud or Other Criminal Activities. Phishing is one technique used to trick a victim into revealing personal or Financial information on line, through use of Phoney Web Sites or Fake emails, including Social Media. Sometimes Faking IRS eMails or Letters etc.
For Q & A Call Kash @yajnikandmehta.com (925) 931 0863 

Dirty Dozen Tax Scams: #1 Hiding Income Overseas

2011 Dirty Dozen Tax Scams According to IRS, will be listed and explained to the informed Tax Payer.

#1 Hiding Income Overseas - IRS Aggressively pursues Abusive Offshore transactions as well as promoters, professionals, and others who enable Taxpayers to Avoid or Evade U.S. Income Tax by Hiding Income in overseas Banks, Brokerage, or through use of Nominee Entities. Tax Payers evade taxes by using Offshore Debit Cards, Credit Cards, Wire Transfers, Foreign Trusts, Employee Leasing Schemes, Private Annuities, or Insurance Plans. 
IRS has opened a Special Second Voluntary Disclosure Initiative for Tax payers with Foreign Accounts. The Civil and Criminal Penalties can be very heavy for the offending Tax payers. Go to www.irs.gov for details.
For Q & A Call Kash @ Yajnik and Mehta Associates (925) 963 4891

How Presidential Election effects 2013 Tax Policy ?

Welcome and vote in tomorrow's 2012 Presidential Election.  While the debates gave us some idea of the different 2013 Tax Policies, note the following unspoken words:
1.  Current 2% Employee Wages tax break i.e. 4.2 % Tax will be gone in 2013.
2. No matter who is the President, taxes will go up.
3. How does one reduce the National Budget Deficit without Increasing Taxes and or Reducing the Expenses? 
Sit back and enjoy the election returns, and different election races.
For Tax Q & A, call Kash @ Yajnik and Mehta Associates @ 925 963 4891