Tax Tips: International Fraud Awareness Week highlights how to report fraud; taxpayer protection against scams, schemes
WASHINGTON – As part of International Fraud Awareness Week, the Internal Revenue Service reminds taxpayers how to report tax-related fraud in their community to protect personal and financial information from scam artists and tax schemes.
During International Fraud Awareness Week, Nov. 17-23, the IRS Office of Fraud Enforcement and IRS Criminal Investigation aim to raise awareness of fraud, scams and schemes affecting taxpayers across the country.
The IRS also encourages individuals, businesses and tax professionals to take time now to learn to recognize red flags and to ensure defenses are in place to stop scammers and those who promote unscrupulous tax schemes.
The Security Summit, a public-private partnership between the IRS, state tax agencies and the nation’s tax industry, also works to protect taxpayers, businesses and the tax system from identity thieves and warn people to watch out for common scams and schemes.
Reporting tax fraud
Tax fraud can come in many forms, including scams targeting individuals, tax-related schemes pitched by unscrupulous promoters and fraud committed by taxpayers who knowingly file incomplete or inaccurate information with the IRS.
The public can assist the IRS in identifying and investigating possible fraud of individuals and businesses by filing Form 3949-A, Information Report Referral. Form 3949-A is a tax-related public use form submitted voluntarily by individuals to report alleged violations of tax law by individuals and businesses. A Form 3949-A submission remains confidential.
Individuals can report suspected tax law violations such as:
• False exemptions and deductions.
• Multiple tax filings.
• Organized crime, public/political corruption and kickbacks.
• Unsubstantiated and unreported income.
• Narcotics income.
• Wagering/gambling income.
• Failures to pay tax, withhold tax and file returns.
These are only some of the suspected violations individuals can report. The IRS will review submissions and determine the appropriate action to take based on the information provided. These actions may include a referral for audit or a referral for criminal prosecution.
The IRS Office of Fraud Enforcement promotes compliance with tax laws by strengthening the IRS response to fraud and mitigating emerging threats. This includes improving fraud detection, identifying areas of high risk, enhancing enforcement and helping develop and submit fraud referrals to IRS Criminal Investigation where appropriate.
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Tax Tips: Give more, tax-free: Eligible IRA owners can donate up to $105,000 to charity in 2024
WASHINGTON — The Internal Revenue Service reminds individual retirement arrangement (IRA) owners age 70½ and older that they can make up to $105,000 in tax-free charitable donations during 2024 through qualified charitable distributions. That’s up from $100,000 in past years.
For those age 73 or older, qualified charitable distributions (QCDs) also count toward the year's required minimum distribution (RMD).
Generally, IRA distributions are taxable, but QCDs remain tax-free if sent directly to a qualified charity by the trustee. To make a QCD for 2024, IRA owners should contact their IRA trustee soon to ensure the transaction completes by year-end.
Each eligible IRA owner can exclude up to $105,000 in QCDs from taxable income. Married couples, if both meet qualifications and have separate IRAs, can donate up to $210,000 combined. QCDs don’t require itemizing deductions.
For those planning ahead, starting this year, the QCD limit is subject to annual adjustment, based on inflation. For that reason, the annual QCD limit will rise to $108,000 in 2025.
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Tax Tips: The IRS is here to help military members and veterans with their unique tax needs
Members of the U.S. Armed Forces, veterans and their families may qualify for special tax benefits. Whether they have a simple or complex tax situation, the IRS provides information to make filing taxes easier to understand for those sacrificing so much for our country.
Benefits for military members
Some of the tax benefits for service members include:
• Combat pay: This pay is partially or fully tax-free. Service members serving in support of a combat zone or in a qualified hazardous duty area may also qualify for this exclusion.
• Combat zone tax deadline extensions: Qualifying members of the military, such as those who serve in a combat zone or in contingency operations outside the U.S., can get additional time to file and pay their taxes.
• Armed Forces dependency allotments: Assistance programs for dependent care allotments contributed by the government are excludable benefits and not included in the military member's income.
• Earned Income Tax Credit: The EITC is worth up to $7,830 for tax year 2024. Low and moderate income service members who receive nontaxable combat pay can use specific qualifications that may increase the amount of the EITC for which they qualify, meaning they may owe less tax or get a larger refund.
• Moving expenses: Members of the U.S. Armed Forces on active duty may be eligible to deduct unreimbursed relocation expenses if their move was due to a military order and permanent change of station. Also, allowances paid to move members of the U.S. Armed Forces for a permanent change of station aren’t taxable.
For more details on benefits for military members, taxpayers can refer to the Military Family Tax Benefits page on IRS.gov.
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