California Refunds Update!

"Better to Mega"
Mega Refund
03.28.2016

This update is in response to the late distributions on CA tax return amounts for the 2015 Tax Year. Please take a moment to read through this information from the Franchise Tax Board!

Most Tax Refunds Arrive Within 12 Business Days; Some Take Longer as FTB Seeks To Prevent Tax Theft, Fraud


Sacramento – The Franchise Tax Board (FTB) today reported that most tax refunds are arriving within 12 business days for taxpayers who file electronically and request direct deposit.

However, some refunds can take significantly longer as FTB joins a nationwide effort to protect taxpayers’ money by preventing fraud, tax theft, and other abusive practices. According to the IRS, identity theft and other criminal schemes involving fraudulently filed tax returns are becoming more common.

“No one wants to see refunds delayed,” said Controller Betty T. Yee, FTB chair and the state’s chief fiscal officer. “However, FTB’s anti-fraud efforts help to assure all taxpayers that everything possible is being done to safeguard their hard-earned dollars.”

Since January 1, FTB has issued 4.2 million refunds with an average amount of $700. About 84 percent of all refunds were issued within seven to 12 days when the taxpayer elected to use direct deposit. That figure was down slightly from 90 percent in the past two years.

While most California taxpayers will see no delay, some will be asked by the FTB for more information to confirm the figures reported on their returns. Other returns will go through additional reviews to check for accuracy, completeness, and common indicators of fraud or identity theft.

The IRS reports that scammers have tried to trick taxpayers via threatening phone calls in which they impersonate tax agents and through phishing schemes aimed at stealing sensitive tax information. The U.S. Inspector General last weekurged taxpayers to stay on high alert through the end of the 2016 tax filing season.

The reviews can mean extended processing times for some taxpayers. FTB has taken this action to make sure the correct refund amount is issued to the right person.

Taxpayers may track the status of their refunds at ftb.ca.gov or download the FTB Refund Mobile App available for iPhone.

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Source information at ftb.ca.gov

For the latest in tax news and updates, please follow us on social media or our website at MegaRefundIncomeTax.com ! 

-Mega Refund

Home Based Business Deductions!

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Mega Refund
03.24.2016

Please take a moment to read one of the latest articles on business deductions for the 2015 tax year. Enjoy!

Tax Time Guide: Many Home-Based Businesses Can Use Simplified Method for Claiming Home Office Deduction; Taxpayers May Deduct up to $1,500 a Year.


WASHINGTON — The Internal Revenue Service today reminded people with home-based businesses filling out their 2015 federal income tax returns that they can choose a simplified method for claiming the deduction for business use of a home.

This is the fourth in a series of 10 IRS tips called the Tax Time Guide. These tips are designed to help taxpayers navigate common tax issues as this year’s April 18 deadline approaches.

In tax year 2013, the most recent year for which figures are available, more than 3.4 million taxpayers claimed deductions totaling just over $9.6 billion for business use of a home, commonly referred to as the home office deduction.

Introduced in tax year 2013, the optional deduction is designed to reduce the paperwork and recordkeeping burden for small businesses. The optional deduction is capped at $1,500 per year, based on $5 a square foot for up to 300 square feet.

Normally, home-based businesses are required to fill out a 43-line form (Form 8829) often with complex calculations of allocated expenses, depreciation and carryovers of unused deductions. Instead, taxpayers choosing the simplified method need only complete a short worksheet in the tax instructions and enter the result on their tax return. Self-employed individuals claim the home office deduction on Schedule C, Line 30; farmers claim it on Schedule F, Line 32 and eligible employees claim it on Schedule A, Line 21.

Though homeowners using the simplified method cannot depreciate the portion of their home used in a trade or business, they can claim allowable mortgage interest, real estate taxes and casualty losses on the home as itemized deductions on Schedule A. These deductions need not be allocated between personal and business use, as is required under the regular method.

Business expenses unrelated to the home, such as advertising, supplies and wages paid to employees, are still fully deductible. Long-standing restrictions on the home office deduction, such as the requirement that a home office be used regularly and exclusively for business and the limit tied to the income derived from the particular business, still apply under the simplified method. 

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Source information found at IRS.GOV 

For more on the latest in tax news and updates, please follow us online at MegaRefundIncomeTax.com! 

-Mega Refund

Tax Time Guide!

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Mega Refund

03.19.2016

The IRS has recently updated and released several tools to help you and your loved ones find the answers you are looking for with ease! Here is a brief article on the updates for this coming year! 

IRS Releases Tax Time Guide: Use IRS.gov Tools for Quicker Answers


WASHINGTON — With a month left before the tax deadline, the Internal Revenue Service today encouraged taxpayers working on their 2015 tax returns to take advantage of the numerous online tools and resources available on IRS.gov.

This is the first in a series of 10 IRS tips called the Tax Time Guide. These tips are designed to help taxpayers navigate common tax issues as this year’s April 18 deadline approaches. It will offer taxpayers tips on how to get help along with important options and issues to keep in mind as the tax deadline approaches.

The IRS has a wide variety of easy-to-use, online tools on IRS.gov. Through these, taxpayers can check the status of their refund, request a copy of their tax transcript or get an answer to their tax questions around the clock.

“We are doing everything we can to help taxpayers get the assistance they need this tax season," said IRS Commissioner John Koskinen. "IRS.gov and its online tools, such as the Interactive Tax Assistant, can answer most taxpayer questions — getting them the tax help they need, when they need it.” IRS information and some tools also are in Spanish.

The Interactive Tax Assistant takes taxpayers through a series of questions and provides them with responses to tax law questions about credits, deductions and general filing issues. Taxpayers get the same answers as if they’d called and spoken with an IRS representative, and they can print out the answers for their records.


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Source information found at IRS.gov. 

For the latest in tax news and updates follow us on social media & on our website at MegaRefundIncomeTax.com !

-Mega Refund

IRS Alerts for Businesses!

"Better to Mega"
03.07.2016
Mega Refund

 Another alert from the IRS! Helpful tips to aid you in the fight against digital theft in the business sector! Enjoy! 


IRS:

WASHINGTON — The Internal Revenue Service today issued an alert to payroll and human resources professionals to beware of an emerging phishing email scheme that purports to be from company executives and requests personal information on employees.

The IRS has learned this scheme — part of the surge in phishing emails seen this year — already has claimed several victims as payroll and human resources offices mistakenly email payroll data including Forms W-2 that contain Social Security numbers and other personally identifiable information to cybercriminals posing as company executives.

“This is a new twist on an old scheme using the cover of the tax season and W-2 filings to try tricking people into sharing personal data. Now the criminals are focusing their schemes on company payroll departments,” said IRS Commissioner John Koskinen. “If your CEO appears to be emailing you for a list of company employees, check it out before you respond. Everyone has a responsibility to remain diligent about confirming the identity of people requesting personal information about employees.”

IRS Criminal Investigation already is reviewing several cases in which people have been tricked into sharing SSNs with what turned out to be cybercriminals. Criminals using personal information stolen elsewhere seek to monetize data, including by filing fraudulent tax returns for refunds.

This phishing variation is known as a “spoofing” email. It will contain, for example, the actual name of the company chief executive officer. In this variation, the “CEO” sends an email to a company payroll office employee and requests a list of employees and information including SSNs.

The following are some of the details contained in the e-mails:
Kindly send me the individual 2015 W-2 (PDF) and earnings summary of all W-2 of our company staff for a quick review.


Can you send me the updated list of employees with full details (Name, Social Security Number, Date of Birth, Home Address, Salary).


I want you to send me the list of W-2 copy of employees wage and tax statement for 2015, I need them in PDF file type, you can send it as an attachment. Kindly prepare the lists and email them to me asap.

The IRS recently renewed a wider consumer alert for e-mail schemes after seeing an approximate 400 percent surge in phishing and malware incidents so far this tax season and other reports of scams targeting others in a wider tax community.

The emails are designed to trick taxpayers into thinking these are official communications from the IRS or others in the tax industry, including tax software companies. The phishing schemes can ask taxpayers about a wide range of topics. E-mails can seek information related to refunds, filing status, confirming personal information, ordering transcripts and verifying PIN information.

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Source information found at IRS.gov. 

For more on the latest in tax news and updates, follow us online at MegaRefundIncomeTax.com! 

-Mega Refund