Tax Tips 2018 - The News Reporter | Tax Tips
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The News Reporter | Tax Tips | 1
Tax Tips
2018
The News Reporter / Thursday, January 18, 2018
The News Reporter | Tax Tips | 2
Getting ready for tax season
A new year not only brings a host of while increasing the chances you
new opportunities, but it also brings earn all of the credits and deductions
a host of familiar obligations. One you deserve.
such obligation is paying taxes, which • Examine past returns. Many
doesn’t have to be done until mid- people have questions when filling out
April. But waiting until the last min- their tax returns, but those who wait
ute with respect to taxes can make the until the waning days of tax season
process even more difficult, and put- to prepare their returns ignore those
ting it off certainly won’t help those questions in an effort to make the fil-
people who vowed to stop procrasti- ing deadline. When you start prepar-
nating in the new year. ing for tax season early, examine past
Getting a headstart on tax season returns and see if there are any ques-
can be beneficial in numerous ways, tions you wanted to ask in the past that
not the least of which is avoiding the you didn’t have time for. Write these
last-minute rush to file your return questions down as you comb through
come the filing deadline. Even if you your past returns and bring the ques-
have yet to receive your W-2 (which tions to your tax preparer when the
you should have in hand by January time comes. If you don’t plan on hir-
31), there are steps you can take to get ing a professional to prepare your
ready for the coming tax season. taxes, you can contact the IRS with
• Gather your documents. Your your questions, and the earlier you do
W-2 is likely not the only document so, the more quickly you are likely to
you will need to prepare your tax re- have your questions answered.
turn. Statements regarding your in- • Take your time. When you decide when working on your return and early so that person has more time to
vestments, student loan payments, to get an early start on your taxes, you don’t succumb to any potential stress- devote to your return. If you wait too
mortgage and a host of other docu- allow yourself to take your time pre- ors. long, chances are the tax preparer will
ments might be necessary for you to paring your return. This reduces the • Consider hiring a professional. be buried with many other customers’
fill out your return. You should start likelihood of getting stressed when fil- Starting early also gives you an op- returns and won’t be able to devote as
receiving these documents in Janu- ing your return. Many people get a bit portunity to determine if preparing much time to preparing your return
ary, so gather them as they come in nervous when filing a tax return, but your own return is too tall a task. If as you would like.
and keep them in a convenient place. that stress can be even greater if you that’s the case, consider hiring a pro- More information about getting
This will ensure you don’t get frus- leave everything until the last minute. fessional to prepare your return. If ready for tax season is available at
trated when filling out your return If you’re starting early, take your time you decide to hire a professional, do so www.irs.gov.
Large enough
S. Preston Douglas to meet all your needs,
& Associates, LLP small enough to
know your name.
LUMBERTON
907 N. Walnut Street
910-739-7523
John L. Grissom, Jr., CPA
ELIZABETHTOWN
1103 W. Broad Street
910-862-3768
Phil W. Byrd, CPA
WHITEVILLE
Jerry W. Brown, CPA Julia Kinlaw, CPA Jerry G. Savage, CPA
122 Memory Plaza
Phil W. Byrd, CPA Culbert M. (Buddy) Matthew S. McLean, CPA 910-642-6692
Deborah S. Grissom, CPA McLean, Jr., CPA Stephen Parker, CPA
Matthew S. McLean, CPA
John L. Grissom, Jr., CPA John D. Masters, CPA Austin Eubanks, CPA
J. Lee Grissom, CPA, CFE www.spdouglas.com
Member: American Institute of CPA’s, NC Association of CPA’s
Working with our clients to achieve their financial goals since 1941
The News Reporter | Tax Tips | 3
IRS statement on 2018 Tax returns
due April
filing season start date 17
The Internal Revenue those returns when The filing deadline to submit 2017
Service announced received, it cannot is- tax returns is Tuesday, April 17, 2018,
sthat the nation’s tax sue related refunds rather than the traditional April 15
season will begin Mon- before mid-February. date. In 2018, April 15 falls on a Sun-
day, Jan. 29, 2018 and The IRS expects the day, and this would usually move the
reminded taxpayers earliest EITC/ACTC filing deadline to the following Mon-
claiming certain tax related refunds to be day — April 16. However, Emancipa-
credits that refunds available in taxpayer tion Day — a legal holiday in the Dis-
won’t be available be- bank accounts or on trict of Columbia — will be observed
fore late February. debit cards starting on that Monday, which pushes the na-
The IRS will begin on Feb. 27, 2018, if they tion’s filing deadline to Tuesday, April
accepting tax returns chose direct deposit 17, 2018. Under the tax law, legal holi-
on Jan. 29, with nearly and there are no other days in the District of Columbia affect
155 million individual issues with the tax re- the filing deadline across the nation.
tax returns expected to turn. The IRS also re- “The opening of filing season re-
be filed in 2018. The na- minds taxpayers that flects months and months of work by
tion’s tax deadline will they should keep cop- IRS employees,” Koskinen said. “This
be April 17 this year – ies of their prior-year year, we had a number of important
so taxpayers will have tax returns for at least legislative changes to program into
two additional days to three years. our systems, including the EITC re-
file beyond April 15. Taxpayers who are fund date, as well as dealing with
Many software com- using a tax software resource limitations. Our systems
panies and tax profes- product for the first require extensive programming and
sionals will be accept- time will need their testing beforehand to ensure we’re
ing tax returns before adjusted gross income ready to accept and process more than
Jan. 29 and then will from their 2016 tax re- 155 million returns.”
submit the returns turn to file electroni- The IRS also has been working
when IRS systems open. Although the of key tax processing systems in ad- cally. with the tax industry and state rev-
IRS will begin accepting both electron- vance of the opening and to assess the Taxpayers who are using the same enue departments as part of the Se-
ic and paper tax returns Jan. 29, paper potential impact of tax legislation on tax software they used last year will curity Summit initiative to continue
returns will begin processing later in 2017 tax returns. not need to enter prior-year informa- strengthening processing systems to
mid-February as system updates con- The IRS reminds taxpayers that, tion to electronically sign their 2017 protect taxpayers from identity theft
tinue. The IRS strongly encourages by law, the IRS cannot issue refunds tax return. Using an electronic filing and refund fraud. The IRS and Sum-
people to file their tax returns elec- claiming the Earned Income Tax PIN is no longer an option. Taxpayers mit partners continued to improve
tronically for faster refunds. Credit (EITC) and the Additional can visit IRS.gov/GetReady for more these safeguards to further protect
The IRS set the Jan. 29 opening date Child Tax Credit (ACTC) before mid- tips on preparing to file their 2017 tax taxpayers filing in 2018.
to ensure the security and readiness February. While the IRS will process return.
Refunds in 2018
Choosing e-file and direct depos- and ACTC. weekends or holidays, which can
it for refunds remains the fastest The IRS expects the earliest affect when refunds reach taxpay-
and safest way to file an accurate EITC/ACTC related refunds to ers. For EITC and ACTC filers,
income tax return and receive be available in taxpayer bank ac- the three-day holiday weekend
a refund. The IRS expects more counts or on debit cards starting involving Presidents’ Day may af-
than four out of five tax returns on Feb. 27, 2018, if those taxpay- fect their refund timing.
will be prepared electronically us- ers chose direct deposit and there The Where’s My Refund? tool
ing tax software. are no other issues with the tax on IRS.gov and the IRS2Go phone
The IRS still anticipates issuing return. This additional period is app will be updated with project-
more than nine out of 10 refunds due to several factors, including ed deposit dates for early EITC
in less than 21 days, but there are banking and financial systems and ACTC refund filers in late
some important factors to keep in needing time to process deposits. February. Taxpayers will not see
mind for taxpayers. After refunds leave the IRS, it a refund date on Where’s My Re-
By law, the IRS cannot issue re- takes additional time for them fund? or through their software
funds on tax returns claiming the to be processed and for financial packages until then. The IRS, tax
Earned Income Tax Credit or the institutions to accept and depos- preparers and tax software will
Additional Child Tax Credit be- it the refunds to bank accounts not have additional information
fore mid-February. This applies to and products. The IRS reminds on refund dates, so Where’s My
the entire refund — even the por- taxpayers many financial institu- Refund? remains the best way to
tion not associated with the EITC tions do not process payments on check the status of a refund.
The News Reporter | Tax Tips | 4
Scams targeting taxpayers Help for taxpayers
Thousands of people have lost millions of dollars and their personal infor-
The IRS reminds taxpayers they have offer free tax help to people who qual-
mation to tax scams. Scammers use the regular mail, telephone, or email to set
a variety of options to get help filing ify. Go to IRS.gov and enter “free tax
up individuals, businesses, payroll and tax professionals.
and preparing their tax return on IRS. prep” in the search box to learn more
The IRS doesn’t initiate contact with taxpayers by email, text messages or
gov, the official IRS website. Taxpayers and find a nearby VITA or TCE site,
social media channels to request personal or financial information. Recognize
can find answers to their tax questions or download the IRS2Go smartphone
the telltale signs of a scam. See also: How to know it’s really the IRS calling or
and resolve tax issues online. The Let app to find a free tax prep provider. If
knocking on your door.
Us Help You page helps answer most eligible, taxpayers can also locate help
IRS-Impersonation telephone scams
tax ques-
A sophisticated phone scam targeting taxpayers, including recent immi-
tions, and
grants, has been making the rounds throughout the country. Callers claim to
the IRS Ser-
be IRS employees, using fake names and bogus IRS identification badge num-
vices Guide
bers. They may know a lot about their targets, and they usually alter the caller
links to
ID to make it look like the IRS is calling.
these and
Victims are told they owe money to the IRS and it must be paid promptly
other IRS
through a gift card or wire transfer. Victims may be threatened with arrest,
services.
deportation or suspension of a business or driver’s license. In many cases, the
Taxpay-
caller becomes hostile and insulting. Victims may be told they have a refund
ers can go
due to try to trick them into sharing private information. If the phone isn’t
to IRS.gov/
answered, the scammers often leave an “urgent” callback request.
account to
Consumer Alert: Scammers change tactics, once again
securely
Some thieves have used video relay services (VRS) to try to scam deaf and
access in-
hard of hearing individuals. Taxpayers are urged not trust calls just because
for mation
they are made through VRS, as interpreters don’t screen calls for validity. For
about their
details see the IRS video: Tax Scams via Video Relay Service.
federal tax
Limited English Proficiency victims are often approached in their native
account.
language, threatened with deportation, police arrest and license revocation,
They can
among other things. IRS urges all taxpayers caution before paying unexpected
view the amount they owe, pay online from a community volunteer. Go to
tax bills. Please see: IRS Alerts Taxpayers with Limited English Proficiency of
or set up an online payment agree- IRS.gov and click on the Filing tab for
Ongoing Phone Scams. Note that the IRS doesn’t:
ment; access their tax records online; more information.
Call to demand immediate payment using a specific payment method such
review the past 18 months of payment The IRS also reminds taxpayers that
as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first
history; and view key tax return infor- a trusted tax professional can provide
mail you a bill if you owe any taxes.
mation for the current year as filed. helpful information and advice.
Threaten to bring in local police or other law-enforcement groups to have
Visit IRS.gov/secureaccess to review Tips for choosing a return preparer
you arrested for not paying.
the required identity authentication and details about national tax profes-
Demand payment without giving you the opportunity to question or appeal
process. sional groups are available on IRS.gov.
the amount they say you owe.
In addition,
Ask for credit or debit card numbers over the phone.
Scams targeting tax professionals
Increasingly, tax professionals are being targeted by identity thieves. These
70 percent of
the nation’s Under New Management
taxpayers are
criminals – many of them sophisticated, organized syndicates - are redoubling
eligible for IRS
their efforts to gather personal data to file fraudulent federal and state income
Free File. Com-
tax returns. The Security Summit has a campaign aimed at tax professionals:
mercial part-
Protect your clients; Protect yourself.
ners of the IRS
Recent scams targeting the tax professional community include:
offer free brand-
• Tax professionals warned of e-Services scam.
name software
• Tax professionals warned of new scam to “Unlock” tax software accounts.
to about 100 mil-
Looking for a new
• A phishing scheme mimicking software providers targets tax professionals.
lion individuals
Criminals target tax professionals to steal data such as PTINs, EFINs or
and families
Accountant?
e-Service passwords.
with incomes of
• Bogus email asks tax professionals to update their IRS e-services portal
$66,000 or less.
information and Electronic Filing Identification Numbers (EFINs).
IRS warns tax preparers to watch out for new Phishing Scam; Don’t click on
strange emails or links seeking updated information
The
fillable
online
forms Look no further!
provide elec-
Tax professionals should review Publication 4557, Safeguarding Taxpayer
Data, A guide for your business, which provides a checklist to help safeguard
tronic versions
of IRS paper
We offer Accounting, Payroll
information and enhance security. See also: Identity theft information for tax
professionals.
forms to all tax- and Tax Return Preparation
payers regard-
Soliciting form W-2 information from
payroll and human resources professionals
less of income at competitive prices.
that can be
The IRS has established a process that will allow businesses and payroll ser-
vice providers to quickly report any data losses related to the W-2 scam cur-
prepared and If what you’re looking for is HONESTY, RELIABILITY
filed by people
rently making the rounds. If notified in time, the IRS can take steps to prevent
comfortable
and ACCURACY with over 40 years of combined
employees from being victimized by identity thieves filing fraudulent returns
in their names. There also is information about how to report receiving the
with complet- experience from a company that’s been in Columbus
ing their own
scam email.
returns.
County since 1990, give us a call!
Report these schemes:
• Email dataloss@irs.gov to notify the IRS of a W-2 data loss and provide
Vo l u n t e e r
Income Tax As-
910-642-8084
contact information. In the subject line, type “W2 Data Loss” so that the email
can be routed properly. Do not attach any employee personally identifiable in-
sistance (VITA) 2764 Old Pine Log Road, Whiteville
and Tax Coun-
formation.
Continued on page 12
seling for the
Elderly (TCE) Mention this ad and get 10% Off
The News Reporter | Tax Tips | 5
Seven smart uses for your tax refund
You finished your tax returns and start on your child’s education.
discovered you’ll be receiving a nice 5. Make an investment. Consider
refund. You’re not alone. The IRS putting your refund money to work
reports that the average American for you. Talk to your State Farm®
received a refund of nearly $3,000 in agent about your options.
2016. But before you start dreaming 6. Improve your efficiency. Invest-
of a tropical vacation or a shopping ing in home improvements can pay
spree, consider how that money could off in reduced energy bills. For exam-
help you shore up your financial situ- ple, replacing an old refrigerator with
ation. Here are seven suggestions to a new ENERGY STAR®-rated unit can
consider. save you $200 to $1,100 over the life-
1. Pay off credit card debt. Main- time of the appliance.
taining any balance—but especially 7. Bolster your life insurance. If
the maximum—on a high-interest it’s been awhile since you reviewed
credit card costs you money every your insurance coverage, this may be
month. Pay off or cut down your bal- a prime opportunity. As life progress-
ance and, depending on your account es and your situation changes, you
balance, you could save hundreds of may find you’re underinsured. An in-
dollars in interest fees this year. surance agent can help you determine
2. Boost your emergency fund. the level of coverage that’s right for
Experts recommend stashing the you. Agents cannot provide tax, legal,
equivalent of three to six months’ or investment advice. Consult your
worth of income in an emergency tax, legal, or investment advisor re-
fund. If your account is low, has been garding your specific circumstances.
depleted or doesn’t exist yet, use your
refund to help cover your expenses in
an emergency.
3. Ramp up retirement savings.
According to a poll by the Pew Re- this may be the place to put your tax 4. Start or add to a college fund.
search Center, approximately 38 per- refund. Depending on your situation, Even if your kids are young, those
cent of U.S. adults are not confident age and income level, contributing to college tuition bills will be arriving
they’ll have the money to retire. If a traditional IRA or a Roth IRA is an before you know it! Seek out an edu-
you’ve gotten behind in your savings, option worth looking at. cational savings plan and get a head
Matt Walker
Agent
642-8206
Jordan Carter
Agent
654-1100
The News Reporter | Tax Tips | 6
Don’t forget finances when making resolutions
When the time comes to make New from every angle and determine if it’s financial needs, such a practice needs est rates on existing loans or credit
Year’s resolutions, the conventional time to make some changes. to change. No matter how much you cards. If you have exercised financial
wisdom is to focus on weight. Such • Resolve to be more liquid. A poll trust this person, don’t fall into a trap responsibility over the last 12 months,
wisdom is understandable, as many from the where paying down debts and paying all
people spend the holiday season in- National one per- bills on time, this is the perfect time
dulging in big meals and all the treats Founda- son acts to negotiate lower rates and reap the
synonymous with having fun. tion for as your rewards of your good behavior.
While it’s acceptable to make Credit financial • Don’t invest in anything you
healthy resolutions, a slimmer waist C o u n - svengali. don’t understand. Too often inves-
and a healthier diet should not be the seling Such an tors get caught up in so-called expert
only goals for the year ahead. In light f o u n d arrange- forecasts and act impulsively based
of the last several years, it’s important that 64 m e n t on the advice of some talking head
for men and women to make financial percent proved they see on television or hear on the
resolutions for the year ahead, too. No of Amer- v e r y radio. Unfortunately, such “experts”
one can say with certainty when, or if, i c a n s costly aren’t always certified financial pro-
the economy will rebound, and men would to those fessionals, and some might even have
and women should look at the New need to men and ulterior motives for pushing certain
Year as a suitable time to make some utilize a women investments and shunning others.
financial resolutions for the future. source w h o What’s more, few people know the
• Reassess your investment plan. o t h e r trusted track record of these “experts,” so
Since 2010, the market has been up t h a n the likes their advice should not be taken at
and down like a roller coaster. Those their savings account to pay for a of Bernie Madoff, a once-prominent face value. A simple rule for the year
who have weathered the storm have $1,000 unplanned expense. That per- financier who turned out to be noth- ahead should be to never invest in
no doubt witnessed big gains and centage illustrates that most adults ing more than a criminal mastermind anything you don’t understand. If an
significant losses over the last few just don’t have enough cash on hand. orchestrating history’s largest Ponzi investment opportunity seems worth-
years, and the turn of the calendar is This year, resolve to be more liquid. scheme. This year, if you haven’t done while, do all of your homework to gain
a great time to reassess investments Being more liquid enables you to more so already, make sure your financial a solid understanding of the opportu-
and possibly make some changes. Are effectively handle emergencies, and it advisor, money manager, custodian, nity before investing any money.
you taking on more risk than you’re also helps you avoid being forced to and trustee are all different people. Healthy resolutions go beyond a
comfortable with? Is your portfolio sell investments at the wrong time. • Negotiate lower rates. Use the slimmer waist and a healthier diet.
too conservative? How well are you di- • Shake things up. If you rely on onset of the New Year as a chance This year, resolve to get healthier fi-
versifying? Look at your investments one individual to handle all of your to negotiate newer and lower inter- nancially as well.
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The News Reporter | Tax Tips | 7
Reasons to choose direct deposit for tax refund
As taxpayers prepare for the Janu- IRS Free File to prepare and e-file fed- easy. With e-file, just follow the instruc- parers.
ary 29 start of filing season, they eral returns for free. Taxpayers who tions in the tax software. For paper re- Taxpayers should deposit refunds
should consider a direct deposit of any file a paper return can also use direct turns, the tax form instructions serve into accounts in their own name, their
refunds due. It’s easy, safe, fast — and deposit. as a guide. Make sure to enter the cor- spouse’s name or both. Avoid making
the best way to get a refund. That’s why • Is Secure. Since refunds go right rect bank account and routing number. a deposit into accounts owned by oth-
80 percent of taxpayers choose it every into a bank account, there’s no risk • Has Options. Taxpayers can split a ers. Some banks require both spouses’
year. of having a paper check stolen or lost. refund into several financial accounts. names on the account to deposit a tax
IRS Direct Deposit: This is the same electronic transfer These include checking, savings, refund from a joint return. Taxpayers
• Is Fast. The quickest way for tax- system that deposits nearly 98 percent health, education and certain retire- should check with their bank for direct
payers to get their refund is to elec- of all Social Security and Veterans Af- ment accounts. Use IRS Form 8888, Al- deposit rules.
tronically file their federal tax return fairs benefits into millions of accounts. location of Refund (including Savings There is a limit of three electronic
and use direct deposit. They can use • Is Easy. Choosing direct deposit is Bond Purchases), to deposit a refund in direct deposit refunds made into a sin-
up to three accounts. gle financial account or pre-paid debit
Do not use this form card. The IRS will send a notice and a
to designate part of a refund check in the mail to taxpayers
refund to pay tax pre- who exceed the limit.
Tax Matters
Bookkeeping
Payroll
Tax
We prepare returns for Individual, Small Business,
S Corporation, C Corporation, All States
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Additional times by appointment
Please feel free to call for an appointment or to discuss your situation
711 N. Madison St., Whiteville near the Courthouse
Owner - Bonnie M. Etheridge Accountant
910-640-0946
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Tax, Tax Planning, Accounting,
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6139 Haynes Lennon Highway (by appointment only)
Evergreen, NC 928 S. Madison Street
Whiteville, NC
Telephone: 910-654-5506
Fax: 888-655-7376 Telephone: 910-642-0000
C. Jan Lennon, CPA, Partner
Mary S. McDaniel, Partner
Professional service with a personal touch.
The News Reporter | Tax Tips | 8
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• Planning for dispositions of real estate including like-kind exchanges
Hugh Harrell, CPA • Advanced planning for charitable contributions including establishment
and operation of private foundations
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family partnerships, real estate investment partnerships, etc.
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The News Reporter | Tax Tips | 9
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The News Reporter | Tax Tips | 10
Taxpayer guide to identity theft BIG
We know identity theft is a frustrat- IRS records indicate you received rently affected by identity theft, but
LENDERS
ing process for victims. We take this wages from an employer unknown to you believe you may be at risk due
issue very seriously and continue to you. to a lost/stolen purse or wallet, ques-
expand on our robust screening pro- What to do if your tax records tionable credit card activity or credit
cess in order to stop fraudulent re- were affected by identity theft? report, etc., contact the IRS Identity
CAN
turns. If you receive a notice from IRS, Protection Specialized Unit at 1-800-
What is identity theft? respond immediately. If you believe 908-4490.
Identity theft occurs when someone someone may have used your SSN How can you minimize the chance
uses your personal information such fraudulently, please notify IRS im- of becoming a victim?
MAKE
as your name, Social Security num- mediately by responding to the name Don’t carry your Social Security
ber (SSN) or other identifying infor- and number printed on the notice or card or any document(s) with your
mation, without your permission, to letter. You will need to fill out the IRS SSN on it.
commit fraud or other crimes. Identity Theft Affidavit, Form 14039. Don’t give a business your SSN just
YOU
How do you know if your tax For victims of identity theft who because they ask. Give it only when
records have been affected? have previously been in contact with required.
Usually, an identity thief uses a le- the IRS and have not achieved a reso- Protect your financial information.
gitimate taxpayer’s identity to Check your credit report ev-
fraudulently file a tax return ery 12 months.
FEEL
and claim a refund. Generally, Secure personal information
the identity thief will use a in your home.
stolen SSN to file a forged tax Protect your personal com-
return and attempt to get a puters by using firewalls, anti-
fraudulent refund early in the spam/virus software, update
filing season.
You may be unaware that
security patches, and change
passwords for Internet ac-
PRETTY SMALL!
this has happened until you counts.
file your return later in the fil- Don’t give personal informa-
ing season and discover that tion over the phone, through
two returns have been filed the mail or on the Internet un-
using the same SSN. less you have initiated the con-
Be alert to possible identity tact or you are sure you know
theft if you receive an IRS no- who you are dealing with.
tice or letter that states that: The IRS does not initiate
More than one tax return for you lution, please contact the IRS Identity contact with taxpayers by email to
was filed, Protection Specialized Unit, toll-free, request personal or financial infor-
You have a balance due, refund off- at 1-800-908-4490. mation. This includes any type of
set or have had collection actions tak- How can you protect your tax electronic communication, such as
en against you for a year you did not records? text messages and social media chan-
file a tax return, or If your tax records are not cur- nels.
ID theft top 10 precautions 9. Take three free. Review your
Taking these 10 steps will greatly re- 6. Tweet responsibly. Use social
duce your risk of identity theft: networks responsibly. Don’t announce credit report annually; the report is
1. Protect the trash. Shred any location information, don’t friend free.
documents with personal identifiable strangers, learn the privacy controls 10. Eagle eye. Review every finan-
information, even junk mail! Don’t of each application and use them. cial, medical, and benefits statement
leave these documents where others 7. Lock it up. Paper or electronic, you receive. Create a habit of review-
(e.g., roommates, service people) can make it difficult to obtain your docu- ing employment or other life-impor-
view them. Permanently erase data ments. Lock your computer, phone, fil- tant statements on a regular basis.
from old computers before you recycle ing cabinet. Meanwhile, make it as difficult
as you can for data thieves by using
them. 8. Don’t be obvious. Use non-obvi-
strong passwords. If they do crack
If you need money
2. Spot phish. Never click on links ous passwords. Your mother’s maiden
you receive in unsolicited emails, name or the last four digits of your your defenses, give them nothing to for taxes or any pur-
steal by following the rule of “Find it.
even if you are familiar with the orga- Social Security number are TOO obvi-
Delete it. Protect it.”
pose, we can help.
nization advertised. Instead, call them ous.
or type in the URL in your browser. And we won’t give
3. Defend the mailbox. Use secure you the run around
post office drops for sending impor-
tant and sensitive documents. Opt out or make you feel like
of free credit offers and junk mail. a nobody.
4. Protect the number. Don’t carry
your Social Security card in your wal-
let or write your Social Security num- CARDINAL
ber on a check.
5. Mum’s the word. Don’t give out
FINANCE
personal information on the phone, South Madison St.
through the mail, or over the Internet Whiteville
unless you are sure with whom you
are dealing. 642-5174The News Reporter | Tax Tips | 11
Where’s my refund? Short on Cash?
Get Your Money Fast!
1. When to Refund Advance starts
at $500, $1000, $1500, $2500
check... Subject to Tax Software Completion
-72 Hours after you e-file
-4 Weeks after you mail your paper Ten clients can Early Birds don’t
return forget W-2s, and
win $100 each and insurance form 1095
other free gifts.
2. What you $50 to every new client that
e-files with us and expects a check
need... Referrals: $40 each
-Social security number
-Filing status IRS filing begins Jan. 29, 2018. We are open from
-Exact refund amount 9 am - 8pm. IRS said that we are ready set to go, we will be
set to go when the refund checks arrive!
Let’s tax it up and get that money!
3. How...
S eBONY TAX
-Get your refund status at
Https://sa2.Www4.Irs.Gov/irfof/lang/en/irfofgetstatus.Jsp
If you e-file, you can generally expect your refund in less than 21 days. There is no need
to call our toll-free number unless “where’s my refund?” Specifically indicates that you
Meredith Jeffries
should. Manager ERO
819 S. Madison St., Whiteville
Information courtesy of irs.gov 910-642-5639 • Fax 910-642-0450
Year-End Tax Tips To Help Boost Your Return
By Mary B. Williamson, State Farm® Agent
Take advantage of smart year-end financial moves that 3. Sell losing stock accounts, the money can be withdrawn tax-free. The stipula-
can help reduce your income tax liability when you file next Sell losing stock before year’s end to deduct the capital losses tion: The cash must cover educational expenses.
spring. Bernard Kiely, CFP, CPA, dean of the National Associa- against any capital gains you realized, and reduce your taxes These are just five ways to help reduce your tax liability—
tion of Professional Financial Advisors (NAPFA) University on the money you earned from successful stock. Once you’ve visit a financial planner for many more.
School of Taxation, offers these tips: offset your capital gains, you, as an individual, can generally State Farm® agents do not provide tax, legal or investment
1. Donate to qualified charities and organizations use any excess losses to reduce ordinary income up to an advice. Please consult a tax, legal or investment advisor in
You can generally deduct contributions of up to 50 percent annual limit of $3,000. regards to your personal situation.
of your adjusted gross income to qualified charities and orga- Learn 10 facts about capital gains and losses.
nizations if they’re made before December 31. Consider: 4. Focus on long-term capital gains Before investing, consider the funds’ investment objectives,
Donating stock. You can generally deduct the fair market “A short-term capital gain is a stock or mutual fund you’ve risks, charges and expenses. Contact State Farm VP Manage-
value of donated stock. bought and sold in less than one year,” says Kiely. Long-term ment Corp (1-800-447-4930) for a prospectus or summary
Using a community foundation. You direct the money, and capital gains have are taxed at fixed interest rates. Short-term prospectus containing this and other information. Read it
the foundation pays it out over a period of years. You can gen- capital gains are taxed at your ordinary income tax rate. Use carefully. AP2011/10/1024
erally deduct the donation the year you paid the foundation. the time now to evaluate your financial portfolio and shift Investing involves risk, including potential for loss.
Check out eight tips for deducting donations. more funds to investments that offer longer-term tax savings. Securities and insurance products are not FDIC insured,
2. Contribute to your 401(k) 5. Fund an education savings account are not guaranteed by State Farm Bank® and are subject to
Add pre-tax money to your 401(k) before the end of the year Many states allow residents to deduct contributions made investment risk, including possible loss of principal.
to reduce your taxable income. to an education savings account. And with some types of A 10 percent tax penalty may apply for withdrawals from tax-
qualified products before age 59½.
Call Us For All Your Insurance Needs!
1011 N. J.K. Powell Blvd., Whiteville
642-3753
No One Takes Care of You
Like A State Farm Agent.
Mary Bullard WilliamsonThe News Reporter | Tax Tips | 12
Scams professionals.
Surge in Email, Phishing and
Malware schemes
the official IRS web site. These emails
contain the direction “you are to up-
date your IRS e-file immediately.”
Fraudsters posing as Taxpayer
Advocacy Panel
Some taxpayers receive emails that
Continued from page 4
Phishing (as in “fishing for infor- These emails are not from the IRS. appear to be from the Taxpayer Advo-
mation”) is a scam where fraudsters The sites may ask for information cacy Panel (TAP) about a tax refund.
• Email the Federation of Tax Ad-
send e-mail messages to trick unsus- used to file false tax returns or they These emails are a phishing scam,
ministrators at StateAlert@taxad-
pecting victims into revealing per- may carry malware, which can infect trying to trick victims into providing
min.org to learn how to report victim
sonal and financial information that computers and allow criminals to personal and financial information.
information to the states.
can be used to steal the victims’ iden- access your files or track your key- Do not respond or click any link.
• Businesses/payroll service pro-
tity. strokes to gain information. If you receive this scam, forward it
viders should file a complaint with
The IRS has issued several alerts For more details, see: to phishing@irs.gov and note that it
the FBI’s Internet Crime Complaint
about the fraudulent use of the IRS • Consumer Alert: IRS warns tax- seems to be a scam phishing for your
Center (IC3.gov). Businesses/payroll
name or logo by scammers trying to payers, tax pros of new email scam information.
service providers may be asked to file
gain access to consumers’ financial targeting hotmail users TAP is a volunteer board that advis-
a report with their local law enforce-
information to steal their identity • IRS warns seniors to beware of es the IRS on systemic issues affect-
ment.
and assets. calls by criminals impersonating the ing taxpayers.
• Notify employees so they may take
Scam emails are designed to trick IRS It never requests, and does not have
steps to protect themselves from iden-
taxpayers into thinking these are of- • Phishing remains on the IRS access to, any taxpayer’s personal and
tity theft. The FTC’s www.identity-
ficial communications from the IRS “Dirty Dozen” list of tax scams for financial information.
theft.gov provides general guidance.
• Forward the scam email to phish- or others in the tax industry, includ- the 2017 filing
ing@irs.gov. ing tax software companies. These season
• See more details at Form W2/SSN phishing schemes may seek informa- Unsolicited
Data Theft: Information for business- tion related to refunds, filing status, email claiming
es and payroll service providers. confirming personal information, or- to be from the
Employers are urged to put proto- dering transcripts and verifying PIN IRS, or from a
cols in place for the sharing of sen- information. related compo-
sitive employee information such as Be alert to bogus emails that appear nent such as
Forms W-2. The W-2 scam is just one to come from your tax professional, EFTPS, should
of several new variations that focus requesting information for an IRS be reported
on the large-scale thefts of sensitive form. IRS doesn’t require Life Insur- to the IRS at
tax information from tax preparers, ance and Annuity updates from tax- phishing@irs.
businesses and payroll companies. payers or a tax professional. Beware gov.
Tax professionals who experience of this scam. For more
a data breach also should quickly re- Variations can be seen via text infor mation,
port the incident to the IRS. See de- messages. The IRS is aware of email visit the IRS’s
tails at Data Theft Information for tax phishing scams that include links to Report Phish-
bogus web sites intended to mirror ing web page.
Copy of your tax return:
How to get one You Get More For Your Tax Refund At
If you need a copy of a pre-
viously filed and processed
tax return and all attach-
ments (including Form W-2),
it was originally filed. Tran-
scripts are generally avail-
able for the current and past
three years and are provided
Murf’s Pawn
complete Form 4506 (PDF), free of charge. The period in
Request for Copy of Tax Re-
turn, and mail it to the ad-
dress listed in the instruc-
which you will receive the
transcript varies from within
five to ten business days from
Tax Refund Sale
tions, along with a fee for the time the IRS receives your
each tax return requested. request for the tax return or • Jewelry
The check or money order tax account transcript.
for the fee should be made
payable to the “United States
You can obtain a free tran-
script on the IRS.gov website
• Guns
Treasury,” also enter your by going to the Order a Tran-
SSN or EIN and “Form 4506
request” on your check or
script page. Transcripts may
also be ordered by calling
• Electronics
money order. Copies are gen- 800-908-9946 and following the
erally available for returns prompts in the recorded mes- • Musical Instruments
filed in the current and past sage, or by completing and
six years. Allow 60 calendar
days to receive your copies.
mailing a request for a tran-
script to the address listed in • Tools and more!
Most needs for tax return the instructions.
information can be met with If you are a taxpayer im- Savings up to 60% off Retail
a computer printout of your pacted by a federally declared
return information called
a “transcript.” A transcript
disaster, the IRS waives the
usual fees and expedites re- We loan money on most anything of value
Murf’s Pawn
may be an acceptable sub- quests for copies of tax re-
stitute for an exact copy of a turns for people who need
return by the U.S. Citizenship them to apply for benefits or
and Immigration Services to file amended returns claim-
and lending agencies for stu- ing disaster-related losses.
dent loans and mortgages. For additional information,
A “tax return transcript” refer to Topic 107, or call the Mon. - Fri. 9 am - 7 pm • Sat. 9 am - 6 pm
will show most line items IRS Disaster Assistance Hot- 1134 S. Madison St., Whiteville • 640-3344
contained on the return as line at 866-562-5227.The News Reporter | Tax Tips | 13
How to manage personal debt
As if anyone needs their memory is more prudent than declaring for car loan was small
jogged, debt is a substantial problem bankruptcy, which will negatively or nonexistent
for men and women living in fully impact an individual’s credit score are likely saddled
developed countries. Estimates vary, for years to come. Companies are of- with a high-in-
but numerous surveys have indicated ten willing to work with card holders terest loan), work
the average American household has about repayment plans that make it to pay down that
more than $10,000 in credit card debt, easier to pay down debt. But once an balance as much
a figure that doesn’t include debt such agreement is made, card holders must as possible. Some-
as mortgages, car loans or student make meeting the terms of that agree- thing as simple as
loans. ment their top priority. paying an extra
What these figures illustrate is that • Stop accruing bad debt. Using $25 per month on a
even the most financially savvy debtor a card wisely is the key to avoiding $200 per month car
may be in a precarious position, one unnecessary debt. When using credit payment can re-
that, should an unforeseen layoff or cards, do not use them for everyday duce the length of
medical emergency occur, could turn purchases like groceries or movie time it takes to pay
disastrous in a relatively short period tickets. This type of credit card usage off that loan con-
of time. As a result, an individual’s is habit forming, and it’s very easy for siderably. Once a
ability to manage personal debt is of card holders to quickly amass a large high-interest debt
paramount importance, and the fol- balance on their accounts for items is paid off, move
lowing tips can help men and women they could just as easily could have on to the debt with
walking a financial tightrope address paid for with cash. Keep in mind in- the next highest interest rate. terest card is one thing, but borrow-
their debt in a way that might help terest will be charged on all balances • Stop paying the bare minimum. ing against property or a retirement
them get back on their financial feet. not paid in full each month, so don’t Paying just the minimum will barely savings account is playing with fire.
Applying your tax refund to these make that cup of coffee or that pair of cover the interest. That means the With regards to borrowing against a
strategies may ease your personal movie tickets cost even more by add- principal will hardly disappear, and 401(k), the penalty to do so, not to men-
stresses. ing interest to the overall cost. the debt will be a seemingly impos- tion the extra income tax such a with-
• Eliminate bad debt. Not all debt • Pay down high-interest debts sible obstacle to overcome. Pay more drawal will accrue, before retirement
is bad, but credit card debt is rarely first. Always work to pay down high- than the bare minimum each month, is substantial. In addition, the value
good. Card holders with substantial interest debt first while paying a little even if it means making sacrifices of those retirement savings will suffer
credit card debt should contact their more than the minimum on low-in- elsewhere. considerably as the interest earned
companies as soon as possible to see terest debt. If a car loan came with • Avoid borrowing from Peter will be on that much less money until
if the company is willing to work an especially high interest rate (hint: to pay Paul. Transferring balances the full amount is paid back to the ac-
with them on a repayment plan. This borrowers whose down payment on a from a high-interest card to a low-in- count.
The News Reporter
Your trusted local news source
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Advertising opportunities availableThe News Reporter | Tax Tips | 14
Renewal reminder for
Individual Taxpayer Identification Numbers (ITINS)
Taxpayers who use an Individual with middle digits 70, 71, 72 or 80 will renew their ITIN if they will have a renew their ITIN.
Taxpayer Identification Number also expire at the end of the filing requirement. Other taxpayers • Make an appointment at an IRS
should check to see if their number year. These taxpayers with ITINs do not need to take any Taxpayer Assistance Center.
expires this year. If it does, and they should renew their action. Taxpayers with an ITIN that has
need to file a return in 2018, they ITIN if they To renew an ITIN, a taxpayer must the middle digits 70, 71, 72, 78, 79, or
should submit an application now will have complete a Form W-7 and submit re- 80 do have the option to renew ITINs
to renew their ITIN. Doing this a filing quired documentation. There are for their entire family at the same
helps avoid tax refund and require- three ways to submit this informa- time. They can renew together even
processing delays next ment tion. Taxpayers can: if family members have an ITIN with
year. The IRS issues i n • Mail the package to the IRS ad- other middle digits. Family members
ITINs to people who are 2018. dress listed on the Form W-7 instruc- include the tax filer, spouse and any
not eligible for a Social Ad- tions. The IRS will review the docu- dependents claimed on the tax re-
Security number, but who di- ments and return them within 60 turn.
need to file a tax return. days.
Taxpayers who have not tionally, • Work
used their ITIN to file a federal
return at least once in the last
three years will see their num-
taxpayers
whose ITINs have
middle digits 78 or 79
with a Certi-
fied
tance
Accep-
Agent
Jimmy O. mauldin, CPa
ber expire Dec. 31, 2017. ITINs that have expired should to help them
Experienced, Professional
TAX PREPARATION
We Can Help...
Bring in last year’s tax returns for a FREE,
no obligation review.
(910) 642-1868
928 S. Madison St., Whiteville
Thompson, Price, Scott, Adams & Co., P.A.
P.O. Box 398, 1626 S. Madison Street, Suite 100,
Whiteville, NC
p 910.642.2109
fax 910.642.5958
301 West King Street, Elizabethtown, NC
4024 Oleander Drive, Wilmington, NC
1543 S Lee Hwy, Cleveland, TN 37311
Thompson, Price, Scott, Adams & Co., P.A. provides a full
range of accounting, audit, tax and consulting services
designed to grow your business. If your company is
looking to improve business operations, contact one of our
CPA professionals to find out what we can do for you.
Alan W. Thompson, CPA Gregory Adams, CPA R. Bryon Scott, CPA
www.tpsacpas.com The CPA. Never
Underestimate The Value.SM
Member: American Institute of Certified Public Accountants
Certified Public Accountants North Carolina Association of Certified Public AccountantsThe News Reporter | Tax Tips | 15
Last minute tax tips for late filers
Preparing your tax return doesn’t need to filed an extension and are estimating what
be hard or stressful. It just needs to be thor- they owe should not lowball the IRS. If the
ough and accurate. Give yourself plenty IRS finds you owe more than you’ve already
of time to work through the tax forms, and paid, you will be subject to fines and penal-
you’ll have confidence in filing your taxes. ties. A good rule of thumb when estimating is
Your 2017 tax return is due by Tuesday, April to examine last year’s return. If you did not
17, 2018. change jobs, purchase a home or earn sub-
You can also request an automatic 6-month stantially more or less money this year, you
extension of time to file, making your dead- can base this year’s tax estimate on last year’s
line Oct. 15, 2018. bill.
In addition to taking full advantage of the • Choose the standard deduction if pos-
added time, late-filing taxpayers should con- sible. Many non-homeowners can simply
sider the following last minute tax tips as choose the standard deduction as opposed to
well. itemized deductions. Doing so can make it
• File online. Filing online is quicker and, much quicker to file a tax return. In general,
for those who file through the Internal Rev- if finances are simple and not complicated,
enue Service Web site, it can even be free. a standard deduction is the easiest and best
Men and women who are anticipating a tax route to take.
refund should strongly consider filing online, Everyone would like to spend less on taxes.
as e-filing generally gets people their refunds Fortunately, the tax laws make it easy. You
much more quickly than filing through the can reduce your taxable income through var-
mail. In addition, filing online can alert tax- ious deductions, or reduce your tax liability
payers to any mistakes they might have made through various credits.
on their returns. Vi s i t
• Don’t mistake a tax extension with an the IRS
extension to pay your taxes. Men and wom- Web site
en who file for a tax extension should know at www.
that an extension still requires taxpayers to irs.gov
estimate what they owe and send the IRS a to learn
check by April 17. A tax extension is only an the stan-
extension to finish the paperwork, not an ex- tension request must be filed by April 17. d a r d
tension to pay. It’s important to know an ex- • Make an accurate estimate. Individuals who have deduc-
Why is Tax Day April 17?
tions.
The filing deadline to submit 2017 tax returns is Tuesday, April 17, 2018, rather than the tra-
ditional April 15 date. In 2018, April 15 falls on a Sunday, and this would usually move the filing
deadline to the following Monday — April 16. However, Emancipation Day — a legal holiday in
HARPER’S
the District of Columbia — will be observed on that Monday, which pushes the nation’s filing
deadline to Tuesday, April 17, 2018.
When can I file my previous
year or late Federal tax return?
There is no IRS deadline for overdue previ- you will need to paper file your 2017 return).
TAX SERVICE
ous year tax returns, but in order to claim a
tax refund for a certain year, you must file a
tax return for that year within 3 years of the
If you owe taxes and you file or efile late
without getting a tax extension, the IRS will
generally charge penalties based on the
REFUND TRANSFERS
original due date. If you wait longer than 3
years, any tax refund is forfeit.
amount you owe. There are also penalties for
paying your taxes late, even if you got an ex-
& E-FILE
On the other hand, past due taxes do not tension. However, the late filing penalties are Easy Advance Loans-No Charge
disappear. If you owe taxes for a previous tax more severe, so you should try to file on time within 24 hours pending approval
year, the IRS may charge you late filing and even if you owe taxes and can’t pay.
late payment penalties plus interest on taxes If you owe taxes and are already late, you $1000-$1500-$2500
owed. should file a tax return immediately and ex- based on tax payers net refund
After April 17, 2018, you can still prepare plore your options to pay tax.
and efile a 2017 tax return on efile.com until If you expect a tax refund and you file late, We have netSpend cards
October 15, 2018 (after that date, the IRS will no there is no real penalty other than the effective
Stella and Chrystal Harper - OWNERS
longer accept 2017 returns electronically, and delay of your refund.
102 S. Lewis St., PO Box 762, Tabor City, NC
When should I file my amended 910-653-3007 Office & Fax
tax return (tax amendment)?
910-653-2816 Home
Hours: M-F 9am until, Sat 9am-2pm
If an amended return results in you owing tax, there is no deadline for the tax amendment. harperstax@centurylink.net
However, if you’re expecting a refund, you must file your return within 3 years of the original
tax return deadline in order to claim your refund. Tax Tip: Submit your 2017 Tax Return by Serving Your Tax Needs Since 1992
April 17, 2018 to avoid penalties and interest!The News Reporter | Tax Tips | 16
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