taxpayers

Pay taxes in cash at 7-Eleven stores

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

By Bankrate

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The Internal Revenue Service now is accepting cash from taxpayers who don’t have bank accounts or who prefer to pay their bills, tax and otherwise, that way.

Uncle Sam’s tax collector has partnered with ACI Worldwide’s Official Payments and PayNearMe to make cash tax payment available at more than 7,000 7-Eleven stores across the country.

“Taxpayers have many options to pay their tax bills by direct debit, a check or a credit card, but this provides a new way for people who can only pay their taxes in cash,” said IRS Commissioner John Koskinen in announcing the new service.

But, this being taxes and the IRS, the cash option isn’t as simple as showing up at your neighborhood convenience store and handing over your tax payment.

Here’s a primer on using the cash tax payment option.

Pay, but not quickly, with cash

Start at the IRS payments web page. Click the tab at the top of IRS.gov, “Payments,” to take you there.

Once at the payments page, click the “cash” link (under “Other ways you can pay”). Under the first step, click the link that takes you to Official Payments, with which the IRS has worked since 1999 to accept debit and credit card tax payments.

At the Official Payments website, start the payment process. No, it doesn’t say “pay with cash” yet. You’ll get there after you select the type of tax payment (annual 1040, estimated tax, etc.) you want to make.

After clicking on “Start,” the next web page offers you the “Cash at 7-Eleven” payment option. When you click “continue,” it will take you through the process, which ultimately will result in you getting an email from Official Payments that validates your information.

After the IRS also confirms your data, you’ll then get another email, this time from PayNearMe. This is the company that actually accepts your cash at a 7-Eleven and delivers it to the U.S. Treasury.

In that email you’ll find a link that will provide you with your PayNearMe code. You can print it or have it sent to your smartphone.

Now you’re ready to head, code in hand or on phone, to a participating convenience store. You can find one of the IRS-approved 7-Eleven payment locations by going again to the IRS cash payment page.

The convenience store clerk will give you a receipt for your payment, which should post to the taxpayer’s IRS account within 2 business days.

A few more cash payment details

As you can see from the process, it’s not a one-day task, so plan accordingly. If you wait until April 18 to pay, you won’t make the deadline and will be hit with late-payment penalties.

Similarly, the payment code is not good forever. It will expire 7 days after it is emailed to you.

Find your 7-Eleven early. Not every store is participating. And in some states, you can’t use this cash payment option at all. Official Payments notes in the fine print when you choose the cash option that, “There are no participating locations in the following states at this time: AL, AK, AR, GA, HI, LA, MN, MS, MT, NE, NM, ND, OK, SD, TN, WY.”

The maximum cash payment you can make is $1,000 per day.

And whatever cash amount you pay, it will cost you a few dollars more. A $3.99 service fee will be added automatically when you set up your cash payment at Official Payments.

Paul S. Herman CPA, a tax expert for individuals and businesses, is the founder of Herman & Company, CPA’s PC in White Plains, New York.  He provides guidance and strategies to improve clients’ financial well-being.

 

IRS will share tax-filing info to fight identity theft

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

By Bankrate

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When taxpayers hear that their tax information will be shared, they generally freak out, and with good reason. Almost daily we learn of some hacking incident in which personal data is obtained and then used to steal the victims’ financial identities.

The IRS has not been immune from such security breaches. Its own online transcript tool was compromised last spring. Tax-related identity theft topped the Federal Trade Commission’s consumer complaint list in 2014 and continues to grow.

Now, however, the IRS, along with state tax administrators and tax industry partners that make up the so-called Security Summit, say that sharing of taxpayer filing data will help stem tax identity theft and tax-return fraud.

The group, which was formed in March, has announced new security practices that will take effect with the 2016 filing season.

Share and share alike

One security move is ensuring that federal and state tax agencies, along with the tax industry that helps millions of individuals file their returns each year, have all the information they need to fight identity thieves.

In its work over the past 7 months, the Security Summit identified 20 new pieces of information that can be shared at tax-filing time with the IRS and states to help authenticate a taxpayer and detect identity theft refund fraud.

This information includes such things as repetitive use of Internet Protocol, or IP, numbers to transmit returns; identification data from computers from which returns originate; and the time it takes to complete a tax return, a potential indicator of computer-mechanized fraud.

States, tax industry responsibilities

Among those sharing this data will be e-file providers who submit 2,000 or more returns a year. These e-filing agents now will be required to research and analyze returns and then provide any potential identity-theft data to the IRS and the states.

State operating agreements also will include like-kind requirements for data-sharing and identity theft lead reporting to the IRS.

The goal here is to catch patterns of fraud and stop them before they become full-blown identity theft catastrophes.

The IRS, at the request of tax industry representatives and state tax offices, will act as the conduit for sharing the information with states via a secure data transfer process for the 2016 filing season. So far, 34 state departments of revenue and 20 tax industry members have signed on to part of the new information-sharing system, with more expected to sign later.

Regardless of what tax info is shared among preparers and tax agencies, you need to keep track of who’s looking at your personal data. You can do so through myBankrate.

Do you agree with the IRS and its tax-filing partners that the sharing of filer data will help stop tax identity theft? Or do you think it provides another avenue for private information to be hacked?

Herman and Company CPA’s proudly serves Bedford Hills NY, Chappaqua NY, Harrison NY, Scarsdale NY, White Plains NY, Mt. Kisco NY, Pound Ridge NY, Greenwich CT and beyond.

Thieves Access IRS Get Transcript App, 100,000 Accounts Compromised

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

By AICPA

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The IRS announced on Tuesday that criminals have used taxpayer-specific information to gain access to approximately 100,000 taxpayers’ accounts through the IRS’s Get Transcript online application and steal those taxpayers’ data. The Get Transcript app has been shut down temporarily.

The IRS says the criminals obtained enough taxpayer-specific information from outside sources that they were able to get through the Get Transcript authentication process. The IRS became aware of the problem late last week when it noticed unusual activity taking place in the application. The hacking apparently started in February and involved approximately 200,000 attempts to access the Get Transcript app. The Get Transcript app is not hosted on the IRS computer system that handles tax return filing submissions, and the IRS says that the filing submission system remains secure.

Both the Treasury Inspector General for Tax Administration (TIGTA) and the IRS’s Criminal Investigation unit are investigating the matter. As for a motive, the IRS said in its announcement of the breach, “It’s possible that some of these transcript accesses were made with an eye toward using them for identity theft for next year’s tax season.”

The IRS says it will provide a free credit monitoring service for those taxpayers whose accounts were hacked. It is also notifying all 200,000 taxpayers whose accounts were the targets of the unauthorized access attempts. Those letters will start going out this week.

Herman and Company CPA’s proudly serves Bedford Hills NY, Chappaqua NY, Harrison NY, Scarsdale NY, White Plains NY, Mt. Kisco NY, Pound Ridge NY, Greenwich CT and beyond.

Any U.S. tax advice contained in the body of this website is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.