New Deadlines affecting businesses!
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As an added service to our clients, Eads & Associates, Inc., is excited to be able to provide informational emails to their clients concerning current topics of interest.

New W-2 and 1099-Misc Deadlines!!

For tax year 2016, the IRS has changed the filing deadlines for information returns. Forms W-2 and Forms 1099-MISC (for reporting non-employee compensation in Box 7) are now required to be provided to the recipient and to the IRS on or before January 31, 2017.  This deadline applies whether you are filing electronically or on paper.  Penalties for failure to comply with this new rule can be as much as $250 per form.

If you would like help from our office with the preparation and filing of these forms, please have your information to us no later than January 10, and we can help you meet these new deadlines.  Because of the changes, and the potential for penalties, we will ask that you sign an Engagement Letter specifically relating to the preparation of these informational returns.

Changes in Partnership and Corporation return filing deadlines

Partnership (1065) returns that previously had a filing deadline of April 15 now have a filing deadline of March 15, with extensions allowing an additional six months.  C Corporation returns previously had a deadline of March 15, but now have until April 15 to file their returns, also with a six month extension.  Eads has provided important deadline information in your Engagement Letter, so please review it closely to see how the changed deadlines may impact your return.  Industry-wide, most tax preparation firms file about five times more Partnership returns than C Corporation returns, so the earlier deadline will most likely affect work flow.  As in the past, our office prepares returns in the order received - so please get your information in to us early. 

Tax Packets/Organizers

All business tax packets have been delivered, either by mail or via your secure client portal.  If you have not received your business tax packet, please let us know.  Tax packets for individual returns (including Schedule C self-employed filers) are being mailed out or delivered via the portal over the next ten days.  If you have not received your individual tax packet by January 1 (by mail or in your portal), please contact us.

FAFSA deadline changes

Submit a FAFSA® Earlier: Students will be able to file a 2017–18 FAFSA as early as Oct. 1, 2016, rather than beginning on Jan. 1, 2017. The earlier submission date will be a permanent change, enabling students to complete and submit a FAFSA as early as October 1 every year.

Use Earlier Income Information: Beginning with the 2017–18 FAFSA, students will report income information from an earlier tax year. For example, on the 2017–18 FAFSA, students (and parents, as appropriate) will report their 2015 income information, rather than their 2016 income information.

IRS Warnings!!

"Whether it's during the holidays or the approach of tax season, scam artists look for ways to use tax agencies and the tax industry to trick and confuse people," said IRS Commissioner John Koskinen. "There are warning signs to these scams people should watch out for, and simple steps to avoid being duped into giving these criminals money, sensitive financial information or access to computers." 

Some of the most prevalent IRS impersonation scams include:

Requesting fake tax payments:  The IRS has seen automated calls where scammers leave urgent callback requests telling taxpayers to call back to settle their "tax bill."  These fake calls generally claim to be the last warning before legal action is taken.  Taxpayers may also receive live calls from IRS impersonators.  They may demand payments on prepaid debit cards, iTunes and other gift cards or wire transfer.  The IRS reminds taxpayers that any request to settle a tax bill using any of these payment methods is a clear indication of a scam.

Targeting students and parents and demanding payment for a fake "Federal Student Tax":  Telephone scammers are targeting students and parents demanding payments for fictitious taxes, such as the "Federal Student Tax."  If the person does not comply, the scammer becomes aggressive and threatens to report the student to the police to be arrested. 

Sending a fraudulent IRS bill for tax year 2015 related to the Affordable Care Act:  The IRS has received numerous reports around the country of scammers sending a fraudulent version of CP2000 notices for tax year 2015.  Generally, the scam involves an email or letter that includes the fake CP2000.  The fraudulent notice includes a payment request that taxpayers mail a check made out to "I.R.S." to the "Austin Processing Center" at a Post Office Box address.

Soliciting W-2 information from payroll and human resource professionals:  Payroll and human resource professionals should be aware of phishing email schemes that pretend to be from company executives and request personal information on employees.  The email contains the actual name of the company chief executive officer.  In this scam, the "CEO" sends an email to a company payroll office employee and requests a list of employees and financial and personal information, including Social Security numbers.

In addition, do not click on links or open attachments from unknown email senders.  This is often how criminals infect a computer.

"Verifying" tax return information over the phone:  Scam artists call saying they have your return, and they just need to verify a few details to process your return.  The scam tries to get you to give up personal information such as a SSN or personal financial information, including bank numbers or credit cards.

Pretending to be from the tax preparation industry:  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.   

Remember, the IRS will never:

  • Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer or initiate contact by e-mail or text message. Generally, the IRS will first mail you a bill if you owe any taxes.

  • Threaten to immediately bring in local police or other law-enforcement groups to have you arrested for not paying.

  • Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.

  •  Ask for credit or debit card numbers over the phone.

What to Do:

  • Do not give out any information. Hang up immediately.

  • Search the web for telephone numbers scammers leave in your voicemail asking you to call back. Some of the phone numbers may be published online and linked to criminal activity.

  • Contact TIGTA to report the call. Use their “IRS Impersonation Scam Reporting” web page or call 800-366-4484.

  • Report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on Please add “IRS Telephone Scam” in the notes.

  • If you think you might owe taxes, call the IRS directly at 800-829-1040.

If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), report it by sending it to

Your friends at Eads & Associates, Inc.

Copyright © 2016 Eads & Associates, Inc., All rights reserved.

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