Life insurance proceeds are usually not taxable if they are paid to a specifically named beneficiary, such as your spouse or children. The life insurance proceeds may become taxable, however, if you name your estate as the beneficiary. At that point, the proceeds become a part of your estate, and can be subject to estate taxes.
Leaders from the IRS and state tax agencies along with executives from the private-sector tax industry marked the first year of their ground-breaking Security Summit partnership to combat identity theft tax fraud by recapping 2016 accomplishments and turning toward 2017 efforts.
Maria and Rafael are thrilled that their daughter just graduated college and they’re ready to celebrate with friends and family. Abuela even made her famous tamales for the special occasion! At the party, Maria and Rafael beam with pride.
The IRS has issued a warning to taxpayers about bogus phone calls from people impersonating agency employees who demand payment for a non-existent tax that is referred to as the “Federal Student Tax.” (IR 2016-81) While the filing deadline has passed, scammers continue to use varied strategies to trick people, IRS said, adding that, in this case, students are being targeted. As described by the agency, if the victim does not react quickly enough to the demand for this fake “federal student tax,” the scammer threatens to report the student to the police. “These scams and schemes continue to evolve nationwide, and now they’re trying to trick students,” said IRS Commissioner John Koskinen. “Taxpayers should remain vigilant and not fall prey to these aggressive calls demanding immediate payment of a tax supposedly owed.” For further information, go to https://www.irs.gov/uac/newsroom/irs-warns-of-latest-scam-variation-involving-bogus-federal-student-tax.
Mid-market corporations in the U.S. could lose up to $1 trillion in equity value if the ability to deduct interest expenses is eliminated, according to a new study.
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What should you do when you suspect fraud? Play this one minute video to find out.
The Internal Revenue Service’s expanded use of controls this tax season to identify fraudulent refund claims before accepting them into its processing system has allowed the IRS to identify approximately 35,000 fraudulent e-filed tax returns and 741 paper tax returns as of Feb. 29, 2016, according to a new government report.
The Tax Return Identity Theft Protection Act of 2016would strengthen the existing penalties for identity thieves, establish tougher sentences for crimes against vulnerable and frequently targeted groups, and clarify the state-of-mind proof requirement that has prevented some identity thieves from being held accountable.
WASHINGTON, D.C. –Tax filing season began Tuesday, with a warning from the IRS.
The scam calls start with a threat from someone claiming to be from the IRS demanding money. “You need to pay just $1,989.44,” a voice on the phone says.