IRS Cautions Taxpayers Against Fake Hurricane Harvey Charity Scams

by | Accounting News, IRS, News, Resources, Tax

When disasters strike the American people, it can be a beautiful thing to witness the country coming together to support and rally around those affected. Unfortunately though, there are many who choose to take advantage during times of need.

The IRS issued a recent warning cautioning against potential charity scams in the wake of Hurricane Harvey (and likely Hurricane Irma as well). Some individuals may attempt to impersonate charities in an effort to either receive money or valuable personal information from taxpayers. Scammers may contact you via email, social media, telephone or even approach you in person. The largest percentage of scamming attempts are often made through email, though.

Fraudulent parties can masquerade as charities or associate themselves with known charitable causes by either using similar names or imitating the website of a legitimate charity. These emails may encourage taxpayers to give money or provide private financial information that can be used to apprehend your financial resources, or even your identity. The IRS has provided a set of helpful tips and resources to avoid being taken advantage of:

  • Make sure you are donating to recognized, and reputable, charities.
  • Do not give or send cash. Most reputable organizations will ask for a check, credit card or some form of reliable online payment system such as PayPal. These avenues provide you with specific documentation of the payment given for both tax and security purposes.
  • Be cautious of charities with names similar to known charities, but with just a small difference, or with a different logo. Visit the IRS website for a list of qualified, tax-exemptible charities.
  • NEVER give out personal information such as passwords, bank account numbers or Social Security numbers. Trustworthy organizations should not ask you for this type of information in order to donate, so take caution when these particulars are requested.
  • Keep records of all charitable donations made. Not only could this help you in the event of fraudulent behavior, but it will be beneficial come tax season when it’s time to make deductions. The IRS website provides a free booklet that includes details on what records to keep and specific tax rules for making tax-deductible donations.  

If you suspect you have been a victim of fraud, or been contacted by scammers, visit the IRS website to report phishing schemes.

Recent Increase in Indiana Laws and Fees

by | Accounting News, IRS, News, Resources, Tax

Although the Indiana state legislative session began back in January and concluded in late April, there were many changes made that have just recently taken effect, namely, 45 different taxes and fees that have either been increased or newly imposed.

One increase that has many Indiana residents talking is the 10 cents-per-gallon gasoline tax that took effect July 1. Funds from this tax and the $15 increase for new vehicle registrations will go toward funding a variety of road construction projects around the state.

Other increases or new fees include some imposed on college students, school employees and certain service positions. If they do not have health insurance, college students will now have to pay between $100 and $150 for a mandatory meningitis vaccine, while school employees could see a cost between $30 and $40 for a renewed background check every 5 years if their employer chooses not to cover the cost. Some service positions, such as massage therapists, manufactured-home dealers and social workers, have seen minimal regulation in the past, but will now be required to have state licenses, which could cost anywhere between $10 and $400.

Other fee increases include several within the court system, including DNA sample processing fees, the automated record-keeping fee and notary fees.

A valuable new law enacted during the legislative session is one that requires professional motorsports competitors and other athletes to pay taxes when they work in the state. Although anyone who works in Indiana already incurs income tax liability, many athletes live in other states and have often ignored their Indiana tax obligations. The new law streamlines the process for these athletes to pay their taxes.

Unfortunately, the addition or adjustment of taxes and fees annually is a common occurrence, but state lawmakers try to avoid general tax increases on sales or incomes. Thus, Indiana residents should expect similar fee increases each year to assist with a variety of state projects and deficits, but can hope to avoid large annual income tax hikes, which are a more regular financial burden for most taxpayers.

If you have any questions about the new taxes or how they may impact your taxes or business, please feel free to contact me: [email protected].