Tax Time Security | High Desert Business Journal

Tax Security for Businesses

By Dan R. Dever, CFP, EA and Owner, H&R Block local offices?

Identity theft is the fastest growing crime in the nation, increasing every year and impacting both individuals and businesses.? Various organizations estimate 10% of Americans have had their identity stolen, with an average cost to each of $5000.? The worldwide cost to businesses?? An estimated $221 billion per year.

Who does your taxes matters more now than ever, since tax preparers hold an incredible amount of personal and business information about their clients.? It is important to select trustworthy, licensed, experienced people who have secure software programs, and secure offices. ?Your files will be with that person or office for years after your taxes have been prepared.? If you are doing your taxes with someone who is working out of a cardboard box in the back of their apartment, beware.

A secure tax office includes secure software systems, secure disposal of sensitive documents, secure document files, and a secure building.? Cleaning crews, front desk help, disposal vendors and everyone else coming in and out of a tax office should be monitored and secure.

Fraudulent tax preparers can not only find various ways to whisk away a filers? tax refunds, but can use the personal information supplied by filers to wreak havoc on every aspect of a person?s credit.

Online filers are not immune. Email scams using legitimate tax software names catch filers off guard as well.? The victim will be asked to upgrade the software, and is then taken to a fraudulent website.? Either a virus will be downloaded onto the computer, or the victim will be asked to enter personal information to confirm they are the software holder.? From there, the information is used to file a fraudulent tax return, with the return going to the criminal.

Take the time and do it right.? Find someone you trust to do your taxes.? Look for the appropriate? licenses, experience, and security so that you are confident you are in good hands.

Victor Valley?s H&R Block Tax Empire?

Dan Dever is the owner of the Victor Valley?s local H&R Block offices.? Starting out 46 years ago with just one office, he remembers their original advertising campaign for $5 returns.? He now owns and operates ten offices throughout Victorville, Apple Valley, Hesperia and Phelan.? ?We offer the full gamut of tax services, including all the tax and estate planning.? We have all the licenses, and we do very complicated taxes for business owners,? says Dever.? ?Tax planning is a year round business, nowadays.? It?s not a seasonal job any longer.?

Devers grew his business slowly and steadily, one office at a time.? ?You have to know two things.?? One is the product.? The other is running the business.? If you don?t have both, you won?t succeed.?

A Few Tax Updates:

1099-K:? a new form assisting the IRS with increasing collections without raising taxes.? Sellers bringing in over $20,000 in sales and are paid via PayPal, Visa, MasterCard, etc., would get this form starting in 2012.

Schedule C:? revised to include a new line for the 1099-K.? Income not reported via credit cards or online should go on the next line.? Refunds and charge-backs should be reported as returns and allowances.

Schedule C:? revised to include a new line for statutory employees, who get W-2s, but report all their income on a Schedule C.

Schedule D: ?Is now a summary form for data coming from the new Form 8949, ?Sales and Other Dispositions of Capital Assets.?? The form is to reconcile information reported on Form 1099-Bs.

Form 8949: with code H can be used to report the sale of a personal residence that is exempt from taxes.

Schedule E: ?Supplemental Income and Loss? form has new fields to report number of personal-use days and business-use days for each mixed-use rental property.

Form 8938:? Statement of Specified Foreign Financial Assets is used to report any overseas financial accounts with $10,000 or more.

Tax credit for energy efficient improvements:? $500 for 2011, down from $1500, and that?s a lifetime total.? Be careful if previous claims have been made.

Source: http://www.highdesertbusinessjournal.com/http%3A/www.highdesertbusinessjournal.com/2012/business/general-high-desert-business/tax-time-security/admin/?utm_source=rss&utm_medium=rss&utm_campaign=tax-time-security

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