ANOTHER TAX SCAM

The following is a new tax scam that is going around. This looks like it is coming from the IRS and that you have a refund. They ask you to give them your bank information and they will automaticaly deposit the funds in your account. Of course all they want is your bank information. The IRS never ever contacts a person by email. If you do get information such as this make sure that you use caution.

Here is the bogus email.

----- Original Message -----From: Internal Revenue Service

Sent: Thursday, July 12, 2007 5:59 AM

Subject: Tax Refund Notice (Form 1040XYS)

Good News, After the last annual calculation of your fiscal activity we have determined that you are eligible to receive a tax refund of $93.82.

Please submit the tax refund request and allow us 2-4 days in order to process it. A refund can be delayed for a variety of reason. For exemple (invalid records or applying after the deadline). The good news is that IRS will make this refund directly to your visa and/or mastercard linked to your checking/savings account instead a check or a direct deposit.

To access the form for your tax refund, please continue to our secure form "Tax Refund V-M".

Important: Do not use credit and/or american express or discover cards. Only cards that are linked to your checking/savings account are accepted.

Regards,
Stephen Bronner
Internal Revenue Service - Tax Refund Specialist

SALES TAX HOLIDAY

Wednesday, August 1, 2007

Check to see if you are one of the fourteen states that are offering sales tax "holidays" for back-to-school shopping. Below is a link provided by the Federal Tax Administrators. From August 3-5, North Carolina exempts computer sales up to $3,500 per item.

This might be a good time to do a "back-to-school" on your tax situation and learn new concepts and strategies for saving taxes.

We do a complete review of your last two years tax returns and then meet with you by phone and computer to discuss our findings. We provide a written report giving you ideas to use this year. It is not too soon or too late to plan to save taxes for 2007 and beyond. Our fee for the Tax Second Opinion is $200... and that amount is deductible.

Let us use our experience specializing in the Salon and Spa industry to "teach you" before the IRS "takes you to school."

Here is the link to the tax-free states.

http://www.taxadmin.org/fta/rate/sales_holiday.html

Larry Kopsa CPA

BARRY BONDS, BASEBALL AND THE IRS

Friday, July 27, 2007

Yesterday's Wall Street Journal offered a unique take on slugger Barry Bonds' chase for Hank Aaron's home run record. What will be the tax consequences for the lucky fan who catches the record-breaking ball? The article quoted sports-memorabilia experts estimating it will be worth half a million dollars or more.

Being an accountant I can't help but associate this with taxes.

When will the fan recognize the income? Now, when they accede to wealth? Or down the road, when they sell it?

If tax is due now, before the fan sells, how will they determine the ball's value?

If the proceeds qualify as capital gain (taxes at the special 28% rate for collectibles) what will the fan's basis be? Zero? The price of the ticket to the game? The price of their season-ticket package?

What if the catcher isn't a fan? What if it's a stadium employee or fellow player?

Back in 1998, just before Mark McGwire beat Babe Ruth's single-season 60-homer record, a reporter asked an IRS spokesman what would happen if the fan who caught the ball handed it back to McGwire. The spokesman replied that the fan might actually owe -- and sparked howls of protest. Then-Commissioner Charles Rossoti quickly changed course, confessing that the Tax Code could be as hard to understand as the infield fly rule.

There is a tax lessen here. Most taxpayers generally don't think about taxes until they're due. For most Americans, that means prior to April 15th. Now is the time to start planning.

By the way, if you should be the one to catch the record breaking ball, give us a call and we will help you keep from having a "tax strike out."

Larry Kopsa CPA