We passed along a warning last month about identity thieves trolling for personal information from taxpayers with email deceptions and phishing schemes.
Now the Internal Revenue Service is worried about unscrupulous tax preparers who have devised a way to pick clients’ pockets using the new health insurance reporting rules from the Affordable Care Act or “Obamacare.”
This latest scam revolves around the “shared responsibility payment,” which some – but definitely not most – taxpayers owe to the government. It’s basically a fee levied on those who did not have health insurance for part or all of 2014 and it is declared on income tax returns.
Some crooked tax preparers are telling clients to make the shared responsibility payment directly to them. They might claim it is necessary because of \the client’s immigration status or they might offer a discount on the fee. In some cases, they seek payment from taxpayers who are exempt under law and do not owe the fee at all.
The IRS says no one should write a check for a shared responsibility payment directly to a tax preparer. The fee is calculated as part of the 2014 tax return. So, if it does apply, the fee is figured in with any other taxes owed to the government on the return.
What precautions can you take? On its Web site, the agency offers a directory of tax preparers for people who would like to check for credentials. See http://irs.treasury.gov/rpo/rpo.jsf. The IRS also offers an online questionnaire to determine if you need to pay a shared responsibility fee in the first place.
There’s still time before April 15! We at EricJohn Ltd. can help you satisfy the health insurance reporting requirements on your 2014 tax return professionally and accurately.