Tag: Minnesota Department of Revenue

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Storm-struck Counties Get One More Week To File Minnesota Taxes

Storm-struck Counties Get One More Week To File Minnesota Taxes

Minnesota authorities have extended the April 15 tax deadline by one week for taxpayers in 64 counties hit hard by last week’s winter storm.

The Minnesota Department of Revenue said individual taxpayers and businesses now have until April 22 to file their state income tax returns. They will not face late penalties or interest for submitting returns during that extra week.

The extension affects only Minnesota tax returns.  Federal returns still are due on April 15.

The new deadline follows Gov. Tim Walz’s declaration of an emergency because of Winter Storm Wesley and flooding from rapid snowmelts.

The order covers much of the southern part of the state, including the Rochester and Twin Cities metropolitan areas. Minnesota Revenue said the new deadline extends to taxpayers in these counties:

Anoka, Beltrami, Becker, Benton, Big Stone, Blue Earth, Brown, Carver, Cass, Chippewa, Chisago, Clay, Cottonwood, Dakota, Faribault, Fillmore, Freeborn, Goodhue, Grant, Hennepin, Houston, Isanti, Jackson, Kittson, Lac Qui Parle, Le Sueur, Lyon, Marshall, Martin, McLeod, Mille Lacs, Mower, Morrison, Murray, Nicollet, Nobles, Norman, Olmsted, Pennington, Pipestone, Polk, Ramsey, Red Lake, Redwood, Renville, Rock, Scott, Sherburne, Sibley, Stearns, Steele, Stevens, Swift, Todd, Traverse, Wabasha, Wadena, Waseca, Washington, Watonwan, Wilkin, Winona, Wright, Yellow Medicine.

Three tribal nations — the Prairie Island Community, Red Lake Band of Chippewa, and Upper Sioux Community — also are listed.

Individual taxpayers can phone Minnesota Revenue at 651-296-3781 or 1-800-652-9094 for more information.

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Warning! Warning!

 

The Internal Revenue Service says it is especially worried about the spread of an email phishing scheme to schools, hospitals and nonprofit organizations. The federal tax agency today issued an “urgent alert” warning employers about the potential for identity theft from W-2 forms.

“This is one of the most dangerous email phishing scams we’ve seen in a long time” said IRS Commissioner John Koskinen. “It can result in the large-scale theft of sensitive data that criminals can use to commit various crimes, including filing fraudulent tax returns.”

Employees of those institutions – particularly those working in payroll or human resources departments – should be especially wary in dealing with requests for W-2 forms, the IRS announced.

The online thieves typically send an email to a worker in a payroll or HR department, asking for a list of employees and their W-2s.  The main trickery involves email addresses. The thieves “spoof,” or disguise, the address to look like the email came from a company executive.

When the worker sends the list, the scammers get valuable information, such as Social Security numbers, wage data, residential names and addresses, etc., which can be used to file phony tax returns,  open credit cards or steal in other ways,

The phishing ploys were around last year, too, but they occurred heavily in the corporate world. Now they’ve spread to school districts, hospitals, nonprofits, employment agencies and even tribal organizations, among others.  This year, the online thieves not only are bilking a broader range of businesses, but they also are striking earlier in the tax reporting season, the IRS and a group of cooperating tax agencies and industry groups called the Security Summit warned.

Some scammers also have used a more sophisticated version. They’ve teamed up the phishing scam with a wire transfer of money, again supposedly requested by the organization’s executive. “Some companies have lost both employees’ W-2s and thousands of dollars due to wire transfers,” The IRS said in its alert.

Feel free to contact us at EricJohn Ltd. for more information about business and individual taxes.

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MINNESOTA REMINDER!

Homeowners and renters, don’t skip one last piece of 2014 paperwork!

The preferred date for claiming a state property tax refund is Aug. 15, just about a month away.

Not every homeowner or renter will reap a refund. But it might pay to crunch a few numbers nonetheless. Check into the prospects with the Minnesota Department of Revenue’s form, called the “Homestead Credit Refund for Homeowners and Renters Property Tax Refund.”

It’s available online at www.revenue.mn.us, navigate to “For individuals” and you’ll see “Property Tax Refund.”

Minnesota Revenue really wants you to file by Aug. 15 this year, but the final deadline actually is Aug. 15, 2016.

More later about the details. Of course, check in with us at EricJohn Ltd. for personal guidance on refunds and taxes.

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GOODBYE (FOR NOW) TO MINNESOTA REFUND FOR POLITICAL GIVING!

Planning to back your favorite state politicians with a few bucks in 2016? Feel free to send them a check, as always. But don’t expect the state to reward your political action with a refund, as in past years.

On July 1, Minnesota lawmakers are shutting the door on refunds for political contributions. Minnesota’s Department of Revenue used the word “suspended” to announce the change; it lasts until June 30, 2017.

State residents have been able to claim a refund as large as $50 a person ($100 for married couple) for donations to Minnesota political parties or to individual candidates for major elected offices, ranging from governor to state representative. It’s done on Minnesota Form PCR and requires receipts.

There’s still a little time left. Contributors can capture the refund for any donations made through June 30, 2015, Minnesota Revenue says. The PCR form must be submitted as of April 18, 2016.

http://www.revenue.state.mn.us/individuals/individ_income/Pages/Refund_for_Political_Contribution.aspx

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QUICK DOWNTIME AHEAD

QUICK DOWNTIME AHEAD

The techs have to tinker, so the Minnesota Department of Revenue is turning its online systems off for a few hours on Wednesday evening (6/10).

It’s just scheduled maintenance, the state tax agency says. The outage is scheduled from 4:30 p.m. to 9:00 p.m.

Minnesota Revenue also reminds us that the downtime does not change existing tax and reporting deadlines.

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DOWN-TO-THE -WIRE TAX ACTION

If you won’t have your federal (and state) tax returns ready by the end of the day on Wednesday (April 15), it’s probably time to join the millions of taxpayers asking for an extension.

The extension adds another six months to the deadline, making it Oct. 15. The IRS won’t ask you why you need it. BUT – and it can be a big “but” – the IRS still expects you to estimate income and pay any taxes by the normal deadline.

You accomplish that on Form 4868 or “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.” The extension generally is automatic. For a copy, see http://www.irs.gov/pub/irs-pdf/f4868.pdf.

The clock is ticking with this. Whether you’re sending it electronically or by “snail mail,” it must be recorded or postmarked by the end of the day on April 15 to avoid penalties.

Now, from a technical standpoint, if you are absolutely certain that you will not owe any income taxes, you don’t need to file Form 4868. You can file your normal 1040 return later in order to capture your refund.

However, to be safe, we at EricJohn Ltd. advise filing the application for extension, whether or not you think you need it. Miscalculations can happen, and there is a late filing penalty in addition to late payment penalties for any unpaid tax.

WHAT THE IRS WANTS
In a nutshell, an extension is not valid unless your tax liability is estimated properly, using available information. Don’t break out in a sweat just yet! You can come up with a reasonable estimate. As a starting point, did you make more or less money than a year ago?

If you have some figures, work with that information, even if you are missing some income or expenses. Then make a good faith estimate of what you owe. Spending the time to pull together realistic figures could save you hundreds – maybe even thousands – in tax penalties.

Next, send a tax payment based on your estimate! You can do that electronically at the IRS web site (www.irs.gov) or enclose a check in the envelope. But don’t omit that step, even if your estimate is shaky.

Finally, don’t forget any state taxes you owe. In Minnesota, you don’t have to file an extension form. BUT – just as with the federal return – you must pay tax due to avoid penalties.

Minnesota Department of Revenue also accepts tax payments through its Web site. Here’s a pointer about extensions and payments: http://www.revenue.state.mn.us/individuals/individ_income/Pages/Filing_Extensions.aspx.

We at EricJohn Ltd. wish you easy and accurate filings for Tax Day!

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A 3-HOUR WINDOW TO AVOID

Minnesotans in the throes of tax preparation should scratch off the evening of March 11 for any computer work using the state’s online systems.

The Minnesota Department of Revenue announced that its e-Services systems will be taken offline for maintenance between 5 p.m. and 8 p.m. on that day.

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WARNING: TAX SEASON PREDATORS NOW ON THE PROWL

The Internal Revenue Service and the Minnesota Department of Revenue are warning taxpayers about identity theft scams circulating through emails and text messages.

Both tax collection agencies say they know of phishing schemes, which use unsolicited notifications to steal personal or financial information. The bogus notices typically try to lure taxpayers to fake Web sites or email addresses, where thieves actually steal the information.

“The IRS won’t send you an email about a bill or refund out of the blue,” IRS Commissioner John Koskinen warned in an announcement.

Minnesota Revenue said one new phishing fraud now is coming through text messages. The messages refer to filing a return with the “Minnesota state tax office.” Be wary of texts from tax preparation services or tax software companies – especially those that you have not used to file a return, the agency said.

One recent phishing scam tried to trick tax preparers into revealing user names and passwords used to enter the IRS’s electronic filing and services system. An email asked them to update their individual IDs with the agency, the IRS said.

In another scheme last fall, taxpayers received phone calls from identity thieves posing as IRS workers. They gave out fake IRS badge numbers and altered caller IDs to make it appear that it was an IRS call.

The IRS has opened an email address for tax pros and taxpayers to report phishing scams. It is [email protected].

Here are some other signs of a scam. The IRS says it will NOT:

o Call or email to demand immediate payment, or call about any taxes owed without first sending a bill.
o Require prepaid debit cards or any other specific type of payment.
o Ask for debit or credit card numbers on the phone.
o Threaten to bring in local police to arrest you for not paying taxes.

EricJohn Ltd. is ready to file safe, online returns for you or your business!

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