During January

All Employers:  Give your employees their copies of Form W-2 for 2015 by February 1, 2016.

All Businesses:  Give annual information statements to recipients of certain payments you made during 2015.  You can use the appropriate version of Form 1099 or other information return.  Payments that may be covered include the following:

Cash Payments for fish or other aquatic life purchased from anyone engaged in the trade or business of catching fish.

Compensation for workers who are not considered employees.

Dividends and other corporate distributions.

Interest, Rent, and Royalties.

Payments of Indian gaming profits to tribal members.

Profit-sharing distributions, Retirements plan distributions, Original issue discount, prizes and awards.

Medical and health care payments.

Debt cancellation (treated as payment to debtor).

Cash payments over $10,000.

                                  New Year, New Tax Guidelines

Every New Year brings at least a few new IRS guidelines and 2016 is no different.  Brown Jenkins & Oneyear, PA, has put together a list of the most noteworthy changes.  While this list is not comprehensive, it will help most businesses and individuals understand the major changes.

 2016 Tax Quick Reference Table

Mileage Rates:                                     2015                                                            2016

                Business                                   57.5                                                   54.0 cents per mile

     Charitable                               14.0                                                  14.0 cents per mile

Medical & Moving                23.0                                                  19.0 cents per mile

Estate and Gift Tax Basic Exclusion Amount                                        $5,450,000

Gift Tax Annual Exclusion per Donee                                                     $14,000

Social Security Withholding Tax Wage Base                                        $118,500.

Medicare Withholding Tax Wage Base                                                  Unlimited

Federal Unemployment Tax Wage Base                                                               $7,000

NC Unemployment Tax Wage Base                                                         $22,300.

Threshold for Nanny Tax                                                                              $2,000.

Maximum 401(k)/403(b) Salary Deferral                                               $18,000; $24,000 if age 50

Maximum SIMPLE Plan Salary Deferral                                                  $12,500; $15,500 if age 50

Maximum IRA Annual Contribution Limitation                                  $5,500; $6,500 if age 50

Profit-Sharing Contribution Limitation                                                  $53,000

Annual Compensation Limitation                                                            $265,000

for Defined Contribution Plan

Social Security Cost of Living Adjustment                                            No increase for 2016

   (COLA) for Social Security Beneficiaries

Earning Ceilings for Social Security:

Below Full Retirement Age (FRA)                                            $15,720 Lose $1 for $2 earned

Year FRA is Attained                                                                      $41,880 Lose $1 for $3 earned

After FRA is Attained                                                                     Unlimited

Affordable Care Act 2016 Requirements for Small Business

Many small businesses haven’t had to pay particularly close attention to the legislation, as they are generally exempt from Affordable Care Act mandates.  But there are a few things you will want to keep in mind about how you will – or won’t – be affected by the ACA in 2016, particularly if your business employs 51-99 people.

If you have 50 or fewer employees, you are exempt from ACA requirements to either offer affordable health insurance coverage or pay a per-worker assessment, also known as “pay or play.”  (These began on Jan. 1, 2015 for employers with 100 or more full-time employees.)  While you aren’t required to provide coverage under the law, you can, of course, choose to purchase through the Small Business Health Options Program exchange in your state, or buy coverage in the private market.  However, if your company employs 51-99 workers, you should be aware that the ACA’s transitional rules for small and mid-size businesses expire on Jan. 1, 2016.  This means your business must provide employees with “pay or play” provisions, as mentioned above.  These are also known as employer shared responsibility provisions.

It is highly advisable that you confirm that your count of full-time employees aligns with that of the ACA.  The ACA defines a full-time employee as someone who works either:

• A minimum of 30 hours per week
• 130 hours per month
• Or a total of 1,560 hours in a year

Moreover, if you own or have a significant stake in multiple small businesses, be aware that roll-up provisions apply.  Under the ACA, these businesses are grouped together when calculating the number of employees. 

If your business employs 25 or fewer full-time employees (particularly low-or moderate-income workers) and you’ve enrolled in an employer-sponsored health plan through your SHOP marketplace, you may qualify for certain types of subsidized coverage that went into effect in 2014, such as the Small Business Health Care Tax Credit.  In order to qualify for this tax credit, employees must earn an average annual wages of $50,000 or less and pay at least 50 percent of their employees’ premiums.  The tax credit ranges from 50% of premiums paid for eligible small employers, and from 25% to 35% of employer premiums paid for tax-exempt eligible small employers.

If you have 51-99 employees, as of Jan. 1, 2016, your health insurer considers your company a “small group” rather than a mid-market group.  This expanded definition of small group, which until now was defined as 50 or fewer employees, may seem innocuous, but is very important.  “It will impact prices, risk ratings, provider networks, and the types of benefits that these companies are accustomed to offering,” says Helena Ruffin, president and owner of The Ruffin Group Insurance Services.

For ACA plans, small employer group healthcare premiums are based on your company’s modified community rating, a rating based on the cost of care in a particular geographic area, which is meant to ensure that people within the same region aren’t priced differently.  Before the ACA was implemented, group ratings could vary widely based upon demographics and medical underwriting, a process by which insurers assessed the group’s projected health risk to determine price.  Other allowed rating factors for ACA plans include age, tobacco use and family size.  Ruffin notes that for ACA plans, age is calculated by employees’ birth dates (rather than expanded rate increments such as 35-39 years that were used in the past) and is adjusted annually.  These changes may result in higher insurance costs for many small businesses.

Regardless of the number of employees you have, your insurance plans are likely to change come Jan. 1, 2016, due the end of “grandmothering.”  “Grandmothering” refers to a transitional policy for certain types of coverage in the small group market.

When the ACA was first implemented, companies of all sizes were told that if they liked their plans, they could keep them.  But all grandmother plans end with Jan. 1, 2016 and later renewals, and companies will need to transition to an ACA-defined bronze, silver, gold or platinum plan.  Companies should look into their plan options, since they won’t be able to continue on their old plans after Jan. 1, 2016, though groups that renew before January can keep their grandmothered status until they renew in 2016.  Employers with 51-99 employees would primarily do this to keep from being forced into small group age rating of premiums and small group “metal” products.  Costs are likely to be higher in these new plans, but can’t be higher than 3X the lowest cost plan.

Will your company be ready for the ACA;s 2016 requirements?  It’s time to closely examine your plan options and start educating employees about any plan changes.  If you have questions or would like to meet with an insurance representative you can contact Blue Bridge Insurance Benefits by contacting Chris Haggerson at 336-283-0087, Justin Osborn at 336-608-8067, Nick Nelson at 336-926-9722 or Matt Wright at 336-926-9722.

Time to Check Your Withholding

WASHINGTON — The Internal Revenue Service reminds taxpayers that the earlier in the year they check their withholding, the easier it will be to get the right amount of tax withheld.

Besides wages, income tax is often withheld from other types of income, such as pensions, bonuses, commissions and gambling winnings. Ideally, taxpayers should try to match their withholding with their actual tax liability. If not enough tax is withheld, they will owe tax at the end of the year and may have to pay interest and a penalty. If too much tax is withheld, they will lose the use of that money until they get their refund.

When Should Taxpayers Check their Withholding?

• When a taxpayer gets a big refund, or finds that they have an unexpected balance due.
• Any time there are personal or financial changes that might affect their tax liability, such as getting married, getting divorced, having a child or buying a home.
• When there are changes in federal tax law that might affect their tax liability.

How to Check the Amount being withheld

Use the IRS Withholding Calculator on IRS.gov. This easy-to-use tool can help figure the taxpayer’s federal income tax withholding so their employer can withhold the correct amount from their pay. This is particularly helpful if they’ve had too much or too little withheld in the past, their situation has changed, or they started a new job.

Taxpayers may also use the worksheets and tables in Publication 505, Tax Withholding and Estimated Tax, to see if they are having the right amount of tax withheld.

How to Change the Amount Being Withheld

Events during the year may change a taxpayer’s marital status or the exemptions, adjustments, deductions, or credits they expect to claim on their return. When this happens, taxpayers may need to give their employer a new Form W-4, Employee’s Withholding Allowance Certificate, to change their withholding status or number of allowances.

Generally, taxpayers should give their employer a new Form W–4 within 10 days after either:

• A divorce, if they have been claiming married status, or
• Any event that decreases the number of withholding allowances they can claim.

Other Considerations

• Taxpayers, who bought 2015 insurance coverage through the Health Insurance Marketplace, shouldreport changes in circumstances to the Marketplace when they happen. Reporting changes in income or family size will help taxpayers avoid getting too much or too little advance payment of the premium tax credit. Receiving too much or too little in advance can affect the amount of their refund or how much they may owe when they file their tax return. For help getting it right, see this change in the circumstances estimator.
• Taxpayers may need to includeAdditional Medicare Tax and Net Investment Income Tax  when figuring withholding and estimated tax. Taxpayers may request that employers deduct and withhold an additional amount of income tax withholding from wages on Form W-4 if they are affected by these taxes.

Four Basic Tax Tips for New Businesses

If you start a business, one key to success is to know about your federal tax obligations. You may need to know not only about income taxes but also about payroll taxes. Here are five basic tax tips that can help get your business off to a good start.

1. Business Structure.  As you start out, you’ll need to choose the structure of your business. Some common types include sole proprietorship, partnership and corporation. You may also choose to be an S corporation or Limited Liability Company. You’ll report your business activity using the IRS forms which are right for your business type.
2. Business Taxes.  There are four general types of business taxes. They are income tax, self-employment tax, employment tax and excise tax. The type of taxes your business pays usually depends on which type of business you choose to set up. You may need to pay your taxes by making estimated tax payments.
3. Employer Identification Number.  You may need to get an EIN for federal tax purposes. Search “do you need an EIN” on IRS.gov to find out if you need this number. If you do need one, you can apply for it online.
4. Accounting Method.  An accounting method is a set of rules that determine when to report income and expenses. Your business must use a consistent method. The two that are most common are the cash method and the accrual method. Under the cash method, you normally report income in the year that you receive it and deduct expenses in the year that you pay them. Under the accrual method, you generally report income in the year that you earn it and deduct expenses in the year that you inc ur them. This is true even if you receive the income or pay the expenses in a future year.

Monthly Newsletter for October 2015

Filing Past Due Tax Returns

File all tax returns that are due, regardless of whether or not you can pay in full. File your past due return the same way and to the same location where you would file an on-time return.

If you have received a notice, make sure to send your past due return to the location indicated on the notice you received.

Why you should file your past due return now

Avoid interest and penalties

File your past due return and pay now to limit interest charges and late payment penalties.

Claim a refund

You risk losing your refund if you don’t file your return. If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date. The same rule applies to a right to claim tax credits such as the Earned Income Credit.

We hold income tax refunds in cases where our records show that one or more income tax returns are past due. We hold them until we get the past due return or receive an acceptable reason for not filing a past due return.

Protect Social Security benefits

If you are self-employed and do not file your federal income tax return, any self-employment income you earned will not be reported to the Social Security Administration and you will not receive credits toward Social Security retirement or disability benefits.

Avoid issues obtaining loans

Loan approvals may be delayed if you don’t file your return. Copies of filed tax returns must be submitted to financial institutions, mortgage lenders/brokers, etc., whenever you want to buy or refinance a home, get a loan for a business, or apply for federal aid for higher education.

If you owe more than you can pay

If you cannot pay what you owe, you can request an additional 60-120 days to pay your account in full through the Online Payment Agreement application or by calling 800-829-1040; no user fee will be charged. If you need more time to pay, you can request an installment agreement or you may qualify for an offer in compromise.

  Make Estimated Payments with IRS Direct Pay

IRS Direct Pay is a free way to make Form 1040-ES, Estimated Tax payments.

Monthly Newsletter for September 2015

IRS Tips to Help People Pay Their Taxes

If you owe tax, the IRS offers safe and easy ways to pay. Check out these payment tips:

• Pay your tax bill.  If you get a bill, you should pay it as soon as you can. You should always try to pay in full to avoid any additional charges. See if you can use your credit card or to get a loan to pay in full. If you can’t pay in full, you’ll save if you pay as much as you can. The more you can pay, the less interest and penalties you will owe for late payment. The IRS offers several payment options on IRS.gov.
• Use IRS Direct Pay.  The best way to pay your taxes is with IRS Direct Pay. It’s the safe, easy and free way to pay from your checking or savings account. You can pay your tax in just five simple steps in one online session. Just click on the “Payment” tab on IRS.gov. You can now use Direct Pay with the IRS2Go mobile app.
• Get a short-term payment plan.  If you owe more tax than you can pay, you may qualify for more time, up to 120 days, to pay in full. You do not have to pay a user fee to set up a short-term full payment agreement. However, the IRS will charge interest and penalties until you pay in full. It’s easy to apply online at IRS.gov. If you get a bill from the IRS, you may call the phone number listed on it. If you don’t have a bill, call 800-829-1040 for help.
• Apply for an installment agreement.  Most people who need more time to pay can apply for an Online Payment Agreement on IRS.gov. A direct debit payment plan is the hassle-free way to pay. The set-up fee is much less than other plans and you won’t miss a payment. If you can’t apply online, or prefer to do so in writing, use Form 9465, Installment Agreement Request. Individuals can use Direct Pay to make their installment payments. For more about payment plan options, visit IRS.gov.
• Check out an offer in compromise.  An offer in compromise, or OIC, may let you settle your tax debt for less than the full amount you owe. An OIC may be an option if you can’t pay your tax in full. It may also apply if full payment will cause a financial hardship. Not everyone qualifies, so make sure you explore all other ways to pay your tax before you submit an OIC to the IRS. Use the OIC Pre-Qualifier tool to see if you qualify. It will also tell you what a reasonable offer might be.
• Change your withholding or estimated tax.  If you are an employee, you can avoid a tax bill by having more taxes withheld from your pay. To do this, file a new Form W-4, Employee’s Withholding Allowance Certificate, with your employer. The IRS Withholding Calculator tool on IRS.gov can help you fill out the form. If you are self-employed you may need to make or change your estimated tax payments. See Form 1040-ES, Estimated Tax for Individuals for learn more.

The IRS released guidance for S corporations that pay or reimburse 2% S corporation shareholders for premiums for individual health insurance policies.  Based on previous guidance, there has been uncertainty about how arrangements authorized under IRS Notice 2008-1 to reimburse 2% S corporation shareholders for premiums should be treated.  The new notice provides that until additional guidance is issued, and at least through calendar-year 2015, the IRS will not assert the excise tax under IRC Sec. 4980D with regard to a health care arrangement of a 2% S corporation shareholder employee.

Review Your Taxes This Summer to Prevent a Surprise Next Spring

Each year, many people get a larger refund than they expected. Some find they owe a lot more tax than they thought they would. If this happened to you, review your situation to prevent another tax surprise. Did you marry? Have a child? Have a change in income? Some life events can have a major effect on your taxes. You can bring the tax you pay closer to the amount you owe. Here are some key IRS tips to help you come up with a plan of action:

• New Job.   When you start a new job, you must fill out a Form W-4, Employee’s Withholding Allowance Certificate and give it to your employer. Your employer will use the form to figure the amount of federal income tax to withhold from your pay. Use the IRS Withholding Calculator on IRS.gov to help you fill out the form. This tool is easy to use and it’s available 24/7.
• Estimated Tax.  If you earn income that is not subject to withholding you may need to pay estimated tax. This may include income such as self-employment, interest, dividends or rent. If you expect to owe a thousand dollars or more in tax, and meet other conditions, you may need to pay this tax. You normally pay it four times a year. Use the worksheet in Form 1040-ES, Estimated Tax for Individuals, to figure the tax.
• Life Events.  Check to see if you need to change your Form W-4 or change the amount of estimated tax you pay when certain life events take place. A change in your marital status, the birth of a child or buying a new home can change the amount of taxes you owe. In most cases, you can submit a new Form W–4 to your employer anytime.
• Changes in Circumstances.   If you are receiving advance payments of the premium tax credit, it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance payments of the premium tax credit help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.

Top 10 Tips about Tax Breaks for the Military

If you are in the U. S. Armed Forces, special tax breaks may apply to you. For example, some types of pay are not taxable. Certain rules apply to deductions or credits that you may be able to claim that can lower your tax. In some cases, you may get more time to file your tax return. You may also get more time to pay your income tax. Here are the top 10 IRS tax tips about these rules:

1. Deadline Extensions.  Some members of the military, such as those who serve in a combat zone, can postpone some tax deadlines. If this applies to you, you can get automatic extensions of time to file your tax return and to pay your taxes.
2. Combat Pay Exclusion.  If you serve in a combat zone, certain combat pay you get is not taxable. You won’t need to show the pay on your tax return because combat pay is not part of the wages reported on your Form W-2, Wage and Tax Statement. If you serve in support of a combat zone, you may qualify for this exclusion.
3. Earned Income Tax Credit or EITC.  If you get nontaxable combat pay, you can include it to figure your EITC. Doing so may boost your credit. Even if you do, the combat pay stays nontaxable.
4. Moving Expense Deduction.  You may be able to deduct some of your unreimbursed moving costs. This applies if the move is due to a permanent change of station.
5. Uniform Deduction.  You can deduct the costs of certain uniforms that you can’t wear while off duty. This includes the costs of purchase and upkeep. You must reduce your deduction by any allowance you get for these costs.
6. Signing Joint Returns.  Both spouses normally must sign a joint income tax return. If your spouse is absent due to certain military duty or conditions, you may be able to sign for your spouse. In other cases when your spouse is absent, you may need a power of attorney to file a joint return.
7. Reservists’ Travel Deduction.  If you’re a member of the U.S. Armed Forces Reserves, you may deduct certain costs of travel on your tax return. This applies to the unreimbursed costs of travel to perform your reserve duties that are more than 100 miles away from home.
8. ROTC Allowances.  Some amounts paid to ROTC students in advanced training are not taxable. This applies to allowances for education and subsistence. Active duty ROTC pay is taxable. For instance, pay for summer advanced camp is taxable.
9. Civilian Life.  If you leave the military and look for work, you may be able to deduct some job search expenses. You may be able to include the costs of travel, preparing a resume and job placement agency fees. Moving expenses may also qualify for a tax deduction.

Tax Tips for Students with Summer Jobs

Students often get a job in the summer. If it’s your first job it gives you a chance to learn about work and paying tax. The tax you pay supports your home town, your state and our nation. Here are some tips students should know about summer jobs and taxes:

• Withholding and Estimated Tax.  If you are an employee, your employer withholds tax from your paychecks. If you are self-employed, you may have to pay estimated tax directly to the IRS on set dates during the year. This is how our pay-as-you-go tax system works.
• New Employees.  When you get a new job, you will need to fill out a Form W-4, Employee’s Withholding Allowance Certificate. Employers use it to figure how much federal income tax to withhold from your pay. The IRS Withholding Calculator tool on IRS.gov can help you fill out the form.
• Self-Employment.  Money you earn doing work for others is taxable. Some work you do may count as self-employment. These can be jobs like baby-sitting or lawn care. Keep good records of your income and expenses related to your work. You may be able to deduct (subtract) those costs from your income on your tax return. A deduction can cut taxes.
• Tip Income.  All tip income is taxable. Keep a daily log to report them. You must report $20 or more in cash tips in any one month to your employer. And you must report all of your yearly tips on your tax return.
• Payroll Taxes.  You may earn too little from your summer job to owe income tax. But your employer usually must withhold social security and Medicare taxes from your pay. If you’re self-employed, you may have to pay them yourself. They count for your coverage under the Social Security system.
• Newspaper Carriers.  Special rules apply to a newspaper carrier or distributor. If you meet certain conditions, you are self-employed. If you do not meet those conditions, and are under age 18, you may be exempt from social security and Medicare taxes.

ROTC Pay.  If you’re in ROTC, active duty pay, such as pay you get for summer camp, is taxable. A subsistence allowance you get while in advanced training is not taxable.

Identity Theft
Help
At a Glance
If your SSN has been compromised, take these steps:
— File a police report
— File an FTC complaint
— Contact one of the three credit bureaus to place a fraud alert on your account:

• www.Equifax.com
  1-800-525-6285
• www.Experian.com
  1-888-397-3742
• www.TransUnion.com
  1-800-680-7289

— Close any financial accounts opened without your permission.
— Respond immediately to any IRS notice, according to instructions.
— Complete IRS Form 14039, Identity Theft Affidavit.
— Continue to file your tax return, even if by paper.

Other Resources

• IRS Identity Protectionhome

• FTC Identity Theft home

• IRS Publication 5027, Identity Theft Information for Taxpayers

IRS “Get Transcript” site is hacked

After discovering unauthorized access to taxpayer information through its “Get Transcript” application, the IRS is taking steps to protect taxpayers against identity theft if someone else tries to file a tax return in their name, both right now and in 2016. The agency is also sending letters to affected taxpayers with additional information, and offering credit monitoring to those whose transcript information was accessed.

Taxpayers can learn more about the situation and what the IRS is doing to protect them in a set of Questions and Answers posted to the IRS.gov website.

For more information, see the official IRS statement.

IRS Reminds Taxpayers to Safeguard their Tax Records as the Beginning of Hurricane Season Approaches

June 1, 2015

WASHINGTON – Hurricane season starts next week and the Internal Revenue Service advises individuals and businesses to safeguard their records against natural disasters by taking a few simple steps.

Create an Electronic Additional Set of Records

Taxpayers should keep a duplicate set of records including bank statements, tax returns, identifications and insurance policies in a safe place such as a waterproof container, and away from the original set.

Keeping an additional set of records is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are only provided on paper, these can be scanned into an electronic format. This way, taxpayers can save them to the cloud, download them to a storage device such as an external hard drive or USB flash drive, or burn them to a CD or DVD.

Document Valuables

Another step a taxpayer can take to prepare for a disaster is to photograph or videotape the contents of his or her home, especially items of higher value. The IRS has a disaster loss workbook,Publication 584, which can help taxpayers compile a room-by-room list of belongings.

A photographic record can help an individual prove the fair market value of items for insurance and casualty loss claims. Ideally, photos should be stored with a friend or family member who lives outside the area.

Update Emergency Plans

Emergency plans should be reviewed annually. Personal and business situations change over time as do preparedness needs. When employers hire new employees or when a company ororganization changes functions, plans should be updated accordingly and employees should be informed of the changes. Make your plans ahead of time and practice them.

Check on Fiduciary Bonds

Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.

IRS Ready to Help

If disaster strikes, an affected taxpayer can call 1-866-562-5227 to speak with an IRS specialist trained to handle disaster-related issues.

Scam Phone Calls Continue; IRS Identifies Five Easy Ways to Spot Suspicious Calls

WASHINGTON — The Internal Revenue Service issued a consumer alert providing taxpayers with additional tips to protect themselves from telephone scam artists calling and pretending to be with the IRS.

These callers may demand money or may say you have a refund due and try to trick you into sharing private information. These con artists can sound convincing when they call. They may know a lot about you, and they usually alter the caller ID to make it look like the IRS is calling. They use fake names and bogus IRS identification badge numbers. If you don’t answer, they often leave an “urgent” callback request.

“These telephone scams are being seen in every part of the country, and we urge people not to be deceived by these threatening phone calls,” IRS Commissioner John Koskinen said. “We have formal processes in place for people with tax issues. The IRS respects taxpayer rights, and these angry, shake-down calls are not how we do business.”

The IRS reminds people that they can know pretty easily when a supposed IRS caller is a fake. Here are five things the scammers often do but the IRS will not do. Any one of these five things is a tell-tale sign of a scam. The IRS will never:

1. Call to demand immediate payment, nor will we call about taxes owed without first having mailed you a bill..
2. Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe.
3. Require you to use a specific payment method for your taxes, such as a prepaid debit card.
4. Ask for credit or debit card numbers over the phone.
5. Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.

If you get a phone call from someone claiming to be from the IRS and asking for money, here’s what you should do:

• If you know you owe taxes or think you might owe, call the IRS at 1.800.829.1040. The IRS workers can help you with a payment issue.
• If you know you don’t owe taxes or have no reason to believe that you do, report the incident to the Treasury Inspector General for Tax Administration (TIGTA) at 1.800.366.4484 or atwww.tigta.gov.
• You can file a complaint using the FTC Complaint Assistant; choose “Other” and then “Imposter Scams.” If the complaint involves someone impersonating the IRS, include the words “IRS Telephone Scam” in the notes.

Remember, too, the IRS does not use unsolicited email, text messages or any social media to discuss your personal tax issue. For more information on reporting tax scams, go to www.irs.gov and type “scam” in the search box.

Additional information about tax scams are available on IRS social media sites, including YouTubeand Tumblr where people can search “scam” to find all the scam-related posts.

Top 10 Tips to Know if You Get a Letter from the IRS

The IRS mails millions of notices and letters to taxpayers each year. There are a variety of reasons why we might send you a notice. Here are the top 10 tips to know in case you get one.

1.    Don’t panic. You often can take care of a notice simply by responding to it.

2.    An IRS notice typically will be about your federal tax return or tax account. It will be about a specific issue, such as changes to your account. It may ask you for more information. It could also explain that you owe tax and that you need to pay the amount that is due.

3.    Each notice has specific instructions, so read it carefully. It will tell you what you need to do.

4.    You may get a notice that states the IRS has made a change or correction to your tax return. If you do, review the information and compare it with your original return.

5.    If you agree with the notice, you usually don’t need to reply unless it gives you other instructions or you need to make a payment.

6.    If you do not agree with the notice, it’s important for you to respond. You should write a letter to explain why you disagree. Include any information and documents you want the IRS to consider. Mail your reply with the bottom tear-off portion of the notice. Send it to the address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.

7.    You won’t need to call the IRS or visit an IRS office for most notices. If you do have questions, call the phone number in the upper right-hand corner of the notice. Have a copy of your tax return and the notice with you when you call. This will help the IRS answer your questions.

8.    Always keep copies of any notices you receive with your other tax records.

9.    Be alert for tax scams. The IRS sends letters and notices by mail. The IRS does not contact people by email or social media to ask for personal or financial information.