Tax Fraud and Tax Scams May Slow State of Ohio Income Tax Refund Processing

As Internet use progresses most people have received emails or other communications from scammers and spammers. Many of these communications are attempting to find personal and or banking information. Most people have become accustomed to simply ignoring and deleting these email communications. However, what would you do if you received a phone call from the Ohio Department of Taxation telling you that you are in trouble with the government?

Tax fraud may slow Ohio Income Tax Return RefundsScammers utilize numerous methods in order to attempt to defraud individuals, businesses, and the government. One of the increasingly utilized methods scammers are using is committing tax fraud by filing fake State of Ohio income tax returns in order to get refunds from the state. According to the OSCPA interview in 2014 with Ohio Tax Commissioner Joe Testa, the State of Ohio Department of Taxation had blocked two hundred thirty million dollars in attempted theft and by October of 2014 according to the document Stopping ID Theft from Paying Off the Ohio Department of Taxation had stopped over $250,000,000 in fraudulent personal income tax refunds. According to WLWT news in Cincinnati, Ohio, as of August of 2015 the state of Ohio has already blocked more than twice as many returns this year as all of 2014. In a September 20th article on Fox 8 of Cleveland, Ohio, Attorney General Mike DeWine reports receiving more than 600 so far for the month.

If you are contacted by the Ohio Department of Taxation, the IRS, or a local tax authority it is not a matter that should be taken lightly. However, before sharing any personal information it is important that you are certain that you are actually dealing with the taxation agency and not a scammer attempting to gain personal information to steal your identity. These scammers acquire information of their victims and file multiple State of Ohio income tax returns utilizing stolen social security numbers and information in an attempt to get refunds issued from the state of Ohio.

Unfortunately, as the state of Ohio now must take enhanced security measures in order to prevent tax fraud and stop scammers who are filing fraudulent returns, the increased security efforts can impact the amount of time that it takes to receive your income tax refund from the State of Ohio.

As with any taxation issue or problem it should not be ignored. If you are contacted by someone requesting personal information claiming that you have a tax problem, the Ohio Department of Taxation can be called directly at (800) 282-1780 or you can call our office at (877) 505-9455. If you find that there is a problem with your Ohio, Federal, or Local taxes, Sheppard Tax Relief is here to help you to resolve your tax problems. In addition to a tax attorney to handle taxation problems, we also have an income tax preparation service offices in Columbus and Canton to prepare individual and small or mid-size business income tax returns.

Sources:

Tax.ohio.gov
Cincinnati’s WLWT 5
Fox 8 Cleveland
The Ohio Society of CPAs

Ohio Department of Taxation Sending Federal Adjusted Gross Income (FAGI) Billing Notices

When we think of taxes, tax audits, tax debt, and taxation notifications, the first thought is usually the IRS and its aggressive collection tactics and activities. It is important to understand that the Ohio Department of Taxation can be very aggressive in its collection of Ohio income taxes.

I received a FAGI Billing Notice from the Ohio Dept of TaxationBeginning October 14th, 2015 the Ohio Department of Taxation will begin sending out (FAGI) Federal Adjusted Gross Income Notices to taxpayers who have inconsistencies between their Ohio 1040 tax return and that which was reported to the IRS when filing federal taxes. The FAGI Billing Notice from the Ohio Department of Taxation will be sent for discrepancies in Adjusted Gross Income, Exemptions, or Filing Status.

If you receive a Federal Adjusted Gross Income (FAGI) from the Ohio Department of Taxation, it is important to respond to this billing notice immediately as failure to respond can result in an assessment, further collection action, in addition to penalties and interest.

I Received a Federal Adjust Gross Income Billing Notice From The Ohio Department of Taxation, Now What?

The billing notice will display changes to the Federal Adjusted Gross Income, Exemptions, and/or Filing Status for your Ohio Income Taxes in the “As Corrected” portion of the FAGI billing notice. If you are in agreement with the amount owed in the billing notice, you can simply make payment. If you disagree with the amount of unreported income stated and additional taxes owed to the Ohio Department of Taxation, the charges may be disputed. In some cases, there are also additional changes which you may wish to make to your Ohio income tax filing, which will require filing an amended IT-1040X with the Ohio Department of Taxation.

In any case, please don’t hesitate to contact our office for a free consultation in order to determine the best resolution for your Ohio tax situation.

 

 

 

 

Sources:

http://www.tax.ohio.gov/Portals/0/ohio_individual/individual/FAGIBillingProgram.pdf

Ohio Department of Taxation Sending CP2000 Billing Notice for Unreported Income

When we think of taxes, tax assessments, and other taxation problems, the first thought is usually the IRS and its aggressive collection tactics and activities. It is important to understand that the Ohio Department of Taxation can be very aggressive in its collection of Ohio income taxes.

Ohio Dept of Taxation CP2000 billing notice help from tax lawyer at Sheppard Tax ReliefBeginning September 29th, 2015 the Ohio Department of Taxation started sending CP2000 Billing Notices to taxpayers who failed to amend their Ohio State income taxes upon completion of an IRS CP2000 audit.

An IRS CP2000 audit occurs when the information reported on your tax return does not match the income and payment information the IRS has on file for you. This typically happens as the result of third party information being reported to the IRS that differs from your tax return.

Upon resolution of the IRS CP2000 audit you are required by the Ohio Department of Taxation to file an amended Ohio Individual Income Tax Return Form IT-1040X. As a result of adding additional income to your Federal taxes, the Ohio Department of Revenue is electronically notified that your Ohio income taxes should also be amended and you owe additional taxes and interest.

It is very important that you respond to this notice to avoid an assessment being issued as well as further collection actions. If you have received a CP2000 Notice due to the unreported income billing program, you do have a few options. If in agreement with the amount owed in the billing notice, you can make payment. If in disagreement with the amount of unreported income stated and additional taxes owed to the Ohio Department of Taxation, the charges may be disputed. In some cases, there are also additional changes which you may wish to make to your Ohio income tax filing, which will require filing an amended IT-1040X with the Ohio Department of Taxation.

In any case, please don’t hesitate to contact our tax law office for a free consultation in order to determine the best resolution for your Ohio tax situation.

 

 

 

 

Sources:
IRS.gov Understanding Your CP2000 Notice – Retrieved From: https://www.irs.gov/Individuals/Understanding-Your-CP2000-Notice

Tax.ohio.gov CP2000 Notice / Unreported Income Billing Program – Retrieved from: http://www.tax.ohio.gov/Portals/0/ohio_individual/individual/CP2000BillingProgram.pdf