2020 – 08/13 You’ve probably heard of a scam called ransomware. The IRS describes it as an invasive software that targets “human and technical weakness to infect a potential victim’s computer, network or server.” It may be downloaded accidently by opening a link or attachment, such as an email solicitation for a fake COVID-19 charity. Once infected, ransomware looks for and locks up critical or sensitive data and can bring your computer to a halt. That’s why the IRS has included this cybercrime on the 2020 list of worst scams, called the “Dirty Dozen.” The IRS advises taxpayers to use multi-factor authentication to protect yourself from data theft. For more information:
Similar Posts
Business website costs: How to handle them for tax purposes
2020 – 09/21 The business use of websites is widespread. But surprisingly, the IRS hasn’t yet issued formal guidance on when Internet website costs can be deducted. Fortunately, established rules that generally apply to the deductibility of business costs, and IRS guidance that applies to software costs, provide business taxpayers launching a website with some…
Establish a tax-favored retirement plan
2022 – 03/14 If your business doesn’t already have a retirement plan, now might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions. For example, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution…
Independent Contractor Compensation Reporting
2022 – 07/27 Businesses must withhold employment taxes from employees’ wages and report the wages and the taxes withheld to the IRS. But the reporting obligations for workers who aren’t employees can be trickier. While a business isn’t responsible for withholding employment taxes from nonemployee (or independent contractor) compensation, a business that pays more than…
Update Your Form W-4 Yearly
2022 – 01/11 Employees may want to update withholding information. The 2022 version of Form W-4, “Employee’s Withholding Certificate,” is used to tell an employer how much to withhold from paychecks. You may want to adjust your withheld amounts to reflect life changes that occurred in the past year. Some of these events include marriage,…
The Pause in Tax Collection Activities is Over
2021 – 06/16 The IRS has a message for delinquent taxpayers: The COVID-related pause in tax collection activities is over. The tax agency’s lien and levy programs have been kept idle since April 2020. But on June 15, 2021, letters started going out to taxpayers who failed to respond to prior notices. The letters inform…
Form 1099-C: Cancellation of Debt
2020 – 09/23 In an announcement, the IRS stated that lenders who make Paycheck Protection Program loans that are later forgiven under the CARES Act shouldn’t file Form 1099-C, “Cancellation of Debt” with the IRS or provide a payee statement to the eligible recipient as a result of the qualifying forgiveness. Filing such information returns…