Beginning in 2010, the Panera Bread Foundation, a non-profit related to the popular restaurant chain, piloted a limited experiment in the "gift economy," whereby customers could "pay it forward" or "pay-what-you-can" at select cafes. The experiment, unfortunately, failed due to lack of financial viability. In a double-hit, the Internal Revenue Service (IRS) now claims the experimental cafes owe back taxes to 2012 on annual revenues exceeding $7.5 million.
The Internal Revenue Service (IRS) recently issued a warning about a new phone scam involving fake calls from the Taxpayer Advocate Service (TAS). Tax scammers are using "spoofed" TAS phone numbers to contact potential victims to obtain personal information and payments. The IRS reminds taxpayers that TAS does not typically initiate calls to taxpayers, unless the taxpayer has requested assistance first.
The Internal Revenue Service (IRS) estimates that it has nearly $1.4 billion in unclaimed income tax refunds due to about 1.2 million taxpayers who failed to file a 2015 Form 1040. The deadline to claim these funds is this year's return filing deadline, April 15, 2019.
Arizona Attorney General Mark Brnovich recently asked the U.S. Supreme Court for permission to file suit against the State of California over the $800 minimum business tax imposed on investors in certain LLCs. Brnovich contends that the California minimum tax, and California's related collection efforts when investors or businesses do not pay, is illegal because the investors have "purely passive investments in California companies." In addition, since the $800 minimum tax is deductible on Arizona tax returns, the California practice is costing Arizona more than $484,000 annually.
The Internal Revenue Service (IRS) recently kicked off its annual "Dirty Dozen" awareness campaign to alert taxpayers to common tax scams. Topping the list in 2019 are new variations on phishing schemes that use "legitimate-looking emails with fake, but convincing website landing pages," social media links, and other methods to obtain taxpayers' personal information.
The California Franchise Tax Board (FTB) recently announced that interest rates for personal income tax underpayments and overpayments, corporate underpayments, and estimate penalties will increase to 6 percent for 2019. The corporate overpayment interest rate will increase to 2 percent this year. For more information, click here.