Tax Scams

Tax Scams/Consumer Alerts

IRS-Impersonation Telephone Scam

An aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. These con artists can sound convincing when they call. They use fake names and bogus IRS identification badge numbers. They may know a lot about their targets, and they usually alter the caller ID to make it look like the IRS is calling.

Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting.

Or, victims may be told they have a refund due to try to trick them into sharing private information.

If the phone isn’t answered, the scammers often leave an “urgent” callback request.

Note that the IRS will never: 1) call to demand immediate payment, nor will the agency 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; or 5) threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.

For more details on this ongoing scam, see:

  • IR-2014-105, Scam Phone Calls Continue; IRS Unveils New Video to Warn Taxpayers
  • Special Edition Tax Tip 2014-18, Five Easy Ways to Spot a Scam Phone Call
  • IR-2014-84, Scam Phone Calls Continue; IRS Identifies Five Easy Ways to Spot Suspicious Calls
  • IR-2014-81, IRS Repeats Warning about Phone Scams
  • Special Edition Tax Tip 2014-17, IRS Updates Phone Scams Warning
  • IR-2014-53, IRS Reiterates Warning of Pervasive Telephone Scam
  • Special Edition Tax Tip 2014-10, IRS Renews Phone Scam Warning
  • IR-2013-84, IRS Warns of Pervasive Telephone Scam

Email Phishing Scam: “Update your IRS e-file” 

The IRS has been alerted to a new email phishing scam. The emails appear to be from the IRS and include a link to a bogus web site intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRSgov (without a dot between “IRS” and “gov”), though notably, not IRS.gov (with a dot). Don’t get scammed. These emails are not from the IRS.

Taxpayers who get these messages should not respond to the email or click on the links. Instead, they should forward the scam emails to the IRS at phishing@irs.gov. For more information, visit the IRS’s Report Phishing web page.

The IRS does not initiate contact with taxpayers by email to request personal or financial information.

Tax Scams

Don’t fall victim to tax scams. Remember — if it sounds too good to be true, it probably is.

Some of the other recent scams the IRS has seen include:

  • IR-2014-39, IRS Warns of New Email Phishing Scheme Falsely Claiming to be from the Taxpayer Advocate Service
  • IR-2014-16, IRS Releases the “Dirty Dozen” Tax Scams for 2014; Identity Theft, Phone Scams Lead List
  • IR-2014-5, Watch Out for Tax Scams as Filing Season Opening Nears
  • IR-2013-90, IRS Warns Consumers of Possible Scams Relating to Relief of Typhoon Victims
  • IR-2013-33, Don’t Fall Prey to the 2013 Dirty Dozen Tax Scams
  • IR-2012-23, IRS Releases the Dirty Dozen Tax Scams for 2012
  • IR-2011-73, IRS Urges Taxpayers to Avoid Becoming Victims of Tax Scams
  • IR-2011-39, Don’t Fall Prey to the 2011 Dirty Dozen Tax Scams

Education is the best way to avoid the pitfalls of these “too good to be true” tax scams. For more information, see:

  • Tax Scams — How to Report Them 
  • Criminal Investigation’s Tax Fraud Alerts

Phony Arguments

No matter how some things are sliced, they’re still baloney. If someone tells you that you don’t have to pay taxes, check out The Truth About Frivolous Tax Arguments. This IRS.gov exclusive addresses some of the more common false legal arguments made by those opposed to compliance with the federal tax laws. Each contention is briefly explained, followed by a discussion of the legal authority that rejects the contention. The second section deals with frivolous arguments encountered in collection due process cases. The final section illustrates penalties imposed on those pursuing frivolous cases.

  • IR-2014-51, IRS Debunks Frivolous Tax Arguments,  includes numerous recently decided cases that demonstrate that the courts continue to regard such arguments as illegitimate.
  • IR-2011-23, IRS Debunks Frivolous Tax Arguments, highlights the issue and possible penalties.
  • IR-2004-41 describes the increasingly strong penalties the courts have imposed from March 2003 to March 2004 on taxpayers who pursued frivolous cases to delay IRS collection actions.
  • IR-2003-28 details penalties the Tax Court imposed from April 2001 until early March 2003 for making frivolous Collection Due Process arguments.

Identity Theft Scams

The IRS has issued several consumer warnings about the fraudulent use of the IRS name or logo by scamsters trying to gain access to consumers’ financial information in order to steal their identity and assets. Scamsters will use the regular mail, telephone, fax or email to set up their victims. When identity theft takes place over the Internet (email), it is called phishing.

The IRS does not initiate taxpayer communications through email. Unsolicited email claiming to be from the IRS, or from an IRS-related component such as EFTPS, should be reported to the IRS at phishing@irs.gov.

Additionally, clicking on attachments to or links within an unsolicited email claiming to come from the IRS may download a malicious computer virus onto your computer.

Learn more about identity theft.

Learn how to protect your personal information.

You may also report instances of IRS-related phishing attempts and fraud to the Treasury Inspector General for Tax Administration at 1-800-366-4484.

Reporting Tax-Related Schemes, Scams, Identity Theft and Fraud

To report the various types of tax-related illegal activities, refer to our chart explaining the types of activity and the appropriate forms or other methods to use.

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2014 Tax Season to Start Later Following Government Closure

2014 Tax Season to Start Later Following Government Closure; IRS Sees Heavy Demand As Operations Resume

IR-2013-82, Oct. 22, 2013

WASHINGTON — The Internal Revenue Service today announced a delay of approximately
one to two weeks to the start of the 2014 filing season to allow adequate time to
program and test tax processing systems following the 16-day federal government
closure.

The IRS is exploring options to shorten the expected delay and will announce a final
decision on the start of the 2014 filing season in December, Acting IRS Commissioner
Danny Werfel said. The original start date of the 2014 filing season was Jan. 21,
and with a one- to two-week delay, the IRS would start accepting and processing
2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4.

The government closure came during the peak period for preparing IRS systems for
the 2014 filing season. Programming, testing and deployment of more than 50 IRS
systems is needed to handle processing of nearly 150 million tax returns. Updating
these core systems is a complex, year-round process with the majority of the work
beginning in the fall of each year.

About 90 percent of IRS operations were closed during the shutdown, with some major
workstreams closed entirely during this period, putting the IRS nearly three weeks
behind its tight timetable for being ready to start the 2014 filing season. There
are additional training, programming and testing demands on IRS systems this year
in order to provide additional refund fraud and identity theft detection and prevention.

“Readying our systems to handle the tax season is an intricate, detailed process,
and we must take the time to get it right,” Werfel said. “The adjustment to the
start of the filing season provides us the necessary time to program, test and validate
our systems so that we can provide a smooth filing and refund process for the nation’s
taxpayers. We want the public and tax professionals to know about the delay well
in advance so they can prepare for a later start of the filing season.”

The IRS will not process paper tax returns before the start date, which will be
announced in December. There is no advantage to filing on paper before the opening
date, and taxpayers will receive their tax refunds much faster by using e-file with
direct deposit. The April 15 tax deadline is set by statute and will remain in place.
However, the IRS reminds taxpayers that anyone can request an automatic six-month
extension to file their tax return. The request is easily done with Form 4868, which
can be filed electronically or on paper.

IRS processes, applications and databases must be updated annually to reflect tax
law updates, business process changes, and programming updates in time for the start
of the filing season.

The IRS continues resuming and assessing operations following the 16-day closure.
The IRS is seeing heavy demand on its toll-free telephone lines, walk-in sites and
other services from taxpayers and tax practitioners.

During the closure, the IRS received 400,000 pieces of correspondence, on top of
the 1 million items already being processed before the shutdown.

The IRS encourages taxpayers to wait to call or visit if their issue is not urgent,
and to continue to use automated applications on IRS.gov whenever possible.

“In the days ahead, we will continue assessing the impact of the shutdown on IRS
operations, and we will do everything we can to work through the backlog and pent-up
demand,” Werfel said. “We greatly appreciate the patience of taxpayers and the tax
professional community during this period.”

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IRS Announces Tax Season Begins

IRS ANNOUNCES TAX SEASON BEGINS AND DETAILS FORMS STILL SUBJECT TO DELAYED FILING

IRS has announced that the 2013 filing season opens on January 30, and on its website
detailed the Forms that could be only filed at a later date. IRS also announced a variety of enhanced products and services to help taxpayers prepare and file their
returns by the April 15 deadline.

Open season. In IR 2013-14, IRS announced that it began accepting and processing
most individual tax returns on January 30 after updating forms and completing programming and testing of its processing systems to reflect the 2012 Taxpayer Relief Act. The vast majority of taxpayers can file now, but IRS is continuing to update its systems
for some tax filers. IRS will begin accepting tax returns from people claiming education
credits on Form 8863, Education Credits, in mid-February while taxpayers claiming
depreciation deductions, energy credits and many business credits will be able to
file in late February or early March.

In IR 2013-14, IRS also announced that new and expanded services for taxpayers this
year include a redesigned IRS.gov website that’s easier to navigate and improved service options, including more video-conferencing assistance sites and additional social media tools. IRS has also stepped up its enforcement efforts to protect taxpayers from refund fraud and identity theft.

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Safe Harbor Provides Simplifies Option for Claiming Home Office Deduction

Rev Proc 2013-13, 2013-6 IRB, IR 2013-5

In a Revenue Procedure, IRS has provided an optional safe harbor method that individuals
can use to determine the amount of their deductible home office expenses, effective
for tax years beginning on or after Jan. 1, 2013. The safe harbor—$5 × square feet
of qualified use (up to 300 square feet)—provides an alternative to the calculation,
allocation, and substantiation of actual expenses required under Code Sec. 280A.

Background. The general rule under Code Sec. 280A(a) is that no deduction
is allowed for the business use of a dwelling unit that’s also used by the taxpayer
as a residence during the tax year. But under exceptions, if strict requirements
are met, deductions are allowed for direct expenses and the business-use part of
the indirect expenses relating to business use of a residence:

  • Home office expenses are deductible if part of the home is used regularly and exclusively
    as (1) a principal place of business, or (2) as a place to meet or deal with customers
    or clients in the ordinary course of business. Taxpayers who are employees must
    meet an additional test—their use of the home office must be for the convenience
    of the employer. (Code Sec. 280A(c)(1))
  • Expenses that are allocable to space within the dwelling unit used on a regular
    basis for the storage of inventory or product samples held for use in the taxpayer’s
    trade or business of selling products at retail or wholesale are deductible if the
    dwelling unit is the sole fixed location of the trade or business. (Code Sec. 280A(c)(2))
  • Expenses that are attributable to the rental of the dwelling unit or a part of the
    unit are deductible. (Code Sec. 280A(c)(3))
  • Expenses that are allocable to the part of the dwelling unit used on a regular basis
    in the taxpayer’s trade or business of providing day care for children, for individuals
    who have attained age 65, or for individuals who are physically or mentally incapable
    of caring for themselves are deductible. (Code Sec. 280A(c)(4))
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Payroll tax changes

The temporary payroll tax cut will no longer apply. The two percentage point cut in employee OASDI tax under FICA (from 6.2% to 4.2%) and in the self employed OASDI tax rate under SECA (from 12.4% to 10.4%) expires at the end of 2012. Thus, after 2012, the OASDI rates for employees and for the self-employed will revert to 6.2% and 12.4% respectively.

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Tax Planning Basics

3 Ways to Reduce Your Taxes

The goal of tax planning is to arrange your financial affairs so as to minimize
your taxes. There are three basic ways to reduce your taxes, and each basic method
might have several variations.

Reducing Income

Adjusted Gross Income (AGI) is a key element in determining your taxes. Lots of
other things depend on your AGI (or modifications to your AGI such as your tax rate
and various tax credits. AGI even impacts your financial life outside of taxes:
banks, mortgage lenders, and college financial aid programs all routinely ask for
your adjusted gross income. This is a key measure of your finances, reduce your
income, increase your deductions, and take advantage of tax credits.

Because your adjusted gross income is so important, you may want to begin your tax
planning here. What goes into your adjusted gross income? AGI is your income from
all sources minus any adjustments to your income. The higher your total income,
the higher your adjusted gross income. As you can guess, the more money you make,
the more taxes you will pay. Conversely, the less money you make, the less taxes
you will pay. The number one way to reduce taxes is to reduce your income. And the
best way to reduce your income is to contribute money to a 401(k) or similar retirement
plan at work. Your contribution reduces your wages, and lowers your tax bill.

Because your adjusted gross income is so important, you may want to begin your tax
planning here. What goes into your adjusted gross income? AGI is your income from
all sources minus any adjustments to your income. The higher your total income,
the higher your adjusted gross income. As you can guess, the more money you make,
the more taxes you will pay. Conversely, the less money you make, the less taxes
you will pay. The number one way to reduce taxes is to reduce your income. And the
best way to reduce your income is to contribute money to a 401(k) or similar retirement
plan at work. Your contribution reduces your wages, and lowers your tax bill.

You can also reduce your Adjusted Gross Income through various adjustments to income.
Adjustments are deductions, but you don’t have to itemize them on the Schedule A.
Instead, you take them on page 1 of your 1040 and they reduce your Adjusted Gross
Income. Adjustments include contributions to a traditional IRA, student loan interest
paid, alimony paid, and classroom related expenses. A full list of adjustments are
found on Form 1040, page 1, lines 23 through 34. The best way to boost your adjustments
is to contribute to a traditional IRA.

As you can see, two of the best ways to reduce your taxes is to save for retirement,
either through a 401(k) at work or through a traditional IRA plan. Contributions
to these retirement plans will lower your taxable income, and lower your taxes.

Increase Your Tax Deductions

Taxable income is another key element in your overall tax situation. Taxable income
is what’s left over after you have reduced your AGI by your deductions and exemptions.
Almost everyone can take a standard deduction, and some people are able to itemize
their deductions. Itemized deductions include expenses for health care, state and
local taxes, personal property taxes (such as car registration fees), mortgage interest,
and gifts to charity, job-related expenses, tax preparation fees and investment-related
expenses. One key tax planning strategy is to keep track of your itemized expenses
throughout the year using a spreadsheet or personal finance program. You can then
quickly compare your itemized expenses with your standard deduction. You should
always take the higher of your standard deduction or your itemized deduction. Your
standard deduction and personal exemptions depends on your filing status and how
many dependents you have. You can increase your standard deduction and personal
exemptions by getting married or having more dependents.

The best strategies for reducing your taxable income is to itemize your deductions,
and the three biggest deductions are mortgage interest, state taxes, and gifts to
charity.

Take Advantage of Tax Credits

Once we’ve tweaked our taxable income, we are ready to focus our attention on various
tax credits. Tax credits reduce your tax. There are tax credits for college expenses,
for saving for retirement, and for adopting children.

The best tax credits are for adoption and college expenses. Not everyone is in a
position to adopt a child, but everyone could take some college classes. There are
two education-related tax credits. The Hope Credit is for students in their first
two years of college. The Lifetime Learning Credit is for anyone taking college
classes. The classes do not have to be related to your career.

You may also want to avoid additional taxes. If at all possible, avoid early withdrawals
from an IRA or 401(k) retirement plan. The amount you withdraw will become part
of your taxable income, and on top of that there will be additional taxes to pay
on the early withdrawal.

One of the best, and most abused, tax credits is the Earned Income Credit (EIC).
Unlike other tax credits, the EIC is credited to your account as a payment. And
that means the EIC often results in a tax refund even if the total tax has been
reduced to zero. You may be eligible to claim the earned income credit if you earn
less than a certain amount.

Increase You’re Withholding

You can avoid owing at the end of the year by increasing your withholding. More
money will be taken out of your paycheck throughout the year, but you will get bigger
refund when you file your taxes.

We can do some tax planning for you.

Please don’t hesitate to contact us about doing some Tax Planning for you and your
company. You can even do so up until January 15 2013.

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QuickBooks Class Testimonial

Great way to learn the fundamentals of Quickbooks

The small class makes it easy to ask questions and I felt like I got more one on one experience. Best of all I learned how to reconcile bank accounts and track expenditures and vendor activity. I don’t know how any small business can operate without using Quickbooks.

Thank You,
Diana Bledsoe
Worx Construction and Landscaping, LLC

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Start Planning Now for Next Year’s Tax Return

At Bagby, Johnson and Associates, AC this year’s tax season went off without a hitch. Now is the time to use this year’s tax return as a road map for next year. Did you owe? Did you get a large refund? No matter your outcome, now is the time to see one of our CPA’s to discuss tax planning for 2012. Our accountants will work closely with you so you can avoid owing unnecessary tax or receive a larger refund on your 2012 tax return.

Start Planning Now for Next Year’s Tax Return

Special Edition Tax Tip 2012-07, April 30, 2012

The tax deadline may have just passed but planning for next year can start now. The IRS reminds taxpayers that being organized and planning ahead can save time, money and headaches in 2013. Here are eight things you can do now to make next April 15 easier.

1. Adjust your withholding Why wait another year for a big refund? Now is a good time to review your withholding and make adjustments for next year, especially if you’d prefer more money in each paycheck this year. If you owed at tax time, perhaps you’d like next year’s tax payment to be smaller. Use IRS’s Withholding Calculator at www.irs.gov or Publication 919, How Do I Adjust My Tax Withholding?

2. Store your return in a safe place Put your 2011 tax return and supporting documents somewhere secure so you’ll know exactly where to find them if you receive an IRS notice and need to refer to your return. If it is easy to find, you can also use it as a helpful guide for next year’s return.

3. Organize your recordkeeping Establish a central location where everyone in your household can put tax-related records all year long. Anything from a shoebox to a file cabinet works. Just be consistent to avoid a scramble for misplaced mileage logs or charity receipts come tax time.

4. Review your paycheck Make sure your employer is properly withholding and reporting retirement account contributions, health insurance payments, charitable payroll deductions and other items. These payroll adjustments can make a big difference on your bottom line. Fixing an error in your paycheck now gets you back on track before it becomes a huge hassle.

5. Shop for a tax professional early If you use a tax professional to help you strategize, plan and make financial decisions throughout the year, then search now. You’ll have more time when you’re not up against a deadline or anxious for your refund. Choose a tax professional wisely. You are ultimately responsible for the accuracy of your own return regardless of who prepares it. Find tips for choosing a preparer at www.irs.gov.

6. Prepare to itemize deductions If your expenses typically fall just below the amount to make itemizing advantageous, a bit of planning to bundle deductions into 2012 may pay off. An early or extra mortgage payment, pre-deadline property tax payments, planned donations or strategically paid medical bills could equal some tax savings. See the Schedule A instructions for expenses you can deduct if you’re itemizing and then prepare an approach that works best for you.

7. Strategize tuition payments The American Opportunity Tax Credit, which offsets higher education expenses, is set to expire after 2012. It may be beneficial to pay 2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500, before it expires. For more information, see IRS Publication 970, Tax Benefits for Education.

8. Keep up with changes Find out about tax law changes, helpful tips and IRS announcements all year by subscribing to IRS Tax Tips through www.irs.gov or IRS2Go, the mobile app from the IRS. The IRS issues tips regularly during summer and tax season. Special Edition tips are sent periodically with other timely updates.

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Do you owe the IRS Money?

IRS Offers New Penalty Relief and Expanded Installment Agreements to Taxpayers under Expanded Fresh Start Initiative

March 7, 2012

WASHINGTON — The Internal Revenue Service today announced a major expansion of its “Fresh Start” initiative to help struggling taxpayers by taking steps to provide new penalty relief to the unemployed and making Installment Agreements available to more people.

Under the new Fresh Start provisions, part of a broader effort started at the IRS in 2008, certain taxpayers who have been unemployed for 30 days or longer will be able to avoid failure-to-pay penalties. In addition, the IRS is doubling the dollar threshold for taxpayers eligible for Installment Agreements to help more people qualify for the program.

“We have an obligation to work with taxpayers who are struggling to make ends meet,” said IRS Commissioner Doug Shulman. ”This new approach makes sense for taxpayers and for the nation’s tax system, and it’s part of a wider effort we have underway to help struggling taxpayers.”

Penalty Relief

The IRS announced plans for new penalty relief for the unemployed on failure-to-pay penalties, which are one of the biggest factors a financially distressed taxpayer faces on a tax bill.

To assist those most in need, a six-month grace period on failure-to-pay penalties will be made available to certain wage earners and self-employed individuals. The request for an extension of time to pay will result in relief from the failure to pay penalty for tax year 2011 only if the tax, interest and any other penalties are fully paid by Oct. 15, 2012.

The penalty relief will be available to two categories of taxpayers:

  • Wage earners who have been unemployed at least 30 consecutive days during 2011 or in 2012 up to the April 17 deadline for filing a federal tax return this year.
  • Self-employed individuals who experienced a 25 percent or greater reduction in business income in 2011 due to the economy.

This penalty relief is subject to income limits. A taxpayer’s income must not exceed $200,000 if he or she files as married filing jointly or not exceed $100,000 if he or she files as single or head of household. This penalty relief is also restricted to taxpayers whose calendar year 2011 balance due does not exceed $50,000.

Taxpayers meeting the eligibility criteria will need to complete a new Form 1127A to seek the 2011 penalty relief. The new form is available on IRS.gov.

The failure-to-pay penalty is generally half of 1 percent per month with an upper limit of 25 percent. Under this new relief, taxpayers can avoid that penalty until Oct. 15, 2012, which is six months beyond this year’s filing deadline. However, the IRS is still legally required to charge interest on unpaid back taxes and does not have the authority to waive this charge, which is currently 3 percent on an annual basis.

Even with the new penalty relief becoming available, the IRS strongly encourages taxpayers to file their returns on time by April 17 or file for an extension. Failure-to-file penalties applied to unpaid taxes remain in effect and are generally 5 percent per month, also with a 25 percent cap.

Installment Agreements

The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.

The IRS announced today that, effective immediately, the threshold for using an installment agreement without having to supply the IRS with a financial statement has been raised from $25,000 to $50,000. This is a significant reduction in taxpayer burden.

Taxpayers who owe up to $50,000 in back taxes will now be able to enter into a streamlined agreement with the IRS that stretches the payment out over a series of months or years. The maximum term for streamlined installment agreements has also been raised to 72 months from the current 60-month maximum.

Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A or Form 433-F). Taxpayers may also pay down their balance due to $50,000 or less to take advantage of this payment option.

An installment agreement is an option for those who cannot pay their entire tax bills by the due date. Penalties are reduced, although interest continues to accrue on the outstanding balance. In order to qualify for the new expanded streamlined installment agreement, a taxpayer must agree to monthly direct debit payments.

Taxpayers can set up an installment agreement with the IRS by going to the On-line Payment Agreement (OPA) page on IRS.gov and following the instructions.

These changes supplement a number of efforts to help struggling taxpayers, including the “Fresh Start” program announced last year. The initiative includes a variety of changes to help individuals and businesses pay back taxes more easily and with less burden, including the issuance of fewer tax liens.

“Our goal is to help people meet their obligations and get back on their feet financially,” Shulman said.

Input from the Internal Revenue Service Advisory Council and the IRS National Taxpayer Advocate’s office contributed to the formulation of Fresh Start.

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On January 1, 2012, the City of Huntington will begin imposing a Municipal Sales and Use Tax

On January 1, 2012, the City of Huntington will begin imposing a Municipal Sales and Use Tax (hereinafter referred to as “Municipal Tax”) at the rate of 1%. This 1% Municipal tax will be in addition to the West Virginia State Consumers Sales and Service Tax and Use Tax (hereinafter referred to as “State Tax”), which is imposed at a rate of 6% and 3% on food and food ingredients.

All exemptions and exceptions from the State Tax apply to the Municipal Tax if a product or service is taxable at the State Tax rate(s) then it is taxable at the 1% Municipal Tax rate.

The Municipal Tax must be collected on all sales made or services rendered within the boundaries of the City of Huntington, upon which the State Tax imposed. The effective rate for taxable goods sold or taxable services rendered in Huntington will be 7% and 4% on food and food ingredients.

All sales and services are considered to be taxable unless a specific exemption exists. You must collect the tax from all your customers unless they can furnish you with a properly completed exemption certificate or direct pay permit number.

Taxes collected will be remitted to the West Virginia State Tax Department on the Combined Sales and Use Tax return which may be filed using MyTaxes at https://mytaxes.wvtax.gov.

As always please call our office if any questions or concerns.

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