FBI Warns of Jury Duty Scam

So the phone rings and you are threatened with arrest for not showing up for Jury Duty. Don’t buy it.
I remember an episode of an old radio drama, I think it was Box 13 with Alan Ladd, where a person would get an anonymous phone call. The caller would say in a menacing voice, “I know your secret.” The victim, who obviously had some kind of secret , would go crazy promising to pay or do something in return for the secret being concealed; that caller never mentioned the secret he knew.
Well for some who have skipped out on jury duty, this scene could be a reality with a new scam. The FBI is warning people that scam artists are calling identifying themselves as an officer of the court. They explain that a bench warrant is about to be issued for the victim for ignoring the jury duty summons.
Now, many persons would complain that they did not ignore it, but the caller would hear nothing of it. The caller would offer a solution where he would obtain the victim’s social security number, birth date, and maybe a credit card number.
Don’t buy into this. It is a scam. Never give out personal information to an UNSOLICITED caller.
If you would like additional information, go to the FBI website.
http://www.fbi.gov/page2/june06/jury_scams060206.htm
We provide procedures and information that protect our clients and their resources.

You Can Find Your W-2s Online

If you are an actor, you may have trouble getting your W-2s at the end of the year, there is hope.
You worked several jobs last year. Then you’ve moved, and your forwarding address expired. Now you have to file your tax return. You tried calling payroll services to find your W-2s, but you are afraid you missed some. What are you to do?
Go onto the Franchise Tax Board site at or about March 15. There you will find California wage and withholding information as filed by employers. If you go on in January or February, employers may not have filed their information, yet. So, it may be beneficial for you to wait to file your tax return if you are insecure about the information you provide your tax preparer.
This safeguard does not provide wages information filed by other states if your performed your services outside of California.

Surviving Spouse Residence Sale in California

For sales or exchanges occurring after December 31, 2007, the IRS allows an exclusion of up to $500,000 on the sale of a principle residence by a surviving spouse who files as a single taxpayer if the sale occurs not later than 2 years after the spouse’s death, and the ownership and use tests are met.

However, California does no t conform to the Forgiveness Debt Relief Act of 2007. Instead, in order for the surviving spouse to be entitled to the $500,000 exclusion, the residence must be sold in the year the deceased spouse dies, and the surviving spouse qualifies.
This lack of California conformity presents additional hardships on surviving spouses especially in a depressed real estate market. Consult your tax advisor before making any changes.

Mortgage Deductions for those who cannot get a Loan

You tried to get a loan, but did not qualify. So, you look to your parents or children to acquire the loan and real estate in their name. If you pay the mortgage and property taxes, can you get a deduction? Under Tax Court Summary 2008-84, a couple was able to claim the deduction in property owned by their son. Because they had paid all interest and property taxes, the court stated that they were equitable owners of the property.
Please consult your tax advisor before making any decision. We’re here to help: www.ricknorriscpa.com

California Wants their Money Now!

LLC’s can no longer wait to pay their fees with their tax returns.

For taxable years beginning on or after January 1, 2009, LLCs are required to estimate and pay their LLC fee (another work for tax, but politicians hate that word) by the 15th day of the 6th month after the beginning of the taxable year. The fee must be paid with the new Form 3536, Estimated Fee for LLCs.

So, what does this mean for you? Most CPAs will provide you the estimated tax voucher when you file your 2008 tax return. However, what about those of you on extension? Make sure you get the voucher with the extension. You are not relieved in paying your estimated tax because you are on extension.

Always consult your tax advisor when paying tax dollars, especially to the “Governator.” We’re here to help.