The e-mail from your bank gets your attention right away. It says you need to log into your account in the next 48 hours to continue your online privileges. Something about a system upgrade. You wonder, is it legitimate? How can you know for sure?

Bogus e-mails designed to steal your identity, also known as phishing, are becoming a bigger problem these days. While they can take many different forms, most scams are designed to trick you into revealing personal information such as your social security number or online account password. Through clever use of logos and familiar-looking web addresses, these e-mails often appear to be an urgent message from your bank, mortgage lender, or e-mail provider.

You may not realize it, but thieves are especially eager to gain access to your web e-mail account. Why? Once a scammer has access to your e-mails, he or she can often figure out where you bank and detect clues to passwords you might use.

So what can you do to protect yourself? Take a moment and think before you click.

• Never respond to an e-mail asking for your social security number or birth date. You can almost bet that it is a scam.
• If an e-mail contains a website link that you are not familiar with, do not click on it. Instead, either go directly to the company’s trusted website, or contact them by phone.
• Also remember that e-mail scams become more prevalent following a significant public event, such as a natural disaster or sudden stock market drop. Thieves will prey on your sympathies or fears during these times, so be extra careful when responding to appeals for charity or notices to update your financial records.
• Be further leery of e-mails with demanding language or incorrect grammar – both are potential signs of a counterfeit e-mail. Don’t respond to e-mail appeals for charity.
• For preventive measures, try to use a different password for every online account, and change your passwords regularly.
• Make your passwords stronger by using combinations of letters, symbols, and numbers.
• Also, keep your computer anti-virus software up to date.

Finally, do your part to thwart these crimes by reporting any suspected scam e-mails to reportphishing@antiphishing.org. If you receive a bogus tax-related e-mail, forward it to the IRS at phishing@irs.gov. And of course, contact Gartzman Tax Law for a second set of eyes on any suspicious-looking e-mail.

I recently had the opportunity to help a victim of Fraudulent Tax Returns on Lawyers.com. I am happy to share their question and my response and advice for them:

Question: What are my options or what can I do if I am a victim of fraudulent tax returns?

Answer: If you believe you are the victim of fraudulent tax returns, contact or have your tax attorney or CPA contact the Internal Revenue Service immediately to find out what tax info, tax returns and balances are on your file. Once you have determined which periods appear suspicious or fraudulent, you can contact the IRS to report this problem. If your account is in collections, you may have to speak independently with a collections agent and let them know you believe you are a victim of Identity Theft and request a suspension on collection enforcement to prevent levies and liens.

To read more questions and my responses, click here: Ask A Tax Lawyer blog posts

Small business is a powerful economic engine that collectively, is not really small at all.  According to a study by the Small Business Administration (SBA), small businesses employ half of all private sector employees and pay 44 percent of total U.S. private payroll. This strong economic sector represents the hopes and dreams of business ownership and often is seen as a gateway to the American dream.  However, this important economic sector has never been so financially challenged as it is right now. At Gartzman Law Firm, we see first-hand the stresses small businesses are experiencing and unfortunately see a shirking of their financial responsibilities that can end up hurting them more.

The recession has carried on for so long it has good business people barely holding on. But decisions such as skipping payroll tax payments to the IRS in order to keep the doors open can ultimately bring on larger and more expensive tax problems over time. As an Atlanta Tax Attorney and CPA for IRS Representation and a business owner, I believe all business owners deserve to know how closely the IRS examines small businesses when it comes to their tax liabilities. They closely scrutinize small businesses in large part for their contributions to the annual tax gap; the amount of taxes that should have been paid (reported) and what was actually paid. The current tax gap is hovering around $400 billion dollars and is a priority of the current administration to reduce. To discourage underpayment, the IRS has placed severe penalties and interest on uncollected funds thus avoiding tax payments has become a more expensive and hard to hide from proposition.

There are two areas where small business owners frequently create IRS tax problems for themselves: delinquent payroll / employment and incorrect employee classification. Understanding how these following issues can become problematic may just deter a struggling business owner who might be tempted to use allotted IRS funds for business operations or anything other than paying Uncle Sam what he’s owed.

• Delinquent payroll / employment taxes – Payroll withholdings collected from employees are considered in “trust” by the business owner until paid to the IRS. If not paid by the due date, the IRS can invoke Trust Fund Recovery Penalties (TFRP) to anyone who willfully fails to collect or pay. This action causes payroll tax penalties of 100% of the original amount to be assessed personally against the responsible parties. Depending on the size of the company this can be significant.

• Incorrect employee classification – Business owners can get into trouble if they do not know the difference between an independent contractor and employee. The IRS posts a 20-point common law test that an employer could take to determine classification. Understanding the difference is necessary should a small business owner be exposed to an IRS audit that determines underpayment for your “employee.” This breach can make you liable for employment taxes, plus interest and penalties, if a worker is incorrectly classified as an independent contractor.

As a Tax Attorney practicing in Atlanta, Georgia, strict adherence to tax laws is the first order of business. Penalties and interest for delinquent business tax liabilities are extremely high and an unnecessary waste of business capital. For small and fledgling businesses, consider the following factors: the large capital investment in the business, a means of income for owners and employees, as well as an owner getting to do what they love. With so much riding on the business to succeed, one can understand the difficulty in keeping up with tax obligations when you are trying to keep the lights on.
Recognizing the current economic pressure felt by small businesses, the IRS has responded by adjusting some of their requirements calling this a series of new steps to help people get a fresh start with their tax liabilities and help delinquent business owners become current with payments. IRS commissioner Doug Schulman understands small business importance in the nation’s economy. These steps are both good for challenged business owners as well as for the tax system.

New and improved IRS lien processes include:

• Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens.

• Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.

• Withdrawing liens in some cases where a taxpayer enters into a Direct Debit Installment Agreement.

• Creating easier access to Installment Agreements for more struggling small businesses.

As a Georgia Tax Lawyer, I encourage small business owners currently experiencing IRS tax problems that may include tax liens that the time is now to take advantage of these IRS changes. If you are overwhelmed with the day-to-day operations of your business, let a tax attorney and CPA expert in small business tax resolution handle your case. These tax professionals understand a small business owner’s need to balance operational cash flow with tax obligations. By hiring their services, you can take the IRS pressure off and keep the business up and running smoothly.

We often counsel consumers mired in IRS tax problems from our Atlanta tax attorney and CPA for IRS representation firm to help resolve their pressing issues. These tax problems are often brought on by their own inexperience with the IRS and how complicated and strong their powers can be. Sadly, there are also instances where a client has fallen victim to a tax scam that has not only robbed them of hard earned money but also facing serious IRS penalties, fines and possible tax fraud charges. The good news is that tax scams can be prevented if you know what to look out for.

As a tax attorney in Atlanta, Georgia for nearly 30 years, I know a thing or two about tax law and have seen not only the damage tax scams have made on the tax industry but also what they can do to ordinary citizens who get duped. My emphasis is to educate taxpayers to avoid tax scams at all costs, because the simple fact is that it is difficult to “beat” the IRS. If you are one of many Americans with tax problems, trying to game the system will not work, contacting a tax attorney or CPA to review your case will. The very nature of tax scams is to lure people in. Recognize the tax scam “signs” at the outset to prevent a “too good to be true” scenario from happening to you.

Here are some important points to keep in mind:
Every year the IRS lists the worst top scams and rightly names it, the “Dirty Dozen”. Some are old and some are new and range from identity theft to fuel tax credit scams. There are three categories the IRS has deemed important in distinguishing the following: Tax scams, Identity Theft, Phony Arguments. These three categories are inclusive of what most consumers encounter if they come across a tax scam.

Tax Scams
The most common abusive tax scams include ones that promise higher returns. Tax credits, rebates or tax refund (considered tax return related scams), home-based business, trust, and off-shore schemes, and anti-tax law are just some prized programs the scammers participate in. Recent scams we have seen at Gartzman Law Firm involve unscrupulous tax preparers charging a fee for a promise (typically aimed at low income taxpayers) of free money for tax credits and guarantee of a higher refund. Victims of this type of tax scam have reported not collecting any of what is promised and sadly paying hard earned money for very bad advice.

Identity Theft
This latest scam and tax fraud has been given a boost by the omnipresence of the internet. Methods for identity theft cases include the fraudulent use of the IRS logo. With this phony logo scammers contact taxpayers via the internet, mail service or via telephone or fax and convince them into releasing personal and financial information. These official looking documents confuse unwitting consumers and expose them to identity and in many cases asset theft. The common term for this type of theft is called phishing. While many are aware of its existence, thousands still fall prey to it every year. To prevent this type of scam from happening to you, it is important to understand these key points about IRS identity theft:

• The IRS does not send correspondence to a taxpayer through e-mail. If you have received a suspicious yet official –looking e-mail, BEWARE! You are advised NOT TO OPEN any attachments or links and to contact the IRS immediately to report it.
• By clicking on that e-mail, you could unleash malware that could download a virus to your computer or release personal or financial information the scammers can use.
• If you question ANY correspondence, contact the IRS immediately (irs.gov) to confirm the authenticity of the documents.

Phony Arguments
There are people, for example, who argue that the very filing of a tax return and payment of taxes is voluntary and challenge the US Government on these grounds as a matter of principle. As an Atlanta tax attorney and CPA, I have witnessed similar cases and have yet to see them conclude in a taxpayer victory. However, these same people are able to convince an audience into believing their misguided charges. Don’t be one of them, as you will most assuredly wind up on the wrong side of the IRS with your chances of winning at zero.

If you have been a victim of a tax scam or think you might be, it is important to consult a tax professional to help you understand what your options are. The charges for tax fraud are serious even if you were falsely scammed. As a tax attorney and CPA based in Atlanta who has handled cases such as these, I strongly encourage you to hire tax experts who understand IRS policies in these matters and who will stand on your side and get back on the right track.

About Jeffrey S. Gartzman, Atlanta Tax Attorney and Certified Public Accountant
Jeffrey S. Gartzman is an accomplished Atlanta tax attorney and CPA who has been practicing tax law in Atlanta for nearly 30 years. He will help you resolve IRS and state tax problems, find tax relief and settle tax debt. Jeffrey S. Gartzman has a Master of Laws (LL.M.) in Tax from Emory University School of Law. Jeffrey S. Gartzman is a former IRS Taxpayer Education Program instructor. He is also an accredited Personal Financial Specialist with the American Institute of CPAs. Mr. Gartzman is a member of the Atlanta Bar Association, State Bar of Georgia, Georgia Society of Certified Public Accountants, American Institute of Certified Public Accountants, and other professional associations.