Wage Statements and Independent Contractor Forms

The Internal Revenue Service reminds employers and other businesses that January 31 is the filing deadline for submitting wage statements and forms for independent contractors with the government.

Employers must file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31. The January 31 deadline also applies to certain Forms 1099-MISC, Miscellaneous Income, filed with the IRS to report non-employee compensation to independent contractors.

Failure to file these forms correctly and timely may result in penalties. Requests for an extension of time to file must be submitted before the due date. Only certain reasons, such as a death or natural disaster, are allowed.

Scammers are Sending Fake IRS Letters

Many taxpayers are aware that the IRS will never call to demand immediate payment over the phone or call about taxes owed without first having mailed you a bill. To try and trick taxpayers, some scammers are mailing legitimate-looking IRS letters.

An example of a fake IRS letter is pictured below. Some of the telling signs are the following:

● The processing address in Austin is not correct. ● The notice tells the taxpayer to make a check to the IRS when it should be the U.S. Treasury. ● The IRS gives you the right to appeal if you disagree with the tax assessed. The fake letter insists on your payment of the additional tax in spite of your disagreement.

If you get a letter from the IRS that appears it may not be legitimate, call the IRS directly at 1-800-829-1040 (as opposed to the number written on the notice) to verify what you might owe.

Cyber Monday Safeguards Against Online Thieves

For Cyber Monday, online thieves take advantage of having so many people shop online at once. They steal shoppers’ personal information and package it as their own.

The IRS and its partners in the Security Summit advise taxpayers to take these simple steps to protect their identities, financial accounts, computers, and mobile devices.

● Shop at sites where the web address begins “https;” the “s” is for secure communications over the computer network. This is an added layer of protection when sharing credit card numbers for a purchase. Note: scam sites also can use “https,” so shoppers should ensure they are shopping with a legitimate retailer.

● Do not shop on unsecured public wi-fi. This helps to prevent thieves from eavesdropping. Instead, use secure home wi-fi with a password.

● Use security software for computers and mobile phones, and keep it updated. Make sure anti-virus software has a feature to stop malware and there is a firewall that can prevent intrusions.

● Do not hand out personal information. Phishing scams, impostor emails, calls, and texts are the top ways thieves steal personal data.

● Do not open links or attachments on suspicious emails.

● Use strong, unique, yet easily remembered passwords.

● Use two-factor authentication whenever possible. Many email providers and social media sites offer this feature to help prevent thieves from easily hacking accounts.

● Back up files on computers and mobile phones. A cloud service or an external hard drive can be used to copy information from computers or phones.