Pacific Pro Tax Solutions

29/08/2025

The FTB warns Californians about recent tax scams targeting them
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The California Franchise Tax Board (FTB) warns taxpayers to protect themselves from tax scams. Recently, the FTB received reports of a scam targeting taxpayers through text messages that appear to be from FTB. These text messages contain a link to a fraudulent version of certain FTB web pages, which are designed to steal personal and banking information. The scam aims to trick taxpayers into providing personal details and credit card information.

Taxpayers should review FTB’s online scam avoidance tips and be especially cautious with their tax, bank account, credit card and other personal information.

“Sadly, FTB and other California agencies constantly battle bad actors attempting to steal your money. These scammers may impersonate tax agency representatives to steal your personal information,” said State Controller and FTB Chair Malia M. Cohen. “If you ever have doubts about the authenticity of a text, email, or phone call claiming to be from FTB, IRS, or any other government agency, contact the agency directly to verify whether there’s an issue that requires your attention.”

FTB advises Californians not to reply to suspicious text messages, download attachments, or click on links in texts or emails if they are unsure of their authenticity. Verify any suspicious messages by contacting the sender directly and visiting the official site.

Visit our Text Messaging page to verify when FTB sends texts and what information is included. On its online Scams webpage, FTB offers a way to report suspected scams and provides tips on how to avoid them. FTB advises Californians not to reply to suspicious text messages, download attachments, or click on links in texts or emails if they are unsure of their authenticity.

Scammers frequently target taxpayers by pretending to be employees of the IRS or FTB. They may try to trick taxpayers into sending money that they do not owe or request providing personal information that could be used to file fraudulent tax returns and steal refunds. If you receive a suspicious letter from the FTB or the IRS, please contact the FTB at 1.800.852.5711 or call the IRS at 1.800.829.1040 for assistance.

31/03/2025

28/02/2025

Meanwhile at the IRS...

15/04/2024

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03/04/2024

Parents: Check eligibility for the Credit for Other Dependents

The Credit for Other Dependents is a $500 non-refundable credit available to taxpayers with dependents who are not eligible for the Child Tax Credit. Taxpayers can claim this credit in addition to the Child and Dependent Care Credit and the Earned Income Credit.

This information can help taxpayers determine their eligibility to claim this credit on their 2023 tax return.

This credit can be claimed for dependents who:

Are of any age, including those who are age 18 or older.
Have Social Security numbers or Individual Taxpayer Identification Numbers.
Are parents or other qualifying relatives supported by the taxpayer.
Live with the taxpayer but aren't related to the taxpayer.
Are U.S. citizens, nationals or resident aliens.
The credit begins to phase out when the taxpayer's income is above $200,000. This phaseout begins at $400,000 for married couples filing a joint tax return.

A taxpayer can claim this credit if:

They claim the person as a dependent on the taxpayer's return.
They cannot use the dependent to claim the Child Tax Credit or Additional Child Tax Credit.
Taxpayers can use the Does My Child/Dependent Qualify for the Child Tax Credit or the Credit for Other Dependents tool on IRS.gov to help determine their eligibility.

More information

Topic No. 602 Child and Dependent Care Credit
Earned Income Tax Credit

30/03/2024

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Who else likes the adrenaline rush of doing your OWN return at the last minute?

29/03/2024

Issue Number: 2024-06
Inside This Issue
Seven warning signs of incorrect Employee Retention Credit claims; aggressive ERC promotion makes 2024 IRS Dirty Dozen list
Important tax filing season information
Businesses should report digital asset transactions and other income
Treasury, IRS finalize rules on elective payments of certain clean energy credits
IRS has many resources in multiple languages
Registration open for 2024 IRS Nationwide Tax Forum
Other tax news
1. Seven warning signs of incorrect Employee Retention Credit claims; aggressive ERC promotion makes 2024 IRS Dirty Dozen list
The IRS encourages businesses to review Employee Retention Credit claims and see if the agency’s special programs can help them avoid future compliance issues.

The deadline of March 22 for employers to correct improper ERC claims has passed, but the IRS reminds businesses of a special claim withdrawal process for businesses whose claim is still pending.

The IRS included warnings about aggressive ERC marketing and making improper claims as part of the agency’s annual Dirty Dozen list of tax scams.

Taking steps now to resolve these issues can help businesses get right and avoid future IRS action, and the agency urged businesses to immediately seek the help of a trusted tax professional to get help.

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2. Important tax filing season information
Avoid tax return mistakes, delays and refund adjustments with these tips

As the April 15 filing deadline approaches, the IRS reminds taxpayers about ways to prevent typical errors on federal tax returns to help speed potential refunds.

Collect tax-related paperwork
Use e-filing options, including Free File and Direct File
Ensure correct filing status
Report all taxable income
Verify bank information
Request an extension, if needed
Prevent penalties and interest with electronic filing and payment options

Taxpayers, regardless of income, who need more time to file a return can use IRS Free File to electronically file for a six-month extension before April 15, 2024.

An extension will help to avoid penalties and interest for failing to file on time, and gives taxpayers until Oct. 15, 2024, to file. However, they still must pay what they owe by the April 15 deadline and are encouraged to use electronic payment options to further avoid late filing and interest penalties.

Tell employees about IRS Direct File, now open in 12 pilot states

The IRS has fully launched its Direct File pilot and is asking businesses to encouraged eligible employees in 12 states to try the new service to file their tax returns online for free directly with the IRS. Pilot states include: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington State and Wyoming.

The early results from Direct File have shown taxpayers like the ease and convenience of the tool, and moving into the full-scale launch of the pilot will give more taxpayers the chance to use this free option,” said IRS Commissioner Danny Werfel.

Tips for success using Direct File is available on IRS.gov.

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3. Businesses should report digital asset transactions and other income
The IRS reminds businesses that they’re generally required to report all earned income on their tax return, including income earned from digital asset transactions, the gig economy, service industry and foreign sources.

The redesigned Digital Assets page on IRS.gov features:

General information and examples of digital assets
How to answer the digital asset question on a tax return – when to check yes or no
How to report digital asset income
More information: Frequently Asked Questions on Virtual Currency Transactions

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4. Treasury, IRS finalize rules on elective payments of certain clean energy credits
The Department of the Treasury and IRS issued final regulations for applicable entities that earn certain clean energy credits and choose to make an elective payment election.

For tax years beginning after Dec. 31, 2022, applicable entities can choose to make an elective payment election, which will treat certain clean energy credits as a payment against their federal income tax liabilities rather than as a nonrefundable credit.

This payment will first offset any income tax liability of the applicable entity and any excess is refunded to the applicable entity.

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5. IRS has many resources in multiple languages
The IRS reminds businesses and individuals that the agency continues to increase the amount of information available in multiple languages.

On IRS.gov, much of the information has been translated into seven languages other than English. Taxpayers can choose their preferred language from the dropdown menu at the top of the page, including Spanish, Vietnamese, Russian, Korean, Haitian Creole, Traditional Chinese and Simplified Chinese.

The Languages page also gives taxpayers key topics related to federal taxes in 21 languages.

Topics include:

Taxpayer rights
Who needs to file
Filing for a business
Help options for preparing a tax return
Refunds
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6. Registration open for 2024 IRS Nationwide Tax Forum
Registration for the IRS’s 2024 Nationwide Tax Forum is now open. The forum provides tax professionals the opportunity to attend continuing education sessions this summer in five U.S. cities.

This event offers continuing education and networking opportunities to enrolled agents, certified public accountants, attorneys and other tax professionals who serve businesses, individuals and other entities. Attendees may earn up to 18 continuing education credits.

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7. Other tax news
The following information may be of interest to individuals and groups in or related to small businesses:

Auto dealers must register with the IRS to receive advance payments of the Clean Vehicle Tax Credit
Businesses: Electronically file Form 8300 to report cash payments over $10,000
IRS continues special Saturday hours for face-to-face help at 70 Taxpayer Assistance Centers
IRS Free File program sees early increase in use; filings up nearly 10%
Joint Board extends waiver of physical presence education requirement for enrolled actuaries
Tax updates and news from the IRS
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