June Tidbits
Identity Theft Alert
The IRS published an alert in June about a new email-based phishing scam circulating that targets Department of Defense military members, retirees and civilian employees. The email displays a “.mil” email address and appears to come from Defense Finance and Accounting Services. It states that those receiving disability compensation from the Department of Veterans Affairs (VA) may be able to obtain additional funds from the IRS. To receive those funds, recipients are told to send various VA and IRS documents containing their personal and financial information to an address in Florida. The information in these documents is then used by the scammers to commit identity theft.
Home Affordable Modification Program (HAMP)
The Departments of the Treasury and Housing and Urban Development established the HAMP to help distressed homeowners lower their monthly mortgage payments. Participating loan servicers must consider a sequence of modification steps for each eligible mortgage until the loan’s monthly payment is reduced to 31 percent of the homeowner’s monthly pre-tax income. To find out more information about this program, visit the IRS website. If your loan is owned or guaranteed by Fannie Mae or Freddie Mac, the Principal Reduction Alternative does not apply.
A new phase of the Fresh Start initiative
The IRS announced its offering of more flexible terms to its Offer in Compromise (OIC) program. Changes include a revision of the calculation for the taxpayer’s future income and allowing the living expense standards to now include unpaid state and local taxes and student loans in determining the taxpayer’s ability to pay. When calculating a taxpayer’s potential income, the IRS will now look at only one year of future income for offers paid in five months or less, and two years of future income for offers paid in 6 months to 24 months.
Foreign investments filing deadline
Federal Form TD F 90-22-1 Report of Foreign Bank and Investments (FBAR) is used to report financial interest, signature authority or other authority in any foreign account valued at over $10,000. This form must be filed by June 30th and may not be extended.
