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Wednesday, April 29, 2015

MT Department of Revenue - Business Income Tax Filing - FIRST REQUEST

Have you recently received correspondence from the Montana Department of Revenue with the subject "Business Income Tax Filing - FIRST REQUEST" ?

Several of our 943 AG employers have received this correspondence in the last couple weeks.  Prior to 2012, 943 employers were not required to have a MT withholding account and many of our employers had to open an account that year to fulfill the new requirement.
As part of the processing of tax returns and W-2s, the MT DOR attempts to reconcile the W-2s filed by employers to a business tax return.  However, not all businesses are required to file a separate business entity tax return.  Many ranchers and sole proprietors can file their business income and expenses through their personal 1040 tax return via a Schedule C or Schedule F.  

If you receive one of these letters, please feel free to bring it to our office for us to complete.  If you prefer to complete it yourself, all that is necessary is to mark the box in Part I, Question 1 next to "Form 1040, Schedule C."  In some of the early letters issued, the MT DOR failed to consider the possibility of AG employers filing through Schedule F.  If you are a 943 AG employer, cross out "Schedule C" and write in "Schedule F."  Then, complete Question 2 with your FEIN and SSN.  Complete Part III with your contact information and return the letter to the address provided.  

If you have any questions, please contact our office for assistance. 

Wednesday, April 22, 2015

Tax Fraud Warnings

Tax fraud is on the rise and can affect anyone, even those of us in small rural communities!  Please be vigilant and if you have a question or concern, contact the IRS Fraud Hotline 1-800-829-0433

IRS Wants You to Know About Schemes, Scams and Cons
"If it sounds too good to be true, it probably is!" Don't become a victim to any scheme that offers instant wealth or exemption from your obligation as a United States citizen to file tax returns and/or pay taxes. Some of these schemes can literally cost you your life savings. Others can result in your prosecution and imprisonment if you knowingly participate in them.
Abusive Return Preparer
Taxpayers should be very careful when choosing a tax preparer. While most preparers provide excellent service to their clients, a few unscrupulous return preparers file false and fraudulent tax returns and ultimately defraud their clients. It is important to know that even if someone else prepares your return, you are ultimately responsible for all the information on the tax return.
 Abusive Tax Schemes
Abusive tax scheme originally took the structure of fraudulent domestic and foreign trust arrangements. However, these schemes have evolved into sophisticated arrangements to give the appearance that taxpayers are not in control of their money. However, the taxpayers receive their funds through debit/credit cards or fictitious loans. These schemes often involve offshore banking and sometimes establish scam corporations or entities.
 Nonfiler Enforcement
There have always been individuals who, for a variety of reasons, argue taxes are voluntary or illegal.  The courts have repeatedly rejected their arguments as frivolous and routinely impose financial penalties for raising such frivolous arguments.  Take the time to learn the truth about frivolous tax arguments.
 All Program and Emphasis Areas for Criminal Investigation
Criminal Investigation has categorized their investigative cases into specific program and emphasis areas of fraud. Examples of case summaries written from public record documents where cases were prosecuted can be viewed on the various program and emphasis area web pages.
Tax Scams - How to Report Them
To help the public recognize and avoid abusive tax schemes, the IRS offers an abundance of educational materials. Participating in an illegal scheme to avoid paying taxes can result in imprisonment and fines, as well as the repayment of taxes owed with penalties and interest. Education is the best way to avoid the pitfalls of these “too good to be true” tax scams.

If you suspect you may have been the victim of tax fraud, please visit

Wednesday, April 15, 2015

April 15th has arrived!

Just a reminder that if you are mailing your returns or payments they must postmarked today. If you miss the mail, you have until midnight today to file your federal taxes online at:

If you need to file for an extension, you can use Form 4868, however it's important to understand that filing for an extension does NOT extend your payment deadline.  To avoid interest and penalties you must pay 100% of your 2013 tax liability OR 90% of your 2014 tax liability. 

To make a payment or file a Montana State income tax return, visit MT Dept of Revenue Taxpayer Access Point.  If you file a federal extension, no separate extension form is necessary for the state of Montana, however, in order for the extension to be considered valid, you must pay 100% of your 2013 tax liability OR 90% of your 2014 tax liability.