It is everyone's favorite time of year: tax time. In an effort to relieve some of the stress associated with April 15, we've put together some useful and timely information for employers of veterans and active duty service members. Some of the following information is new for this tax season.
Employers of Veterans
As of today, the IRS published additional information for employers who have hired veterans in 2011. There is a tax credit available for such employers. Depending on the business structure, the credit is worth up to $9,600 per veteran employee (for-profit businesses) and $6,240 per veteran employee (non-profit organizations and other tax-exempt businesses).
There is a change to the filing: previously, employers had 28 days to file form 8850, but under the new rules, employers have until June 12, 2012 to fill out the form for any employees hired between November 22, 2011 and May 22, 2012.
According to the IRS, after May 22, the previous 28 day rule applies once again.
Active Duty Service Members
The IRS, for Federal Tax purposes, deems United States Armed Forces as any member of the Army, Navy, Air Force, Coast Guard and any branch “controlled” by the Secretaries of Defense. The Merchant Marines and American Red Cross do not fall under this category, but may qualify for separate tax benefits if they have been working in a combat zone.
An entire list of tax credits, breaks and information for active duty service members can be found at theIRS, including details about the First-Time Homebuyer Credit and Military Combat Personnel Economic Stimulus Payments.
Additional Information and Tips
Unfortunately, there are individuals and companies out there that prey on the uninformed during tax time. Veterans, active duty service members and their families are at a higher risk of these scam artists
- Everyone must pay taxes, and if someone tries to convince you otherwise, then it is a scam.
- The IRS provides free help for tax preparation services.
- Beware of tax services, companies and individual tax preparers that are not vetted by the Better Business Bureau (BBB). If you choose to use a third-party to prepare your 2011 taxes, work with an accredited service. If you are unsure whether the service you would like to use is reliable and trustworthy, run the company name or individual through BBB.
- Never sign a blank tax return, regardless of who prepares it. This is a scam.
- Watch out for fake IRS forms. There are people out there that prey during tax time in order to steal identities.
- The IRS also warns of that if the tax service “sounds too good to be true, it probably is.” If you come across a tax scam, then report it directly to the IRS by filling out Form 3949-A and to the BBB.
