2014 New Jersey Tax Updates - TLTC...
Transcript of 2014 New Jersey Tax Updates - TLTC...
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New Jersey State Tax Fraud & Data Breach
Prevention
Taxation University
609.292.1132
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New Jersey State Tax Fraud & Data Breach Prevention
• Steps for Your Client to Report Identity Theft
• Reporting Tax Professional Data Breaches to the State
• General Resources for You
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Steps for Your Client to Report Identity Theft
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Identity Theft vs. Use of Identity
Identity Theft
• Filing a Fraudulent Return Under Another’s Social Security Number
• Reporting False Income
• Intent of Receiving an Illegal Refund
Contact Division of Taxation
Use of Identity
• Gaining Employment Under Another’s Social Security Number
• Reporting the Income Earned From That Employment Under The Correct ITIN
Contact Department of Labor
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Completing the Identity Theft Declaration Form (IDT-100)
• Can Only Be Filed By Your Client• Form is for the Individual, not the Tax Professional
• Check Box to Indicate Either:• I am a Victim of Identity Theft
Or
• Experienced a Non-Tax-Related Identity Theft• At Risk in the Future Due to: Lost/Stolen Items
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Steps for Your Client to Report Identity Theft
1. Notify the State• Submit the Identity Theft Declaration Form (IDT-100)
• Online: www.njtaxation .org
2. Notify the IRS
3. Review State Police’s Victim’s Reference Guide • Provides Additional Steps to Take
Note: Notifying the IRS & Police Does Not Automatically Notify the State.
Your Client Must Also Notify the Division by Completing the IDT-100
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After Submitting the IDT-100
• If IDT-100 is Filed to be Proactive• The Account is Coded and Noted
• The State Does Not Provide a Pin like the IRS
• A Letter is Sent
• If IDT-100 is Filed for Fraud• If a Fraudulent Return Exist- Removed from Your Client’s Account
• A Letter is Sent with Information to Contact the Division
• All Accounts Reviewed for the Next Three Years
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Filing the New Jersey State Return After Submitting the IDT-100
Filing Your Client’s Return
• To Be Proactive = File NJ-1040 Electronically
• Possible Fraud = File NJ-1040 by Paper• Including Supporting Documents (e.g. W-2s)
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Reporting Tax Professional
Data Breaches to the State
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Data Breaches
• Stolen Data• Social Security Numbers
• Driver’s License
• Credit Card or Bank Account Numbers
• W-2 Information
• Other Data Breach Methods• Loss or theft: Portable Drives, Files, etc.
• Unintended Disclosure
We’re Here
to Help You
Protect
Your
Clients!
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Steps for You to Report Data Breaches to the State of New Jersey
1. Notify the Federation of Tax Administrators (FTA)• Email: [email protected]
2. Contact the State’s Office of Criminal Investigation (OCI)• Phone: 609-588-5017
3. Notify the IRS
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Steps for You to Report Data Breaches to the State of New Jersey
4. Visit State Police’s Cyber Crimes Unit Website• Follow Instructions for “Business Reporting a Breach of Security”
5. File a Complaint with the FBI Internet Crime Complaint Unit
Note: Notifying the IRS & Police Does Not Automatically Notify the State. You Must Contact the Division’s OCI Unit
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Procedures After You Notify The State
1. OCI Works with You to Investigate the Breach• How Many Clients were Affected?
2. OCI Determines the Best Plan to Protect Your Clients • Affected Account will be Coded for Three Years
• OCI will Review Each Return with You Line by Line• Refunds Released after Verification
Note: The Faster You Notify the State of New Jersey, the Better!
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Filing the New Jersey State Return
• If the Federal Return is Rejected• File State Return by Paper
• If Filing Separately from the Federal Return• File State Return Electronically
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Resources For You
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Additional Resources
• Federal Bureau of Investigations
• Internet Crime Complaint Center (IC3)
• Identity Theft Prevention Act: A Guide for Businesses
• Protecting Personal Information: A Guide for Businesses
• Federation of Tax Administrators
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Tax Practitioner Contact Information
• New Jersey Tax Practitioner Hotlines
• Income Tax - (609)633-6657
• Business Inquiries - (609)633-6905
• Regular Business Hours
• Practitioner Priority E-mail• “Contact Us” Page
• Choose “Tax Practitioner” Link
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