According to the complaint, Leverett owns and operates a number of different tax preparation businesses in the area, including Tax Money Now, L.L.C., Dynamic Tax Services, Dynamic Tax Solutions and Express Money Tax. The government’s complaint alleges that Leverett and her associates prepared returns that fabricate self-employment businesses and business losses to offset their customers’ taxable income from other sources and to increase their customers’ Earned Income Tax Credit. When a customer does have a small business, the complaint alleges, Leverett and her associates mischaracterize the business income as household employee wages in order to avoid paying the required self-employment tax. The complaint also alleges that Leverett’s businesses claim education credits that the customers are not entitled to receive.

According to the complaint, the Internal Revenue Service (IRS) has examined 264 returns prepared by Leverett’s businesses and found that 206 understate the tax owed by Leverett’s customers by thousands of dollars on average. The complaint alleges that Leverett’s activities may have caused the United States to lose over $2.5 million in understated taxes and/or fraudulent refunds.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Mark your calendar! Due to an overlap of tax deadlines and Federal/State holidays, the IRS has announced some new due dates for the upcoming 2016 tax season.

Most 2015 individual income tax returns will actually be due on Monday, April 18, 2016 (rather than Friday, April 15, 2016). Here’s why:

Emancipation Day: April 15, 2016

Emancipation Day is an official public holiday in the District of Columbia. It usually falls on April 16, but when April 16 is a Saturday – which it is in 2016 – then Emancipation Day moves to the previous day (Friday).

Here is an excerpt from IRS Revenue Ruling 2015-13:

“The term ‘legal holiday’ includes a legal holiday observed in the District of Columbia…. Emancipation Day, April 16, is a legal holiday in the District of Columbia [D.C. Code § 28-2701 (2010)]. When April 16 is a Saturday, the preceding day is the observed holiday.”

That means Emancipation Day will be observed on Friday, April 15, 2016.

Since Emancipation Day is a legal holiday, it gets precedence over the April 15 tax deadline. Here is another excerpt from IRS Revenue Ruling 2015-13:

“Section 7503 of the Code provides that, when April 15 falls on a Saturday, Sunday, or legal holiday, a return is considered timely filed if it is filed on the next succeeding day that is not a Saturday, Sunday, or legal holiday.”

That means the Federal tax deadline is pushed to the following Monday. Therefore, most individuals will have until Monday, April 18, 2016 to file their income tax return. Note that this also affects the deadline for the first installment payment of estimated income tax (see below).

Patriots’ Day (Maine & Massachusetts Only): April 18, 2016

In Maine and Massachusetts, Patriots’ Day is a statewide legal holiday that’s observed on the third Monday of April. In 2016, Patriots’ Day will coincide with the Federal tax deadline (which was shifted to Monday, April 18). Therefore, taxpayers in Maine and Massachusetts will have until Tuesday, April 19, 2016 to file their individual income tax returns.

Residents of Maine and Massachusetts get an extra day because the IRS offices in those states are closed on Patriots’ Day (April 18, 2016). Since taxpayers are allowed to file their returns by hand-delivering the forms to a local IRS office, the due date is extended to the following day (April 19, 2016).

Here is an excerpt from IRS Revenue Ruling 2015-13:

“Pursuant to Treasury Regulation § 1.6091-2(d)(1), individuals who reside in Massachusetts and Maine may elect to file their returns by hand at their local IRS Office located in Massachusetts or Maine. When the last day for residents of those states to file their returns by hand falls on a Saturday, Sunday or legal holiday, section 7503 extends the due date to the next succeeding day which is not a Saturday, Sunday or legal holiday. We interpret this rule to extend the due date for filing income tax returns for all residents of Massachusetts and Maine pursuant to section 7503, including those who do not elect to file by hand. Accordingly, the statewide observance of Patriots’ Day in Massachusetts or Maine affects the due date for income tax returns of individuals who reside in Massachusetts and Maine, but it does not affect the due date of income tax returns for individuals who do not reside in Massachusetts or Maine.”

Taxpayers in Maine and Massachusetts are granted the extra day, whether they file by snail mail, e-file, or hand-delivery to an IRS facility.

Estimated Income Tax Payments

The first installment payment for 2016 estimated tax (Form 1040-ES) is due by April 18, 2016 – the same deadline for 2015 Federal tax returns. The estimated tax deadline applies to all U.S. taxpayers, whether or not they reside in Maine or Massachusetts. This is because taxpayers in Maine and Massachusetts send their estimated tax payments to an IRS facility in another state (that does not observe Patriots’ Day). Therefore, in order to be considered timely, the first installment of 2016 estimated tax must be paid by Monday, April 18, 2016.

The Bottom Line

• When April 16 is a Saturday, the District of Columbia observes Emancipation Day on April 15. This makes Monday, April 18, 2016 the regular due date for filing 2015 income tax returns.

• However, April 18 is also the third Monday in April, which is the date that Maine and Massachusetts observe Patriots’ Day. Therefore, residents of Maine and Massachusetts will have until Tuesday, April 19, 2016 to file their 2015 income tax returns.

• Estimated tax payments are due on Monday, April 18, 2016 – whether or not you’re a resident of Maine or Massachusetts.

For more information, see IRS Revenue Ruling 2015-13.

From IRS.com.

(BPT) – You banked your holiday bonus and landed that raise you’ve been hoping for, but the post-holiday bills are coming. You may be wondering what more you can do to ensure you’re on the right track financially in 2016. Fortunately, you can do a lot right away to start the year off strong.

* Reassess your budget; if you don’t have one, make one. A budget is an essential tool for planning how you will spend, save, invest and enjoy your money. It should be a guideline to how your money will work for you, but it’s not written in stone. Life changes, and outside influences mean you need to periodically examine and update your budget. Start by jotting down your financial goals for the year, then review your budget to see if it’s going to help you achieve those goals, or if you need to make adjustments.

* Pay off holiday bills immediately, and if that’s not possible, then as quickly as you can. Each month you carry a balance on a credit card, interest rates increase the actual out-of-pocket cost of those holiday gifts you purchased. If possible, pay balances in full right away during the month of January. If that’s not possible, create a payment plan for yourself with the goal of paying off the total balance in as high an increment as you can afford, so you minimize the time you’re carrying a balance.

* Maximize “found” money. Gift cards have been the most-requested holiday gift item for nine years running, according to the National Retail Federation, but not everyone uses all the cards they receive. In fact, a survey by Coinstar Exchange found 37 percent of people who received gift cards in 2014 still haven’t used all of them. If you have gift cards sitting around, they can be a great source of “found” money. Take your gift cards to a bright yellow Coinstar Exchange kiosk at your local grocery store and exchange them for instant cash. Put the extra money toward paying off holiday bills, boosting your emergency fund or for something you really want or need. Visit www.coinstar.com/coinstarexchangekioskfinder to find a Coinstar Exchange kiosk near you.

* Review all your credit accounts. Even the most careful shopper can fall prey to crooks, who are particularly active and crafty during the holidays. Look over your credit card statements to ensure you authorized all the charges that appear on them. For an extra layer of safety, check your credit report; it can help you detect signs of identity theft or other fraud as quickly as possible.

* Increase your savings. By now, you’ve reviewed your budget and cashed in your unused gift cards, so you’ve got some extra money in your pocket. Instead of spending it, use that money to increase your savings. It’s especially important to have an emergency fund equivalent to a few months of living expenses. Those savings can help protect your financial health against unforeseen circumstances like a big auto expense or home repair bill, or even job loss. While it’s always great to save more, setting aside even $10 a week can have a big impact on your financial future.

Many financial goals require long-term planning, but others can be done quickly and easily. These simple, do-it-now steps can yield instant gratification, and help ensure you get a good financial start in 2016.