Massi Hadaegh CPA, Inc.

🚨 𝐒𝐭𝐚𝐲 𝐀𝐥𝐞𝐫𝐭: 𝐈𝐑𝐒 𝐃𝐢𝐫𝐭𝐲 𝐃𝐨𝐳𝐞𝐧 𝐓𝐚𝐱 𝐒𝐜𝐚𝐦𝐬 𝐄𝐱𝐩𝐥𝐚𝐢𝐧𝐞𝐝!

Every year the IRS announces a list of top tax scams that threaten the tax and financial information of taxpayers, businesses.

Let’s take a closer look at some of the ones taxpayers need to keep watch for, especially now.

𝐀𝐈-𝐞𝐧𝐚𝐛𝐥𝐞𝐝 𝐈𝐑𝐒 𝐢𝐦𝐩𝐞𝐫𝐬𝐨𝐧𝐚𝐭𝐢𝐨𝐧 𝐛𝐲 𝐩𝐡𝐨𝐧𝐞 (𝐫𝐨𝐛𝐨𝐜𝐚𝐥𝐥𝐬, 𝐯𝐨𝐢𝐜𝐞 𝐦𝐢𝐦𝐢𝐜𝐫𝐲, 𝐬𝐩𝐨𝐨𝐟𝐞𝐝 𝐜𝐚𝐥𝐥𝐞𝐫 𝐈𝐃)
Phone scams continue to evolve, including calls that use computer-generated tactics and spoofed caller ID to appear legitimate. In general, the IRS contacts taxpayers by mail first and does not leave urgent, threatening prerecorded messages, call to demand immediate payment, or threaten arrest. If a taxpayer gets a suspicious IRS-related call, hang up.
Additionally, taxpayers should not rely on AI-generated responses to complex tax questions, and they should verify any calculations or information provided by artificial intelligence.

𝐈𝐑𝐒 𝐢𝐦𝐩𝐞𝐫𝐬𝐨𝐧𝐚𝐭𝐢𝐨𝐧 𝐛𝐲 𝐞𝐦𝐚𝐢𝐥 𝐚𝐧𝐝 𝐭𝐞𝐱𝐭 (𝐩𝐡𝐢𝐬𝐡𝐢𝐧𝐠 𝐚𝐧𝐝 𝐬𝐦𝐢𝐬𝐡𝐢𝐧𝐠)
Scammers send alarming emails, direct messages on social media, and texts that appear to be from the IRS. The messages direct taxpayers to fake IRS websites to “verify” accounts, enter personal information, or claim refunds. The IRS only emails or texts taxpayers after getting their permission, with a few exceptions like criminal investigations.

𝐅𝐚𝐤𝐞 𝐜𝐡𝐚𝐫𝐢𝐭𝐢𝐞𝐬
Fraudsters often exploit tragedies and disasters by creating fake charities to collect donations and personal information.
Taxpayers who give money or goods to a charity may be able to claim a deduction on their tax return, but charitable donations only count if they go to a qualified tax-exempt organization recognized by the IRS.

𝐆𝐡𝐨𝐬𝐭 𝐩𝐫𝐞𝐩𝐚𝐫𝐞𝐫𝐬
A “ghost” preparer prepares a return but refuses to sign it and/or refuses to include a Preparer Tax Identification Number (PTIN). When a preparer refuses to sign or provide a PTIN, that is a major red flag; the taxpayer is legally responsible for what is filed. The IRS urges taxpayers to avoid preparers who will not sign the return and to choose reputable help. Taxpayers should never sign a blank or incomplete return. Instead use a trusted tax professional for help.

𝐌𝐢𝐬𝐥𝐞𝐚𝐝𝐢𝐧𝐠 𝐭𝐚𝐱 𝐚𝐝𝐯𝐢𝐜𝐞 𝐨𝐧 𝐬𝐨𝐜𝐢𝐚𝐥 𝐦𝐞𝐝𝐢𝐚
There’s a lot of tax related misinformation on social media. Don’t be tempted by the promise of a larger refund. These viral “tax hacks” often encourage taxpayers to file returns with false information or claim credits they don’t qualify for, leading to refund delays, audits, penalties, or worse. Only follow trusted advice from the IRS, tax professionals, and other reputable sources.

We want to thank our amazing clients and community for a wonderful 2025. It is a privilege to be your trusted partner in navigating the complexities of accounting and taxes.
May 2026 bring you joy, peace, and prosperity. We look forward to seeing you soon as we kick off the new tax season!

⚠️ Oct. 15 Deadline for Extension Filers is Around the Corner

The extension deadline to file taxes is less than two weeks away. Most taxpayers who requested an extension to file their 2024 tax return must file by Wednesday, Oct. 15, to avoid a penalty for filing late. The IRS encourages taxpayers to opt for the fastest and safest option which is to e-file and choose direct deposit for their tax refund.

It’s important to know an extension to file is not an extension to pay. Extension filers who owe taxes should pay as much as possible to reduce interest and penalties. Those who owe tax, have yet to file a 2024 tax return and did not request an extension can generally avoid additional penalties and interest by filing the return and paying any taxes owed as soon as possible.

IRS is Phasing Out Paper Check Refunds For Individuals ⚠️

Paper refund checks for individual taxpayers will be phased out beginning on September 30, 2025.

This latest announcement by the IRS is the first step in implementing Trump’s Executive Order 14274, which directed the U.S. Treasury to stop issuing paper checks by September 30, 2025, as well as mandating all payments to the federal government be made electronically “as soon as practicable.”).

According to the news release, for those who are unable to receive direct deposits to a bank account, other options such as prepaid debit cards, digital wallets, or limited exceptions to the paper check prohibition will be available. However, no additional guidance has been provided yet as to how these alternatives may be requested.

To date, there are no changes being made to how payments to the U.S. Treasury should be made. Taxpayers should continue to use existing payment options until further notice. According to the IRS, additional guidance and information for filing 2025 taxes will be issued prior to the 2026 filing season.

IRS Faces Significant Workforce Reductions, Impacting Taxpayer Support & Revenue Collection

The IRS lost 31% of its revenue agents and 18% of its revenue officers through March of this year, according to a report by the Treasury Inspector General for Tax Administration (TIGTA). Revenue agents examine tax returns for possible violations, and revenue officers collect delinquent taxes.

The IRS also lost 10% of its tax examiners, the front-line workers who process tax returns, and 10% of its customer service personnel in that same period, the report showed. The agency lost around 11,000 people through March.

Further job losses could be on the horizon. The Yale Budget Lab estimates that a loss of around 18,000 IRS personnel would lead to a $159 billion loss in revenue over 10 years, according to Bloomberg.

Source: Treasury Inspector General for Tax Administration (TIGTA)

www.tigta.gov

New Mandates for Electronic Tax Payments 💲

04/04/2025

In an executive order, President Trump directed the U.S. Treasury Secretary to develop a plan over the next 180 days to phase out the use of paper checks. This would apply to both the IRS’s payments of tax refunds as well as taxpayers’ tax payments to the IRS.

Effective September 30, 2025, the IRS will cease issuing paper check tax refunds. However, it is unclear when the mandate that all tax payments be made to the IRS electronically would go into effect. We will have to await further guidance from the IRS and the U.S. Department of Treasury as to when and how the electronic tax payment mandate will be implemented.

The executive order does authorize exceptions from the mandate in certain circumstances, such as when individuals do not have access to banking services or electronic payment services, or for certain emergency payments where electronic disbursement would cause undue hardship. The order also authorizes the Treasury Secretary to identify other circumstances in which exceptions would be allowed.

Social Security Administration to require in-person identity checks for new and existing recipients ⚠️

Beginning March 31st, people will no longer be able to verify their identity to the SSA over the phone and those who cannot properly verify their identity over the agency’s “my Social Security” online service, will be required to visit an agency field office in person to complete the verification process, agency leadership told reporters Tuesday.

Source: AP News

As we celebrate , the Persian New Year, and the arrival of spring, we wish you a season filled with joy, prosperity, and fresh beginnings.

From all of us at Massi Hadaegh CPA Inc

BOI Reporting Requirement Canceled for Most Businesses ⚠️

On Sunday, March 2, 2025, FinCEN continued with its rollercoaster guidance by announcing that it will not enforce any penalties or fines associated with the beneficial ownership information (BOI) reporting rules under existing regulations.

Additionally, FinCEN will not enforce any penalties or fines against U.S. citizens or domestic reporting companies, or their beneficial owners.

The reason for the relief is that the Department of the Treasury will propose new rulemaking that will narrow the scope of the beneficial owner reporting rules to apply to foreign reporting companies only. This means that domestic entities will not be required to file any BOI reports.

Watch out for IRS Impostors Targeting Consumers 🕶️

Scammers are impersonating the IRS to trick taxpayers into sharing personal information, claiming they’re eligible for a $1,400 stimulus check. These fraudulent messages often look official, but they’re part of a phishing scheme designed to steal your sensitive data.

The real IRS has announced that automatic payments will be issued to eligible taxpayers who didn’t claim the Recovery Rebate Credit on their 2021 tax returns. These payments require no action from taxpayers and will be sent automatically by late January 2025. Eligible individuals will also receive a letter from the IRS confirming the payment. This process only applies to taxpayers who filed a 2021 tax return but didn’t claim the credit to which they were entitled.

How the scam works

You receive a text from what appears to be the IRS. The text claims that you’re eligible to receive a $1,400 Economic Impact Payment and that you should provide your personal information. The scammer claims that the amount will be deposited into your bank account or mailed by check within 1 to 2 business days. One person reported receiving this scam text to BBB Scam Tracker.

This IRS text is a phishing scam. The message contains a fake link that mimics an official IRS website. Clicking it may lead to malware or a fraudulent form asking for personal or financial information. The IRS does not contact taxpayers via text, email, or social media, and they will never request information this way.

How to avoid this scam:

• Verify communications: Genuine IRS notices are sent through postal mail, not text messages or emails.
• Avoid clicking links: Never click on links in unsolicited messages. Instead, go directly to IRS.gov for information.
• Be cautious of urgency: Scammers create a sense of urgency to make you act quickly. Take time to confirm claims independently.
• Report the scam: Forward suspicious messages to [email protected]

Source: BBB.org

BOI reporting remains “voluntary” for time being (01-24-25)

According to an alert posted on FinCEN’s beneficial ownership information (BOI) reporting webpage, BOI reporting is still voluntary for now despite the U.S. Supreme Court’s stay of the preliminary injunction issued by a federal district court in Texas Top Cop Shop Inc. v. McHenry. ((January 23, 2025) U.S. Supreme Court, Case No. 24A653)

This is because another judge in a separate case has also issued a nationwide injunction against the BOI reporting requirements. To date, the Department of Justice has not filed an appeal in Smith. It is not known whether the new administration will appeal the case.

⚠️ This means that, for now, businesses are not required to file BOI reports and cannot be penalized for failing to do so. ⚠️

We will keep you apprised of any further developments as they occur.