MLM Bookkeeping

MLM Bookkeeping Construction, Service and Retail Industry Accounting Services. LLC filing and annual updates. Registered 1099 filer with IRS.

04/01/2026

Contact MLM Bookkeeping for your business accounting needs.
810-691-8917

Be informed, not fooled by ghost preparers and tax credit scams

The tax filing season is coming to an end in a couple of weeks, but that doesn’t mean scammers and schemers take a break. Here’s a couple more things from the recently released Dirty Dozen, that taxpayers should be mindful of.

Ghost preparers
Taxpayers should choose their tax professional wisely. Paid preparers must sign and include a valid Preparer Tax Identification Number on every tax return. A “ghost” preparer prepares a return but refuses to sign it and/or refuses to include a PTIN. These unlicensed or unethical tax return preparers should be avoided. 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. Taxpayers should never sign a blank or incomplete return.

Ghost preparers also often exploit credits by promising large refunds. These preparers may:

Exaggerate eligibility for deductions
Claim credits that taxpayers do not qualify for
Disappear after filing, leaving the taxpayer responsible for penalties, interest, or audits
People can make a complaint about a tax return preparer, if a paid preparer filed a fraudulent return, without consent or if they followed improper tax preparation practices.

Phony “Self-Employment Tax Credit”
Another one from the Dirty Dozen is misleading information being shared about a “self-employment tax credit,” which can result in an inaccurate filing. Many taxpayers do not qualify for these credits, and the IRS is closely reviewing claims coming in under this provision, so taxpayers filing claims do so at their own risk. Be informed about any tax credits and eligibility requirements before claiming them. The IRS Interactive Tax Assistant can help a person decide if they're eligible for many popular tax credits and deductions.

Taxpayers are reminded to rely on trusted sources and qualified tax professionals, not bad tax advice on social media.

03/12/2026

Tax credits and deductions for education

The costs for continuing education can add up quickly and get expensive. There are several tax benefits such as credits and deductions that can help eligible taxpayers reduce these costs. A tax credit reduces the amount a person owes in income taxes dollar-for-dollar. Let’s look at a few of the most common ones.

Education tax credits
There are two tax credits designed to help taxpayers reduce education costs: the American Opportunity Tax Credit and the Lifetime Learning Credit.

The taxpayer can claim one or the other but not both. Taxpayers must complete Form 8863, Education Credits and file it with their federal tax return.
To be eligible for either credit:

The taxpayer, dependent or a third party paid qualified education expenses for post high school education.
An eligible student must be enrolled at an eligible educational institution.
The eligible student is the taxpayer, taxpayer’s spouse or a dependent listed on the tax return.
Key points for AOTC and LLC
The AOTC is:

Worth a maximum benefit of up to $2,500 per eligible student
Available only for the first four years at an eligible college or vocational school
For students pursuing a degree or other recognized education credential
Partially refundable. People could get up to $1,000 back
The LLC is:

Worth a maximum benefit of up to $2,000 per tax return, per year
Available for all years of postsecondary education and for courses to acquire or improve job skills
Available for an unlimited number of tax years
Education related deductions
Deductions lower the taxable income resulting in lowering the federal income tax obligation.
Student loan interest:

Taxpayer’s modified adjusted gross income is between $85,000 and $100,000 ($170,000 and $200,000 if filing jointly)
An eligible student may deduct student loan interest paid during the year on a qualified student loan
May reduce taxable income up to $2,500
Business deduction for work-related education:

Eligible self-employed individuals, Armed Forces reservists, certain artists, and certain government officials may be able to deduct the costs of qualifying work-related education as business expenses. Individuals with a disability can deduct impairment expenses related to this education as an itemized deduction.
More information

IRS Publication 970, Tax Benefits for Education
Tax benefits for education: Information center
Compare education credits

01/22/2026

End of year accounting time is here.
In need of part time bookkeeping help?
Need to clean your books up for taxes?
Need to file an LLC or an annual report?
Just need help creating a budget and paying bills?
Contact Mary at MLM Bookkeeping. Accounting services to fit your needs.
Call today, smile tomorrow
810-691-8917
email: [email protected]

01/08/2026

Issue Number: Tax Tip 2026-02
When preparing to file taxes, keep an eye out for scams

It’s a new year and tax season is around the corner. Tax season is a busy time for criminals too as they ramp up efforts to trick people into sharing sensitive personal information. Identity thieves might use this information to try filing false tax returns and stealing refunds.

The IRS and Security Summit partners want taxpayers, tax professionals and businesses to keep a watchful eye out for the threats listed below.

Social media scams: Bad tax advice on social media can mislead taxpayers about their credit or refund eligibility. Influencers may convince taxpayers to lie on tax forms or suggest the IRS is keeping a tax credit secret from them. Social media posts may put taxpayers in touch with scammers.

Phishing and smishing: The IRS frequently warns against phishing emails and smishing texts, which are common tactics used by criminals to steal personal and financial information. The impersonator wants taxpayers to send them money. Opening links and attachments may harm their computer.

Protection for seniors: Scammers target people over age 65 or nearing retirement for personal or financial information or money. Often, once seniors give them money, they ask for more. When scammers trick them to withdraw from their retirement account, it could affect their taxes.

Protections for businesses and tax professionals: The IRS reminds tax professionals of their legal obligation to have a Written Information Security Plan and to use multi-factor authentication. Businesses are also advised to update their security measures and remain vigilant against cyberattacks.

Identity Protection PIN: An identity protection PIN is a six-digit number that prevents someone else from filing a tax return using a taxpayers Social Security number or individual taxpayer identification number. If taxpayers don't already have an IP PIN, they may get an IP PIN as a proactive step to protect themselves from tax-related identity theft. Anyone with an SSN or an ITIN can get an IP PIN including individuals living abroad.

Need help organizing your 2025 data? Call today.
MLM Bookkeeping 810-691-8917

Address

PO Box 17
Clio, MI
48420

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm
Thursday 9am - 5pm

Telephone

+18106918917

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