Massi Hadaegh CPA, Inc.

08/04/2026

⚠️ IRS warns crypto holders about fake compliance portal scam

Fraudsters are mailing letters that direct cryptocurrency holders to a bogus “Digital Asset Compliance Portal” that mimics IRS.gov to collect personal information and digital asset credentials, the IRS said in a news release.

IRS Criminal Investigation (IRS-CI) Chief Jarod Koopman urged taxpayers to verify the source of unexpected requests for personal information before responding and to report potential fraud to law enforcement.

🔸Fraud details
Victims receive what appears to be an official IRS letter claiming they must enroll in a “Digital Asset Compliance Portal” before a deadline. The letter instructs them to scan a QR code, which directs them to a fraudulent website designed to look like IRS.gov.

🔸How to respond
Taxpayers affected by a fraud scheme should take several steps, the IRS said:

- Stop communicating with the fraudster;
- Change passwords for affected financial accounts;
- Contact their financial institution or cryptocurrency exchange immediately if you shared credentials;
- Preserve screenshots, emails, and letters; and

The IRS said fraudsters are mailing letters that direct digital asset holders to a bogus “Digital Asset Compliance Portal” that mimics IRS.gov to collect personal information.

06/02/2026

Is that activity just a hobby or a business?

Many people have hobbies - things they enjoy doing in their spare time - and some even make a little extra money from them. However, there’s a difference between a hobby and a business, especially how each is treated when it comes to filing taxes.
Businesses operate to make a profit while hobbies are for pleasure or recreation. Here are some common questions people should ask themselves when deciding if what they’re doing is a hobby or business. No single thing is the deciding factor.

Questions to help taxpayers decide if they have a hobby or business

• Is there an intent to make a profit?
• If the activity makes a profit, how much is it?
• Can they expect to make a future profit from the appreciation of the assets used in the activity?
• Do they depend on income from the activity for their livelihood?
• Are any losses due to circumstances beyond their control or are the losses normal for the startup phase of their type of business?
• Are operations adjusted to improve profitability?
• Is the activity carried out like a business with complete and accurate books and records kept?
• Do the taxpayers and their advisors have the knowledge needed to carry out the activity as a successful business?

Taxpayers should review all the factors to make the best decision. Regardless of the decision, if they’re paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. These payments are taxable income and must be reported on federal tax returns.

Additionally, if they received payment in the form of digital assets, they may also get a Form 1099-DA. Whether taxpayers have a hobby or run a business, good recordkeeping throughout the year will help when they file taxes.

03/19/2026

🚨 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.

01/02/2026

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!

10/07/2025

⚠️ 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.

09/23/2025

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.

05/12/2025

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)

04/04/2025

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.

03/21/2025

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

03/19/2025

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