Massi Hadaegh CPA, Inc.

Massi Hadaegh CPA, Inc. Tax Preparation, Tax Audit Representation, Business Consultations, Bookkeeping, Accounting, Payroll Services, New Business Guidance

When you require assistance with keeping track of your office's revenue and gross earnings, let the accounting professionals from Massi Hadaegh CPA give you insightful tips and help you from common bookkeeping issues to complicated tax scenarios. An accountant can offer the resources necessary to correctly prepare your taxes and employee payroll, and we’re attuned to the needs of our customers in Los Angeles, CA.

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.

We want to thank our amazing clients and community for a wonderful 2025. It is a privilege to be your trusted partner in...
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!

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1964 Westwood Boulevard, Ste 225
Los Angeles, CA
90025

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