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Protecting Yourself From IRS Scammers

cpa1dev on April 20, 2026

Know how and when the IRS contacts you so you can protect yourself from impersonators.

Ways The IRS contacts you

The IRS typically contacts you the first time by mail delivered by the U.S. Postal Service.

To verify it’s the IRS, search IRS notices and letters. Some letters are sent from private collection agencies.

Other ways the IRS may contact you:

  • Email – They email only with your permission, with a few exceptions like criminal investigations.
  • Text message – They text you only with your permission.
  • Phone – The IRS or private collection agencies may call you to address account matters. In some cases, IRS uses automated messages that direct you to IRS.gov to securely manage your account, make payments or resolve an issue. The messages don’t share specific details.
  • Fax – They might send a fax to verify or request employment information.
  • In-person visit – These are rare. Find out how and when IRS employees visit you or your business. The IRS generally sends a letter before we visit.

The IRS doesn’t:

  • Direct message or take payment on social media. Follow our social media accounts
  • Accept gift cards or prepaid debit cards as payment
  • Call with automated messages that threaten or direct to websites that aren’t IRS.gov
  • Threaten to call law enforcement or immigration officials
  • Take your citizenship status, driver’s license or business license
  • Mail tax debt resolution advertisements

If the IRS visits you

Unannounced visits are rare. Only 4 types of IRS employees may visit your home or business. Each contacts you in specific ways and carries official identification (ID).

Revenue agents – examinations (audits)

Revenue officers – collections

Special agents – criminal investigations

Fuel inspectors

Identification the IRS carries

Revenue officers, revenue agents and fuel inspectors carry an IRS-issued credential (pocket commission) and HSPD-12 card. Both have the employee’s serial number and photo. You can ask to see both.

  • You may ask to see an additional ID from revenue agents and fuel inspectors.
  • Fuel inspectors also wear uniforms and drive government vehicles.

Criminal Investigation special agents present law enforcement credentials when they investigate.

If you feel unsafe, call 911

If the person doesn’t show you these IDs or you aren’t sure about them, call the number on the card provided by the revenue officer or agent. For more information go to www.IRS.gov

CLIENT 401(k) and IRS UPDATE

cpa1dev on March 13, 2026

401(k) limit increases to $24.5K for 2026…

IRA limit increases to $7,500

WASHINGTON — The Internal Revenue Service announced that the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025.

The IRS also issued technical guidance regarding all costofliving adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2026 in Notice 2025-67, posted today on IRS.gov.

Highlights of changes for 2026

The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $24,500, up from $23,500 for 2025.

The limit on annual contributions to an IRA is increased to $7,500 from $7,000. The IRA catchup contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual costofliving adjustment is increased to $1,100, up from $1,000 for 2025.

The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $8,000, up from $7,500 for 2025. Therefore, participants in most 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan who are 50 and older generally can contribute up to $32,500 each year, starting in 2026. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2026, this higher catch-up contribution limit remains $11,250 instead of the $8,000 noted above.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the Saver’s Credit all increased for 2026.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Check out IRS.gov for more information

Tax Guidance for workers eligible to claim deductions for tips and for overtime compensation for tax year 2025.

cpa1dev on February 19, 2026

Notice 2025-69 PDF clarifies for workers how to determine the amount of their deduction without receiving a separate accounting from their employer for cash tips or qualified overtime on information returns such as Form W-2 or Form 1099, as those forms remain unchanged for the current tax year. It also provides transition relief to workers who receive tips in the course of a specified service trade or business.

The IRS is in the process of updating income tax forms and instructions for taxpayers to use this filing season that will assist them in claiming these deductions.

No Tax on Tips

Under the One, Big, Beautiful Bill, workers may be eligible for new deductions for tax years 2025 through 2028 if they received qualified tips. For tipped workers, the maximum annual deduction is $25,000, which phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

It is estimated that there are about 6 million workers who report tipped wages.

Examples of how the rules work for tipped employees

Today’s guidance provides examples to illustrate various situations tipped employees might encounter; below are abridged versions of some of those examples.

Waiter with reported tips in box 7, Form W-2

Ann is a restaurant server whose 2025 Form W-2, box 7 reports $18,000 of social security tips. Ann did not report any additional tips on Form 4137. Ann may use $18,000 in determining the amount of her qualified tips for tax year 2025.

Bartender with additional reported tips on Form 4137

Bob is a bartender who reports $20,000 in tips to his employer during the 2025 tax year on Forms 4070 and reports $4,000 of unreported tips on Form 4137, line 4. Bob’s 2025 Form W-2 reports $200,000 in box 1 and $15,000 in box 7. Bob may use either the $15,000 in box 7 of the Form W-2, or the $20,000 of tips reported to Bob’s employer on Forms 4070 in determining the amount of qualified tips for tax year 2025. Regardless of the option chosen, Bob may also include the $4,000 of unreported tips from Form 4137, line 4 in determining the amount of qualified tips.

Self-employed travel guide

Doug is a self-employed travel guide who operates as a sole proprietor. In 2025, Doug receives $7,000 in tips from customers paid through a third-party settlement organization (TPSO). For tax year 2025, Doug receives a Form 1099-K from the TPSO showing $55,000 of total payments. The Form 1099-K does not separately identify the tips. However, Doug keeps a log of each tour that shows the date, customer, and tip amount received. Because Doug has daily tip logs substantiating the $7,000 tip amount, he may use the $7,000 tip amount in determining qualified tips for tax year 2025.

No Tax on Overtime

For tax years 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay (generally, the “half” portion of “time-and-a-half” compensation) that is required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

  • Maximum annual deduction is $12,500 ($25,000 for joint filers).
  • Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

The deduction is available for both itemizing and non-itemizing taxpayers.

Certain employees are exempt from the rules on overtime

Generally, the FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half their regular rate of pay for all hours worked over 40 in a workweek. However, the law provides for certain exemptions. We can provide examples if interested. Please let us know!

New Tax Law Changes For 2025 Tax Returns Part 2

cpa1dev on November 18, 2025

-Increased Child Tax Credit

Makes the expiring child tax credit permanent with an increased maximum of $2,200 in 2025, inflation adjusted thereafter.

-Increased Section 179 Limits

Expands the Section 179 expensing cap to an inflation-adjusted $2.5 million with a phasedown starting when the cost of qualifying property exceeds an inflation-adjusted $4 million; applies after Dec. 31, 2024.

-Partially Refundable Adoption Credit

-Trump Savings Accounts for Eligible Children Born Between 2025-2028 – One Time $1,000

-End of the Electric Vehicle Credit as of September 30, 2025

Additional items included in the bill mainly having an impact on businesses include:

  • Restoration of 100% Bonus Depreciation
  • Restoration of Expensing of Certain R&D Costs
  • Business Interest Deductions Moving Back to the EBITDA standard
  • 100% Expensing for Certain Manufacturing Structures (Temporary)