Unlock Tax Savings with the Work Opportunity Tax Credit (WOTC) A Strategic Advantage for Employers Who Hire Inclusively Rising operating expenses and a tight labor market are compelling reasons for businesses to leverage the Work Opportunity Tax Credit (WOTC) as a financial and ethical hiring lever. This federally sponsored incentive rewards the employment of individuals who confront documented barriers to workforce participation. When a firm strategically reduces its tax burden while simultaneously fostering inclusive hiring practices, the WOTC becomes more than an obligation; it becomes an asset.    This program gives businesses a tax credit for hiring workers from certain target groups. It’s available until December 31, 2025, so it’s a good idea to take action soon to get the benefits.   What is the Work Opportunity Tax Credit (WOTC)? WOTC is crafted to last: a tax credit that channels capital toward the employment of individuals facing systematic and documented barriers. In doing so, it networks workplace equity with direct financial upside for the employer.    Wages and category of hired individual determine the credit value; employers can claim between $1,200 and $9,600 for each newly hired eligible employee, thereby sharply compressing the effective wage cost and amplifying the program’s alignment with strategic labor budgeting. Who Qualifies? – Targeted Groups for WOTC To take advantage of the credit, your new hire must belong to one of the following target groups:    Long-term family assistance recipients    Long-term unemployed persons    SNAP beneficiaries     SSI beneficiaries     TANF participants     Formerly incarcerated persons     Unemployed veterans, including those with service-connected disabilities     Citizens of Empowerment Zones or Rural Renewal Counties     Individuals referred through vocational rehabilitation     Summer youth employees residing in Empowerment Zones      Each category sets forth precise eligibility standards, and supporting documentation is essential for the certification process.  Obtaining Certification Certification from your State Workforce Agency (SWA) is mandatory before the Work Opportunity Tax Credit (WOTC) can be claimed.    Proceed as follows:    File IRS Form 8850 with the SWA no later than 28 calendar days after the new hire begins work.     Attach the required supporting documentation for the appropriate target category.    Forward Form 8850 only to the SWA; do not submit it to the IRS.    For inquiries or additional information, contact your SWA.    Certification is vital; credit cannot be claimed in the absence of it, regardless of the employee meeting the specific group criteria.    Claiming the Credit Upon receipt of certification, the subsequent task is to compute and claim the credit on your tax return.  Complete Form 5884 to calculate the Work Opportunity tax credit (WOTC) attributable to qualified wages earned during the first year of each eligible employee. The credit gets reported on your business tax return via Form 3800 (General Business Credit).  The credit varies based on: (a) the employee’s total hours of service, (b) the amount of wages paid during the credit period, and (c) the particular targeted group to which the employee belongs. To qualify, wages must meet the “qualified” definition, which requires the payment to have occurred after the employee’s certification and throughout the period in which the employee satisfies all WOTC eligibility criteria.  Nonprofit organizations, even those recognized as tax-exempt, may access the WOTC, but the scope of eligibility is restricted. Tax-exempt entities may take the credit exclusively on hires of qualified veterans. To claim the credit, the employer must file Form 5884-C and may incidentally apply the credit against payroll tax liabilities. The IRS cautions against reducing payroll tax deposits pending final credit certification to avoid unexpected shortfalls. This provision enables eligible nonprofits to promote veteran employment while receiving immediate, material tax relief.  Despite the substantial credits potentially generated by the WOTC, certain limitations apply. The credit may not exceed the business’s total income tax liability for the year. To utilize excess credits, firms may carry the unused portion one year backward or carry the credit forward for as many as 20 years. Non-exempt entities, conversely, may claim the credit only to the extent of the employer’s share of Social Security tax attributable to qualified wages. Applying appropriate tax strategies at the planning horizon ensures full utilization of available credit, even during the years in which income tax liability is nominal.  Bottom Line The Work Opportunity Tax Credit (WOTC) delivers concurrent advantages: you expand your candidate base, assist job seekers facing significant barriers, and secure a generous federal tax incentive. When properly documented and strategically tied to hiring processes, WOTC can yield substantial tax savings, a benefit that amplifies when incorporated into an organization’s comprehensive tax strategy. Partner with Sai CPA Services to Maximize Your WOTC Benefits Sai CPA Services guides employers through the WOTC landscape, offering end-to-end support from preliminary eligibility determinations to accurate submission and eventual credit realization. Our services encompass:     Expert advisement on targeted applicant screening and required documentation tolerances.    Timely filing of Form 8850 and all associated schedules.    Rigorous credit computation through Forms 5884 and 3800.   integrated tax strategy deploying available credits with maximum effect.    Dedicated support for both for-profit and 501(c)(3) organizations.    Minimizing overlooked savings is imperative. Our seasoned professionals manage complex details, so you can focus on growing your business while benefiting from lower taxes.  Reach out to Sai CPA Services to establish a WOTC framework tailored to your institutional profile and realize the program’s full impact today.  Contact Us

Programs Facilitating Employee Educational Assistance on a Tax-Free Basis Employers are able to provide employees with real and meaningful support through educational assistance programs with a tax exemption. These programs help employees by reducing their education costs and student loan debt. They also help companies attract and keep workers.  Qualifying Expenses Educational assistance programs may include payments for: Books – Required textbooks and reference course materials that are crucial for course completion.    Equipment – Course pertinent equipment that aids in the achievement of educational objectives.    Supplies – Educational materials such as lab, calculators or other educational aids.    Tuition and fees – Payment to the educational institution for enrollment and actual teaching.    Qualified education loans – Principally along with certain interest meeting the IRS standards.    Loan payments – Payments which decrease the total outstanding balances on qualifying student loans.  Effective Date  Benefits that are associated with educational assistance from the employer covers payments made from March 27, 2020, to January 1, 2026. Payments such as the principal or interest of any qualified education loan which the employee incurs in the course of a qualifying education. For flexibility in distributing benefits, payments may be made in any of the following ways: Direct payment to the educational provider (colleges, universities, trade schools, etc.)   Direct payment to the lender of the employee’s student loan   Direct payment to the employee in the form of cost reimbursement associated with the qualified expenses    Employers can design any of the reimbursement programs to satisfy organizational goals and employee needs because of this flexibility.    This flexibility allows employers to design programs that support both their business goals and the needs of their employees.  The maximum limit of educational assistance benefits which can be provided without any tax for an employee in a year is $5250.     Any dollar above this limit is regarded to be a part of the employee’s income which is taxable as gross wages.    The $5250 annual limit will be adjusted for cost-of-living increases for the following years which will commence in 2026. This allowance will ensure that the limit is relevant with the conditions of the year.   Employers and employees may refer to the following for additional clarification: IRS Publication 15-B – Employer’s Tax Guide to Fringe Benefits. IRS Publication 970, Chapter 10 – Tax Benefits for Education which outlines some of the basic qualified student loan assistance programs. Not every expense is tax deductible. They are referred to as the ineligible expenses which are:    Any expenses associated with meals, cost of lodging, and transport expenses    Tools or supplies ( Other than text books)  that a student can keep after the course, for example, a personal computer which is not a requirement for the course and, in some cases, is demanded by the educational institution.  Education or Employee’s Spouse or dependent.   Courses in sports, games, or hobbies, unless:   The Course is part of the employer’s sponsored Degree Completion Program or have a reasonable relationship to the employer’s business.  Employer Take Away Corporate strategies put in place to aid employees in pursuing education remains a tactical approach to enhancing the business’s return on investment. The employer will:   Reduce the financial burden of the employees   Foster employee commitment and retention   Create a beneficial value proposition to attract high skilled talent in the market   Encourage further advancement of career growth   The bottom line of these strategies is a mutually beneficial approach. Employees are provided with financial and career advancement aid, while employers gain an increase in engagement, commitment, and skill in the workforce.  Connect with SAI CPA Services — Tax Preparation For help coordinating employer educational assistance with your personal or business tax filings, connect with SAI CPA Services:  Tax Preparation for Individuals & Businesses — SAI CPA Services. Contact Us

Secure your Tax Information The IRS and Security Summit partners are reminding tax professionals and taxpayers about tools to fight tax-related identity theft. Two key resources are the IRS Identity Protection PIN (IP PIN) and the IRS Online Account. IP PIN Program Highlights A six-digit number known only to the IRS and the taxpayer  Helps prevent identity theft and filing fraudulent returns Voluntary but strongly encouraged Renewed annually Must be obtained directly by the taxpayer via the IRS website Never share your IP PIN except with a trusted tax preparer IRS Online Account Benefits Secure access to personal tax information  Prevents fraudsters from creating fake accounts Allows taxpayers to share data with their tax professional Tax Pro Account Features Manages client authorizations securely  Sends requests for power of attorney or tax info directly to clients Helps protect sensitive client data Multi-Factor Authentication (MFA) Tax professionals are legally required to use MFA to protect client data. MFA adds a layer of security by requiring two or more verification factors—such as a password, a phone code, or a fingerprint—to access systems. This makes it much harder for unauthorized users to gain access, even if one factor is compromised. Best practices include:  Using MFA across all systems Updating MFA methods regularly Never sharing usernames Securing tax software and cloud storage The IRS encourages tax pros to attend the Nationwide Tax Forums and stay informed via IRS e-News and social media.   Taxpayer And Tax Professional Resources For taxpayers and tax professionals, following IRS guidance is crucial. Resources to follow include:    Nationwide Tax Forums. Educational seminars and workshops provide important updates on tax policy and identity theft prevention.   IRS e-News bulletins. Electronic bulletins delivering significant updates on tax information and security.   IRS social media handles. Provides timely updates and important announcements to keep taxpayers and tax professionals informed of current and emerging threats.   Taxpayers are informed of new tools, protective measures, and the emerging threats are better positioned to take proactive measures towards their financial security.  Concluding Remarks Protecting sensitive tax information is the responsibility of the taxpayer, tax preparers, and the Internal Revenue Service. Utilizing tools like the IP PIN, IRS Online Account, and MFA helps mitigate the risks of identity theft and fraud pertaining to tax documents. These safeguards, paired with educational tax resources and IRS communications, help taxpayers remain empowered to manage their identity and vital information effectively.  Learn more at IRS.gov  Reach out to Sai CPA Services today for professional and reliable tax preparation services , ensuring your taxes are handled accurately, efficiently, and in full compliance with all applicable regulations.  Contact Us

Educator Expense Deduction: A Back-to-School Tax Benefit As the academic year starts, many teachers and school employees reach into their pockets to spend money on supplies, books, and other materials required for teaching. The good news is the Educator Expense Deduction is here to assist. This tax relief allows teachers, counselors, and other qualifying instructors to deduct certain out-of-pocket expenses, thereby financially assisting them and reducing their taxable income.  Who Is Eligible to Use the Deduction? To qualify for the Educator Expense Deduction, there are certain out-of-pocket expenses that need to be incurred by the individual:    Profession: The individual must be a teacher, instructor, counselor, principal, or aide.    Grade Level: The individual must work with students in kindergarten through grade 12.    Hours Worked: The individual must work a minimum of 900 hours during the school year (approximately half-time or more).    School Recognition: You must be employed by a school that offers elementary or secondary education according to state law. This includes both public and private schools.    How Much Can Be Deducted? The deduction allows educators to claim a tax-free deduction for expenses incurred in the form of classroom materials:    Up to $300 for eligible educators.    Married educators filing together can deduct up to $600  Each person can only claim up to $300   What Expenses Can You Deduct? The expenses you withdraw must pertain to your teaching context, not subject to reimbursement from your school, and self-paid. Some common expenses that qualify include:    Fees for professional development courses  Books and classroom supplies  Computers, software, and tech services  Other materials used for teaching  Why This Deduction Matters Teaching, a passion for many, is a difficult vocation, as is the reality for many, it means purchasing classroom and other educational materials out of their own pocket. The educator tax deduction eases the burden on personal spending by offering tax savings. This deduction is available for eligible educators and can be claimed even if you do not itemize on your tax return, making it all the more useful.  Pro Tip: Retain all receipts and documentation tied to purchases made for your classroom. It will streamline the filing process during tax season while guaranteeing maximum benefit from the deductions.   Every dollar matters and claiming this deduction is not only a tax benefit, but a testament to your unwavering support for students and the education ecosystem.   Need assistance filing your taxes? If the thought of tax filing is overwhelming, SAI CPA Services is ready to assist.  Our team of highly qualified accountants specializes in tax filing, bookkeeping and business valuation services. We are committed to guiding you through the process of identifying eligible deductions and maximizing your tax refund.  Your trusted CPA in East Brunswick – SAI CPA Services. Contact Us

The Employer-Provided Childcare Tax Credit: A Comprehensive Guide for Businesses In an increasingly competitive labor environment, assistance with childcare has become an asset, not a perk. The Employer-Provided Childcare Tax Credit offers a strategic advantage for organizations committed to easing the childcare burden on their workforce. By subsidizing the qualifying expenses associated with childcare assistance programs, the credit forges a win-win: enhanced employee retention and a measurable reduction in operating costs. Defining the Employer-Provided Childcare Tax Credit The Employer-Provided Childcare Tax Credit is a federal incentive that reimburses qualifying expenses incurred in the provision of childcare services to employees. Under the Internal Revenue Code, the credit is calculated as a percentage of eligible expenditures, allowing organizations to recoup a portion of what they invest in on-site or contracted childcare solutions. By translating these costs into a dollar-for-dollar reduction in federal tax liability, the credit lowers the effective price of childcare assistance, motivating more firms to embrace what, until recently, may have felt like a disproportionate burden. Eligible expenditure includes the direct costs of maintaining an on-site facility, as well as the expenses associated with identifying and subsidizing vetted external care providers, thereby broadening the tactical choices available to human resources and finance leaders. As a trusted CPA in New Jersey, we help businesses understand how the credit is calculated as a percentage of eligible expenditures. Covered Expenses Under the Credit Employers may claim the credit for several types of childcare-related outlays intended to enhance employee welfare in the context of childcare accessibility and affordability. The credit specifically targets expenditures that reflect a direct, demonstrable advantage to the workforce, particularly in local labor markets where accessible, affordable childcare options are in short supply. Qualified expenses under the Employer-Provided Childcare Tax Credit are as follows: Childcare Facilities: Costs incurred in the creation, improvement, or ongoing upkeep of onsite or employer-sponsored childcare centers are eligible. This encompasses expenditures for the initial construction of new facilities, renovations to meet regulatory or safety requirements, and routine maintenance that keeps the environment both operable and secure for the children of employees. Childcare Referral Services: Expenses incurred in engaging third-party referral agencies to assist employees in locating appropriate childcare providers may also be claimed. For instance, a corporation that retains a referral firm to identify licensed daycare centers, nanny agencies, or informal in-home caregivers can claim a percentage of the contract fees in the credit computation. Financial Impact: Maximum Amount of Credit The Employer-Provided Childcare Tax Credit can yield significant fiscal relief. The design of the credit is to reimburse firms for a segment of childcare-related outlays, thereby incentivizing the provision of such services or financial support. The percentage of credit is a fixed multiplier applied to the qualifying expenses of the business, with limits permitting substantial recovery, thereby easing the overall cost of retaining a workforce burdened by childcare needs. Employers reap several financial incentives: A tax credit reaching $150,000 annually is available for qualifying childcare expenditures.  A rebate of 10 percent is granted on costs for childcare referral services, thus rescinding part of the financial burden associated with matching staff to dependable care providers.  A 25-percent rebate applies to direct outlays for establishing and sustaining onsite childcare facilities. The elevated percentage acknowledges the considerable capital and operational commitment these facilities demand. Who Is Eligible to Claim the Employer-Provided Childcare Tax Credit? Any employer that incurs outlays aimed at bolstering childcare access for its workforce is entitled to the credit. The eligibility umbrella encompasses sole proprietorships, cooperatives, international firms, and virtually any enterprise structure. Vigilance is necessary, however, to guarantee that expenditures strictly conform to defined qualifying criteria. Qualified Employers Consist of: Small Enterprises: Firms meeting the Small Business Administration’s definition whose ownership chooses to reinvest profit into employee-centered services.  Large Firms: Corporations of any scale that direct financial, managerial, and physical capital into either onsite care centers or subsidies for out-of-pocket child-rearing costs endured by employees. Nonprofits and Government Entities: Agencies that are not typical for-profit corporations may nevertheless claim the credit by offering childcare support to their workers. Qualifying Expenses Only specific childcare-related costs may be considered for the credit. To remain compliant, organizations must correctly identify eligible expenses. The following categories generally meet the criteria:  Construction or renovation of a childcare center: Expenditures for erecting, remodeling, or keeping up a facility solely for the care of employees’ dependents.  Day-to-day operating expenses: This category includes salaries for childcare staff, costs for their training, and the acquisition of equipment and supplies essential for running the center.  Enhanced compensation or educational grants for staff: Any extra remuneration or educational support a nonprofit provides to recruit or improve the training of skilled childcare personnel will count toward the credit.  Payments to independent childcare providers: Expenses incurred when contracting a third-party center to care for employees’ children are also eligible for reimbursement under the credit. How to Claim the Employer-Provided Childcare Tax Credit Businesses wishing to take advantage of the Employer-Provided Childcare Tax Credit must adhere to specific procedural requirements. Although the overall process is uncomplicated, accuracy in completing the requisite documentation is vital to confirming the credit’s applicability. Steps for Claiming the Credit: Complete IRS Form 8882: To obtain the Employer-Provided Childcare Tax Credit, businesses must prepare Form 8882 (Credit for Employer-Provided Childcare Facilities and Services). The form necessitates comprehensive disclosure of qualifying expenditures and their connection to the enterprise’s childcare offerings. Incorporate the Credit Within the General Business Credit: The childcare credit is filed as one component of the general business credit. If the enterprise cannot fully utilize the credit within the taxable year, it may elect to carry the unused portion back one year or forward for as many as 20 ensuing years, thereby extending the credit’s financial advantages to later reporting periods. For Pass-Through Entities: Organizations structured as pass-through entities, including S corporations, limited liability companies (LLCs), or partnerships, must reflect the childcare credit on Form 3800 (General Business Credit), thereby ensuring correct integration into the overall business credit calculations. Special Considerations and

Filing Late? What You Need to Know Before October 15 Tax Deadline If you’ve requested a tax extension, don’t forget that the final deadline for submitting your federal return is Wednesday, October 15, 2025. Here’s what you can do to ensure your filing is accurate, timely, and stress-free. File Early to Avoid Last-Minute Stress Many people wait until the last day to file, but if you have all the necessary documents, there’s no reason to procrastinate. Filing early lets you double-check your entries and catch mistakes before they become costly errors. Procrastination often leads to missed deductions or incomplete information, so it’s best to tackle your tax return as soon as you’re ready. E-Filing: Quick, Safe, and Efficient The fastest and most secure way to file is electronically. E-filing speeds up submission, and direct deposit ensures your refund arrives sooner than paper checks. If you’re due a refund, e-filing is the way to go to minimize delays. Extended Deadlines for Disaster Areas If you live in a FEMA-declared disaster area, you might be eligible for an extension beyond the October 15 deadline. Always check IRS.gov for the latest updates on your eligibility and any additional filing relief available to you. Free Filing Options for Eligible Taxpayers IRS Free File is available until October 15, 2025, for qualified taxpayers, allowing you to e-file for free. This program also offers guided preparation, helping you claim all eligible credits, including the Earned Income Tax Credit (EITC). Local Tax Assistance Programs If you qualify, programs like Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) provide free filing help for low-income taxpayers, seniors, individuals with disabilities, and non-English speakers. These resources ensure you file accurately and take full advantage of tax credits. Professional Tax Help For more complicated filings, licensed tax professionals can guide you through the process, identify eligible deductions, and ensure compliance with tax laws. At Sai CPA Services, we specialize in handling both individual and business tax filings, from simple returns to complex multi-entity submissions.  Addressing Tax Liabilities If you owe taxes, it’s important to pay what you can to reduce penalties and interest. The IRS offers various online payment options, making it easy to settle your balance in a timely manner. Visit IRS.gov for more details on payment plans and options.  Stay Ahead: File Early and Use Free Resources To avoid last-minute panic, get started as soon as you have all the necessary documents. Take advantage of free filing tools, and if your situation is more complex, consider professional tax preparation. At Sai CPA Services, we’re ready to help you navigate your taxes, ensuring your filing is precise and submitted on time.  Avoid waiting for the last minute. File early, use available resources, and consult a tax professional for peace of mind before the October 15 deadline.  Ready to file? Contact Us for tax preparation service! Contact Us

New Tax Deductions For Working Americans And Seniors “No Tax on Tips” Deduction Deduction Amount: Up to $25,000 annually. Eligible Tips: Voluntary cash/charged tips reported on W-2, 1099, or Form 4137. Who Qualifies: Employees and self-employed individuals in tip-eligible occupations (per IRS list by 10/2/2025). Exclusions: SSTB individuals or employees of SSTBs are ineligible. Income Phaseout: Over $150,000 ($300,000 joint). Eligibility: Available whether itemizing or not. Requirements: SSN must be included; must file jointly if married. Reporting: Employers/payors must report tip data and occupation. Transition Relief: IRS to provide for tax year 2025. “No Tax on Overtime” Deduction Deduction Amount: Up to $12,500 ($25,000 for joint filers). Eligible Income: Overtime pay above regular rate per FLSA; must be reported on W-2/1099. Income Phaseout: Over $150,000 ($300,000 joint). Eligibility: Both itemizers and standard deduction filers. Requirements: Must include SSN; joint return required if married. Reporting:  Employers/payors must report total qualified overtime pay. Transition Relief: IRS will ease compliance for 2025. “No Tax on Car Loan Interest” Deduction Deduction Amount: Up to $10,000/year. Eligible Loans: Originated after 12/31/2024, secured by new, U.S.-assembled personal-use vehicles. Income Phaseout: Over $100,000 ($200,000 joint). Refinanced Loans: Still eligible if original loan qualified. Requirements: Must include VIN on tax return. Reporting: Lenders must report qualified interest to IRS and borrower. Eligibility: Standard and itemized filers. Senior Deduction Amount: $6,000 per eligible individual (age 65+); $12,000 for qualifying couples. Phaseout: Over $75,000 ($150,000 joint). Eligibility: Available to all filers with SSN; joint filing required if married. Contact Us

Sai CPA Services: Key Tax Updates from the One Big Bill A new era of tax reform has arrived.President Trump has signed the One Big Beautiful Bill Act, a sweeping 1,200-page legislation that reshapes taxes, benefits, and business regulations. Whether you’re a business owner, working professional, or retiree, these changes will likely affect you. At Sai CPA Services, a trusted CPA in New Jersey, we break down the key updates and explain how our tax preparation services can help you make the most of them. What’s Changing? Here Are the Highlights: Individual Tax Rates – Locked In Good news! The lower rates (10%–37%) from the 2017 Tax Cuts and Jobs Act are now permanent. Standard Deduction Gets a Boost Individuals: $15,750 Married couples: $31,500 SALT Deduction Returns – But Not Forever Deduct up to $40,000 in 2025 Reverts to $10,000 by 2029(with income limits) Bonus for Seniors If you’re over 65 and earn less than $150,000 (joint), you qualify for an extra $6,000 deduction through 2028. Child Tax Credit Now $2,200 per child, with $1,700 permanently refundable. Tips & Overtime Deduction Tips: Up to $25,000 Overtime: Up to $12,500 per person(phases out at $150k/$300k) New Car Loan Interest Deduction Deduct up to $10,000 for interest on loans for U.S.-assembled vehicles. 529 Plans Expanded Use your education savings for: K–12 books Tutoring Career training Therapies Support for Small Businesses 20% income deduction is now permanent Bonus Depreciation: 100% stays Section 179 limit: raised to $2.5M Estate Tax Relief Estates up to $15M (single) and $30M (joint) exempt from federal estate tax starting 2026. Education & Loan Updates Caps have been added for federal student loans: Grad students: $20,500/year, $100,000 lifetime Medical/Law students: $50,000/year, $200,000 total Immigration & Money Transfers Some legal immigrants lose access to ACA/Medicaid 1% tax on money sent abroad ICE funding increased by $59 billion What Should You Do Next? Whether you’re planning for retirement, running a business, or sending your child to college—these changes can affect your financial decisions. Let Sai CPA Services, your experienced CPA in New Jersey, help you navigate these updates with expert tax preparation services designed for real results. Let’s Talk Strategy This blog is for informational purposes only. For advice tailored to your specific situation, book a consultation with Sai CPA Services today. Smart. Strategic. Stress-Free.That’s how we do taxes. Sai CPA Services Professional Tax Preparation Services in New JerseyTrusted. Experienced. Proactive. Contact Us

Is It Really the IRS? Protecting yourself against identity theft starts with knowing how the IRS really communicates. Here’s what taxpayers should watch across key channels: Electronic Communication IRS never initiates contact via email, text, or social media. Beware of phishing emails or fake social accounts posing as IRS. Fraudulent texts may mention “stimulus payments” or “tax credits”. These scams often link to fake IRS websites or tools. IRS only texts if you’ve explicitly subscribed and shared contact info. Letters and Notices IRS contact begins with a physical letter or notice. To verify authenticity: Log into your IRS Online Account. Use the Understanding Your IRS Notice or Letter guide. Call IRS customer service directly. Cross-check Taxpayer Authentication Numbers if contacted by a private collection agency. Phone Calls IRS may call after sending a letter or notice. Real agents don’t leave threatening voicemails or demand urgent action. Scammers may falsely threaten legal consequences or demand callback. Private collection agencies may call, but only after written notification. IRS will never request payments via prepaid/store gift cards. Visit IRS.gov/payments for trusted payment options. In-Person Visits IRS has ended most unannounced visits for taxpayer and employee safety. Stay informed and cautious — scammers prey on trust. Always verify before responding. Contact Us

Digital Diligence Tax pros must protect taxpayer data—it’s a legal and ethical responsibility. The IRS, state agencies, and the tax industry (Security Summit) emphasize shared responsibility. Gramm-Leach-Bliley Act mandates security plans for data protection. Key Resources IRS Publication 4557– Step-by-step guidance on creating a security plan. NIST InfoSec Guide– Small business framework: Identify, Protect, Detect, Respond, Recover. IRS Publication 1345– Covers e-file privacy and security responsibilities. Preventative Actions Recognize phishing attempts; the IRS never initiates contact via email for sensitive data. Create and maintain a written data security plan. Use antivirus/malware protection across all devices; auto-update software. Apply strong, unique passwords (8+ characters), secure all wireless devices. Encrypt sensitive files/emails, backup data securely offline. Review return data—especially banking info—before filing. Destroy devices that store sensitive data when no longer used. Monitor IRS e-Services for suspicious filing activity. Signs of Data Theft Duplicate filings or suspicious IRS letters (5071C, 4883C, etc.) Unexpected refunds, transcripts, or online account notices. Sluggish system performance, unexplained screen actions. EFIN return volume exceeding expected totals. Stay Vigilant Check daily e-File acknowledgements and weekly EFIN/PTIN reports. Maintain accurate EFIN/PTIN and CAF authorizations. Use two-factor authentication for IRS online tools. If Data is Lost Contact IRS Stakeholder Liaison, law enforcement, and state agencies. Consult with cybersecurity experts and your insurer. Stay Informed Subscribe to IRS e-News, QuickAlerts, and follow social media for scam updates. Contact Us