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10/10/2025

Recent IRS Enforcement Against Ghost Tax Preparers

The IRS remains committed to protecting taxpayers by rigorously pursuing and prosecuting unethical or fraudulent tax preparers. Recent enforcement actions highlight how the IRS is holding fraudulent tax preparers accountable and are a critical part of maintaining integrity and public trust in the tax system. The IRS Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS, responsible for conducting investigations into financial crimes, including tax fraud. The IRS-CI investigated the following scheme, which generated over $1 million in fraudulent tax refunds.

In August 2025, a tax preparer, who operated a “ghost” tax preparation business in Augusta, GA, was sentenced to 22 months in federal prison and ordered to pay $541,912 in restitution for defrauding the IRS. She operated as a “ghost” preparer because she failed to identify herself as a paid preparer on the tax returns that she prepared and filed for her clients. As a “ghost” preparer, the tax preparer fabricated income to qualify her clients for tax credits, claimed fake deductions to boost the size of the refund, and charged clients a fee based on a percentage of the tax refund.

“Not signing off on a tax return is just one of the signs someone is acting as a ghost preparer,” said Special Agent in Charge Demetrius Hardeman, IRS CI, Atlanta Field Office. “Today’s sentencing is an example of IRS Criminal Investigation special agents working diligently to protect taxpayers from dishonest tax preparers and a notification to the public of just one scheme utilized by ghost tax preparers.”

09/12/2025

NEWS FROM THE JUSTICE DEPARTMENT'S TAX DIVISION:

A Nevada tax return preparer of Las Vegas pleaded guilty to advising clients to commit tax evasion. According to court documents and statements made in court, he operated a tax and accounting business known as X Tax Pros. From 2015 through April 2025, he promoted a fraudulent tax avoidance scheme called the “Special Tax Shelter Strategy,” promising clients that if they paid him certain “fees,” he could prepare a tax return that eliminated the clients’ taxes owed to the IRS and, in most cases, create a large tax refund. He charged the clients tens of thousands of dollars in fees, which the clients paid from the refunds they received from the IRS.

In total, he caused a tax loss to the United States of more than $3.5 million. He is scheduled to be sentenced on Dec. 8 and faces a maximum penalty of five years in prison.

04/04/2025

Tax returns for 2024 are due on April 15, 2025, except for taxpayers in a disaster area, combat zone, or living and working abroad. April 15 is the deadline for making tax payments to avoid late charges, such as interest and the late payment penalty.

The IRS urges those who cannot pay their entire balance to file and pay as much as they can on or before April 15. Filing on time avoids the late filing penalty, usually 5% per month on the unpaid balance.

In addition, by paying at least part of what they owe on time, taxpayers can reduce the interest and late payment penalty that will be added to any payments made after April 15. Currently, the interest rate is 7% per year, compounded daily, and the penalty rate is usually 0.5% (one-half of one percent) per month.

The IRS cautions that requesting an extension is not a solution because it only gives more time to file, not more time to pay.

12/28/2024

The Internal Revenue Service reminds you to:

Wait to file until you have your tax records including:
• Forms W-2 from your employer(s)
• Forms 1099 from banks, issuing agencies, and other payers including unemployment compensation, dividends, pension, annuity, or retirement plan distributions
• Form 1099-K, 1099-MISC, W-2, or other income statement if you worked in the gig economy
• Form 1099-INT if you were paid interest
• Other income documents and records of digital asset transactions
• Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance payments or claims Premium Tax Credits for 2022 Marketplace coverage
• IRS or other agency letters
• CP01A Notice with your new Identity Protection PIN
Notify the IRS if your address changes and notify the Social Security Administration of a legal name change.
Remember, most income is taxable. This includes:
• unemployment income,
• interest received,
• income from the gig economy, and
• digital assets.

10/25/2024

Taxpayers are encouraged to safeguard their identity by signing up for an identity protection personal identification number (IP PIN) before Nov. 23. After this date, the IP PIN system will not be available again until early January. A taxpayer’s identity will be safeguarded during the filing season if they register for an IP PIN now. New IP PINs are generated for the 2025 filing season during this period, so online enrollees must retrieve their new IP PINs starting in early January 2025. The IRS encourages taxpayers to sign up for an IRS Online Account, which provides a quick and easy way to obtain an IP PIN.

08/23/2024

CLASSROOM EXPENSE DEDUCTIONS 2024
The IRS reminds school teachers that the maximum deduction for classroom expenses 2024 remains $300.
This deduction allows educators to offset the cost of supplies, materials, and other classroom essentials, providing some financial relief for those who spend money to improve their students' learning experience.
This deduction is available for teachers, instructors, counselors, principals, and aides who work at least 900 hours a school year in a school providing elementary or secondary education.

02/02/2024

To check your IRS 2023 refund, go to:
https://sa.www4.irs.gov/wmr/
Or using your mobile device, go to: https://www.irs.gov/help/irs2goapp

Download the IRS2Go mobile app. Check your refund, make a payment and find free tax help right from your phone.

10/06/2023

ART DONATION SCHEMES
The Internal Revenue Service warns taxpayers to watch for promotions involving exaggerated art donation deductions that can target high-income filers and offers special tips for people to use to avoid getting caught in a scheme.
There are ways for taxpayers to claim art donations; however, some unscrupulous promoters may use direct solicitation to promise values of art that are too good to be true. These promoters persuade taxpayers, usually high-income taxpayers, to purchase the art, wait to donate the art, and then take an incorrect deduction for the art donated.

09/01/2023

The Internal Revenue Service today announced that starting Jan. 1, 2024, businesses will electronically file (e-file) Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return. This new requirement follows final regulations amending e-filing rules for information returns, including Forms 8300.

Businesses receiving over $10,000 in cash must report transactions to the U.S. government. Although many cash transactions are legitimate, information reported on Form 8300 can help combat those who evade taxes, profit from the drug trade, engage in terrorist financing, or conduct other criminal activities. The government can often trace money from these illegal activities through payments reported on Forms 8300 that are timely filed, complete, and accurate.

The new requirement for e-filing Forms 8300 applies to businesses mandated to e-file certain other information returns, such as Forms 1099 series and Forms W-2. Electronic filing and communication options will be more straightforward and make it easier to interact with the IRS. Beginning in 2024, businesses must e-file all Forms 8300 (and other information returns required in a given calendar year) if they file at least 10 information returns other than Form 8300.

07/08/2023

A new scam mailing tries to mislead people into believing they are owed a tax refund.
The new scheme involves a mailing arriving in a cardboard envelope from a delivery service. The enclosed letter includes the IRS masthead and wording that the notice is "in relation to your unclaimed refund."
Like many scams, the letter includes contact information and a phone number that does not belong to the IRS. But it also seeks a variety of sensitive personal information from taxpayers – including detailed pictures of driver's licenses – that can be used by identity thieves to try to obtain a tax refund and other sensitive financial information.
"This is just the latest in the long string of attempts by identity thieves posing as the IRS in hopes of tricking people into providing valuable personal information to steal identities and money, including tax refunds," said IRS Commissioner Danny Werfel. "These scams can come in through email, text, or even in special mailings. People should be careful to watch out for red flags that clearly mark these as IRS scams."

05/05/2023

The Internal Revenue Service announced "going green" could help taxpayers qualify for expanded home energy tax credits.
Making special energy-efficient updates to your home could qualify you for home energy tax credits. Homeowners who improve their primary residence will find the most opportunities to claim credit for qualifying expenses. Renters may also be able to claim credits, as well as owners of second homes used as residences. Landlords cannot claim this credit.

03/03/2023

IRS warns of new filing season scams involving Form W-2 wages

The IRS issued a consumer alert to warn taxpayers of new scams that urge people to use wage information on a tax return to claim false credits in hopes of getting a big refund. One scheme, which is circulating on social media, encourages people to use tax software to manually fill out Form W-2 Wage and Tax Statement, and include false income information. Two variations of this scheme are also being seen by the IRS; both involve misusing Form W-2 wage information in hopes of generating a larger refund. The IRS reminds people who file fake returns will face a range of penalties. Anyone who has participated in one of these schemes can amend a previous tax return or consult with a trusted tax professional.