TAX TABS

03/30/2026

*🚨 What Triggers an IRS Audit*

👉 “The IRS may be quiet… but it’s not blind.”

Many taxpayers assume audits are random, but in reality, they are often driven by patterns. Large deductions compared to income, mismatches between reported income and IRS records, and poor documentation are some of the most common triggers. When numbers don’t align, it increases the likelihood of your return being reviewed more closely.

The goal is not to avoid deductions, but to ensure they are accurate, reasonable, and properly documented. Legitimate deductions are allowed — the key is consistency and support. When everything is reported correctly and backed by proper records, you can reduce audit risk while still maximizing your tax benefits.

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📩 Call to Action

Concerned about audit risk or unsure if your numbers look right?
Message me and I’ll review it with you before it becomes a problem.

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📍 Tax Tabs | Melville, NY

📍 25 Melville Park Road
Melville, NY 11747
📞 917-774-3436

03/28/2026

🚗 Write Off Your Car the Right Way

Many business owners believe they can simply write off their entire car, but the reality is more nuanced. The IRS allows you to deduct vehicle expenses based on business use, not personal use. This means you must track how much you actually use your vehicle for business purposes, whether you use the standard mileage method or the actual expense method.

When structured properly, your vehicle can become a powerful tax-saving tool. In some cases, you may qualify for accelerated depreciation, allowing for larger deductions upfront. However, improper claims or lack of documentation can create issues. The key is understanding the rules, choosing the right method, and maintaining proper records to maximize your deduction while staying compliant.

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📩 Call to Action

Using your vehicle for business and want to make sure you’re doing it right?

Contact me and I’ll help you maximize your deduction.

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📍 Tax Tabs | Melville, NY

📍 25 Melville Park Road
Melville, NY 11747
📞 917-774-3436

03/25/2026

*📊 Started a Business? Don’t Wait Until Tax Time*

Many new business owners focus on generating income but overlook taxes and bookkeeping until year-end. But business isn’t just about making money — it’s about managing it with discipline and foresight. Ignoring the foundation early often leads to missed deductions, unexpected tax bills, and costly cleanup later.

The right approach is to set things up properly from the start — structure, bookkeeping, and compliance. A well-organized business reflects a clear mind; when your numbers are in order, your decisions become stronger. Building it right from day one doesn’t just keep you stress-free — it puts you in control and positions you for long-term success.

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📩 Call to Action

Starting a business or need help setting things up properly?
Contact me — I’ll guide you every step of the way.

👉 Join my WhatsApp channel for daily tax tips & updates (link below)

https://whatsapp.com/channel/0029VbCD1y02ZjCnvhT1O11S
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📍 Tax Tabs | Melville, NY

📍 25 Melville Park Road
Melville, NY 11747
📞 917-774-3436

03/23/2026

03/21/2026

*🧾 Tax Tabs | Working From Home? You Could Be Missing a Legitimate Tax Deduction*

Many business owners and self-employed individuals work from home but fail to take advantage of the home office deduction due to confusion or uncertainty. If you use a portion of your home regularly and exclusively for business, you may be able to deduct a percentage of your rent, mortgage interest, utilities, internet, and other related expenses. When calculated properly, this can lead to meaningful and fully legitimate tax savings.

It’s important to note that this deduction is generally available to self-employed individuals and business owners. Simply working from home as a W-2 employee does not automatically qualify under current federal tax rules. The key is applying the rules correctly — the space must be used strictly for business, and the deduction should be based on the actual portion of your home used. Done right, it can reduce your taxable income and save you money every year.

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📩 Call to Action

Running a business from home and need more information? Contact me to see how much you may be able to save.

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📍 Tax Tabs | Melville, NY

📍 25 Melville Park Road, Melville, NY 11747
📞 917-774-3436

03/20/2026

*The IRS Already Has Your 1099 — Not Reporting It Can Cost You*

Many taxpayers believe that if they did not receive a 1099 form, they are not required to report that income. This is a costly mistake. In most cases, the IRS already receives a copy of your 1099 directly from the payer. Whether it’s from contract work, side income, or online platforms, failing to report this income can quickly trigger IRS notices and penalties.

Even small mismatches between what you report and what the IRS has on file can lead to automated letters, adjustments, and additional tax assessments. The safest approach is to report all income accurately, even if you did not physically receive the form. Proper reporting not only keeps you compliant but also protects you from unnecessary stress, penalties, and potential audits. Message me before it becomes a problem.

Tax Tabs
25 Melville Park Road
Melville, NY 11747
📞 917-774-3436

Helping individuals & businesses make smarter financial decisions.

02/26/2026

New York business owners — is your accounting working for you or against you? 📊
At TAX TABS, we help you stay compliant, organized, and ready for growth.
Bookkeeping, tax planning, payroll & business funding prep — all in one place.

📞 Call 718-487-4448 today.

06/13/2025

What's Your Business Exit Strategy?

Ever since you became a business owner, you’ve focused on growing revenue, managing expenses and leveraging tax advantages. But don’t overlook a critical element of your long-term financial well-being, that is, a business exit strategy. Ideally, your exit strategy will help you meet your retirement and estate planning goals.

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06/08/2024

*Tax records: What can you toss and what should you keep?*

Tabassum Ali

Generally, the IRS has three years to audit a tax return, from the later of the due date of the return or the date you file. You can also file an amended return within this time frame if you overlooked something.

Here’s what you need to know about keeping financial records involved in your tax returns.

Federal tax records
Despite the three-year guideline, many tax advisors recommend retaining copies of your finished tax returns indefinitely to prove that you filed. Even if you don’t keep returns indefinitely, at least keep them for six years after the returns are due or filed, whichever is later.

It’s a good idea to keep the records that support items on your individual tax returns until the three-year statute of limitations runs out. Examples of supporting records include canceled checks, charitable contributions receipts, and documents showing your mortgage interest payments and retirement plan contributions. These documents may also support an amended tax return if you find you overlooked something.

So which records can you throw away today? Generally, based on the three-year rule, you’ll soon be able to throw out most records associated with your 2020 return if you filed by the due date (which was extended to May 17, 2021, due to the pandemic). Extended 2020 returns could still be vulnerable to audit until October 15, 2024.

Read more on this topic

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*Tax Tabs*
10170 Lefferts Blvd
Suite 2
South Richmond Hill NY 11419

917-774-3436

01/02/2024

*What Are Estimated Tax Payments?*

*Tabassum Ali*
January 2nd, 2024

Estimated tax is the method used to pay tax on income not subject to withholding, such as income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. You also may have to pay an estimated tax if the income tax being withheld from your salary, pension, or other income is insufficient. Here's what you should know about estimated tax payments:

Filing and Paying Estimated Taxes

Both individuals and business owners may need to file and pay estimated taxes, which are paid quarterly. The first estimated tax payment of the year is ordinarily due on the same day as your federal tax return is due.

If you are filing as a sole proprietor, partner, S corporation shareholder, or self-employed individual and expect to owe tax of $1,000 or more when you file your return, you generally have to make estimated tax payments. . If you are filing as a corporation and expect it to owe tax of $500 or more when you file its return, you generally have to make estimated tax payments for your corporation.

If you had a tax liability for the prior year, you might have to pay estimated tax for the current year. but, if you receive salaries and wages, you can avoid having to pay estimated tax by asking your employer to withhold more tax from your earnings. To do this, file a new Form W-4 with your employer. There is a special line on Form W-4 for you to enter the additional amount you want your employer to withhold. You had no tax liability for the prior year if your total tax was zero or you did not have to file an income tax return.

Special rules apply to farmers, fishermen, certain household employers, and certain higher taxpayers. Please call the office for assistance if any of these situations apply to you.

Who Does Not Have to Pay Estimated Tax
You do not have to pay estimated tax for the current year if you meet all three of the following conditions:

You had no tax liability for the prior year
You were a U.S. citizen or resident for the whole year
Your prior tax year covered a 12-month period

Calculating Estimated Taxes

To figure out your estimated tax, you must calculate your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year. If you estimated your earnings too high, complete another Form 1040-ES, Estimated Tax for Individuals, worksheet to re-figure your estimated tax for the next quarter. If you estimated your earnings too low, again complete another Form 1040-ES worksheet to recalculate your estimated tax for the next quarter.

Try to estimate your income as accurately as possible to avoid penalties due to underpayment. Most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholding and credits or if they paid at least 90 percent of the tax for the current year or 100 percent of the tax shown on the return for the prior year, whichever is smaller.

When figuring out your estimated tax for the current year, it may be helpful to use your income, deductions, and credits for the prior year as a starting point. Use your prior year's federal tax return as a guide, and use the worksheet in Form 1040-ES to figure your estimated tax. However, you must adjust to any changes in your situation as well as recent tax law changes.

Estimated Tax Due Dates

For estimated tax purposes, the year is divided into four payment periods, each with a specific payment due date. For the 2023 tax year, these dates are April 18, June 15, and September 15, 2023, and January 16, 2024.

If you file your 2023 tax return by January 31, 2024, and pay the entire balance due with your return, you do not have to pay estimated taxes in January.

If you do not pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return.

Electronic Federal Tax Payment System

The easiest way for individuals and businesses to pay their estimated federal taxes is to use the Electronic Federal Tax Payment System (EFTPS). Make ALL of your federal tax payments, including federal tax deposits (FTDs), installment agreements, and estimated tax payments, using EFTPS. If it is easier to pay your estimated taxes weekly, bi-weekly, monthly, etc., you can, as long as you have paid enough by the end of the quarter. Using EFTPS, you can access a history of your payments to know how much and when you made your estimated tax payments.

Don't hesitate to call if you have any questions about estimated tax payments or need assistance setting up EFTPS.

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TAX TABS
10170 Lefferts Blvd
Suite 1
South Richmond Hill NY 11419
917-774-3436
www.taxtabs.com

12/27/2023

The Ins and Outs of the Home Office Deduction

The pandemic changed the landscape of work for a lot of people, including the numerous business owners who began running their businesses from their homes. Many are still working from their home offices, whether full-time or on a hybrid basis. If you're self-employed and run your business from home, or perform certain functions there, you might be able to claim deductions for home office expenses against your business income.

How to Qualify

In general, self-employed taxpayers qualify for home office deductions if part of their home is used “ regularly and exclusively” as the principal place of business.

If your home isn't your principal place of business, you may still be able to deduct home office expenses if:

You physically meet with patients, clients or customers on your premises, or
You use a storage area in your home (or a separate free-standing structure, such as a garage) exclusively and regularly for business.
Keep in mind the requirement that the space be used exclusively for business. For example, if your home office is also a guest bedroom, you can't deduct the entire space as a home office expense. But if you use the desk area of the room exclusively for business, you can deduct that portion of the room, as long as you otherwise qualify.

Expenses You Can Deduct

Many eligible taxpayers deduct actual expenses when they claim home office deductions. Deductible home office expenses may include:

Direct expenses, such as the cost of painting and carpeting a room used exclusively for business,
A proportionate share of indirect expenses, including mortgage interest, rent, property taxes, utilities, repairs and insurance, and Depreciation.
But keeping track of actual expenses can take time, and it requires organized recordkeeping.

The Simpler Method

Fortunately, there's a simplified method: You can deduct $5 for each square foot of home office space, up to $1,500. The cap can make the simplified method less valuable for larger home office spaces. Even for small spaces, taxpayers may qualify for bigger deductions using the actual expense method. So tracking your actual expenses can be worth it.

When claiming home office deductions, you're not stuck with a particular method. For instance, you might have chosen the actual expense method when you filed your 2022 return, but then use the simplified method when you file your 2023 return next year, and the following year switch back to the actual expense method. The choice is yours.

More Considerations

The amount of your deductions is subject to limitations based on the income attributable to your use of the office. Other rules and limitations may apply. But eligible home office expenses that can't be deducted because of these limitations can be carried forward and may be able to be deducted in later years.

Also be aware that, if you sell a home on which you claimed home office deductions, there may be tax implications. Contact us for more information.

A Valuable Deduction

You might be wondering why only business owners and the self-employed have been addressed here. Unfortunately, the Tax Cuts and Jobs Act suspended home office deductions from 2018 through 2025 for employees, even if you're currently working from home because your employer doesn't provide office space.

But the home office deduction can be valuable to those who're eligible for it. We can help you determine if you're eligible and the best method for claiming the deduction in your situation.

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12/07/2023

Far Rockaway , New York.
Legal 2 Family home for Sale By Owner
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