Panoptic Accounting Group LLC

05/15/2026

THE 2026 DIRTY DOZEN: 12 KEY SCAMS TO WATCH OUT FOR

1. IRS impersonation by email and text (phishing + smishing). Scammers send emails, direct messages (DMs), and texts that appear to be from the IRS, often using alarming language and QR codes that direct taxpayers to fake IRS websites to “verify” accounts, enter personal information, or claim refunds. The IRS urges taxpayers not to click links or open attachments from unexpected messages and to report suspicious IRS-related emails, DMs, and texts. The IRS reported over 600 social media impersonators during fiscal year 2025.

As a reminder, never click any unsolicited communication claiming to be from the IRS, as it may install malware surreptitiously. These links may install malicious software, including ransomware, on a taxpayer’s personal device, potentially preventing access to their files or personal information.

2. 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. The IRS reminds taxpayers that it generally contacts taxpayers by mail first and does not leave urgent, threatening prerecorded messages, call to demand immediate payment, or threaten arrest. Taxpayers should not rely on AI-generated responses to complex tax questions, and they should verify any calculations or information provided by artificial intelligence.

3. Fake charities. Fraudsters often exploit tragedies and disasters by creating fake charities to collect donations and personal information. The IRS is committed to preventing fraudulent nonprofits from taking advantage of the American taxpayer.

Taxpayers who give money or goods to a charity may be able to claim a deduction on their federal tax return if they itemize deductions, but charitable donations only count if they go to a qualified tax-exempt organization recognized by the IRS.

4. Misleading tax advice on social media. Viral “tax hacks” can push taxpayers to file returns with false information or claim credits they don’t qualify for, leading to refund delays, audits, penalties, or worse. The IRS continues to warn that social media-driven misinformation and disinformation remain a major driver of tax scams.

The IRS and the Coalition Against Scam and Scheme Threats warn taxpayers not to fall for these scams, and urge them to follow trusted advice from the IRS, tax professionals, and other reputable sources. The IRS reminds taxpayers who knowingly file fraudulent tax returns that they could potentially face significant civil and criminal penalties.

5. Identity theft involving IRS Online Account access. Criminals may attempt to use stolen personal information to gain unauthorized access to a taxpayer’s IRS online account or may pose as helpers to collect sensitive information during account setup. Taxpayers should create their account directly through IRS.gov and should not rely on unsolicited third parties offering assistance. The IRS provides official guidance to help taxpayers securely establish and protect their accounts.

6. Abusive undistributed long-term capital gains claims. The IRS identified an increase in the abuse of Form 2439. This form allows shareholders of certain investment funds or real estate trusts to claim a refundable credit for taxes paid on undistributed capital gains. Identified schemes involve overstated or fabricated Form 2439 claims, including claims tied to organizations that are not legitimate investment funds or real estate trusts. The IRS has also seen fake claims falsely linked to real, well-known organizations. Improper claims may result in refund delays, audits, penalties, or enforcement action.

7. Bogus “Self-Employment Tax Credit” promotion. Scammers use misleading claims about a broad “self-employment tax credit” to encourage inaccurate filings and generate improper refunds. The IRS reminds taxpayers to rely on trusted sources and qualified tax professionals, not social media promotions, when determining eligibility for credits.

Many taxpayers do not qualify for these credits, and the IRS is closely reviewing claims coming in under this provision, so taxpayers filing claims do so at their own risk.

8. 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, the IRS reminds taxpayers to use a trusted tax professional for help.

9. Non-cash charitable contribution schemes. Some schemes involve inflated appraisals of donated property using syndicated conservation easements or art. Promoters often promise to eliminate or substantially reduce tax liability. The IRS warns taxpayers not to file returns with made-up information and reminds taxpayers that it can hold refunds while verifying claims.

10. Overstated withholding schemes (fabricated wage/withholding data). Scammers encourage taxpayers to inflate withholding amounts (sometimes described as “other withholding”) to manufacture a larger refund by reporting zero or little income on incorrect forms. The IRS may delay processing while it verifies wages and withholding against third-party records. Inaccurate claims can lead to penalties and enforcement action.

There are multiple variations of the overstated withholding credit scheme, including those involving Forms W-2 and W-2G; Forms 1099-R, 1099-NEC, 1099-DIV, 1099-OID, and 1099-B, as well as the Alaska Permanent Fund Dividend, Schedule K-1 with Withholding Reported, and Unspecified Source of Withholding Credit Claimed.

11. Spear-phishing and malware campaigns targeting tax professionals. Tax professionals and businesses remain targets of “new client” or “document request” emails that deliver malicious links or attachments to steal client data or access systems. The IRS and the Security Summit urge preparers to remain vigilant and to strengthen their security practices.

Businesses and individuals, including tax pros, should always be cautious and look out for any suspicious requests or unusual behavior before sharing any sensitive information or responding to an email. Warning signs may include unexpected requests for sensitive information, mismatched or unfamiliar sender addresses, urgent payment demands, or links directing users to websites that do not clearly originate from IRS.gov. Be aware that by gaining access to a hacked email account, scammers can locate a genuine email from a previous victim's email account sent to their tax professional.

12. Aggressive or misleading Offer in Compromise marketing (“OIC mills”). The Offer in Compromise program can help certain eligible taxpayers resolve tax debt when they are unable to pay in full, but “OIC mills” often overpromise results and charge high fees to taxpayers who don’t qualify. Taxpayers can check eligibility using free IRS tools to avoid high-pressure sales tactics.

How to protect yourself and what to do if you get a suspicious message or call
Don’t click unexpected links or open unexpected attachments.
If you get a suspicious IRS-related call, hang up. The IRS provides guidance on what to do next, including how to report scams.
To report suspected IRS-related phishing emails or messages, send them to [email protected] and follow IRS reporting instructions.
If you think your tax identity has been compromised, visit IRS.gov/idtheft for steps to protect your account and recover.
Report abusive tax schemes and suspicious activity
The IRS encourages taxpayers, tax professionals, and the public to report suspected tax fraud, scams, identity theft, or other tax-related wrongdoing by visiting IRS.gov/SubmitATip.

The new online tool allows individuals to confidentially submit information using a smartphone, tablet, or computer. It consolidates IRS fraud-reporting options into one location and routes tips to the appropriate IRS office.

Prompt reporting helps protect taxpayers and quickly stop abusive activity.

If you believe you may have been affected by any of these scams or schemes, contact Panoptic Accounting Group at 321-591-8990. We’ll help you understand your options and guide you through the appropriate next steps.

Call now to connect with business.

05/14/2026

“Stop overpaying taxes!”

“Your CPA is costing you thousands!”

“If you own an S-Corp and still pay taxes, you’re being taken advantage of!”

Be careful with messages like these on social media.

There are absolutely legitimate tax planning strategies that can help reduce taxes when appropriate. An S-Corp, retirement planning, accountable plans, entity structure reviews, and other strategies can provide real savings in the right situations.

However, there is no magic structure that completely eliminates taxes for most business owners.

Many viral posts leave out important details such as:

business profit levels,
payroll requirements,
reasonable compensation rules,
bookkeeping accuracy,
compliance obligations,
and the fact that higher profits usually still mean higher taxes.

Good tax planning is not about chasing “secret loopholes.”

It is about building a strategy that is:

legal,
sustainable,
properly documented,
and aligned with your actual business goals.

If something online sounds too good to be true, it probably deserves a second look before making major tax decisions.

Every business is different. What works for one business owner may be completely inappropriate for another.

At Panoptic Accounting Group, we believe in practical, realistic tax planning — not fear-based marketing or one-size-fits-all promises.

Call us to find how we can help. We’ll do our best to provide every strategy that fits your situation. 321-591-8990.

04/30/2026

It’s National Small Business Week (May 3–9, 2026)!

Throughout the week, I’ll be sharing helpful tips and resources from the IRS focused on supporting small business owners—from protecting your business to staying organized and prepared.

Today’s focus:

Scammers target small businesses year-round—and they’re getting more convincing.

Fake emails, texts, and phone calls can look legitimate, but one wrong click can be costly.

Take a few minutes to learn what to watch for:
www.irs.gov/scams

What to know and do about tax scams, IRS impersonators and identity theft.

07/17/2025

Are You Optimizing Your S-Corp?

If you've taken the leap to structure your business as an S-Corporation, kudos—you’ve already unlocked powerful tax benefits and a flexible business setup. But here’s the real question: Are you maximizing its potential, or just skating by with the basics? Let’s dig into the strategies that separate smart S-Corp owners from the rest.

A Quick S-Corp Refresher

An S-Corp is a business structure that allows profits (and losses) to pass through to your personal tax return, avoiding double taxation. It also gives you flexibility in how you pay yourself—some via salary, some via distributions. But with flexibility comes responsibility: tax compliance, proper payroll setup, and thoughtful expense planning.

Balancing Salary and Distributions

The golden rule? Pay yourself a reasonable salary that aligns with market rates for your role. The IRS wants to see that you’re not underpaying to dodge self-employment taxes.

Once that's set, any remaining profits can be taken as distributions, which aren’t subject to Social Security or Medicare tax. For example, say your S-Corp earns $100,000:

• $60,000 as salary → taxed as normal earnings.
• $40,000 as distribution → avoids self-employment tax, saving ~$6,000.

Done right, this balance can yield real savings while staying compliant.

Deductions You Might Be Missing

S-Corp owners often leave valuable deductions on the table. Make sure you're claiming:

• Health Insurance Premiums: Fully deductible if structured properly.
• Home Office Reimbursement: Through an accountable plan.
• Retirement Contributions: Solo 401(k), SEP IRA—big tools for tax savings and future growth.

What’s an Accountable Plan—and Why You Want One

An accountable plan lets your S-Corp reimburse you for business expenses (like mileage or part of your home office) tax-free. You must document everything, but the savings are worth it. Think of it like turning everyday business purchases into stealth tax reductions.
Time for a “S-Corp Optimization Checkup”?

Ask yourself:

• Am I paying a reasonable salary?
• Am I using distributions correctly?
• Have I maximized all possible deductions?
• Do I have an accountable plan in place?
• Should I meet with a tax pro before year-end?

Even if you’re doing 80% of it right, that last 20% could be costing you thousands.

Final Takeaway

Your S-Corp isn’t just a business structure, it’s a tool. Like any good tool, it performs best when used with precision. Audit your setup, consult with a professional if needed, and make sure every dollar is working as hard as you do.

07/11/2025

Do you NEED an IRS Identity Protection Pin?

IRS Online Account and identity protection PINs protect against fraudsters

I know it's only July, but it's never too early to think about tax returns. And when we think about tax returns, we (or we should) think about identity theft, and even more importantly, how to avoid it. Here's a good IRS tip:

IRS identity protection PINs, or IP PINs, are a vital tool to protect taxpayers from fraudsters trying to steal personal and financial information. Taxpayers are encouraged to establish an IRS Online Account and request an IP PIN.

Important things to know about an IP PIN

* Anyone with an SSN or an ITIN can get an IP PIN including individuals living abroad.

* It's a six-digit number known only to the taxpayer and the IRS.

* It helps us verify the taxpayer’s identity when filing a tax return. The account is protected even if there is no filing requirement.
Only taxpayers who can verify their identity can get an IP PIN.

* Tax professionals can’t get an IP PIN on behalf of their client but may obtain it directly from the taxpayer for filing purposes.

* Each IP PIN is valid for one year. When it expires, a new one is generated for security reasons.

* Taxpayers with an IP PIN must use it when filing any federal tax returns during the year, including prior year tax returns or amended tax returns.

* The program is voluntary, though it’s strongly encouraged.

* The IRS will never call, email or text the taxpayer to request their IP PIN.

How to request an IP PIN

The fastest way to get an IP PIN is to request one through IRS Online Account, under the “Profile” page. If taxpayers don’t already have an account on IRS.gov, they must register to validate their identity. Taxpayers should review the identity verification requirements before they use the Get an IP PIN tool.

Taxpayers who can't validate their identity online can still get an IP PIN.

Taxpayers who can't validate their identity online and whose income is below a certain threshold can file Form 15227 (EN-SP), Application for an Identity Protection Personal Identification Number. The 2025 threshold is $84,00 for individuals or $168,000 for married couples filing jointly.

Taxpayers who can't validate their identity online or by phone, those who are ineligible to file a Form 15227 or those who are having technical difficulties can make an appointment at a Taxpayer Assistance Center.

As always, if you have questions or want to learn more, call us at 321-591-8990. We'd love to hear from you. And don't forget to follow us for more tax tips to help you navigate through the wonderful world of tax!

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06/19/2025

Are You Taking Advantage of the Tax Benefits of Homeownership?

If you own a home (or are thinking about buying), there are some valuable tax perks you should know about. Homeownership isn’t just a personal milestone—it can also be a smart financial move come tax time.

Here are a few potential benefits:

✔️ Mortgage Interest Deduction – You may be able to deduct the interest paid on your mortgage.

✔️ Property Tax Deduction – In many cases, property taxes you pay can be written off (up to certain limits).

✔️ Home Office Deduction – If you run a business from home, you might be able to deduct part of your expenses.

✔️ Energy-Efficient Improvements – Certain upgrades (like solar panels or energy-efficient windows) can qualify for tax credits.

✔️ Capital Gains Exclusion – When you sell your home, you might not owe tax on the profit—up to $250,000 ($500,000 for married couples), if you meet the rules.

These benefits can really add up—but only if you're claiming them properly.

Have questions about what applies to you or how to document it?

Let’s talk about how to make the most of your home at tax time.

— Panoptic Accounting Group 321-591-8990

06/16/2025

Summer activities that could impact next year’s tax return

Summer is a time for fun but it’s never the wrong time to be thinking about taxes – and some summer activities could have an impact. Here are a few summertime activities and tips on how taxpayers should consider them for tax season.

Marriage

Wedding season is upon us, and newlyweds can make their tax filing easier by taking two simple steps now:

• First, report any name change to the Social Security Administration.
• Next, notify the United States Postal Service, employers and the IRS of any address change. To officially change their mailing address with the IRS, taxpayers must complete and submit Form 8822, Change of Address. See page 2 of the form for detailed instructions.

Summer day camp

If a taxpayer is sending a child to summer day camp, the cost may count toward the Child and Dependent Care Credit.

Business travel

Kids may have the summer off, but parents generally don't – and business travel happens year-round. Tax deductions are available for certain people who travel away from their home or main place of work for business reasons. Whether a business traveler is away for a few nights or all summer long, it’s important for them to remember the tax rules related to business travel.

Part-time work

While summertime and part-time workers may not earn enough to owe federal income tax, they should file a tax return to get any refund they may be owed. Part-time and seasonal workers can visit IRS.gov to learn more about who should file a tax return.

Some taxpayers earn summer income with a side hustle or doing gig work. They can visit the Gig Economy Tax Center at IRS.gov to learn how participating in the gig economy can affect their taxes. If taxpayers are paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. For more information, go to IRS.gov/1099k.

Home improvements

The IRS has information to help taxpayers take advantage of tax credits for home improvements. If taxpayers make qualified energy efficient improvements to their home after Jan. 1, 2023, they may qualify for a tax credit up to $3,200.

These types of improvements include Energy Efficient Home Improvement Credits for things like water heaters, exterior windows and doors and heating and air conditioning installations. Residential Clean Energy Credits are available for taxpayers who install solar water heaters, fuel cells and battery storage or solar, wind and geothermal power generation. Taxpayers can visit the Home Energy Tax Credits page on IRS.gov to learn more.

Contact us or your tax professional for a step-by-step guide on how to claim these credits.

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06/13/2025

CHILDCARE TAX CREDIT

Reminder to businesses: The employer-provided Childcare Tax Credit is worth up to $150,000

The employer-provided Childcare Tax Credit is an incentive for businesses to provide childcare services to their employees.

About the tax credit

This tax credit helps employers cover some costs for childcare resource and referral and for a qualified childcare facility. A qualified childcare facility is one that meets the requirements of all laws and regulations of the state or local government in which it’s located.

The credit is worth up to $150,000 per year to offset 10% of qualified childcare resource and referral costs and 25% of qualified childcare facility costs.

Who is eligible

To be eligible for the credit, an employer must have paid or incurred qualified childcare costs during the tax year to provide childcare services to employees.

Qualified childcare costs are:

Costs associated with acquiring, constructing, rehabilitating or expanding property used as the taxpayer’s qualified childcare facility.

Operating expenses paid by the business, including amounts paid to support childcare workers through training, scholarship programs and providing increased compensation to employees with higher levels of childcare training.

Qualified resource and referral costs which include amounts paid or incurred under a contract with a qualified childcare facility to provide childcare services to employees of the taxpayer.

How to claim the credit

Employers should complete Form 8882, Credit for Employer-Provided Childcare Facilities and Services to claim the credit. The credit is part of the general business credit subject to the carryback and carryforward rule. This means employers may carryback unused credit one year and then carryforward 20 years after the year of the credit. Taxpayers whose only source for the credit is from pass-through entities can report the credit directly on Form 3800, General Business Credit.

Businesses can find out more at the IRS employer-provided childcare credit page on IRS.gov including more information on claiming the credit and the requirements for qualified childcare expenditures and qualified childcare facilities.

Questions? Call us at 321-591-8990 for more information. We'd be happy to walk you through this, and other possible credits and deductions you may qualify for.

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06/11/2025

Tax Tip: Know Your Basis in Your Business

Understanding your basis in your business is essential for making smart tax and financial decisions. Your basis generally represents your investment in the business—what you've put in, plus or minus income, losses, and distributions.

Why it matters:

✅ Loss Deductions: You can only deduct business losses up to your basis. If you don't track it, you may lose out on valuable deductions.

✅ Distributions: Taking money out of the business? If it's more than your basis, it could be taxable income.

✅ Selling or Transferring Ownership: Your basis helps determine gain or loss when you sell your business or interest in it.

Whether you're a sole proprietor, partnership member, or S corporation shareholder, keeping accurate records of your basis protects you from tax surprises and helps your advisor optimize your strategy.

Action Step: Review your basis annually and work with your tax professional to keep it up to date.

Send a message to learn more

05/26/2025

TAX TIP:

Why did I owe taxes when I didn’t in previous years?

Many people found themselves owing tax for underpaying their Federal Withholding and incurred a late penalty. They were perplexed as to why this happened when they did not owe in previous years.

This was due to a Trump administration-initiated Tax Relief that changed how taxes were assessed which resulted in employees getting a little more money in their paychecks because the Federal Withholding was less. However, though the Federal Withholding was less, the liability did not change. In essence, the employee received the funds "up front" throughout the year but had to pay back at the end of the year.

This pertains to Federal Withholding only; Social Security and Medicare did not change.

Many employees, due to lack of knowledge of this Tax Relief effort, did not set aside those funds, nor did they increase their Federal Withholding to make up for it, thus resulting in the balances due.
Here are some work-arounds:

If the employee was in effect prior to 2020, they can elect to fill out a 2019 W4 form which provided the Federal Withholding at the higher (normal) rate and provide to their employer. The employer will need to provide that 2019 W4 to their payroll provider to update the employee's filing status.

or

The employee can elect to have the employer withhold extra Federal Withholding in either a dollar amount or a percentage. Again, the employer will need to provide this information to their payroll provider.

IF the employee was hired in 2020 or later, they are required to use the new W4 form with less withholding. Again, an option for the employee is the employee can elect to have the employer withhold extra Federal Withholding in either a dollar amount or a percentage. Again, the employer will need to provide this information to their payroll provider.

Please let all employees know about this and have them review their paystubs to assure that they are aware of the Federal withholding currently being taken out. If it is around 4.2% then it is the lower rate, and they may want to consider the options above.

Again, this pertains to Federal Withholding only; Social Security and Medicare did not change.

Visit: www.panopticaccounting.com for more tax tips

Send a message to learn more