David R Dracup CPA PA

New IRS Portal for Reporting Fraud and Scams

The IRS has launched a new portal that makes it easier to report instances of tax fraud, identity theft, IRS impersonation and other tax-related scams. On the new webpage (link below), people and businesses can report:

- Fake IRS phone calls, emails, and text and social media messages. Scammers posing as government agents often threaten people with arrest unless they submit immediate payments, often in a specific format like gift cards. The IRS does not operate in this way.
- Suspected tax fraud, such as tax evasion schemes or illegal use of offshore accounts.
- Identity theft, which should always be reported to the IRS immediately, even if other government and law enforcement agencies know about the crime.
- Suspicious tax preparation practices, such as a paid tax preparer refusing to sign your return or altering your income figures.

Citizen reporting often plays a critical role in catching scammers and bringing them to justice. This new system makes the process of filing a report less confusing and much more convenient.

IRS Fraud Reporting Site: https://www.irs.gov/help/report-fraud

IRS Offer in Compromise Program – Did You Know?

People who cannot pay their tax bills in full may have options to resolve the situation. One of these options is the Offer in Compromise (OIC) program, which allows eligible taxpayers to settle their debts with the IRS for less than the full amount owed.

Anyone considering an OIC should first check whether they qualify using the IRS Pre-Qualifier tool online (link below). Eligible taxpayers may then submit an application. In most cases, the application must be accompanied by a $205 fee and an initial payment toward the tax debt, although these requirements may be waived for lower-income applicants.

An OIC application requires detailed financial information and must be carefully prepared. Beware of aggressive ads promising to settle tax debts quickly for a small fraction of the amount owed. Companies behind these ads, often referred to as OIC mills, may charge substantial fees while submitting applications for people who have little chance of qualifying. A trusted tax professional can help ensure that an OIC application is complete, accurate, and has a reasonable chance of acceptance.

OIC Pre-Qualifier Online Tool: https://irs.treasury.gov/oic_pre_qualifier/

Quarterly Estimated Tax Payments – Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the April 1–May 31, 2026, payment period is coming up next Monday, June 15, 2026.

If you use IRS Direct Pay, payments can generally be made until 11:45 p.m. ET on the due date. If you pay by credit or debit card through an IRS-authorized payment processor, payments can generally be made until 11:59 p.m. ET on the due date.

National 529 Day – Did You Know?

If you put money into a 529 education savings plan, earnings may be withdrawn federal income tax-free when used for qualified education expenses. Qualified expenses can include tuition, fees, books, supplies, computers, and for students enrolled at least half-time, certain room and board costs.

While 529 contributions are not deductible for federal income tax purposes, many states offer a full or partial state income tax deduction or credit for contributions. Some states and plan sponsors may also offer special incentives around National 529 Day.

Recent law changes expanded the use of 529 plans. In 2026, up to $20,000 per year, per student, may be used for qualified K–12 education expenses at public, private, or religious schools. Prior years were generally limited to $10,000 annually.

Qualifying Dependents – Did You Know?

In addition to your children and parents, a number of other individuals may qualify as your dependents for tax purposes. Important factors can include the person's income, how much support you provide, and how much of the year the person lives with you. In some limited cases, even a non-relative who lives with you year round as a member of your household may qualify as a dependent.

Health Savings Accounts - Did You Know?

Changing jobs? If you have a health savings account (HSA), you can take it with you. Unlike flexible spending accounts (FSAs), which are usually tied to your employer, your HSA belongs to you. You can continue using your HSA funds after leaving the job where you opened the account. However, you may make new HSA contributions only if you remain eligible to contribute. To remain eligible, you generally must be covered by an HSA-eligible high-deductible health plan (HDHP) and have no disqualifying coverage.

Receiving Online Payments - Did You Know?

If you are self-employed and receive payments through online payment processing platforms, take care to separate business and personal transactions. You can do this by setting up separate business accounts on the platforms, or by using features that allow you to specify the purpose of payments. Otherwise, the platforms may overreport your income.

Updated Withholding Estimator Available for 2026

Having the right amount of tax withheld from your pay protects you against unpleasant spring surprises, while ensuring that you do not unnecessarily sacrifice take-home pay. The IRS recently made important updates to its Withholding Estimator tool (link below), to account for tax law changes enacted in 2025. Those changes include the "No Tax on Tips" and "No Tax on Overtime" deductions, the car loan interest deduction and special deduction for seniors, and the new deduction rules for charitable donations.

Verifying the accuracy of your withholding a couple of times a year is especially important if you and your spouse both work, or if you owed tax this spring, work multiple jobs, or have self-employment or investment income. It is also a good idea to complete a withholding checkup anytime you experience a major life change like marriage, or the birth or adoption of a child. Using the Withholding Estimator typically takes 25 minutes or less, and you do not have to log in or provide any personally identifying information. If an adjustment to your withholding is needed, the tool can help you complete a new W-4 form to submit to your employer.

IRS Withholding Estimator Tool: https://www.irs.gov/individuals/tax-withholding-estimator

IRS Impersonation Scams – Did You Know?

Criminals continue to use IRS impersonation scams to steal money and personal information. Understanding how the IRS actually communicates can help you recognize and avoid these schemes.

The IRS generally initiates contact by sending a letter through the mail on official letterhead. If you have an IRS online account, you can log in to verify whether a notice is legitimate. If you are unsure, you can contact the IRS directly at 800-829-1040.

Scammers, however, often pose as the IRS in several ways:

By mail: Fake letters may look official but include incorrect contact details or suspicious language such as “in relation to your unclaimed refund.”

By email or text: The IRS does not initiate contact this way. Messages promising refunds, credits or urgent fixes often contain links to fraudulent websites designed to steal your information.

By phone: Scammers may leave threatening messages or demand immediate payment using gift cards or other unusual methods—tactics the IRS does not use.

In person: Unannounced visits are extremely rare. Most legitimate IRS appointments are scheduled in advance by letter.

If you suspect a scam, do not respond, click links or share information. Instead, contact the IRS using an official phone number to verify the situation.