Hot Topics & News

Stay Vigilant Against Bogus IRS Phone Calls and Emails

 

Tax scams take many different forms. Recently, the most common scams are phone calls and emails from thieves who pretend to be from the IRS. They use the IRS name, logo or a fake website to try to steal your money. They may try to steal your identity too. Here are several tips from the IRS to help you avoid being a victim of these tax scams:

 

The real IRS will not:

 

  • Initiate contact with you by phone, email, text or social media to ask for your personal or financial information.

  • Call you and demand immediate payment. The IRS will not call about taxes you owe without first mailing you a bill.

  • Require that you pay your taxes a certain way. For example, telling you to pay with a prepaid debit card.

 

Be wary if you get a phone call from someone who claims to be from the IRS and demands that you pay immediately.

What Business Expenses can I deduct if you are self-employed or own a small business?

 

Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business operates to make a profit.To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

 

It is important to separate business expenses from the following expenses:

  • The expenses used to figure the cost of goods sold,

  • Capital Expenses, and

  • Personal Expenses.

 

Self-employed health insurance deduction.  If you were self-employed and paid for health insurance, you may be able to deduct premiums you paid during the year. This may include the cost to cover your children under age 27, even if they are not your dependent. See Publication 535, Business Expenses, for details.  

 

 

                                                             

NYC:  845 Third Avenue, 16th Floor

           New York, NY 10022

NJ:     One Bridge Plaza N, Suite 275

           Fort Lee, NJ 07024

 

Phone: 201-468-6440

           

Email: info@sapientcpa.com

© 2020 by Sapient CPA LLC