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Be on Alert for IRS Scams

With tax season underway, the IRS expects an uptick in tax-related scams. In most cases, IRS “phishing” scams are bogus phone calls and emails that claim to come from the IRS. Fraudsters use fake refunds or threats of a tax bill or audit to convince recipients to give up their personal and financial information. They then use it to steal a victim’s money or identity. The IRS has the following tips:

  • Fraudsters may know a lot about you when they call and may be able to spoof your caller ID to show that they are calling from an official number. Don’t be fooled.
  • If you don’t answer the phone, they may leave an urgent callback request.
  • If you receive a call that you think might be from the IRS, take down the agent’s information and call them back at the official IRS hotline: 1-800-829-1040.

Remember, the IRS will never:

  • Call you without mailing an official notice first.
  • Demand that you immediately pay your taxes over the phone.
  • Take a debit or credit card number over the phone.
  • Threaten to call law enforcement or immigration services to arrest you for failure to pay.

If you believe that you (or someone you know) have been the victim of tax fraud, you can report the incident to TIGTA at 1-800-366-4484 or at www.tigta.gov. You can also contact the Federal Trade Commission at FTC.gov. Use their “FTC Complaint Assistant” to report the scam. Please add "IRS Telephone Scam" to the comments of your complaint.

If you are worried about owing money to the IRS, contact a qualified tax expert or call the IRS directly at 1-800-829-1040.

Tip courtesy of IRS.gov




Record Retention Schedule

 

Description

Retention Period Years

 

Description

Retention Period - Years

Accident report/claims settled cases

7

Invoices (to customers/from vendors)

7

Accounts payable ledgers and schedules

7

Minutes books, corporate bylaws and charter

Permanently

Audit reports

Permanently

Note receivable ledgers and schedules

7

Bank reconciliations

3

Options records (expired)

7

Bank statements

7

Patent and related papers

Permanently

Capital stock and bond records

Permanently

Payroll returns and summaries

7

Cash books

Permanently

Personnel files (terminated)

7

Chart of accounts

Permanently

Petty cash vouchers

3

Checks (operating expenses)

7

Physical inventory tags

3

Checks (for important payments should be filed with corresponding documents i.e. tax returns, property purchases)

 

Permanently

Property appraisals by independent appraisers

Permanently

Contracts, mortgages, notes, leases (still in effect)

Permanently

Property records (costs, depreciation schedules, blueprints, plans)

Permanently

Contracts, mortgages, notes, leases (expired)

7

Purchase orders

7

Correspondence (routine)

3

Receiving sheets

3

Correspondence (legal/important matters)

Permanently

Retirement and pension records

Permanently

Deeds, mortgages, bill of sale

Permanently

Requisitions

7

Deposit slips

3

Sales commission reports

Permanently

Employment applications

3

Sales records

7

Expense analysis

7

Scrap and salvage records (inventories, assets)

7

Financial statements (year end)

Permanently

Tax returns and related worksheets, revenue agents' reports, notices regarding determination of tax liabilities

 

Permanently

Garnishments

7

Time cards

7

General ledger/trial balance (year end)

Permanently

Trademark registration and copyrights

Permanently

Insurance policies expired

3

Training manual

Permanently

Insurance Policies, claims, reports (current)

Permanently

Union Agreements

Permanently

Internal financial reports

3

Voucher registers and schedules

7

Inventory reports

7

Vouchers for payments to vendors, employees, etc.

7

 




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Connecticut Estate & Tax Planning Council




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Tax Alerts
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The Treasury Department and IRS have finalized regulations regarding the deduction of up to $10,000 in personal car loan interest by individuals for tax years 2025 through 2028. This includes regulations on information returns required to be filed by a lender or other person engage in a trade or business who receives $600 or more of qualified interest during the calendar year. The final regulations adopt the proposed regulations published in January 2026 (NPRM REG-113515-25) with some changes in response to public comments.


The Treasury Department and IRS have issued proposed regulations providing that a private school is not eligible for Federal income tax exemption under section 501(c)(3) if it considers race, color, or national or ethnic origin in any of its educational, admissions, scholarship, athletic, or other school-administered policies. Any such consideration, under the proposed regulation subsection, would be considered de facto racial discrimination. The proposed rules would apply to taxable years beginning after May 31, 2027.


A Notice of Final Partnership Adjustment (FPA) issued by the IRS to a partnership was timely under Code Sec. 6235 because the partnership and IRS had agreed to extend the limitations period for making partnership adjustments. It was determined that the extended period under Code Sec. 6235(a)(1) controlled because the statute permits adjustments until the latest of the periods specified in Code Sec. 6235(a). Accordingly, the partnership’s motion for summary judgment was denied.


The Doug LaMalfa Federal Disaster Tax Relief Certainty Act has been signed into law by President Trump.


The IRS has modified automatic accounting method change procedures for research or experimental expenditures and certain residential construction contracts. Rev. Proc. 2026-32 modifies sections 7 and 19 of Rev. Proc. 2025-23 to reflect changes made by the One, Big, Beautiful Bill Act (OBBBA).