Scams are surging in the summer, the IRS says
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Summertime, and the scamming is surging.
That is according to the IRS, which issued a warning Friday for taxpayers to be wary of offers promising tax refunds or to "fix" tax problems. Many of these offers center on promises of a third round of economic impact payments. The IRS said it was receiving hundreds of complaints daily — and thousands since the July 4 holiday — at its phishing@irs.gov email account.
The economic impact payment scam includes an embedded URL that takes people to a phishing website to steal their personal information, the IRS said, adding that the third round of payments occurred over two years ago.
The scam, which has been around since 2021, has changed over time to trick people, the IRS said.
Remember: The IRS never initiates contact with taxpayers by email, text, or social media regarding a bill or tax refund.
"The IRS is seeing a wave of these summer scams relentlessly pounding taxpayers," IRS Commissioner Danny Werfel said in a statement. "People are being flooded with these email and text messages, but we want them to avoid getting swept up in these terrible scams. Taxpayers should be wary; remember, don't click on links from questionable sources."
The IRS also has received reports about emails urging people to "Claim your tax refund online" and text messages that the person's tax return was "banned" by the IRS. Spelling errors and awkward phrasing are one sign that these emails are a scam.
In addition to the economic impact payment scheme, the most recent wave of tax scams includes:
The misleading 'You may be eligible for the ERC' claim
The IRS has observed a significant increase in false employee retention credit (ERC) claims, an issue that made the IRS's annual "Dirty Dozen" list earlier this year. The ERC is a pandemic-related credit for which only certain employers qualify.
Taxpayers should avoid promoters who say they can quickly determine someone's eligibility without details and those who charge upfront fees or a fee based on a percentage of the ERC claimed, the IRS said.
The IRS advises eligible employers who need help claiming the ERC to work with a trusted tax professional. Details about eligibility, how to properly claim the credit, and how to report promoters are available at irs.gov/erc.
The 'claim your tax refund online' scheme
Because taxpayers are enticed by the idea that they have possibly overlooked money owed to them, identity thieves are upping their game with email and text schemes suggesting the recipient has missed out on a tax refund.
A variation hitting inboxes in recent weeks has a blue headline proclaiming that people should "Claim your tax refund online."
Again, there are telltale warning signs, including misspellings and language urging people to click a link for help to "claim tax refund."
The text scheme offering help to address a problem
In another recent scam, identity thieves send a text message with a name that tries to sound official, such as "govirs-accnnt2023." A variety of messages follow, saying that there is a problem with the recipient's tax return, but that the sender can fix the problem if the recipient clicks a link in the message.
As in other scams, there are many red flags in these text messages, including misspellings and factual inaccuracies.
The 'delivery service' scam at your door
The IRS is also warning taxpayers to be on the lookout for a new scam letter delivered in a cardboard envelope by a delivery service. The enclosed letter includes the IRS masthead and wording that the notice is "in relation to your unclaimed refund."
What to do
People who receive these scams by email should send the email to phishing@irs.gov.
People who become victims after clicking and entering their information should report the email at phishing@irs.gov and should file a complaint with Treasury Inspector General for Tax Administration and visit www.identitytheft.gov and www.irs.gov/identity-theft-central.
Credit for this article: Martha Waggoner with the Journal of Accounting
Inflation isn’t gone—it’s just quieter. Around 3% feels tame compared to the chaos of the past few years, but that doesn’t mean it’s harmless. For most business owners, small shifts in pricing, payroll, and supply costs have become the new normal—slow, steady pressure that eats into margins one percentage point at a time. But here’s the thing: inflation doesn’t just erode profit. It also creates permission. Permission to reprice. Permission to renegotiate. Permission to rethink how your business makes money. And as we head into year-end—when every business is reviewing budgets, forecasts, and compensation plans—now’s the perfect time to turn inflation from a problem into a strategic opportunity. The Inflation Mindset Shift: From Defense to Offense Most owners treat inflation like a storm to wait out. They hunker down, cut costs, and hope the economy stabilizes. But smart firms? They play offense. Inflation gives you the perfect narrative to reset pricing, refine operations, and re-anchor value with your clients or customers. Think about it: when everything costs more—from raw materials to insurance—people expect prices to adjust. That makes this moment the cleanest window you’ll get to implement changes that were overdue anyway. Step 1: Reprice With Confidence, Not Apology The biggest mistake small businesses make is treating price increases like confessions. “Sorry, but our costs went up.” Instead, reframe it as value alignment: “We’ve upgraded our processes, improved delivery, and invested in technology to serve you better.” Even if your costs are rising, your value probably has too. If your last price review was more than 18 months ago, you’re already behind. Inflation gives you cover to fix that. Step 2: Audit Margins and Cash Flow Before You Budget Before you finalize 2026 budgets, run a true margin audit. Which services or products are still profitable at today’s costs?
Which are borderline or underwater?
Which clients consistently underpay for the value delivered? Then connect that data to your cash flow forecast. A business that plans around real margins—versus assumptions—has control. If you haven’t reviewed vendor contracts lately, this is also your chance to lock in rates before potential tariff shifts or supply cost changes next year. Step 3: Forecast Smarter, Not Just Harder Forecasting isn’t about predicting inflation—it’s about being ready for it. Smart firms use 3-scenario forecasting: Best case: Inflation drops further, demand grows.
Base case: 3% inflation continues, steady but modest growth.
Stretch case: Tariffs increase, costs rise, and cash flow tightens. By modeling each, you build agility—not anxiety—into your business plan. Step 4: Align Compensation and Value Creation Inflation doesn’t just affect costs—it affects expectations. Employees feel it too. As you plan 2026 compensation, think about rewarding value creation instead of just cost-of-living bumps. For example: Introduce profit-sharing to align team success with performance.
Offer flexible benefits like health stipends or hybrid schedules—high perceived value, lower cost.
Communicate transparently about financial goals. Most teams handle reality better than silence. Step 5: Protect Profitability Before It’s a Problem When inflation was at 8%, you could blame it for shrinking profits. At 3%, it’s just math. That means you can’t afford to ignore the incremental hits—subscription creep, silent vendor increases, underpriced legacy clients. The businesses that thrive in 2026 will be the ones that use this “quiet inflation” window to: Trim inefficiencies before they compound.
Rebuild reserves.
Reinvest in tools that save time or improve margins (think automation, AI, or better client systems). The Big Idea: Inflation as a Reset Button You can’t control the economy—but you can control how your business responds to it. Inflation isn’t a crisis anymore. It’s your chance to reset the rules—on pricing, partnerships, and profitability. When you treat inflation as an opportunity, not a threat, you stop playing defense and start leading from strength. Ready to Plan Your 2026 Strategy? Now’s the time to review pricing, forecasting, and compensation plans before the new year begins. If you want to make 2026 your margin expansion year—not another squeeze—contact our firm. We’ll help you analyze your numbers, refine your strategy, and move into the new year with confidence and control.
Growth Feels Great—Until It Doesn’t At first, running your business feels simple: money comes in, bills go out, and if there’s something left over, you’re doing fine. Then growth happens.
More clients. Bigger projects. Higher payroll. Maybe even a second location. Suddenly, cash doesn’t flow the way it used to. You’re booking record sales, but your bank balance looks… thin. You’re working harder than ever, yet the pressure to make next week’s payments feels heavier. Welcome to the paradox of growth: the bigger your business gets, the tighter cash flow can feel. Why Growing Businesses Feel Cash-Poor It’s not bad management—it’s math. As revenue grows, so do: Accounts receivable: Clients take longer to pay larger invoices.
Inventory or project costs: You spend cash weeks (or months) before you earn it back.
Payroll: Growth usually means more people—and payroll hits like clockwork, even when customer payments don’t.
Taxes: Higher profits mean higher estimated payments that pull cash out of your account quarterly.
Growth stretches the timing gap between money going out and money coming in. Without a system to monitor and forecast it, you’re flying blind. The Shift: From Bookkeeping to Cash Flow Strategy Most small businesses start with simple bookkeeping: track what you earned, record what you spent, file the taxes. But once you grow, you need something more— cash flow management that looks ahead, not just backward. That’s where financial professionals make all the difference.
They can help you: Forecast inflows and outflows weeks or months in advance.
Spot cash gaps early—and plan around them.
Build reserves for seasonality or growth spurts.
Model “what-if” scenarios (new hires, equipment purchases, expansions) before you commit. In other words, they help you turn growth from a guessing game into a system. Real-World Example: The Busy-but-Broke Dilemma One of our clients doubled revenue in a year—then almost ran out of cash. Why? Every big new contract required more up-front costs and staff before payments arrived. Once we mapped cash flow month by month, they saw the problem clearly. With a few tweaks—changing invoice terms, adjusting payroll timing, and setting up a short-term credit line—they moved from panic to predictability. The revenue didn’t change. The system did. Bottom Line Growth brings opportunity—but it also brings complexity. What used to fit on a spreadsheet now needs structure, foresight, and strategy. If your business is growing fast but cash feels tight, it’s time to move beyond basic bookkeeping.
Contact our firm today to build a cash flow plan that grows as smart as you do.
Are you ready to make the move? Are you looking for someone to help you grow your business? A CPA firm who cares about not only your business but you as a person? A firm which can bring insight into your business? One that looks out for your best interests while keeping you compliant with all the IRS, state and other financial regulations? If so, we are looking for you! Steven Brewer & Company, CPAs, is brick and mortar office with a strong virtual presence. We are looking for the right clients to join us. Currently we work with over 35 companies in 20 states. We know how to work virtually with our clients. We work to help you understand your business; help you plan for the future and use your business assets in planning for the best results in building your future. If you are looking for all of this, give us call (812-883-6938) or drop us an email (admin@stevenbrewercpa.com) to schedule a meeting to discuss your financial needs. In the meantime, check out our website, stevenbrewercpa.com, to find out more about us.