Table of Contents

• PSA: AI Powered Fraud is getting really good at fo …

  • What can I deduct?

• We are hiring

• Client Happy Hour 

PSA: AI Powered Fraud is getting really good at fooling us

Let’s start with the bad news: AI-powered fraud is getting really convincing. Like, “Texas accent and knows your kid’s graduation date” convincing.

Just ask Ingrid Marletta , a savvy small business owner who can usually spot a scam a mile away. But even she got duped by a very convincing call from someone claiming to be with the Denton County Sheriff’s office. He had the name of a real officer, sent court documents, and even knew she’d potentially missed a court date (which, to be fair, was the same day she hosted 100 people for her son’s graduation. Totally understandable chaos).

Long story short: she paid $3,500 in a panic to avoid arrest for a fake warrant tied to COVID-19 relief loans. Thankfully, her bank recovered the funds , but she’s sharing her story to remind us all: no one is bulletproof.

Here’s why we’re telling you this:

• Many of our clients received COVID relief (PPP, EIDL, etc.). That makes you a prime target for these kinds of scams.

• You're busy, and it's easy to miss mail , or it might even get sent to an old address , leaving you vulnerable to this kind of scam.

• If it’s really the IRS or another agency, they will reach out by mail. Not text. Not email. And certainly not with a charming Southern drawl asking for bond money via app.

• Trust your gut. If something feels off, hit pause. Call a real human you trust. Or us.

• The Solution - We can monitor your IRS account and give you the inside scoop. So if an IRS-related message shows up in your inbox, phone, or nightmares, we can verify if it’s real… in real time.

The takeaway? Fraud is evolving. But so are the tools to fight it. And we’ve got your back.

Read more here - Spotting AI-driven scams – NBC 5 Dallas-Fort Worth

In case you missed our wildly informative (and dare I say, charming) session on “Five Ways to Save on Taxes with the New Tax Bill,” let me throw you a bone and maybe sneak in a deduction while I’m at it.

One of the most common questions I’ve heard over the years , from scrappy startups to grizzled business vets , is:

“What can I deduct?”

It’s a totally fair question… with a wonderfully nuanced answer.

My usual go-to is:
“If you spend money to make money, it’s probably deductible.”

But probably doesn’t pay off when the IRS comes knocking with a magnifying glass and a highlighter. That’s why in our Tax Planning Cohort, Way #1 to save money on taxes is mastering deductions and more importantly, understanding how to make them stick.

Because here’s the thing: not all expenses are created equal in the eyes of the IRS.

If you want access to all 4 weeks , you can access here .

The Three Tests for a Legitimate Business Deduction

(Or: How to Deduct Without Regret)

When it comes to deductions, the IRS isn’t just interested in what you bought they care why. To pass muster, every deduction has to clear these three hoops:

1. Business Purpose
It must serve your business in some direct way. Think income generation, operations, or keeping the lights on.

2. Customary and Usual
Would other businesses like yours deduct this? If it’s weird even by your industry’s standards… maybe don’t.

3. Necessary
The expense doesn’t have to be mission-critical, but it should be helpful and make business sense. Buying a second espresso machine for your home office “for productivity”? We’ll call that a gray area.

Putting It Into Practice

Dinner with Your Spouse

If you’re just enjoying a nice night out and the only “business” discussed is who’s picking up the check , sorry, not deductible.

But let’s say you spend dinner strategizing about improving employee engagement, marketing your next product launch, or revamping operations:

• Business Purpose: You’re discussing company matters.

• Customary and Usual: Business meals are standard in most industries.

• Necessary: The discussion directly relates to growing or managing your business. IE , you are growing revenue or making more money by brining new ideas for efficency to the table

• Under this framework, that dinner can become a legitimate business deduction.

The “Conference” in Disney World

Flying the whole family to Orlando sounds like a write-off waiting to happen but the IRS is not footing the bill for your kids’ churros.

Now, if you’re attending a legitimate business or real estate conference, spending real time in sessions, meeting industry folks, and taking notes (not just selfies)…

• The business-related portion of the trip , airfare, hotel, meals, conference fees , could be deductible.

• The family’s park tickets, extended hotel stay, and matching Mickey Mouse shirts? That’s all you.

The “Mood-Boosting Office Hot Tub”

Let’s say I decide my team deserves a little morale boost, so I install a hot tub in the office breakroom. I will label it a “stress management resource” and try to write it off as a business expense.

Nice try.

Let’s run it through the Three Tests:

• Business Purpose? Debatable. “Chill vibes” aren’t exactly a line item on a P&L.

• Customary and Usual? Unless I’m running a spa or a Silicon Valley startup in 2012, not really.

• Necessary? Not even close. No one needs to soak to close deals. (And honestly, nothing says “HR violation” like the boss replying to emails in a bathing suit.)

Verdict: Personal benefit disguised as a business perk. The IRS will call it what it is , a luxury, not a legitimate deduction.

We are hiring

Porter & Company CPAs is on the lookout for a full-time Tax Staff Accountant to join our 16-person team supporting entrepreneurs, high-net-worth individuals, and real estate-driven ventures. This is an opportunity for someone who thrives on technical tax work and enjoys direct client interaction. You’ll work closely with firm partners on everything from 1040s to 1120s and beyond , think tax prep, planning, projections, and even wrangling with the IRS when needed. We offer a flexible, growth-focused environment (including a path to partnership), competitive pay, generous benefits, and a hybrid schedule based in our Irving, TX office. If you know someone who’s ready to take their tax career to the next level in a firm that values leadership, excellence, and honesty….send them our way!

Applicants can apply here

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