Small Business Taxes &
ManagementTM--Copyright
2026, A/N Group, Inc.
For the full text of new Revenue Rulings, Revenue Procedures,
Regulations, etc. go to:
Internal
Revenue Bulletins
For a Tax Court Case:
Tax
Court Cases
For IRS News Releases (current month):
News
Releases and Fact Sheets
For Fact Sheets:
Fact
Sheets
For Letter Rulings and Technical Advice
Memoranda:
IRS
Written Determinations
For IRS Forms and
Publications:
Forms
and Publications
April 30, 2026
News
Unreported income is almost sure to trigger the accuracy-related penalty and, if egregious enough could subject the taxpayer to a civil fraud penalty. In Andrew Mitchell Berry and Sara Berry (T.C. Memo. 2025-109) the IRS claimed the husband was a 50% shareholder in an S corporation that had unreported income including unreported receipts and diverted receipts that were paid to a third party. Claimed loan repayments were not substantiated. The Court sustained the accuracy-related penalty. The Court also noted that the Standing Pretrial Order issued to the parties five months before trial set forth an important requirement relevant to the evidentiary ruling the Court must make: that all documents expected to be used at trial, other than those included in a stipulation of facts agreed to by the parties, be exchanged with the opposing party at least 14 days before the date set for trial. The taxpayers failed to comply. One possible sanction for violating the 14-day rule is the exclusion of late produced documents, particularly if it prejudices the other party. Here the documents were produced the night before and the morning of the trial. For this, and other reasons, the Court decided to exclude the evidence.Tip of the Day
How deep will the IRS go? . . . You never know. But if you're willing to go to Court, you better make sure you've got all your bases covered. In most cases the IRS will examine books and records and the underlying documentation such as receipts, diaries, log books, bank statements, and employment records. But they certainly can go further including text messages, emails, leases, contracts, etc., including draft versions. Be ready to dig up minutes of company meetings, stock records or other ownership documents, etc. Got a pension plan (including SIMPLE or SEP) make sure those docs are up-to-date as well as any support for health plans, education assistance, dependent care, etc.
April 29, 2026
News
Personal theft losses are no longer deductible but may be used to offset theft gains. That's a result of the 2017 tax law change. Business theft losses are deductible. In Craig K. Potts and Kristen H. Potts (T.C. Memo. 2025-108) in 2008 the taxpayers entered into an agreement to purchase shares in a slot machine venture in the Caribbean. The memorandum of understanding (MOU) required a down payment toward the purchase price of the shares but did not otherwise specify how the purchase price would be used by the sellers. Subsequently the taxpayers purchased shares in an existing enterprise and the funds were supposed to be contributed to another entity. To determine if a theft existed the Court looked to the definition of theft in the place where it would have occurred, the Turks and Caicos islands. The Court found that the taxpayers failed to prove theft under those laws. Second, the Court noted that "A theft loss deduction may be claimed only by the taxpayer who was the owner of the stolen property when it was criminally appropriated." The theft, if any, was incurred by the enterprise, not by the taxpayers. The taxpayers got what they paid, the shares. If a theft occurred, the enterprise was the injured party.Tip of the Day
Contemporaneous records . . . The IRS and the courts give more value to diary entries, etc. made near the time of the action. For example, a car log entry regular made at the time of the trip has more value than one made at the end of the week and much more value than one made at the end of the month. The IRS and the courts can usually spot a log you made the night before you saw the IRS agent. But the IRS and courts also look at other aspects such as do you regularly keep such records. A single entry in your diary for a six-month period showing the detail of a certain transaction carries less weight than if you made regular entries. Finally, sometimes a well-kept diary or log can substitute for missing receipts. But there are some areas of tax law where strict recordkeeping rules won't allow that, e.g., in the case of travel and entertainment receipts, charitable contributions, etc. The law requires a receipt and the neither the IRS nor the courts can waive that rule.
April 28, 2026
News
The IRS has announced (IR-2026-58) a new, streamlined way for taxpayers to extend the period of time for the IRS and the IRS Independent Office of Appeals to review a taxpayer's response to a disallowance of an Employee Retention Credit (ERC) claim to avoid refund litigation. When an ERC claim is disallowed by the IRS, taxpayers receive a Letter 105-C or 106-C. These affected taxpayers generally have two years from the date of that letter to resolve their claim administratively or to file a refund suit in Federal court if they disagree with the IRS's decision. Taxpayers may protest the IRS's disallowance with the IRS Independent Office of Appeals, but that does not extend this statutory two-year deadline. After the two-year period ends, the IRS cannot issue a refund, even if it later decides in the taxpayer's favor after reviewing the disallowance. The deadline varies depending on the date of the original 105-C or 106-C letter. The IRS is aware that some taxpayers are approaching the end of this two-year period and is providing a new way for taxpayers to request more time to resolve their claims administratively or to file suit through the filing of Form 907, Agreement to Extend the Time to Bring Suit PDF, if they meet both of the following conditions:
Click on the link above for more details and links to other resources.
Tip of the Day
Nontaxable receipts . . . If you have a business and/or rental properties and you're audited by the IRS you may have to show that nontaxable income was truly nontaxable. For example, gifts from relatives, inheritances, transfers from other bank accounts, capitable contributions in the case of corporations and loan proceeds. Loan proceeds can be particularly tricky. In the case of private loans (i.e., not from a bank) you may have to show a true loan existed.
April 27, 2026
News
The IRS issued a Whistleblower Alert highlighting an area of concern about misuse, diversion or fraudulent use of federal funds by tax-exempt organizations, individuals and businesses. The IRS urges the public to provide information. The IRS Whistleblower Program offers monetary awards of up to 30% of proceeds collected based on whistleblower-provided information. The IRS encourages whistleblowers to report specific, timely and credible information about noncompliance with tax laws or other laws the IRS is authorized to administer. Whistleblowers should report what they know via Form 211, Application for Award for Original Information, at IRS.gov/SubmitATip. (Be advised that awards are far from automatic. Besides getting proceeds from the whistleblower's information, there are other requirements.)The Taxpayer Advocacy Panel released its 2025 Annual Report highlighting accomplishments and ongoing efforts to strengthen IRS delivery, improve communications with taxpayers, reduce taxpayer burden, and support continued modernization of tax administration. Among the recommendations were enhancing online tools and digital services, streamline IRS correspondence to reduce processing delays and minimize call volume, improve the clarity of tax forms and publications, and reduce wait times on toll-free telephgone lines by expanding secure chatbot and live chat capabilities.
Tip of the Day
Don't bankrupt your vendors . . . Cash flow manangement suggests delaying payment to suppliers as long as possible (and collecting from your customers as quickly as possible) but that can backfire on small suppliers if you're a substantial part of their business. They could end up going under leaving you with more limited options. And even if the supplier isn't strapped, they could decide your business isn't worth it and decide not to deal with you. Worse, you could get a reputation in the industry.
April 24, 2026
News
Just like individuals, corporations can get some relief with collection alternatives. In Avalon Home Health, Inc. (T.C. Memo. 2025-107) the taxpayer request and collection due process (CDP) hearing and sought an installment agreement related to an unpaid income tax liabillity. The case went through four settlement officers (SO) over a period of three years resulting in the denial of the taxpayer's request for an installment agreement. The Court noted errors and recordkeeping issues on the part of the IRS saying "The IRS's actions with respect to petitioner's CDP request were far from a model of good government, and the IRS's Motion's attempts to gloss over them were unavailing." The Court remanded the case to Appeals for consideration of petitioner's request for an installment agreement.Tip of the Day
Get a windfall? . . . Whether it's a tax refund or an inheritance from uncle Fred, don't run down to the local car dealer unless you've got your financial house in order. Many people are behind on credit cards, have a big mortgage, little saved for retirement, etc. If that's your situation, consider carefully before allocating the funds. Paying off credit cards should be your first move. After that consider your options. If you're having trouble making your monthly mortgage, you might try refinancing and putting more money down resulting in a lower momthly payment. If you're younger you might think putting money toward retirement isn't important, but it should have the same ranking as other demands for the funds.
April 23, 2026
News
In order to qualify as an organization from federal income tax in Sec. 501(c)(3) the corporation must be organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), . . . no part of the net earnings of which inures to the benefit of any private shareholder or individual. In Coaches 101 A NJ Nonprofit (T.C. Memo. 2025-106) the IRS found that the organizatiop's activities involve a substantial amount of commercial activities including the sale of merchandise (sneakers, books, etc [sic]), marketing services (including advertising services) with media production, stock investing, and insurance services. In addition the organization appears to be engaged in inurement and/or private benefit with its founder in that it reported student loan cancellation income on its return, it claims to hold a license, service mark and perhaps other intellectual property rights of the founder in relation to the founder's Mad Comedian and Fan endeavors among others, and its founder intends to report any royalty income on its return. The Court noted that in order to be operated exclusively for one or more exempt purposes only if it engages primarily in activities that accomplish the exempt purpose. An organization will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose. The Court found the petitioner failed to refute the IRS claim that the organization had substantial commercial activities and the shareholder received a direct personal benefit.Tip of the Day
Checklists . . . They can be lifesavers, or just handy. Activities you do infrequently--a semiannual report--definitely require one. Unless you're prompted for the answers it's too easy to miss a step, forget a procedure, etc. But even activities you do every day in your business can benefit. The checklist makes it easy to train another employee to do the job, on a temporary or permanent basis. The checklist doesn't have to be detailed; it's intended as a reminder of the steps and critical information such as the name of a file, tool size, etc. Don't think a checklist is important? Every pilot uses one for startup, takeoff, landing, and emergency, even if he flies that same plane five days a week for years.
April 22, 2026
News
The IRS updated frequently asked questions in Fact Sheet 2026-10 related to educational assistance programs. An employee's gross income does not include educational assistance benefits if the benefits are provided under a section 127 educational assistance program and the amounts do not exceed $5,250. Under the One, Big, Beautiful Bill, the amount that may be excluded from gross income is adjusted for increases in the cost of living for taxable years after 2026. For calendar year 2025 and 2026, taxpayers receiving the benefits won't have to pay any tax on the first $5,250 of those benefits and the employer should not include those benefits in employee wages, tips, and other compensation shown in box 1 of Form W-2. These frequently asked questions contain revised information about educational assistance programs generally, including how the rules apply to certain qualified education loans. They also provide updates related to the One, Big, Beautiful Bill amendments and provide a modified sample plan. These questions supersede those in FS-2024-22.The IRS has updated(TN-2026-01) tax relief for individuals and businesses in Tennessee affected by Winter Storm Fern that began on Jan. 22, 2026. The relief now includes individuals and businesses in all 95 counties in the state. Clisk on the link above for more information.
Tip of the Day
Timeshare properties . . . They sound like a good deal until you're in them. Costs rise, additional expenses pop up unexpectedly and, the worst part--you can't get out. One firm advertised that it could get buyers out of timeshares and falsely claimed to be associated with timeshare companies; falsely telling consumers that they couldn’t exit a timeshare without paying their exorbitant fees; failing to provide promised refunds; and forcing consumers to sign contracts that they were told they couldn’t cancel. The FTC investigated and won a judgment against the company of $95 million in restitution and $45 million in civil penalty. Go to Court Orders Operator of Timeshare Exit Scheme. . . for more information.
April 21, 2026
News
The IRS has issued final regulations (T.D. 10044) effective June 12, 2026 identifying occupations that customarily and regularly received tips on or before December 31, 2024, and provide a definition of qualified tips for purposes of the income tax deduction for qualified tips. These regulations affect individuals who receive tips as part of their occupation. Section 224(d)(1) defines “qualified tips” as cash tips received by an individual in an occupation that customarily and regularly received tips on or before December 31, 2024, as provided by the Secretary. Section 224(d)(2) further requires that qualified tips not include any amount received by an individual unless the amount:Click on the link above for the full text of the regulations and the list of qualifying tipped occupations.
Tip of the Day
Remove old assets from books . . . It's not unusual for businesses to keep assets that have been abandoned, lost, or scrapped on the books. If they were fully depreciated there's no financial or tax impact, but you've got an asset that's offset by accumulated depreciation, inflating both sides of the bookkeeping equation. If the asset wasn't fully depreciated you may be able to tax a deduction for the remaining value. This is also a good time to take an inventory of your assets. Are they still there or have they "walked" off?
April 20, 2026
News
In Continental Grand Limited Partnership, Centurysubsidiary Corporation, Tax Matters Partner (166 T.C. No. 3) FC was a German holding company that wholly owned FS, also a German entity. In March 2001, FC issued to FS a promissory note with a face value of $610 million. USC, a U.S. company and FC's ultimate parent, guaranteed the note. FS contributed the note to PS, a partnership subject to the audit and litigation procedures of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). In April 2002, FS elected to be disregarded as an entity separate from FC, effective March 2001, a few days before the date FC issued its note to FS. In March 2009, FC paid more than $1 billion to PS in satisfaction of its note and deferred interest. FS subsequently withdrew from PS and received a distribution of more than $1 billion. The IRS examined PS's 2009 return and issued a Notice of Final Partnership Administrative Adjustment, determining (among other things) that FC's basis in its interest in PS was initially zero and that PS's basis in the contributed promissory note was initially zero. P, the tax matters partner of PS, challenged the IRS's determinations. The IRS filed a Motion for Partial Summary Judgment, asking the Court to find that (1) FC's adjusted basis in the note at the time of the contribution was zero, (2) FC's basis in its interest in PS following the contribution was zero, and (3) PS's basis in the note following the contribution was zero. The Tax Court held that FS's election to be disregarded as an entity separate from FC caused FC's issuance of the note to FS to be disregarded and FS's contribution of the note to PS to be treated as FC's contribution of its own note to PS. In addition, the Court held that FC's adjusted basis in its own note when it contributed the note to PS was zero, FC's basis in its interest in PS immediately following the contribution was zero and PS's basis in the note immediately following the contribution was zero.Tip of the Day
2026 tax season statistics . . . Refunds were up, but not by as much as predicted or some have reported. The IRS claims an 11% increase to $3,460. Some 6 million returns claimed the deduction for tips, with an average deduction of over $7,100; 25 million claimed the deduction for overtime, with an average deduction of over $3,100; 30 million claimed the senior deduction with an average deduction of over $7,500; and over 1 million claimed the deduction for car loan interest, with an average deduction of over $1,800.
April 17, 2026
News
The IRS announced (IR-2026-53) a new online tool to help taxpayers understand and resolve tax debt. The Tax Debt Help tool provides individuals and businesses with a simple, accessible way to explore payment options and identify next steps based on their situation. The tool is part of the IRS's broader effort to expand digital services and make it easier for taxpayers to meet their obligations. The Tax Debt Help tool walks users through a series of straightforward questions about their financial situation and tax debt. Based on taxpayer responses, the tool will guide them to potential payment and resolution options available through the IRS. These options may include payment plans, temporary delay of collections, or an offer in compromise for those who qualify. By presenting options in a clear, structured format, the tool helps taxpayers make informed decisions about how to resolve their tax debt. To protect taxpayer privacy, the tool does not require taxpayers to enter personally identifiable information. Taxpayers can explore available options without providing details such as Social Security numbers, names, or addresses.Tip of the Day
Politics and business . . . They frequently don't mix well. You've done well in business and you've got a great reputation in town so you're thinking of running for mayor, or councilman, or . . . Years ago that may have been a good move, but in today's politics you could damage your business and be attacked for your politics. It's likely to be a no-win situation.
April 16, 2026
News
The IRS announced (MS-2026-01) tax relief for individuals and businesses in Mississippi affected by the severe winter storm that began on Jan. 23, 2026. These taxpayers now have until June 8, 2026, to file various federal individual and business tax returns and make tax payments. Following the disaster declaration issued by FEMA, individuals and households that reside or have a business in Mississippi (all 82 counties) qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, for certain deadlines falling on or after Jan. 23, 2026, and on or before June 8, 2026, taxpayers are granted additional time to file. As a result, affected individuals and businesses will have until June 8, 2026, to file returns and pay any taxes that were originally due during this period. The June 8, 2026, deadline applies to individual income tax returns and payments normally due on or after Jan. 23, 2026. Penalties on payroll and excise tax deposits due on or after Jan. 23, 2026, and before Feb. 9, 2026, will be abated as long as the tax deposits are made by Feb. 9, 2026. The June 8, 2026, deadline also applies to affected quarterly payroll and certain excise tax returns normally due on Feb. 2, 2026, and April 30, 2026.
April 15, 2026
News
The IRS announced (IR-2026-50) special Saturday hours at select Taxpayer Assistance Centers across the country to provide in-person help for taxpayers. The upcoming Saturday hours will be April 11 and April 25 from 9 a.m. to 4 p.m. During these special Saturday hours, TACs in dozens of states, the District of Columbia, and Puerto Rico will be open to assist taxpayers with a wide range of services. The IRS encourages taxpayers to visit IRS.gov/SaturdayHours to review participating locations and available services before traveling to an office. The IRS will continue to offer these special events through June. Taxpayers can receive help with most services routinely offered at a TAC. Cash payments, however, are not accepted. Click on the link above for more information and a link to contact your local office.Tip of the Day
Estimates due . . . Don't forget that first quarter estimated taxes are due today (April 15) for individuals on the Federal level and for most states.
April 14, 2026
News
The IRS announced (HI-2026-01) tax relief for individuals and businesses in the State of Hawaii affected by flooding and mudslides due to severe storms that began on March 10, 2026. These taxpayers now have until July 8, 2026, to file various federal individual and business tax returns and make tax payments. Following the disaster declaration issued by the State of Hawaii, individuals and households that reside or have business in Hawaii, Honolulu, Kauai and Maui counties qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, for certain deadlines falling on or after March 10, 2026, and on or before July 8, 2026, taxpayers are granted additional time to file. As a result, affected individuals and businesses will have until July 8, 2026, to file returns and pay any taxes that were originally due during this period. The July 8, 2026, deadline applies to individual income tax returns and payments normally due on or after March 10, 2026. Penalties on payroll and excise tax deposits due on or after March 10, 2026, and before March 25, 2026, will be abated as long as the tax deposits are made by March 25, 2026. The July 8, 2026, deadline also applies to affected quarterly payroll and certain excise tax returns normally due on April 30, 2026.Tip of the Day
Cheating on your taxes? . . . For many people it's probably come to mind in the light of the IRS staffing cuts. And there's no question there are less agents to audit returns--and the number could decline further. But the IRS has vast quantities of data and has ways to minimze manual labor on audits. And that's without AI which could eventually significantly reduce manual labor. You should also keep in mind that most audits aren't initiated until more a year after filing. If you're thinking of getting into a "tax deal" get advice from trusted a CPA, attorney, or enrolled agent. Do not rely on what a promoter is pitching.
April 13, 2026
News
The IRS has issued proposed regulations (REG-114499-25) that would provide rules and definitions related to the new excise tax imposed on certain remittance transfers, also referred to as the remittance transfer tax, under the One, Big, Beautiful Bill. Beginning Jan. 1, 2026, a 1% remittance transfer tax applies to remittances sent from the United States to recipients in foreign countries when the sender provides cash, a money order, a cashier's check, or other similar physical instrument to the remittance transfer provider. The sender is liable for the tax, and remittance transfer providers are required to collect the remittance transfer tax from certain senders, make semimonthly deposits, and file quarterly returns with the IRS. If the remittance transfer provider does not collect the tax from the sender, the tax becomes a liability of the remittance transfer provider. The proposed regulations clarify the application of the remittance transfer tax, including:
IR-2026-48 provides additional information and links to other resources.
Tip of the Day
Postmark date . . . The rule still stands. A federal tax return or payment is considered filed based on the postmark date. Most states and local governments follow the same rule. But the post office is no longer postmarking material as it comes into the facility. If you're mailing your return and/or payment to be sure it's postmarked by the due date you should go to the desk and have the clerk hand cancel the envelope or send it certified for proof of mailing. Be prepared. It could be a busy day.
April 10, 2026
News
Taxpayers generally have a choice of accounting method, but the method must clearly reflect income. In Armond Garibyan, et al. (T.C. Memo. 2025-105) the taxpayers adopted the accrual method of accounting for the company's books. Their problem was that the corporate ledger rarely showed income and expenses as they accrued during the year. The IRS audited the company's and then the taxpayers' individual returns. They examined the taxpayers' bank records for the 2015 and 2016 tax years and concluded that Lakeview had underreported its gross income by more than $200,000; and that the taxpayer underreported his income for both years too. The IRS found questionable journal entries, uncategorized deductions, irregularieties in how entries were booked to the accounts receivable and accounts payable among other issues. As a result the IRS used the bank deposits method to compute income. The Court however found that some deposits were nontaxable but sustained the IRS's disallowance of some expenses for failure to substantiate them.Tip of the Day
Mistake on bank account in return? . . . If you made a mistake on the bank account indicated on your return for a refund, There are options. Tax professionals and their clients do not have to wait to receive a CP53E notice to act. They can check the Where’s My Refund? tool for next steps. If this situation applies to them, they can use IRS Individual Online Account to resolve the issue quickly by providing accurate banking information or the reason they cannot. Once updated, the IRS will issue the refund, usually within seven days. For security purposes, IRS employees cannot update bank account information over the phone or in person.
April 9, 2026
News
Notice 2026-25 provides adjustments to the limitation on housing expenses for purposes of Section 911 for specific locations for 2026. These adjustments are based on geographic differences in housing costs relative to housing costs in the United States. The term "housing cost amount" is generally the total of the housing expenses for the taxable year minus a base housing amount. For this purpose, the base housing amount for the taxable year is limited to an amount that is tied to the maximum foreign earned income exclusion amount of the qualified individual, which is $132,900 for 2026. Specifically, the base housing amount is 16 percent of the maximum foreign earned income exclusion amount (computed on a daily basis), multiplied by the number of days in the applicable period that fall within the taxable year. Assuming that the entire taxable year of a qualified individual is within the applicable period, the base housing amount for 2026 is $21,264 ($132,900 x .16).Tip of the Day
Missing tax documents? . . . If you are it's now easier than ever to get a statement from a bank or broker online. If you're missing a W-2 you can ask for a replacement from your employer or may be able to access it on line from the payroll service. If you're missing a Form 1099-MISC or 1099-NEC contact the payer. If the W2 or 1099 is incorrect, contact the payer. While not having the W-2 or 1099 isn't an excuse for not filing on time, if you're up against the wire the first step is to request an extension.
April 8, 2026
News
The IRS announced (IR-2026-46) a major expansion of its Business Tax Account, making the online self-service platform available to partnerships, federal, state, and local governments, Indian tribal governments, and tax-exempt organizations. The newly eligible entities join sole proprietors, S corporations, and C corporations that are already able to access the platform. The expansion supports the agency’s ongoing service improvement effort by broadening digital access to more segments of the business community. The Business Tax Account is a secure, centralized platform that allows eligible users to manage their federal tax responsibilities online. Through BTA, users and designated officials can:
April 7, 2026
News
The IRS announced (TN-2026-01) tax relief for individuals and businesses in Tennessee affected by Winter Storm Fern that began on Jan. 22, 2026. These taxpayers now have until May 22, 2026, to file various federal individual and business tax returns and make tax payments. Following the disaster declaration issued by the State of Tennessee, individuals and households that reside or have a business in Cheatham, Chester, Clay, Davidson, Decatur, Dickson, Hardeman, Hardin, Henderson, Hickman, Lawrence, Lewis, Macon, Maury, McNairy, Perry, Robertson, Rutherford, Summer, Trousdale, Wayne, Williamson and Wilson counties qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, for certain deadlines falling on or after Jan. 22, 2026, and on or before May 22, 2026, taxpayers are granted additional time to file. As a result, affected individuals and businesses will have until May 22, 2026, to file returns and pay any taxes that were originally due during this period. The May 22, 2026, deadline applies to individual income tax returns and payments normally due on or after Jan. 22, 2026. Penalties on payroll and excise tax deposits due on or after Jan. 22, 2026, and before Feb. 6, 2026, will be abated as long as the tax deposits are made by Feb. 6, 2026.Tip of the Day
LProperty contributions . . . Don't forget the rules on property contributions. Contributions of more than $500 require Form 8283 and information about the property and the charity. Special rules apply to contributions of autos. Contributions of similar property (e.g. all types of clothing) of more than $5,000 require an appraisal and additional documentation.
April 6, 2026
News
The IRS warns taxpayers annually about new and evolving scams, fraud, and misleading schemes designed to steal taxpayers' money and personal information. With recent provisions under the One, Big, Beautiful Bill changing credits, deductions, and eligibility rules, some scammers may try to trick taxpayers by making false promises about eligibility for new or expanded tax credits and deductions. It's always best to be cautious with your financial data, especially when using tax deduction calculators and software online. Use only official, trusted sources for tax calculations and information. Don't reply, click on links, or open suspicious messages. For more information go to Fact Sheet FS-2026-09.
April 3, 2026
News
The IRS can reject a collection alternative for an unpaid liability if you don't provide the requested information. In Horizon Health Services, Inc. (T.C. Memo. 2025-104) the IRs sent a notice of filing of the NFTL advising the taxpayer of its rights to a CDP hearing. The company requested a CDP hearing seeking a collection alternative, such as an installment agreement or offer-in-compromise (OIC), because of financial hardship and inability to pay. The Appeals Officer (AO) sent a letter scheduling the hearing and requested certain financial information to aid in considering a collection alternative. The letter also asked the taxpayer for a signed income tax return for 2021 and a signed unemployment tax return for 2022, which were delinquent. The taxpayer did not produce the requested information or returns nor did it do so by an extended due date. The IRS rejected the taxpayer's offer-in-compromise because its returns remained unfiled. The Court held there was no abuse of discretion by the IRS in sustaining the NFTL filing and rejecting the taxpayer's offer in compromise.
Tip of the Day
2026 tax estimate . . . Now is a good time to take a look where you stand on your 2026 taxes. Most tax programs have a 2026 projection feature. If you've got a business you'll probably have to sit down with your tax advisor. But if you don't, he or she should be able to give you a rough idea fairly quickly. If you're doing your own return you can create estimated tax payments based on your liability for 2025. The software will also allow you to set up automatic withdrawals.
April 2, 2026
News
Notice 2026-24 provides a waiver of the addition to tax under Section 6654 for underpayment of estimated income tax by qualifying farmers and fishermen described in the notice. Under the notice, the addition to tax is waived for such farmers and fishermen who, by April 15, 2026, file a calendar-year 2025 federal income tax return and pay in full any tax reported as due on the return. The IRS understands that, for the calendar-year 2025 taxable year, some qualifying farmers and fishermen may have had difficulty preparing and electronically filing complete federal income tax returns that include Form 8995, Qualified Business Income Deduction Simplified Computation. The IRS corrected the 2025 Instructions for Form 8995 on January 27, 2026, including the line 11 computation of taxable income before the qualified business income deduction, and some taxpayers and preparers reported that they could not complete returns until February 23, 2026, when updated software became available.
Tip of the Day
Check gross proceeds reported . . . The IRS is getting far more information from 1099s than in even the recent past, but not all reports they receive can be matched to a taxpayer's return. However, make a mistake entering a W-2 or 1099-R or miss a 1099-INT or DIV and you're almost sure to get a letter. In many cases the IRS will make the correction and bill you in the same notice. Another area where matches are made is on 1099-B, Proceeds from Brokerage and Barter Exchange Transactions. You should make sure the gross proceeds shown on the statement match what you're reporting on your Schedule D. More than one statement? Make sure they all add up to what you're reporting. You should also double check the basis reported by the brokerage firm in the "covered" category (where basis is reported to the IRS) also matches.
April 1, 2026
News
In Barrett Business Services, Inc. (166 T.C. No. 7) the petitioner was a professional employer organization (PEO). Its clients (worksite employers) hire workers (worksite employees) who provide services for and at the direction of the worksite employer. The petitioner handles payroll and employment tax reporting on behalf of its clients. The petitioner claimed the Work Opportunity Tax Credit (WOTC) and the Empowerment Zone Employment Credit (EZEC) for qualifying worksite employees. The IRS disallowed the credits, determining that only a common law employer is eligible for those credits. The petitioner claimed it is eligible for those credits as either a statutory employer or as an agent of the common law employer. The Tax Court held that ommon law employers are eligible for WOTC; statutory employers and agents of common-law employers are not and that common law employers are eligible for the EZEC; statutory employers and agents of common law employers are not.
Tip of the Day
Potential tax legislation . . . There are several tax bills with three provisions which could benefit individuals. The first would exclude damage awards (but not including punitive damages) received on account of sexual acts or contacts. The second would allow a deduction for qualified disaster losses in excess of $500 instead of the current 10% floor. Finally, a provision would extend the definition of a educator eligible to deduct educator expenses to include early childhood educators.
March 31, 2026
News
Tax exempt status for an organization is restricted to those that provide a public benefit. In Mira Vista Homeowners Association, Inc. (T.C. Memo. 2025-102) a homeowners association requested tax exempt status under Sec. 501(c)(4). The IRS determined the Association does not qualify for an exemption from federal income tax under section 501(a) as an organization described in Section 501(c)(4). The Mira Vista development is a gated community consisting of approximately 700 acres, with 657 single-family homes. The Association was organized as a nonprofit corporation under the laws of Texas. The specific and primary purpose of the Association is governing, improving, operating, and maintaining common areas within the Mira Vista development. These include 96 acres of greenbelts and sloping fences, 25 miles of privately maintained streets, nature trails, and a recreational facility consisting of a lake, restrooms, a fishing dock, a playground, and a picnic area. The IRS determined that the Association did not qualify for exemption under Section 501(c)(4) largely because the Association does not benefit the community on an unrestricted basis. The IRS letter explained that the benefits in question were limited to those living within the gated community, which is accessible only to the members of the Association, their guests, and members of the unrelated Country Club. The Tax Court agreed with the IRS's holding.
Tip of the Day
Check those 1099s . . . While the ones for interest income from your bank are likely to be correct. But you should take a quick look at your mortgage interest statement to make sure the amounts are reasonable. Look for taxes paid (if appropriate), loan balance, and total interest paid. Check for the address of the property, too. Chances are you only look at your brokerage statement occasionally and now is a good time. If you get any 1099-MISC (most likely for rent you receive) or 1099-NEC (for self-employment income) check them out, at least to make sure they're reasonable. While big businesses rarely make mistakes when generating these, a small business might. And keep in mind the IRS does a good job of matching 1099s. If you see an error, get it corrected now. It could be difficult later.
March 30, 2026
News
Only settlement awards for physical injury or sickness are generally excludable from income. In Cerissa Rene Fortune-Paladino (T.C. Memo. 2025-101) the taxpayer received a settlement agreement with her former employer to resolve a lawsuit concerning allegations of sexual harassment and discrimination. The taxpayer entered into a settlement agreement with the employer to release her claims against the company in exchange for the award. The Court noted that once the IRS has shown the taxpayer received the award, the burden is on the taxpayer to show the amount is not taxable. The Court also noted the language of the settlement agreement was unambiguous. The settlement proceeds were intended to compensate for "alleged emotional distress, anxiety and humiliation," but not for "any physical injury relating to her sexual discrimination/retaliation employment claims." Paragraph 11 of the agreement, titled "No Injuries Alleged," clearly disclaims any allegations of physical harm. The rest of the record supports this disclaimer. The Court held the award was includable in the taxpayer's income.
Tip of the Day
IRAs . . . You have until April 15 to contribute to an IRA for 2025. Depending on your income, marital status, and whether or not you're covered by a retirement plan you may be able to contribute to a deductible IRA. If you have the funds and are able to make the contribution, you should do so, more for the tax-deferred growth than the tax deduction. Another option, a nondeductible IRA. There are no restrictions on the contribution, but no deduction. You can make the contribution, then convert that to a Roth. Talk to your tax or financial advisor to determine the best option for you.
March 27, 2026
News
In The David and Barbara Green 1993 Dynasty Trust, mart D. Green, Trustee, et al (T.C. Memo. 2025-100) multiple taxpayers (both individuals and electing small business trusts) claimed deductions for charitable contributions of appreciated property. The IRS claimed the property contributed was overvalued and applied the gross valuation misstatement penalty. The taxpayers argued to the contrary claiming reasonable casue for any overvaluation and claiming the penalties were not properly approved by the IRS examiner's supervisor. The Court held the IRS did obtain the proper supervisory approval but that a dispute of material fact exists regarding whether reasonable cause exists with respect to certain of the determined penalties.
Tip of the Day
Missing a tax document? . . . The first step is to try online. Chances are good you can get information from most issuers. If not go to IRS Tax Tip 2026-25 for going to your IRS Individual Online Account, creating a substitute W-2, and other options.
March 26, 2026
News
The IRS is apparently experiencing delays in providing some refunds. There seem to be more than one reason, but the main one is that the IRS is not sending paper checks. Taxpayers who fail to provide a bank account or an incorrect account number are causing problems. Other issues include the reduced head count at the agency.The IRS can reject any offer other than immediate payment of your tax liability. But it's required to consider alternative offers, subject to certain requirements. In Gregory Bowler (T.C. Memo. 2025-98) the issue was whether the IRS settlement officer (SO) abused his discretion in denying the proposed collection alternative (a partial-pay installment agreement of $5,000 a month) and sustaining the filing of a federal tax lien. The Court noted the taxpayer was not in compliance with his estimated tax obligations. That alone would allow the SO to deny special relief. The taxpayer proposed a partial pay installment agreement of $5,000 per month, but based on his allowed expenses the SO calculated a monthly payment of some $10,000. A deviation from the amount the SO computed was not warranted because the taxpayer failed to substantiate higher expenses or a potential decline in income. The Court denied an abuse of discretion by the SO.
Tip of the Day
IRS statistics . . . The IRS has released updated migration date for the U.S. population. The IRS compiles many statistical tables from tax data. Some of it involves income and expenses of individuals for the country, some for income by county. Some statistics are generated as a side effect of processing tax returns such as migration data with files including state-to-state outflow and inflow and county-to-county outflow and inflow. For example, for calendar years 2022-2023 12,159 returns showed a move to Florida and that included 19,927 individuals with adjusted gross income of $2.5 billion. On the other hand only 50 returns moved to North Dakota. These statistics can be valuable, accurate, and free information to your business. For tables and information go to SOI Tax Stats.
March 25, 2026
News
The tax law defines income as "any accession to wealth". Items that aren't taxable income are excluded by specific reference. In Vincent J. Fumo (T.C. Memo. 2025-97) the taxpayer was a long-term state senator and convicted of mail fraud, wire fraud, and willfully filing false tax returns. The taxpayer received funds from the state that were not reimbursements of expenses in the amount of some $2.5 million and amounts from an organization exempt from Federal income tax under Secs. 501(a) and 501(c)(3) of some $1.5 million. The taxpayer appealed his criminal convictions unsucessfully. The current case was a civil one with the IRS attempting to recoup tax monies and penalties. The Court noted the taxpayer used state employees or state contracted persons for personal work and made personal purchases using state senate or the tax exempt organization's funds. The Court looked at the badges of fraud and found him liable for the fraud penalty and an excise tax for using the tax exempt organization's funds.
Tip of the Day
Qualified joint venture . . . If you and your spouse each materially participate as the only members of a jointly owned and operated rental real estate business and you file a joint return for the tax year, you can elect to be treated as a QJV instead of a partnership. This election, in most cases, will not increase the total tax owed on the joint return. By making the election, you will not be required to file Form 1065 for any year the election is in effect and will instead report the income and deductions directly on your joint return. See the instructions for Schedule E for more information.
March 24, 2026
News
The IRS has issued final regulations (T.D. 10043) relating to the definition of qualified nonpersonal use vehicles. Qualified nonpersonal use vehicles are excepted from the substantiation requirements that apply to certain listed property. These final regulations add unmarked vehicles used by firefighters or members of a rescue squad or ambulance crew as a new type of qualified nonpersonal use vehicle. These final regulations affect governmental units that provide firefighter or rescue squad or ambulance crew member employees with unmarked qualified nonpersonal use vehicles and the employees who use those vehicles.
Tip of the Day
Taxpayer Assistance Center . . . Not for simple issues, but if you've got a problem that can't be resolved with correspondence with the IRS you might try the local Taxpayer Assistance Center. You've got to come prepared. That includes full identification and all the documentation you need to related to the problem. Click on the link for additional information.
March 23, 2026
News
The IRS announced (IR-2026-37) that over 1.3 million people across the nation have unclaimed refunds for tax year 2022 and face an April 15 deadline to submit their tax returns. The IRS estimates that approximately $1.2 billion in refunds remains unclaimed for taxpayers who have not filed their Form 1040 Federal income tax return for the 2022 tax year. The IRS estimates the median refund amount is $686 for 2022, which means that half of the refunds are more than $686. This estimate does not include credits that may be applicable. Under the law, taxpayers usually have three years to file and claim their tax refunds. If they do not file within three years, the money becomes the property of the U.S. Treasury.
Tip of the Day
Check carryovers . . . There are many provisions of the tax law involving carryovers from prior years. The most common one is capital losses which can be carried forward. But others include the passive activity losses, the home office expenses, foreign tax credit, etc. If you used the same software as last year, there should be no problem. But if you're using a different package, make sure you enter all the carryovers.
March 20, 2026
News
The IRS has issued final, corrected regulations (T.D. 9991) that provide guidance on the statutory requirement that a recipient’s basis in certain property acquired from a decedent be consistent with the value of the property as finally determined for Federal estate tax purposes. In addition, the final regulations provide guidance on the statutory requirements that executors and other persons provide basis information to the IRS and to the recipients of certain property. The final regulations regarding the statutory consistent basis requirement affect recipients of property acquired from a decedent if the inclusion of the value of the property in the decedent's gross estate increases the Federal estate tax liability. The final regulations regarding the statutory basis reporting requirements affect executors and other persons required to file an estate tax return based on the value of the decedent’s gross estate and the amount of decedent's lifetime adjusted taxable gifts, as well as trustees making in-kind distributions of property initially acquired from a decedent that was subject to the statutory basis reporting requirements. The corrections resolve techical errors and updated to date references.
Tip of the Day
Check the box . . . There can be a number of questions and elections on your return. If you're doing it yourself be careful to know when to check the box and when to not. For example, on Schedule E (rental properties) you want to check active participation if you did participate in the management of the property, you might want to elect to the small taxpayer safe harbor and/or deminimis safe harbor for expenses. The second question isn't on the form but is on computer software versions so the software can include the election. If the rental property was fully disposed of during the year, you may to make sure to check that box to report a gain or loss and to take any accumulated losses.
March 19, 2026
News
Revenue Procedure 2026-17 provides guidance under Sec. 163(j) (interest deduction limitation) regarding the withdrawal of an election under Sec. 163(j)(7)(B) and Sec. 1.163(j)-9 to be an electing real property trade or business, an election under Sec. 163(j)(7)(C) and Sec. 1.163(j)-9 to be an electing farming business, and an election under Sec. 1.163(j)-1(b)(15)(iii) to be an excepted regulated utility trade or business, for purposesof the business interest deduction limitation under Sec. 163(j). This revenue procedure allows certain taxpayers to withdraw such an election for the taxable year in which the election was made. This revenue procedure also allows a taxpayer that withdraws one of these elections to make a late election not to deduct the additional first-year depreciation for certain property.Notice 2026-20 extends the temporary relief provided in section 4.02 of Notice 2025-7 (for digital asset reporting) an additional year. Specifically, this notice allows eligible taxpayers to use certain alternative methods for making an adequate identification, within the meaning of Sec. 1.1012-1(j)(3)(ii),1 with respect to units of a digital asset held in the custody of a broker that are sold, disposed of, or transferred during the relief period specified in this notice.
March 18, 2026
News
Arbor Vita Corporation d.b.a. Hemediagnostics (166 T.C. No. 5) was organized under California law, had unpaid unemployment tax and civil penalty liabilities for taxable year 2017. After holding a CDP hearing, the IRS issued to the petitioner a Notice of Determination for 2017. The petitioner filed a Petition within 30 days of issuance of the Notice of Determination. When the petitioner filed the Petition, its corporate status was suspended under California law for its failure to file certain state tax returns. It revived its corporate status after the filing of the Petition and the expiration of the Sec. 6330(d)(1) 30-day limitations period. The IRS moved the Court to dismiss for lack of jurisdiction on the ground that the petitioner lacked capacity under Tax Ct. R. Prac. & P. 60(c) to initiate this proceeding because its corporate status was suspended under California law at the time the 30-day period of limitations expired. The Court held the petitioner did not have the capacity to file a Petition under Tax Ct. R. Prac. & P. 60(c) because under California law its revival does not relate back to the date it filed its Petition. In addition, the doctrine of equitable tolling is inapplicable in this case. Finally, the Court it lacked jurisdiction.
March 17, 2026
News
In Jackson Stone South, LLC, Jackson South Investments, LLC, Tax Matters Partner; Jackson Stone North, LLC, Jackson North Investments, LLC, Tax Matters Partner (T.C. Memo. 2025-96) the Tax Court agreed with the IRS in finding that the syndicated conservation easement donations had inflated valuations, lacked donative intent and did not meet the requirements for a property contribution. The inflated market values were "supported" by unrealistic assumptions and appraisals that were speculative.
Tip of the Day
AI and tax questions , , , Can AI answer tax questions? Of course. But you've got to be careful to give it all the information. For example, you can exlude $250,000 ($500,000 if married filing joint) of the gain on the sale of your principal residence if you owned and lived in it for at least 2 out of the 5 most recent years. But what if you rented out part of the residence? Used part for business? The residence consists of 20 acres some of which are noncontiguous? The residence was formerly your vacation home? You spent some of the time in a rehabilitation facility? Many areas of the tax law are far more complicated than appear on the surface.
March 16, 2026
News
You can't deduct losses on a business without a profit motive. In Wesley E. Young and Janet S. Young (T.C. Memo. 2025-95) the taxpayers conducted a farming activity that the IRS argued was not engaged in for profit and disallowed the losses taken against the taxpayers' other income. The Court examined the nine factors used to determine a profit motive and agreed with the IRS. The Court noted the inadequate records, particularly in the light of the wife's use of accounting software for their main business, use of a personal bank account for the business, and the manner in which the activity was conducted. Most of the factors favored the IRS or were neutral. Of particular note was the 15 consecutive years of losses with losses in the most recent years actually increasing.
Tip of the Day
S corporation, partnership deadline . . . Today's the deadline for filing returns or an extension request. Keep in mind that that there's a penalty of $255 per partner or S corporation shareholder for any part of a month the return is late. For example, one day late and two partners--that's $510. Your state may have also have a penalty.
March 13, 2026
News
The IRS has updated and enhanced the IRS Tax Withholding Estimator to reflect changes to credits and deductions under the One, Big, Beautiful Bill (OBBB), including no tax on tips, no tax on overtime, and other tax benefits. The IRS Tax Withholding Estimator is a free, easy-to-use tool that helps workers and retirees estimate the amount of federal income tax to withhold from their paychecks now for the taxes they will owe next year. In addition to those who want to see how OBBB impacts them, taxpayers who may benefit from using the estimator include those who:
Tip of the Day
IRS Free File . . . It's not for higher income taxpayers or those with a really complex return, but it could be useful for your older children or for employees. There are two options--Free File tax preparation software and Free File Fillable Forms. The adjusted gross income limits on both are $89,000 this year. The first uses 8 tax preparation software firms and includes embedded help. Some firms include free state returns. The second approach is more on your own just entering numbers in fillable forms. Go to IRS Free File for more information and links to the resources.
March 12, 2026
News
When does the statute of limitations run? It can be extended for a number of reasons in addition to the taxpayer's agreement to extend. In Mammoth Cave Property, LLC, Mammoth Cavemanager, LLC, Partnership Representative (166 T.C. No. 4) the the IRS sent the partnership a final partnership adjustment with respect to a charitable contribution deduction. The partnership submitted to respondent Form 8979, Partnership Representative Revocation, Designation, and Resignation, on which it sought to revoke its designation of its partnership representative and to designate another entity as its new partnership representative. The form contained and old address and despite several resubmissions, continued to use the incorrect address. The Court noted To establish the defense of an expired period of limitations, a taxpayer ordinarily must prove that it filed the statutory return and that the statutory period of limitations has expired. Both parties agreed the Form 1065 partnership return was timely filed. The partnership timely petitioned the Court challenging the IRS's Notice of Final Partnership Adjustment (FPA) because of alleged errors in the Notice of Proposed Partnership Adjustment. The partnership contended that because of these errors the period of limitations on making adjustments pursuant to Sec. 6235(a) expired and therefore the FPA was invalid. The Court held the IRS's FPA issued to was timely pursuant to Sec. 6235(a)(2) and is valid.
Tip of the Day
March 15 deadline . . . March 15 is the deadline for filing S corporation and partnership returns, or an extension request, and, if you're doing business as a regular corporation it's the deadline for electing S corporation status for 2026. In many states it's also the time to file special returns for pass-through entities (S corporations and partnerships) including a separate pass-through entity tax. Check the rules for the states you do business in.
March 11, 2026
News
The IRS announced (IR-2026-32) that it is extending weekly office hours at more than 200 Taxpayer Assistance Centers nationwide to provide taxpayers with additional time to receive in-person assistance during the filing season. Extended weekday hours will be available through Thursday, April 30. Taxpayers can check whether a nearby TAC is offering extended hours by visiting IRS.gov to use the TAC Locator tool: Contact your local office. The tool provides office locations, directions, available services, and information about extended hours. In addition to expanded weekday hours, many TACs will also be open on select Saturdays through June 2026 to provide in-person assistance. During these special Saturday hours, taxpayers can access all regularly available TAC services except for making cash payments. For more information about Saturday hours, visit IRS.gov/saturdayhours.
Tip of the Day
Charitable contributions . . . The range is broad, but you can check to see if the charity qualifies by going to the IRS.gov page www.irs.gov/charities-non-profits/tax-exempt-organization-search. Not deductible are gifts to individuals, homeowner's associations, political or lobbying groups, civic leagues and chambers of commerce, and foreign organizations. There's an exception for Canadian, Israeli, and Mexican charities, but they must meet certain criteria. Some foreign charities have a U.S. counterpart for which contributions are deductible.
March 10, 2026
News
The IRS has issued proposed regulations (REG-117270-25) providing general requirements for Trump Accounts, certain definitions relating to Trump Accounts, election rules to open an initial Trump Account by an authorized individual for an eligible individual, and rules for who is the responsible party for the initial Trump Account once the account has been opened. These proposed regulations provide useful information for parents and guardians who may want to elect to open an initial Trump Account, and for prospective trustees of Trump Accounts. The proposed regulations provide that the election to open an initial Trump Account must be made by an authorized individual on Form 4547, Trump Account Election(s) or through the online Form 4547: Trump Account Election Form--IRS Form 4547 in accordance with applicable instructions. An election to open an initial Trump Account must be made on or before Dec. 31 of the calendar year in which the eligible individual attains age 17. The election form also provides an opportunity for the authorized individual to request the $1,000 pilot program contribution from the Secretary for an eligible child (under Section 6434 of the Code). For additional information see IR-2026-33.
Tip of the Day
Canceled debt? . . . If a debt you owe is forgiven, it's generally income. There are some exceptions. If you're a shareholder in a corporation and the corporation forgives a debt youowe it, that's income, but it's considered a constructive dividend. How that's taxed will depend on whether the entity is a C corporation or an S corporation. In the reverse situation, where you cancel a debt the corporation owes you, the canceled debt is considered a contribution to the corporation's capital.
March 9, 2026
News
The IRS issued proposed regulations (REG-117002-25) providing guidance regarding the pilot program for Trump Accounts, which are a new type of individual retirement account for eligible children. Trump Accounts and the Trump Account Pilot Program were established under the One, Big, Beautiful Bill.The proposed regulations issued today provide rules on how the Secretary of the Treasury will make one-time $1,000 pilot program contributions to the Trump Accounts of eligible children for whom elections have been made. The proposed regulations provide guidance regarding the effects of making an election for an eligible child to receive a $1,000 contribution and define other qualifications.
Tip of the Day
Office in the home . . . If you have a sole proprietorship you may be able to take this deduction. The space must used on a regular basis and the use of the space must be exclusively for business. (For more details on what qualifies, see IRS Publication 587.) You can take either a portion (based on square footage) of your home expenses or rent or a "safe harbor" amount of $5 per square foot, but no more than $1,500. Work through the numbers and discuss with your tax advisor before committing because there are some disadvantages.
March 6, 2026
News
The IRS has released the instructions for Form 1041 and Schedules A, B, G, J, and K-1.The IRS issued proposed regulations (REG-105064-25) to make it easier for digital asset brokers to provide statements electronically to customers, rather than sending paper copies. The proposed regulations recognize the inherent electronic nature of digital asset transactions and are intended to reduce burdens on both brokers and their customers. The proposed regulations would give brokers an alternative, optional process for obtaining consent from their customers to receive 1099-DA statements electronically without having to offer them the choice of receiving the 1099-DA statements on paper. Under this process, brokers would also not have to provide customers with the ability to withdraw a previously provided consent to receiving the 1099-DA statements in an electronic format.
Tip of the Day
Help your tax preparer . . . More than a few taxpayers go to their tax preparer with a pile of unorganized papers and then complain about the bill. Many preparers base their fees on a formula (e.g., a certain amount per rental property, per form, etc.) but don't ignore the time involved. Most preparers who have been doing taxes for a while realize many individuals don't understand all the paperwork they receive, but virtually anyone can put the material in some order. Here are some tips.
March 5, 2026
News
The IRS has announced The Information Returns Intake System (IRIS) is available for the electronic filing of Tax Year (TY) 2025 Forms 1042-S by eligible U.S. filers. Forms 1042-S for prior tax years, as well as submissions by foreign filers, must continue to be electronically filed using the Filing Information Returns Electronically (FIRE) system until it is retired. During the transition period, IRIS and FIRE will both be available and operate in parallel. Beginning with Filing Season 2027 (TY 2026 Forms 1042-S), IRIS will be the only system available for electronically filing information returns. The IRS is reminding filers they are encouraged to review IRIS requirements and begin preparing for the transition. Click on the link above for links to other IRS resources with respect to Form 1042-S.
Tip of the Day
Gift tax filing? . . . The annual gift exclusion for 2025 was $19,000. If you made a gift that exceeded that amount you must file a return. Unless you exceeded the unified estate and gift tax exemption amount no tax is due, but the excess will reduce your unified exemption amount. If you have to file the gift tax return is due April 15 and there's an automatic extension if you file an extension request for your individual tax return.
March 4, 2026
News
The IRS has released Revenue Procedure 2026-15 which provides (1) two tables of limitations on depreciation deductions for owners of passenger automobiles placed in service by the taxpayer during calendar year 2026; and (2) a table of dollar amounts that must be used to determine income inclusions by lessees of passenger automobiles with a lease term beginning in calendar year 2026. These tables reflect the automobile price inflation adjustments required by Sec. 280F(d)(7) of the Code. For purposes of this revenue procedure, the term "passenger automobiles" includes trucks and vans.Tip of the Day
Conservation easements . . . If you are an ultimate member of a partnership or an S corporation, and the amount of the partnership or S corporation's qualified conservation contribution exceeds 2.5 times the sum of each ultimate member's relevant basis, then the contribution is not treated as a qualified conservation contribution. Unless the conservation contribution meets an exception, it will be disallowed.
March 3, 2026
News
The IRS has released IR-2026-28 which describes Schedule 1-A, the form you use to calculate the auto loan interest deduction, the no tax on tips and no tax on overtime as well as the $6,000 deduction for seniors. The news release provides an introduction to the new Schedule. Instructions can be found in the general instruction package for the Form 1040.
Tip of the Day
Medical expenses . . . They're deductible but you've got to break a 7.5% of adjusted gross income threshold. Many taxpayers forget to count dental work, weight loss program as treatment for a specific disease diagnosed by a doctor, medical aids such as eyeglasses, contact lenses, braces, crutches, compression stockings (if prescribed by a doctor), and even a guide or service dog and the cost to maintain them. Also included is nursing help at home. But if you paid an aide for both nursing and housework, only the cost of the nursing help is deductible. If you're using computer software, there's almost assuredly a worksheet that will help. Unless you're clearly under the threshold, put in all the numbers and let the program do the work.
March 2, 2026
News
In most situations the IRS is presumed to be correct and the taxpayer can rebut it in court. However, in the case of fraud, the IRS must establish that by clear and convincing evidence. In Joseph R. Gottesman (T.C. Memo. 2025-94) the IRS claimed the taxpayer failed to report all his income. The tax deficiencies for the four years at issue ranged from a high of $116,840 to a low of $45,452. The Court noted the IRS may rely on a third-party income report if the taxpayer does not raise a reasonable dispute about its accuracy. The taxpayer has neither claimed, nor introduced credible evidence sufficient to show, that the IRS's determinations were arbitrary or erroneous with respect to his unreported income. In addition, the evidence that a Motion for Summary Judgment is factually supported and that there is no genuine dispute as to any material fact. The Court examined 11 badges of fraud and sustained the IRS's finding of civil fraud.
Tip of the Day
Long-term care premiums . . . You can deduct these as medical expenses, but the amount is limited based on your age. If you're 40 or under, the maximum deduction is $480; if you're 71 or older the maximum is $6,020.
Copyright 2026 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536