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~ $1.2 billion in unclaimed refunds for the 2022 tax year remain outstanding. In light of a recent federal court decision, the IRS is urging taxpayers and tax professionals to act promptly, as approximately $1.2 billion in unclaimed refunds for the 2022 tax year remain outstanding. The deadline to claim these refunds is April 15, 2026. Currently, more than 1.3 million individuals have not filed a 2022 federal income tax return, potentially leaving substantial refunds uncollec

The Pitiful and Outdated Tax Code Business Gift Limit Question During the holiday season, I send gift baskets to colleagues, referral sources, and select customers. My purpose is to keep my name in front of these people for obvious business reasons. Can I write off the cost of the gift baskets as a business expense? Answer Yes, you may write off the gift baskets as business gifts but only up to $25 annually for each recipient.1 If the total cost of all your business gifts to

How to split an IRS refund using Form 8888 Form 8888 lets taxpayers split a federal tax refund into up to three accounts for savings, retirement contributions or other financial goals Many taxpayers look forward to receiving a tax refund each year, but not everyone realizes they can divide that refund into multiple deposits. The IRS allows taxpayers to split their federal refund into several accounts using Form 8888, Allocation of Refund. For tax professionals, understanding

Resolving IRS Notices in 2026: What Taxpayers Need to Know Tax professional reviewing IRS transcripts, extension filings and balance-due returns to prevent notices and resolve late-season tax issues As April 15 draws near, tax professionals are seeing familiar late-season patterns of mismatched income on transcripts, a surge in extension filings and a steady rise in balance-due returns. IRS notices are landing in mailboxes faster than ever, catching many taxpayers off guard.

The IRS Holds the Taxpayer Responsible What tax professionals need to communicate to clients about their ultimate responsibility for accurate returns, recordkeeping, and responding to IRS notices As tax professionals, we carry the technical burden. We apply the law, complete the forms and guide clients through complicated rules. But one principle never changes: the taxpayer is ultimately responsible for their return. Section 6011(a) requires the taxpayer to make a return and

Every treaty is different, and every article within a treaty has its own rules. Foreign-source income can create opportunity or risk. The difference often comes down to how well tax professionals understand income tax treaties. The United States has income tax treaties with many foreign countries. These treaties may allow residents of those countries to claim a reduced U.S. tax rate or even an exemption from certain types of U.S.-source income. That can include dividends, int

Acquisition Date vs. Service Date Bonus depreciation has been one of the most unpredictable tax provisions—constantly expiring, changing, and getting extended. The OB3 Act finally makes it permanent and restores 100% bonus depreciation. But there’s a catch. The biggest issue is the new requirement: the asset must be both acquired AND placed in service after January 19, 2025. In the past, timing was simpler. For depreciation, the placed-in-service date was what mattered mos

Business tax deadline reminder This deadline generally applies to: • Partnerships (Form 1065) • S Corporations (Form 1120-S) These returns are normally due March 15, but because it falls on a weekend this year, the deadline moves to March 16. Not ready to file yet? You can request an extension. An extension gives you more time to file the return, but any tax owed still needs to be paid by the deadline to avoid penalties. If you’re unsure whether your business needs to file or

The IRS is using a new process that temporarily pauses the refund and asks taxpayers to confirm or update their bank details. If you are expecting a tax refund and normally receive it by direct deposit, you may want to watch your mail carefully this year. The IRS has sent approximately 830,000 CP53E notices to taxpayers whose refunds could not be deposited because the agency does not have valid banking information on file. Instead of automatically mailing a paper check, the

12-digit alphanumeric entity identification number If you formed a business in California recently, you may notice something new on your paperwork: a longer identification number from the California Secretary of State. Starting in 2025, the Secretary of State began issuing a 12-digit alphanumeric entity identification number to newly registered corporations, LLCs, and limited partnerships. This change can cause confusion when filing tax returns or making payments—especially b

Brutal IRS Trap Wipes Out Goodwill Clothing Deductions A recent Tax Court case delivered a hard lesson for generous taxpayers. A donor gave $6,760 of clothing and household goods to charity. The IRS did not dispute the donations themselves. The deduction was denied because required documentation details were missing. This wasn’t about fraud. It was about paperwork. If you donate noncash items to organizations like Goodwill or the Salvation Army, this case should get your atte

If you reached age 73 in 2025, you may delay your first RMD until April 1, 2026. RMDIf you turned 73 in 2025, an important retirement distribution deadline is approaching. In most cases, you must begin taking required minimum distributions (RMDs) from your traditional IRA, 401(k), or similar workplace retirement plan. While annual RMDs are generally due by December 31, the first RMD has a special rule. Key first-year rule If you reached age 73 in 2025, you may delay your firs

Qualified Production Depreciation Deduction: IRS Issues Key Guidance The IRS has released Notice 2026-16, providing interim guidance on the new IRC §168(n) qualified production depreciation deduction enacted under OBBBA. This guidance may be relied upon until proposed regulations are issued and answers several practical questions about eligibility, elections, and recapture. What Is the Qualified Production Depreciation Deduction? IRC §168(n) allows a 100% depreciation deducti

Bicycle Commuting Tax Benefit For years, the federal tax code included a small incentive for employees who rode a bicycle to work. That incentive is now gone. The One Big Beautiful Bill Act (OBBBA) permanently removes the tax exclusion for qualified bicycle commuting reimbursements. What was once a modest, tax-free fringe benefit will no longer receive favorable tax treatment starting in 2026. Here is what changed and what it means. What the Bicycle Commuting Benefit Used to

Tips and Overtime Deductions for 2025 and 2026Transition Relief, Reporting Gaps, and Open Compliance Issues The tips deduction is available only when tips are received in a non-specified service trade or business (non-SSTB) and claimed on Schedule 1-A. The IRS has provided transition relief on this issue by stating that no business will be treated as a specified service trade or business until January 1 of the year following the year in which the IRS issues formal guidance .

Auto Loan Interest Deduction (2025–2028): The auto loan interest deduction introduced for tax years beginning in 2025 is one of the most misunderstood provisions in recent federal tax law. While the deduction can be valuable, it is narrow, highly technical, and dependent on precise facts. Small errors — such as using the wrong loan balance, missing a VIN, or misunderstanding vehicle eligibility — can fully disqualify the deduction. This article provides a clear, authoritative

About 500,000 Trump Accounts were opened within the first three days of filing season . Trump Accounts are one of the most talked-about new savings tools for children — and not just among tax professionals. Families across the country are already opening them in large numbers. In fact, according to a White House press briefing, about 500,000 Trump Accounts were opened within the first three days of filing season . That surge happened before many tax returns were even filed an

The No Tax on Tips Deduction for 2025 The One Big Beautiful Bill Act created a new federal deduction that allows eligible workers to exclude certain tips from taxable income. Although the rule applies from 2025 through 2028, the IRS has designated 2025 as a transition year with special reporting rules and temporary enforcement relief. This page explains how the deduction works for 2025, who qualifies, and how to document tips correctly. What Changed in 2025 Starting January 1

IRS Shutdown Update You may be seeing headlines about a possible federal government shutdown. The key point: the IRS is not shutting down right now, and filing season is moving forward. Under its official FY 2026 Lapsed Appropriations Contingency Plan, the IRS has confirmed that previously enacted appropriations remain available. Because of this, the IRS does not immediately lose funding if a government shutdown occurs. As a result, IRS operations are expected to continue no

The IRS issued Notice 2025-69 to provide guidance and transition relief for the 2025 tax year for individuals to aid in the calculation of the new OBBA deductions for qualified tips and overtime. This transition relief is necessary because the IRS did not update the 2025 Forms W-2 or 1099 to account for these new deductions. Qualified Tips – Employees (IRC Section 224) For employees claiming the deduction for qualified tips under IRC section 224, qualified tips can be calcul