All Posts

100 percent bonus depreciation Bonus depreciation is back in full, and this time it is here to stay. With the passage of the One Big Beautiful Bill Act, Congress permanently restored 100% bonus depreciation for qualifying property. The IRS issued Notice 2026-11 , which provides interim guidance on how tax professionals may apply the updated §168(k) rules until proposed regulations are issued. If your clients are planning capital purchases or have recently placed assets in ser

Who Counts as a Dependent and Qualifying Relative in 2025 Tax professional guide explaining qualifying child and qualifying relative rules for 2025, including dependency tests, income limits, and common IRS enforcement risks. Claiming a dependent can unlock valuable tax benefits, but it’s also one of the most misunderstood areas of the tax code. Every filing season, tax professionals field the same questions: Can I claim my elderly parent? What about my adult child who moved

A postmark now reflects when USPS processes the mail, not when you drop it in a mailbox. In late 2025, the U.S. Postal Service clarified how postmarks are applied. A postmark now reflects when USPS processes the mail, not when you drop it in a mailbox. Because mail is no longer always processed the same day, postmarks can be applied one or two days later. The IRS uses the postmark date as the legal filing and payment date. That means a return or payment mailed on the deadline

Earned Income Tax Credit (EIC) Earned income tax credit eligibility requirements explained for tax professionals, covering qualifying children, income rules, filing status and common IRS pitfalls If you prepare returns for individuals and families, you already know the earned income tax credit (EIC) is one of the most valuable refundable credits out there. It can reduce a taxpayer’s tax bill and, for many clients, it can produce a larger refund even when little or no federal

San Diego Precision Tax Service Inc Here are a few of the top questions we get and their answers for a refresher just as filing season gets underway. The first question is, if a California resident sets up a single-member LLC in another state, does the LLC need to file in California? There will be no business transactions in California and all the investment income will be coming from other states. The answer is yes. If the member is a resident, they’re required to file For

Tax Law Wrap-Up As tax professionals gear up for the 2025 filing season, staying ahead of the latest changes is essential. This year’s wrap-up brings together the inflation-adjusted amounts you’ll rely on most, along with the critical updates introduced in the One Big Beautiful Bill Act (OBBBA; H.R.1). Here you’ll find the practical details you need to brief clients with confidence and refresh your organizers, checklists and workpapers before the season hits full stride. 2025

IRS Releases 2026 Standard Mileage Rates The IRS announced the 2026 standard mileage rates , providing tax professionals with an important planning update for clients who drive for business, medical, charitable or qualified moving purposes. Beginning Jan. 1, 2026 , the business standard mileage rate increases to 72.5 cents per mile , up 2.5 cents from 2025. The standard mileage rate for medical travel decreases to 20.5 cents per mile , down 0.5 cents , while the charitable m

It’s not uncommon for clients to just close up shop when a business fails without going through the proper steps to formally dissolve the entity with the California Secretary of State. When this happens, the owners will receive a bill from the FTB for the annual $800 minimum tax plus penalties and interest. This can quickly add up if the business hasn’t operated for years. Choices for entities that were never properly closed in California Here are some options to help your cl

Protect Yourself from Scams Scammers may pose as IRS or FTB employees to deceive taxpayers into sending money or sharing personal information. Common scams include texts, emails, calls, fake websites, and fraudulent mail. To protect yourself: Do not reply to or click links in suspicious messages. If you are unsure, contact FTB directly to verify the request. For suspicious letters, call FTB at 800-852-5711 or visit the Notices and letters page for more information. Als

IRC section 274 provides the general rule that no deduction is allowed for entertainment, travel, or gifts unless it is directly related to the active conduct of a trade or business. California generally conforms to section 274 prior to its amendment by the Tax Cuts and Jobs Act and the One Big Beautiful Bill Act. California does not conform to the TCJA and OBBBA amendments that eliminate the deduction for entertainment expenses, limit the employer’s deduction for meals provi

Why your tax preparer asks so many questions If you’ve ever wondered why a tax professional asks detailed questions or requests copies of documents you already provided, there’s a simple reason: federal law requires it. When a return includes certain credits or filing statuses, the IRS imposes strict “due diligence” rules on paid preparers. These rules exist to protect both you and the preparer from errors, audits, and penalties. What triggers due diligence Extra rules appl

How Form 1099-DA Will Impact Your Crypto Taxes It took the IRS four years to finalize its cryptocurrency regulations, but crypto tax reporting is here. Starting with the 2025 tax year, custodial crypto platforms must report digital asset transactions on new IRS Form 1099-DA. The first Form 1099-DAs must be filed by March 31, 2026, if e-filing (March 2, 2026, if filed on paper). Starting in 2026, custodial brokers must report the cost basis of digital assets, which will make i

Gift Tax Return Most people never have to pay gift taxes, but they still may be required to file gift tax returns with the IRS. Such filings can be a burden, but they can also provide important benefits. What Is a Gift Tax Return? IRS Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, must be filed by the person who makes a taxable gift (the donor), not the gift recipient (the donee).1 Donors who file gift tax returns rarely have to pay any gift tax.

All-Electronic Refunds The federal government is phasing out paper checks. President Donald Trump issued an executive order last March requiring all federal agencies to transition from paper checks to electronic funds transfer to the extent permitted by law. All payments made to the federal government (taxes, fees, fines) will also eventually have to be made electronically, but this transition will only be made “as soon as practicable.”¹ The process has already started. The I

Practitioner Responsibilities Under Circular 230 Introduction During a live IRS Stakeholder Liaison session on professional conduct and tax practice, questions were addressed by Tom Curtin, a representative of the IRS Office of Professional Responsibility (OPR) . OPR administers and enforces Circular 230, which governs practice before the Internal Revenue Service. The discussion focused on emerging issues, including artificial intelligence, jurisdiction, and taxpayer data se

New Trump Accounts The IRS has released early guidance ( Notice 2025-68 ) explaining how the new Trump Accounts will work. These accounts are designed to help families save for a child’s future—similar to an IRA, but specifically for minors. What You Need to Know A Trump Account can be opened for a child under age 18. Parents, guardians, other individuals, and even employers may be able to contribute (final rules are still coming). While the child is under 18, funds can only

First-Time Penalty Relief If you’ve ever filed or paid your taxes late, you may have been charged a failure-to-file or failure-to-pay penalty. For many years, the IRS has offered a “first-time abatement” (FTA) waiver that lets eligible taxpayers remove these penalties — but you had to call or write the IRS to request it. Beginning in 2026, the IRS will automatically remove these penalties for taxpayers who qualify. What is First-Time Abatement (FTA)? FTA is a one-time penalt

The top 10 things to know for filing 2025 California returns. With filing season right around the corner, tax professionals need to stay on top of the biggest adjustments and filing tips that they'll need to correctly file their client's F orms 540. Between OBBBA, California's big conformity bill, and the Los Angeles wildfires, there's a lot to stay on top of. Here's a list of the top 10 things to know for filing 2025 California returns. Los Angeles wildfires notation requir

The IRS has released Notice 2025-70 and is asking the public for feedback as it develops regulations for a new federal tax credit under §25F. This credit is designed to support organizations that provide scholarships for elementary and secondary school students. What the New Credit Provides Starting in 2027, taxpayers may be able to claim a nonrefundable credit of up to $1,700 for qualified cash contributions to approved scholarship-granting organizations (SGOs). To qualify:

Student Loan Discharges Many borrowers in income-driven repayment (IDR) plans are finally receiving student loan forgiveness after years—often decades—of payments. This relief can be life-changing, especially for borrowers with large balances and limited savings. But there is one important issue to understand: depending on when the forgiveness happens, the forgiven amount may be treated as taxable income. A recent letter from the U.S. Senate to the Treasury Department and IRS