All Posts

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

A business no longer needs to be dissolved before year-end to stop the next year’s $800 tax from accruing. California’s rules for ending the $800 annual franchise tax have changed, and dissolving entities can now avoid unnecessary payments if the correct steps are followed. A business no longer needs to be dissolved before year-end to stop the next year’s $800 tax from accruing; however, tax planning during dissolution is still essential. Avoiding the $800 Tax After the Final

C Corporations For many business owners, choosing a business entity is one of the most important financial decisions they’ll ever make. A C corporation (“C-corp”) can offer exceptional advantages: strong liability protection, the best fringe benefit options in the tax code, and opportunities like the Qualified Small Business Stock (QSBS) exclusion that can save millions in taxes. But C-corps also come with risks. They face double taxation, increased scrutiny from the IRS, and

Changing Your Business Structure Most business owners reach a point where their original business structure no longer fits where the company is headed. Maybe revenue has grown, you’re hiring people, you’re thinking about retirement, or you’re preparing to sell. Whatever the reason, changing your business entity is more than a paperwork decision—it affects taxes, liability, benefits, and long-term strategy. This article explains what actually happens when you switch from an LL

Medical Plan Strategies All small-business owners with one to 49 employees should have a medical plan for their business. As you likely know, when you have 49 or fewer employees, the tax law does not require you to have a medical plan for employees, but you should. Most of the tax rules that apply to medical plans are straightforward when you have fewer than 50 employees. And then, when you have your spouse as your only employee in a proprietorship, there’s that great rule th

ICHRA The individual coverage health reimbursement arrangement (ICHRA) enables businesses of all sizes, from Fortune 500 corporations to small mom-and-pop shops, to reimburse employees for personal health insurance purchases1—and avoid the potential penalty of $100 per day for each employee that could otherwise be imposed.2 Example 1. Ben operates a business with seven employees. He offers an ICHRA that will reimburse employees up to $600 a month for health insurance and oth

QSEHRA Health Plan As a small employer (fewer than 50 employees), you are exempt from the requirements of the Affordable Care Act and need not offer your employees medical coverage. But if you desire to give your employees medical coverage, consider the qualified small-employer health reimbursement arrangement (QSEHRA) as one of four good ways to help your employees with their medical expenses. In this first article of four on small-business health plans, you will learn how t

Health Insurance for S Corporation If you operate your business as an S corporation, you continue to enjoy good news in 2025 when it comes to your health insurance. In this article, we give you the ins and outs of what you need to do with your S corporation to ensure your health insurance deductions and also avoid the $100-a-day penalties for violating the rules of the Affordable Care Act. Good News The good news is that the old rules still apply. Step 1. Get the cost of t

California Conformity Update: New Rules, Ongoing Non-Conformity For years, California’s conformity to federal law has been spotty at best. This continues to be the case even with California’s recent enactment of SB-711 , the bill that updated California’s specified conformity date from January 1, 2015 to January 1, 2025. In theory, this would mean that California would automatically incorporate all tax changes enacted at the federal level over the last 10 years. But that is n

Crypto Investors 2025 has been a great year for investors in cryptocurrency, with Bitcoin reaching all-time highs. But your high profits can trigger high taxes. Key point. To trigger taxes, you must sell or use the crypto to buy things. That said, let’s return to the issue at hand—your high profits can trigger high taxes. Fortunately, you can put several strategies into play before year-end to reduce not only your 2025 crypto taxes but also your future crypto taxes. Step Up T

Exemption, waiver, and withholding reductions requests available. We are going to review the five forms available to request exemptions, waivers, and reductions on non-wage withholding required for both residents and non-residents. In this article, we will review the following California non-wage withholding requirements: Form 590, Withholding Exemption Certificate; Form 590P, Non-Resident Withholding Exemption Certificate for Previously Reported Income ; Form 587 , Non-Re

Establish a Self-Directed IRA for Crypto Invest in Crypto Through Retirement Accounts - 2025 Year-End Tax Strategies for Crypto Investors (Part 6 of the 2025 Year-End Tax Strategies for Crypto Investors series) In earlier parts of this series, 2025 Year-End Tax Strategies for Crypto Investors , we’ve covered how to step up your basis, harvest losses, use the wash-sale exception, donate appreciated crypto, and gift crypto to loved ones. In this final article, we’ll focus on us

Gift Crypto Gifting Crypto: How to Share Wealth Tax-Free - 2025 Year-End Tax Strategies for Crypto Investors (Part 5 of the 2025 Year-End Tax Strategies for Crypto Investors series) In earlier parts of this series, 2025 Year-End Tax Strategies for Crypto Investors , we reviewed how to step up your basis, harvest losses, leverage the wash-sale exception, and donate appreciated crypto for maximum tax savings. This installment covers another valuable year-end strategy—gifting cr

Donate Crypto to Charity Donate Crypto and Double Your Tax Benefits - 2025 Year-End Tax Strategies for Crypto Investors (Part 4 of the 2025 Year-End Tax Strategies for Crypto Investors series) In earlier parts of this series, 2025 Year-End Tax Strategies for Crypto Investors , we discussed how to step up your basis, harvest losses, and take advantage of the wash-sale exception. In this article, we’ll explore another powerful move for 2025—donating appreciated crypto to charit

Wash-Sale Loophole The Wash-Sale Loophole: Why Crypto Is Different - 2025 Year-End Tax Strategies for Crypto Investors (Part 3 of the 2025 Year-End Tax Strategies for Crypto Investors series) In earlier parts of this series, 2025 Year-End Tax Strategies for Crypto Investors , we covered how rising crypto values can trigger taxable gains, how to step up your basis, and how to harvest losses before year-end. This article continues the series by exploring the wash-sale rule—and

Harvest Your Losses Harvest Your Crypto Losses Before December 31- 2025 Year-End Tax Strategies for Crypto Investors (Part 2 of the 2025 Year-End Tax Strategies for Crypto Investors series) In our previous article, we began our series 2025 Year-End Tax Strategies for Crypto Investors by explaining that 2025 has been a great year for cryptocurrency holders, with Bitcoin reaching record highs—and that those high profits can also mean high taxes. We discussed the first strategy

Step Up Tax Basis with Tax-Gain Harvesting Step Up Your Tax Basis with Tax-Gain Harvesting - 2025 Year-End Tax Strategies for Crypto Investors (Part 1 of the 2025 Year-End Tax Strategies for Crypto Investors series) 2025 has been a great year for investors in cryptocurrency, with Bitcoin reaching all-time highs. But your high profits can trigger high taxes. Key point. To trigger taxes, you must sell or use the crypto to buy things. That said, let’s return to the issue at hand