Arsenault and Cline, CPAs, Inc.

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Arsenault and Cline, CPAs, Inc.

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08/30/2026

The IRS has proposed regulations that may simplify reporting for certain trusts claiming charitable deductions. Under the proposed regs, a trust wouldn’t need to file Form 1041-A, “U.S. Information Return Trust Accumulation of Charitable Amounts,” for a tax year if its only charitable deduction comes from contributions made by a passthrough entity in which the trust owns an interest. The proposed regs also clarify that split-interest trusts meet their reporting obligations by filing Form 5227, “Split-Interest Trust Information Return.” The new rules would generally apply to tax years ending after the regs are finalized, but qualifying trusts may rely on them now. Contact us with questions.

08/28/2026

When is a lemonade stand not just a lemonade stand? If your child earns $400 or more annually in profit from a lemonade stand, lawn service or other self-employment, that income may be taxable. Kids may be able to deduct certain business expenses to lower their self-employment income and potential taxes. They also have several tax responsibilities, including filing a tax return and, possibly, making estimated payments. They’re generally allowed to sign their own return, but should get adult help to prepare it. In the meantime, make sure your child keeps good income and expense records. This will facilitate easier tax preparation.

08/27/2026

On Aug. 7, the U.S. Senate passed the Doug LaMalfa Federal Disaster Tax Relief Certainty Act. Once the President signs it into law, recipients of qualified wildfire relief will be able to exclude the payments from their taxable gross income. Qualified payments cover wildfire-related losses, expenses and damages. This tax relief will be available for disasters declared in 2015 through 2026, regardless of when the payments are received. The law will also allow individuals with qualified net disaster losses in federally declared zones to deduct the net amount of personal casualty loss. This provision will apply to disasters starting Dec. 28, 2019, through Dec. 31, 2026. Contact us for details.

08/26/2026

You may be able to claim a tax deduction for unreimbursed medical and dental expenses that exceed 7.5% of your adjusted gross income. Eligible expenses can include payments for medical and dental care, prescription medications, insulin, medical equipment and supplies, certain health insurance premiums, and transportation necessary to receive medical care. Expenses paid for yourself, your spouse or your dependents may qualify. Keep in mind that the medical expense deduction is an itemized deduction. So to take advantage of it, you must itemize deductions on Schedule A of Form 1040 rather than claim the standard deduction. Contact us to learn more or visit: https://bit.ly/3zDg8C0

08/25/2026

The U.S. Government Accountability Office (GAO) is reporting that the IRS needed nearly a month to process paper tax returns this tax filing season, double the amount of time as last year. The reason: reduced staffing and unavailable processing systems due in part to recent staff losses that delayed programming updates. The IRS sent about half of paper returns to outside vendors to scan. Refunds were also delayed for some taxpayers. Under a 2025 executive order, the IRS began phasing out paper check refunds. As a result, the tax agency delayed millions of refunds for taxpayers who hadn’t provided direct deposit information. For more details https://bit.ly/4qbrXWf

08/24/2026

The IRS has issued Notice 2026-48 outlining anticipated rules for the Saver’s Match program. Signed into law as part of the SECURE 2.0 Act of 2022, the program will apply to tax years beginning after Dec. 31, 2026. Eligible low- and moderate-income taxpayers may receive a federal match of up to 50% on the first $2,000 of contributions made to a qualified employer-sponsored retirement plan or IRA (up to $1,000 annually). Taxpayers generally will claim the match on their tax return. Saver’s Match will replace the Saver’s Credit for qualifying retirement contributions, though the credit will remain available for Achieving a Better Life Experience account contributions.

08/23/2026

Do you want to dispute an IRS assessment or action? You have the right to escalate the dispute to the Independent Office of Appeals. This independent forum operates separately from the IRS and is designed to provide a fair and unbiased review. You must meet appeal criteria (https://bit.ly/4yXmMgR ) and make an appeal request in writing to the address the IRS specifies. Appeals conferences may be by mail, phone or video or in person. They usually end with Appeals making one of three determinations: 1) IRS position upheld, 2) taxpayer’s favor, or 3) compromise. Contact us for help with IRS disputes or if you’d like to submit your case to the Office of Appeals.

08/22/2026

Last year’s One Big Beautiful Bill Act made permanent the suspension of most miscellaneous itemized deductions for individual taxpayers. Before the 2018 suspension, professional fees, investment costs and similar expenses had been deductible if they exceeded a floor of 2% of adjusted gross income. Also impacted are unreimbursed employee business expenses, which affects employees who work from home. They generally no longer can deduct home office costs. But self-employed individuals may still be able to deduct a portion of these expenses from their self-employment income if their home office is their principal place of business or it’s used regularly for business.

08/21/2026

Is Sept. 15 flagged on your tax calendar? It’s the deadline for individuals to make their third 2026 estimated tax payment. Estimated payments are generally required if you expect to owe at least $1,000 in federal tax for 2026 after withholding and credits, and your withholding won’t equal at least 90% of your 2026 tax liability or 100% or 110% (depending on your 2025 income) of your 2025 tax liability. This may be the case if you have income from self-employment, investments or other sources not covered by withholding. Staying current with estimated payments can help you avoid underpayment penalties and a larger tax bill on April 15. If you have questions, we’re here to help.

08/20/2026

Does your business barter? Don’t overlook the tax consequences. When businesses exchange goods or services instead of cash, the IRS generally treats the transaction as if each party sold what it provided and purchased what it received at fair market value. The fair market value of goods, services or barter credits received is generally taxable income and must be properly reported. Business expenses paid through barter may still be deductible, and if an asset was received, the value received becomes the tax basis of the asset. Businesses using barter clubs may receive Form 1099-B, “Proceeds From Broker and Barter Exchange Transactions.” Keep detailed records. Have questions? We can help.

Address

55 Ferncroft Road, Ste 310
Danvers, MA
01923

Telephone

+17815935400

Website

http://www.arsenaultclinecpas.cpa/

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