Your Back Office Tax & Advisory

01/06/2026

From the IRS: With the 2026 filing season quickly approaching, the Internal Revenue Service is urging taxpayers to take a few simple steps now to prepare for filing their 2025 federal income tax returns. Visit Get Ready on IRS.gov for checklists, updates and no-cost filing options.

One of the most important steps taxpayers can take is to access their IRS Individual Online Account. IRS Individual Online Accounts are available 24/7, to view account information, make payments, manage communication preferences and protect tax information.

Use direct deposit

Due to the presidential executive order, Modernizing Payments To and From America’s Bank Account the IRS is phasing out paper tax refund checks. The IRS encourages taxpayers who do not have a bank account to open one so they can receive refunds by direct deposit.

Review new 2025 tax law changes

Recent legislation, such as the provisions in the One, Big, Beautiful Bill, includes several new deductions and credits that may reduce tax bills or increase refunds. Beginning in 2025, to be eligible to claim certain credits for other dependents, the taxpayer and their spouse, if filing jointly, must have valid Social Security numbers or Individual Taxpayer Identification Numbers issued on or before the due date of their returns (including extensions).

New Trump Accounts for eligible children

Parents, guardians and other authorized individuals will be able to open Trump Accounts, a new retirement savings vehicle for children under the age of 18 with a valid SSN. A pilot program contribution of $1,000 will be available for children who are U.S. citizens and born from Jan. 1, 2025, to Dec. 31, 2028. Visit trumpaccounts.gov for details.

Income from payment apps and online sales

All income from part-time work, gig activities or sales of goods and services is taxable. Form 1099-K, Payment Card and Third Party Network Transactions, will be issued by payment card companies for any amount and by payment apps and online marketplaces when payments exceed $20,000 and more than 200 transactions occur for the year.

Digital assets reporting requirements

Taxpayers who bought, sold or received digital assets, including cryptocurrency, stablecoins or NFT, must report those transactions. Some taxpayers may receive Form 1099-DA from brokers. Regardless, all taxpayers must answer the digital asset question on Form 1040 and report any related income, gains, or losses. Visit Digital Assets for more information.

Get ready now

Take a few steps today, reviewing tax law changes, gathering documents and using online tools, to help ensure a smoother less stressful experience when filing taxes in 2026.

01/02/2026

https://www.irs.gov/individuals/get-ready-to-file-your-taxes

Get ready to file your taxes. See tips that can make filing taxes easier next year. Learn about tax law changes, how to view your tax account information online, and ways to get help.

12/18/2025

MAJOR TAX LAW CHANGES

Car loan interest:

Effective 2025 through 2028. Up to $10,000 per year for interest on qualified new vehicle loans. Phase-out begins at modified adjusted gross income of $100,000 for single filers, $200,000 for joint filers.

Standard deduction increase:

The standard deduction increases for tax year 2026, to $32,200 for married couples filing jointly, $16,100 for single filers and married individuals filing separately, $24,150 for heads of household.

Deduction for seniors:

Additional $6,000 per taxpayer aged 65 or older. $12,000 if both spouses qualify. Phase-out begins at modified adjusted gross income of $75,000 for single filers, $150,000 for joint filers.

No tax on overtime:

It applies only to the overtime premium portion of wages. Modified adjusted gross income caps annually at $12,500 for single filers, $25,000 for joint filers.

No tax on tips:

Up to $25,000 of qualified tip income is deductible. Phase-out begins at modified adjusted gross income of:
$150,000 for single filers, $300,000 for joint filers.

11/26/2025

From the IRS: It’s not too early to get ready for the 2026 tax season

IR-2025-116, Nov. 26, 2025

WASHINGTON — The Internal Revenue Service encourages taxpayers to take steps now to prepare for the upcoming filing season by visiting IRS.gov/GetReady for tips on what is new and what to consider before filing. This is the first in a series of special IRS "Get Ready" reminders to help taxpayers prepare in early 2026 for the upcoming tax filing season. A little advance work preparing paperwork and organizing information now can help with filing tax returns quickly and accurately.

It is important for taxpayers to get ready now because the One, Big, Beautiful Bill can significantly affect federal taxes, credits and deductions. The IRS and Treasury are working to implement the new legislation, including providing information on the new tax deductions, such as no tax on tips, no tax on overtime, no tax on car loan interest, the new temporary deduction for seniors and others. The IRS will release new information as it becomes available.

Gather and organize tax records

Having organized tax records helps taxpayers file complete and accurate tax returns and avoid errors that could delay refunds. Start by collecting:

Bank account information.
Forms W-2 from your employer(s).
Forms 1099 from banks and other payers.
Records of digital asset transactions.
Taxpayers should wait to file until they have received all their tax records. Keeping documents organized can also make it easier to locate information needed to claim deductions or credits.

Online Account

An IRS online account allows taxpayers to access personal tax information, including recently filed returns, securely. Through this tool, taxpayers can:

View tax records, including adjusted gross income and transcripts.
Make, schedule and view payments.
Get or view their Identity Protection PIN (IP PIN).
Authorize a tax professional to access their tax records digitally.
Access available Forms W-2 and certain 1099s.
Speed tax refunds with direct deposit

Direct deposit is the fastest way to receive a refund. Additionally, in accordance with Executive Order 14247, the IRS began phasing out paper tax refund checks on Sept. 30, 2025, which means most taxpayers must provide routing and account numbers to get their refunds directly deposited into their bank accounts.

Taxpayers without a bank account can learn how to open one at an FDIC insured bank or through the National Credit Union Locator Tool. Veterans, see the Veterans Benefits Banking Program for financial services options at participating banks.

Prepaid debit cards, digital wallets or mobile apps may support direct deposit. To use these options, taxpayers must have routing and account numbers associated with their personal accounts. Check with the mobile app provider or financial institution to confirm which numbers to use.

Get ready to file your taxes. See tips that can make filing taxes easier next year. Learn about tax law changes, how to view your tax account information online, and ways to get help.

11/11/2025

https://www.joinaccountingplus.com/high-school2?utm_medium=paidads&utm_source=googlesearch&utm_content=775451364213-joinaccountingplus&utm_term=148944&utm_campaign=bpi-september-2025&cq_src=google_ads&cq_cmp=23043128076&cq_con=191064875452&cq_term=joinaccountingplus&cq_med&cq_plac&cq_net=g&cq_plt=gp&gad_source=1&gad_campaignid=23043128076&gbraid=0AAAAAoYQWHQvVfws9Y6hSw1pXiAsEEFgh&gclid=CjwKCAiA2svIBhB-EiwARWDPjrgf8ri1Szw5n1R-XQPAzA9vATLu44crtMV42a5jdblcawFnYBLCoRoC8kEQAvD_BwE

When you think of people that change the world, you might not think of accountants, think again!

10/22/2025

When an event is hosted by FOUR of your clients, well then, you're going. 😃 I won't be able to stay the whole time, but plan to be there at 5:00 for one beer!

10/09/2025

IRS government shutdown update. The following activities are furloughed and will NOT be conducted:

Issuing refunds
Processing non-disaster relief transcripts, and income verification services including express service/return
Processing individual amended returns
All audit functions, examining returns and processing non-electronic tax returns that do not include remittances
Non-automated collections
Legal counsel for non-excepted activities
Taxpayer services such as responding to taxpayer questions (call sites)
The Taxpayer Advocate Service is closed

07/31/2025

From the IRS: Social media can be a resource for up-to-date tax information, especially with the many changes to the federal taxes in 2025. However, taxpayers should be mindful of what accounts they’re following for tax advice. Unfortunately, there’s a lot of inaccurate or scam advice being shared. Which is why it’s important that taxpayer get tax-related information from IRS verified social media account or e-news services.

IRS social media platforms
Visit IRS.gov to get direct links to IRS verified social media accounts. IRS has accounts on:
• X – Information for individuals, businesses, tax-exempt organizations and tax professionals A special IRS X handle, , shares information to help people avoid common scams
• Facebook – Tax information for a general audience in English and Spanish
• Instagram − Taxpayer-friendly information on a variety of topics
• YouTube − Short videos on specific tax topics for individual taxpayers, tax professionals and small businesses
• LinkedIn – Key agency communications

The IRS never contacts taxpayers on social media to ask for their personal or financial information. Taxpayers should be aware scammers may pose as the IRS to steal a taxpayer's identity or defraud them. To stay informed, be sure to follow, like and subscribe.

Sign up for automatic email updates
The IRS e-News subscription service sends tax information by email for many different audiences, including:
• IRS Outreach Connection − Up-to-date materials for tax professionals and partner groups inside and outside the tax community. Subscribers can easily share the material with their clients or members through email, social media and the web
• IRS Tax Tips – Tips in plain language on a wide range of general interest tax topics for taxpayers
• IRS Newswire − News releases on tax issues from breaking news to details on legal guidance
• IRS News in Spanish - Noticias del IRS en Español − IRS news releases, tax tips and updates in Spanish
• e-News for Small Businesses – Tax information for small businesses and self-employed individuals

07/29/2025

From the IRS:

A change in a couple’s marital status, such as a separation or divorce, affects their tax situation. The IRS considers a couple married, for tax filing purposes, until they get a final decree of divorce or separate maintenance.

Update tax withholding
When a taxpayer divorces or separates, a new Form W-4, Employee's Withholding Certificate should be provided to their employer. If they receive alimony, they may have to make estimated tax payments. Taxpayers can figure out if they're withholding the correct amount with the Tax Withholding Estimator on IRS.gov.

Tax treatment of alimony and separate maintenance
• Amounts paid to a spouse or a former spouse under a divorce decree, a separate maintenance decree or a written separation agreement may be alimony or separate maintenance for federal tax purposes
• Certain alimony or separate maintenance payments are deductible by the payer spouse, and the recipient spouse must include it in income

However, not all payments are considered alimony or separate maintenance. It doesn't include:
• Child support
• Noncash property settlements – whether in a lump-sum or installments
• Payments that are your spouse's part of community property income
• Payments to keep up the payer's property
• Use of the payer's property
• Voluntary payments

Rules related to dependent children and support
Generally, the parent with custody of a child can claim them on their tax return. If parents split custody fifty-fifty and aren't filing a joint return, they'll have to decide who claims the child. If the parents can't agree, they should refer to the tie-breaker rules in Publication 504, Divorced or Separated Individuals.

Child support payments are never deductible by the payer and aren’t taxable to the payee. Additionally, if a divorce or separation instrument provides for alimony and child support and the payer spouse pays less than the total required, the payments apply to child support first. Only the remaining amount is considered alimony.

Report property transfers, if needed
Usually, if a taxpayer transfers property to their spouse or former spouse due to a divorce, there's no recognized gain or loss on the transfer. People may have to report the transaction on a gift tax return.

07/28/2025

I do feel this a little, but I wouldn't have it any other way!

07/25/2025

From the IRS: One Big Beautiful Bill Act: Tax deductions for working Americans and seniors

Below are descriptions of new provisions from the One Big Beautiful Bill Act, signed into law on July 4, 2025, as Public Law 119-21, that go into effect for 2025.

“No Tax on Tips”

New deduction: Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified tips received in occupations that are listed by the IRS as customarily and regularly receiving tips on or before December 31, 2024, and that are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137.

“Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing.
Maximum annual deduction is $25,000; for self-employed, deduction may not exceed individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.

Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.

Self-employed individuals in a Specified Service Trade or Business (SSTB) under section 199A are not eligible. Employees whose employer is in an SSTB also are not eligible.

Taxpayers must include their Social Security Number on the return and file jointly if married, to claim the deduction.
Reporting: Employers and other payors must file information returns with the IRS (or SSA) and furnish statements to taxpayers showing certain cash tips received and the occupation of the tip recipient.

Guidance: By October 2, 2025, the IRS must publish a list of occupations that “customarily and regularly” received tips on or before December 31, 2024.

The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and payors subject to the new reporting requirements.

“No Tax on Overtime”

New deduction: Effective for 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the “half” portion of “time-and-a-half” compensation -- that is required by the Fair Labor Standards Act (FLSA) and that is reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

Maximum annual deduction is $12,500 ($25,000 for joint filers).

Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.

Taxpayers must include their Social Security Number on the return and file jointly if married, to claim the deduction.

Reporting: Employers and other payors are required to file information returns with the IRS (or SSA) and furnish statements to taxpayers showing the total amount of qualified overtime compensation paid during the year.

Guidance: The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and other payors subject to the new reporting requirements.

“No Tax on Car Loan Interest”

New deduction: Effective for 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria. (Lease payments do not qualify.)

Maximum annual deduction is $10,000.

Deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).

Qualified interest: To qualify for the deduction, the interest must be paid on a loan that is:
originated after December 31, 2024, used to purchase a vehicle, the original use of which starts with the taxpayer (used vehicles do not qualify), for a personal use vehicle (not for business or commercial use) and secured by a lien on the vehicle.

If a qualifying vehicle loan is later refinanced, interest paid on the refinanced amount is generally eligible for the deduction.

Qualified vehicle: A qualified vehicle is a car, minivan, van, SUV, pick-up truck or motorcycle, with a gross vehicle weight rating of less than 14,000 pounds, and that has undergone final assembly in the United States.

Final assembly in the United States: The location of final assembly will be listed on the vehicle information label attached to each vehicle on a dealer's premises. Alternatively, taxpayers may rely on the vehicle’s plant of manufacture as reported in the vehicle identification number (VIN) to determine whether a vehicle has undergone final assembly in the United States.

The VIN Decoder website for the National Highway Traffic Safety Administration (NHTSA) provides plant of manufacture information. Taxpayers can follow the instructions on that website to determine if the vehicle’s plant of manufacture was located in the United States.

Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.

The taxpayer must include the Vehicle Identification Number (VIN) of the qualified vehicle on the tax return for any year in which the deduction is claimed.

Reporting: Lenders or other recipients of qualified interest must file information returns with the IRS and furnish statements to taxpayers showing the total amount of interest received during the taxable year.

Guidance: The IRS will provide transition relief for tax year 2025 for interest recipients subject to the new reporting requirements.

Deduction for Seniors

New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.

The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).

Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).

Qualifying taxpayers: To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year.

Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.

Taxpayers must include the Social Security Number of the qualifying individual(s) on the return, and file jointly if married, to claim the deduction.