Comiskey & Company, P.C.

06/21/2026

06/21/2026

In 2024 and 2025, the IRS prevented $7 billion in fraudulent tax refunds and used identity theft filters to flag about 7.5 million tax returns for additional review, according to a May 13 audit report from the Treasury Inspector General for Tax Administration (TIGTA). Advanced filters and manual reviews help identify suspicious tax filings while minimizing disruptions to legitimate returns. TIGTA recommended moving up the March 31 filing deadline for certain information returns, such as many 1099 forms and Form W-2G, “Certain Gambling Winnings.” The IRS agreed, estimating that an earlier deadline could help protect an additional $944 million in revenue for fiscal years 2025 through 2034.

06/20/2026

If you operate a sole proprietorship or a partnership where you and your spouse are the only partners, you might want to consider employing your child this summer. In addition to providing valuable work experience and enabling your child to start contributing to a tax-advantaged IRA, you can save payroll taxes. Wages you pay to your children under age 21 are exempt from FUTA tax. If they’re under age 18, their wages are also exempt from F**A tax. In addition, because wages paid to your child are considered a business expense, you can reduce your self-employment income (and, thus, reduce your income tax). Your child will likely be subject to less (if any) income tax.

06/20/2026

Home renovations can improve a residence’s comfort, functionality, aesthetics and resale value. They might also provide tax benefits. You may be able to deduct mortgage interest on debt used to substantially improve your home. Certain improvements can also increase your tax basis, potentially reducing taxable gain when you sell. Medically necessary modifications may qualify as deductible medical expenses, subject to limits. And if you overlooked claiming now-expired credits for qualifying energy-efficient home improvements you made in 2025, an amended return may be worth considering. Contact us to talk taxes before or after a home renovation.

06/19/2026

If you need to speak to an IRS representative by phone, know that you’ll be required to verify your identity. You’ll be asked for your Social Security number, birth date and filing status. Also have handy your previous year’s tax return, the tax return you’re calling about and any correspondence received from the IRS. If you’re calling for another taxpayer, you’ll need verbal or written authorization (IRS Form 8821 or Form 2848). And if the taxpayer is deceased, you’ll need a death certificate and either a court approval letter or IRS Form 56. Only provide this information if you make the call, not if someone calls you claiming to be from the IRS — that could be an identity theft scam.

06/18/2026

The IRS has issued guidance (Notice 2026-33) on qualified long-term care (LTC) distributions from defined contribution retirement plans, such as 401(k)s. If a plan permits, distributions made after Dec. 29, 2025, to pay LTC insurance premiums are exempt from the 10% early withdrawal penalty but included in gross income. Distributions are limited to the lesser of the insurance premium paid, 10% of the employee’s vested plan benefit or $2,600 (adjusted for inflation after 2026). The guidance also extends the deadline for plan administrators to amend plans to permit LTC distributions to Dec. 31, 2027.

06/18/2026

Owners of electric vehicles (EVs) and plug-in hybrid vehicles may be assessed an annual fee to bolster the Highway Trust Fund and to offset declining gas tax revenue. A bipartisan bill (dubbed the BUILD America 250 Act) currently being proposed in the House of Representatives calls for an annual fee starting at $135 for EV owners and $35 for plug-in hybrid owners, beginning in October 2026. The fee can be increased by $5 each year, up to $150 for EV owners and $50 for plug-in hybrid owners, through 2031. It would be collected when owners register their vehicles each year. Current funding for the Highway Trust Fund expires in September. Stay tuned.