Ruman & Associates, Ltd.

Ruman & Associates, Ltd. Ruman & Associates, Ltd. is a tax and accounting firm providing each client with the close attention

New IRS Automatic Exemption from Penalty ProgramBeginning in summer 2026, the IRS is implementing a new system that will...
08/05/2026

New IRS Automatic Exemption from Penalty Program

Beginning in summer 2026, the IRS is implementing a new system that will waive certain failure-to-file, failure-to-pay and failure-to-deposit penalties for eligible taxpayers with a strong compliance history. To qualify for the Automatic Exemption from Penalty (AEP) program, a taxpayer generally must have met all filing and payment deadlines for the previous three years, or 12 consecutive quarters for quarterly filers.

Unlike First Time Abate, eligible taxpayers will not need to request AEP relief. The IRS will apply it automatically and send a notice. For eligible returns due on or after January 1, 2027, AEP will replace First Time Abate, although reasonable-cause relief will remain available.

Not all IRS penalties qualify for automatic relief. For example, information-return penalties and accuracy-related penalties generally will not qualify. AEP applies only to eligible penalties, not to the underlying tax or interest due.

Charitable Cash Donation DeductionsHistorically, only people who itemized deductions on their tax returns could deduct c...
07/29/2026

Charitable Cash Donation Deductions

Historically, only people who itemized deductions on their tax returns could deduct contributions to charities. However, beginning this year, taxpayers may now qualify to deduct up to $1,000 in cash donations (up to $2,000 for joint filers), regardless of whether they itemize or use a standard deduction.

Only contributions to qualified, tax-exempt charitable organizations (not individuals) are deductible. You can check the official IRS list of tax-exempt charities (link below) to verify an organization's eligibility to receive tax-deductible donations. For monetary contributions, save bank records, canceled checks and/or receipts showing each organization's name, along with the date and amount of each donation. The IRS requires a written acknowledgement from the charity for each individual contribution of $250 or more, showing both the donation amount and the value of anything you receive in return (such as tee shirts, totes, etc.).

You still need to itemize in order to deduct contributions of property, and must have detailed records showing how you determined reasonable dollar values for the donations. For valuable items like collectibles or artwork, you may need a professional appraisal.

Tax Exempt Organization Search: https://www.irs.gov/charities-non-profits/search-for-tax-exempt-organizations

Form 1099-K – Did You Know?If you receive a Form 1099-K, review it for payments that may not be taxable, such as reimbur...
07/23/2026

Form 1099-K – Did You Know?

If you receive a Form 1099-K, review it for payments that may not be taxable, such as reimbursements from friends or family. If these payments were mistakenly included, ask the payment processor to issue a corrected form. Keep in mind that some transactions involving personal items may still have tax consequences, particularly if you sold an item for more than you paid for it.

Many business owners assume a profitable year automatically means a large tax bill. In reality, taxes are based on much ...
07/20/2026

Many business owners assume a profitable year automatically means a large tax bill. In reality, taxes are based on much more than profit alone.

Business structure, deductions, depreciation, tax credits, prior payments, and other factors can all affect what you ultimately owe. That is why tax planning requires a complete view of your financial picture, not just a glance at the bottom line.

Our team helps business owners look beyond profit and understand the factors driving their overall tax position. Let's talk!

For high-income professionals, tax planning is rarely about finding a single deduction. It is usually the result of mult...
07/16/2026

For high-income professionals, tax planning is rarely about finding a single deduction. It is usually the result of multiple strategies working together over time.

Retirement planning, business structure, deduction management, and income timing can all influence your overall tax picture. The earlier these conversations happen, the more opportunities there may be to improve outcomes.

A personalized tax strategy can help ensure your financial decisions are working together efficiently. Schedule a consultation to explore planning opportunities that align with your goals.

Increased Standard Mileage Rates Starting July 1, 2026Due to higher fuel prices, the IRS has increased the standard mile...
07/15/2026

Increased Standard Mileage Rates Starting July 1, 2026

Due to higher fuel prices, the IRS has increased the standard mileage rate for business driving to 76 cents per mile for mileage incurred on or after July 1, 2026. The rates for medical travel and eligible moving expenses have also increased to 23.5 cents per mile.

The charitable mileage rate remains unchanged at 14 cents per mile, while the previously announced 2026 rates continue to apply to mileage incurred before July 1.

Keeping track of deductible expenses throughout the year does more than simplify tax season. It helps ensure important d...
07/14/2026

Keeping track of deductible expenses throughout the year does more than simplify tax season. It helps ensure important deductions are documented, supported, and less likely to be overlooked.

Organized records create a stronger foundation for accurate reporting and better financial visibility throughout the year.

Let us help you build a recordkeeping process that keeps your financial information organized and accessible when you need it most.

Purchasing an electric vehicle for business use can come with valuable tax opportunities, but the rules are not always s...
07/09/2026

Purchasing an electric vehicle for business use can come with valuable tax opportunities, but the rules are not always straightforward.

Eligibility may depend on factors such as the vehicle itself, how it is used, when it is placed into service, and the documentation you maintain. Planning before the purchase can help you make a more informed decision.

Thinking about adding a vehicle to your business? Send us a message and let’s review the potential tax implications before you buy.

Paper documents can be misplaced. Digital records are easier to search, organize, and retrieve when you need them most.K...
07/08/2026

Paper documents can be misplaced. Digital records are easier to search, organize, and retrieve when you need them most.

Keeping electronic copies of receipts, invoices, tax documents, and other financial records can save time, support accurate reporting, and provide an extra layer of protection if physical copies are lost or damaged.

Need help creating a recordkeeping system that works for your business? Send us a message and let’s talk.

Estimated tax payments are easy to overlook until a large balance shows up at filing time.Tracking income, expenses, and...
07/06/2026

Estimated tax payments are easy to overlook until a large balance shows up at filing time.

Tracking income, expenses, and payment deadlines throughout the year helps you stay ahead of your obligations and maintain healthier cash flow. A little planning now can prevent unnecessary penalties and surprises later.

Message us if you'd like to review your estimated tax strategy and make sure you're on the right track.

Address

477 Butterfield Road Suite 500
Lombard, IL
60148

Opening Hours

Monday 9:30am - 7pm
Tuesday 9:30am - 7pm
Wednesday 9:30am - 7pm
Thursday 9:30am - 7pm
Friday 9:30am - 7pm
Saturday 10am - 3pm

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