Weiss & Thompson, PC, CPA's

04/25/2026

For Roth IRA fans...

You can lower your tax bill by taking advantage of tax breaks at the office—like employer-funded health care and retirement plans. But while many workers can take advantage of a retirement account, the Mega Backdoor Roth is a strategy designed for high earners who have already maxed out their standard 401(k) contributions. It works by allowing after-tax contributions to a 401(k) (beyond the usual deferral limits) and then converting those funds into a Roth account. If structured correctly, this can allow up to $47,500 per year to be shifted into a tax-favored account—well above the limit for traditional Roth IRAs and without income restrictions.

That kind of contribution capacity can make a meaningful difference over time, especially for those concerned about future tax rates, required minimum distributions, and overall retirement flexibility. However, not all employer plans allow after-tax contributions or in-service conversions, so eligibility depends on plan design. When available, though, the Mega Backdoor Roth can be a highly effective way to build a sizable pool of tax-free income alongside other retirement savings.

03/26/2026

Unclaimed Refunds Will Expire This Year

In a recent federal court decision, The IRS is reminding taxpayers and tax professionals that time is running out to claim approximately $1.2 billion in unclaimed refunds for tax year 2022, with a firm deadline of April 15, 2026. More than 1.3 million individuals have yet to file a 2022 federal income tax return, leaving potentially significant refunds unclaimed.

These refunds generally belong to taxpayers who did not file Form 1040, U.S. Individual Income Tax Return, for 2022, often because they were not required to file or were unaware they were eligible. The IRS estimates the median refund is $686. Taxpayers could receive more, especially if they qualify for credits such as the earned income tax credit.

Refunds may be delayed or applied to outstanding debts and taxpayers must be current with more recent filings. Once the three-year window closes, unclaimed refunds become property of the U.S. Treasury, making timely action essential.

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01/26/2026

https://www.accountingtoday.com/list/12-tax-planning-moves-to-help-business-owner-clients-in-2026?utm_campaign=NL_ACT_Daily_Briefing_01262026&position=2&utm_source=newsletter&utm_medium=email&campaignname=NL_ACT_Daily_Briefing_01262026&oly_enc_id=8575J7111045A2S

The OBBBA reshaped several baseline assumptions for 2026 planning around state and local tax, above-the-line deductions and updated inflation adjustments.

01/17/2026

And keep this in mind:
Finally, as tax filing season kicks off, scammers are ramping up, too. The Federal Trade Commission is reporting a surge in calls from people posing as the IRS or fake “tax resolution” agencies with official-sounding names, claiming you owe back taxes or qualify for a special relief program. These calls are designed to scare you into acting fast—sharing your Social Security number, bank details, or sending money to settle a tax bill that doesn’t exist.

Remember: the IRS will never initiate contact by phone, text, email, or social media. If you really owe taxes, they’ll contact you by mail first.

If you get a suspicious call, text or email, or land on a sketchy website, don’t engage. Don’t click links, don’t call back, and don’t share information. Go directly to the source like IRS.gov, check your online IRS account, or call the IRS at its official number.

If you do owe taxes, work directly with the IRS or a trusted professional, and be wary of anyone demanding upfront fees or pressuring you to pay in gift cards, crypto, or wire transfers.

Scammers rely on fear and urgency. Staying calm and verifying information at the source will go a long way. When in doubt, assume it’s a scam.

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01/17/2026

2026 notes: For most employees, three numbers matter most. First, the Social Security wage base rises 4.8% to $184,500 in 2026, meaning once your pay exceeds that amount, the 6.2% Social Security tax no longer applies, leaving more money in your paycheck. Second, understanding your income tax bracket is critical because supplemental wages, like bonuses, are generally withheld at a flat 22%, which can lead to underwithholding unless you adjust or plan ahead. Third, the deferral limit for 401(k) plans increases to $24,500, giving you more room to shelter income (in 2026, employees aged 50 or older with previous year F**A wages of $145,000 or more must treat catch-up contributions as after-tax Roth contributions). Keeping these three figures in mind can make your 2026 tax picture more predictable—and far less stressful.

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12/01/2025

https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers

IR-2025-94, Sept. 23, 2025 — The Internal Revenue Service, working with the U.S. Department of the Treasury, today announced that paper tax refund checks for individual taxpayers will be phased out beginning on Sept. 30, 2025, as required by Executive Order 14247, to the extent permitted by law.

12/01/2025

https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions

The One, Big, Beautiful Bill Act has a significant effect on your taxes, credits and deductions.

12/01/2025

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.

08/11/2025

Cost Segregation Explained: A Little-Known Way to Slash Real Estate Taxes

If your business owns commercial property—or even residential rental property—you could be sitting on a massive, untapped tax savings opportunity. It’s called cost segregation, and it’s one of the most powerful (yet underutilized) tax strategies available to property owners.

Here’s how it works: Normally, when you buy a building, the IRS requires you to depreciate it over 27.5 years for residential or 39 years for commercial property. That’s a painfully slow way to recognize deductions. But with cost segregation, you can accelerate depreciation by identifying specific components of the building—like flooring, lighting, HVAC systems, cabinetry, and landscaping—that qualify for shorter recovery periods, typically 5, 7, or 15 years.

By front-loading these deductions, you can dramatically reduce your taxable income in the early years of ownership. In many cases, a cost segregation study can generate tens or even hundreds of thousands of dollars in additional depreciation deductions, especially when paired with bonus depreciation under current tax law. For example, if you purchase a commercial building for $1 million, a properly executed cost segregation study could unlock $200,000 to $300,000 in immediate write-offs in the first year alone.

This strategy is particularly effective for business owners with significant tax liabilities who want to free up cash to reinvest in their operations, pay down debt, or expand. Even better, it’s not limited to new construction. You can perform a cost segregation study on properties you've owned for years and “catch up” on missed depreciation, unlocking large deductions without amending past returns.

Of course, this isn’t something you want to DIY. A legitimate cost segregation study must be conducted by qualified engineers or specialists who are familiar with IRS guidelines. But the investment in a study often pays for itself many times over in year-one tax savings.

If you’ve acquired or improved real estate in the last few years, or you’re considering a purchase soon, ask your CPA whether cost segregation could apply to your situation. You might be surprised how much money you’re leaving on the table.

Bottom line: Let us know if you want more information.

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07/19/2025

Interesting on the possibility of AMT with RSU's and start-ups, and the new SALT tax increase.

The 2025 tax law continues many provisions of the 2018 tax law that affect stock comp, but with a few special twists. I asked financial advisors for their planning takes.