Fortin & Associates

06/12/2026

Are you wondering why your tax refund is taking so long?

From the Treasury Inspector General:

Snapshot Report: Status of the IRS’s Workforce as of January 2026
Why did we do this review?
As part of efforts to reduce the federal workforce, the IRS offered several voluntary separation programs, including the Deferred Resignation Program, Voluntary Early Retirement Authority, and Voluntary Separation Incentive Payment. Many employees who accepted these offers received pay through September 30, 2025, or later if they were eligible to retire between October 1 and December 31, 2025. This review updates our prior report and provides a snapshot of IRS workforce impacts as of January 2026.
What did we find?
IRS records show that 31,273 employees separated, accepted a DRP offer, or used another incentive to leave the agency between January 2025 and January 2026. These departures represent about 30 percent of the IRS workforce and impacted some business units more than others.
The IRS also began backfilling select positions and hired about 2,000 employees as of January 2026, resulting in a net staffing reduction of 28 percent.
The reductions impacted certain IRS business units and positions (job series) more than others. For example, approximately 33 percent of revenue agents and approximately 32 percent of tax examiners separated from the IRS. Revenue agents conduct examinations (audits) by reviewing financial records of individuals and businesses to verify what is reported. Tax examiners are responsible for reviewing and processing federal tax returns to ensure compliance and accuracy.
Top IRS Business Units Affected (number of separations and percentage of the business unit's overall staffing)


For more information:
Read the full report

Having trouble viewing this email? View it as a Web page.

06/03/2026

The IRS sends you a notice! What to do? This month's letter walks you through the process, plus much more!

As summer settles in and schedules fill up, a few smart decisions now can help you avoid costly surprises later. In this issue, there are strategies to strengthen your financial footing – from midyear tax planning opportunities to knowing when to call for help with an IRS notice. There is also...

05/06/2026

Want a lower tax bill? Your tax planning needs to start now!

With so much uncertainty in the economy, the tendency is to step back and wait until things settle down. On the other hand the early bird catches the worm. Now is a great time to be thinking about steps to reduce your tax obligations, both this year and into the future. This month an article is pres...

04/23/2026

From my friends at Spidell:

Deductions can now be claimed for medical ma*****na expenses (04-23-26)

The Department of Justice issued an order on April 22, 2026, immediately rescheduling FDA-approved ma*****na products and state-licensed medical ma*****na from Schedule I to Schedule III, which means that:

• The IRC §280E limitations on cannabis businesses no longer apply; and
• Taxpayers can now claim a medical expense deduction for ma*****na.

The order is available at:

www.justice.gov/opa/media/1437441/dl

The order follows President Trump’s December 18, 2025, executive order directing expedited completion of the cannabis rescheduling.

It’s important to note that the DOJ’s order does not legalize recreational use at the federal level, override state laws, or end all restrictions. This order also does not reclassify recreational cannabis as a Schedule III drug, which means the IRC §280E limitations still apply and these items do not qualify for medical expense deductions.

However, the Department is expediting the ongoing rule making process to fully remove ma*****na from Schedule I and place it into Schedule III and will hold an administrative hearing on this issue beginning June 29, 2026.

In the meantime, we assume that taxpayers will be able to begin claiming medical ma*****na business expenses and medical expense deductions as of April 22, 2026, but we await IRS guidance to confirm. We will continue to update you as news develops.

Sign up for Spidell's 2026 Post-Tax Season Update and Review webinar to review, refresh, and arm yourself to tackle extensions. Click here and register today.

04/11/2026

From my Spidell friends:

Do you qualify for the tips deduction?

Qualified tips deduction final regulation adopted (04-10-26)

The IRS has released final Treas. Regs. §1.224-1 that:

• Defines qualified tips for purposes of the deduction;
• Provides a complete listing of qualified occupations and their corresponding codes (aka Treasury Tipped Occupations Codes (TTOCs)). These are essentially the same as the original proposed list with the addition of TTOCs for floral designers, visual artists, and gas pump attendants as well as more “illustrative examples” of the 70 or so TTOC categories; and
• Continues to defer providing guidance regarding the IRC §224 specified service trade or business exclusion, which means that the transitional relief provided in IRS Notice 2025-69 still applies and taxpayers will continue to qualify for the tips deduction even if they or their employer are engaged in an SSTB as defined in IRC §199A.

The final regulations generally retain the IRS’s position outlined in the proposed regulations concerning what is a qualified tip and what is a cash tip (only cash tips continue to qualify, including cash tips paid electronically), with additional clarifications as noted below.

The following are some of the more interesting items included in the final regulation and its accompanying supplementary information:

• The definition of “cash tips” from the proposed regulations is modified to exclude all digital assets (as defined in IRC §6045(g)(3)(D) and Treas. Regs. §1.6045-1(a)(19)) such as bitcoin, stablecoins, etc. However, tips paid with credit and debit card transactions and through payment apps such as Venmo or Zelle still qualify, as do tips paid in foreign currency;
• Additional examples are provided clarifying:
o Whether a tip is mandatory or voluntary for different types of point of sale (POS) systems and contracts for services; and
o When payments to digital service providers are treated as compensation or deductible tips, including how digital rewards are treated and the impact of audience engagement mechanisms;
• The IRS makes clear that the job descriptions included in the TTOC chart are “illustrative” only and are not an “exhaustive list,” which means taxpayers working in certain jobs may still qualify for the deduction even if the job is not specifically listed;
• The IRS stated that whether the self-employed health insurance deduction, the one-half of self-employment tax deduction, and the self-employed retirement deduction should be deducted for purposes of determining the net income limitation for self-employed taxpayers is beyond the scope of the regulation. Remember that the original version of the Schedule 1-A instructions did not require these items to be deducted for purposes of calculating the net income limitation, whereas the current instructions do; and
• Taxpayers who are involved in the cannabis industry are engaged in an illegal activity under federal law and are therefore ineligible for the deduction even if they are engaged in an occupation that is otherwise listed in the TTOC chart and cannabis is legal in the state in which they work.

The final regulations maintain the positions that:

• Self-employed taxpayers can only claim the deduction for tips included on Form 1099; and
• Partners cannot claim a deduction for tips reported on an information return provided to the partnership.

Sign up for Spidell's 2026 Post-Tax Season Update and Review webinar for more details on these provisions, and to review, refresh, and arm yourself to tackle extensions. Click here and register today.

04/01/2026

From American tax history to everyday money habits, this issue connects past and present. Test your tax history knowledge, reset your finances, and rethink the tech ideas shaping your decisions.

Anniversaries have a way of bringing forgotten pieces of history back into view. As the United States marks 250 years of independence in 2026, we're reminded that money has shaped our national story in surprising and sometimes strange ways. In this month’s newsletter, test your own knowledge a...

03/04/2026

From my friends at Spidell:

IRS-Qualified tips deduction clarified for self-employed individuals (03-04-26)

For purposes of calculating the qualified tips deduction for self-employed individuals, the IRS has adopted a similar approach to the one used to calculate the IRC §199A qualified business income net income limitation for sole proprietors.

Self-employed individuals cannot claim a qualified tips deduction that is greater than the taxpayer’s gross income from the trade or business (including tips), less other deductions allocable to the trade or business.

According to the recently released instructions for Schedule A-1 (contained in the Form 1040 instructions), like the QBI net income limitation calculation, deductions allocable to the trade or business include:

• The deductible part of self-employment tax;
• The deduction for contributions to self-employed SEP, SIMPLE, and qualified plans; and
• The self-employed health insurance deduction.

03/04/2026

March momentum starts now - smart 2026 tax planning, credits vs. deductions, retirement tips for every age, and stronger protection against 2FA scams. Read more in this month's newsletter.

March is all about momentum, especially when it comes to planning ahead for 2026. In this month’s newsletter, we explore why your tax planning cycle begins now and share practical steps to help you get started in the right direction. A key part of this strategy is understanding the difference...

02/04/2026

A little preparation can make tax season smoother. This month's newsletter shares tips for early organization, avoiding IRS issues, cutting hidden costs, and helping protect your kids online.

A little preparation can change the entire tax return experience. In this month's newsletter, read about how getting organized early with a clear checklist can help you gather the right information and avoid last-minute pressure. You'll also learn how spotting easy-to-miss income sources can help yo...

02/03/2026

IRS FAQ on electronic payments and refunds: