Melissa's Accounting & Tax Service

03/01/2026

https://www.facebook.com/share/18HVo1hguS/

02/14/2026

****I would like to apologize for not being able to be open or respond to anyone this past week. I have had the flu, and let me tell ya, it is rough!!!
I will return on Monday, Feb 16th, at 9 a.m. I will be returning calls and getting everyone in and out as fast as possible.
Hope you have a blessed weekend!💕

01/30/2026

The provides updated inflation adjustments, including standard deduction increases for tax year 2025, reflecting changes from the One, Big, Beautiful Bill. These updated amounts may affect how much income is subject to tax when you file this year. Learn more: https://ow.ly/WL9250XWo6J

12/25/2025

Wishing you all a very Merry Christmas 🎅 🎄

12/23/2025

Issue Number: IR-2025-127

Inside This Issue

IRS updates frequently asked questions on the Premium Tax Credit

IR-2025-127, Dec. 23, 2025

– The Internal Revenue Service today updated frequently asked questions in Fact Sheet 2025-10 related to changes to the Premium Tax Credit made under the One Big, Beautiful Bill and to related provisions that no longer apply.

The Premium Tax Credit is a refundable tax credit that helps eligible individuals and families with low or moderate income with the cost of their health insurance purchased through the Health Insurance Marketplace, also known as the Exchange.

OBBB made a number of changes to the Premium Tax Credit, including removing the limitations on repayment of excess advance payments of the premium tax credit for tax years beginning after Dec. 31, 2025.

The FAQs have been updated to delete the questions about certain Premium Tax Credit rules that do not apply after tax years 2020 and 2021.

For more information, please see One, Big, Beautiful Bill Provisions on IRS.gov.

12/23/2025

IRS Updates "Frequently Asked Questions" on Changes to the Limitation on the Deduction for Business Interest Expense

IR-2025-126, Dec. 23, 2025

— The Internal Revenue Service today updated frequently asked questions in Fact Sheet 2025-09 regarding changes to the limitation on the deduction for business interest expense (Section 163(j)) under the One, Big, Beautiful Bill.

For tax years beginning after December 31, 2024, OBBB amended Section 163(j) by:

Allowing taxpayers to add back deductions for depreciation, amortization, or depletion when calculating Adjusted Taxable Income.
Expanding the definition of floor plan financing interest to treat, as a motor vehicle, any trailer or camper designed to provide temporary living quarters for recreational, camping or seasonal use and designed to be towed by, or affixed to, a motor vehicle.

For tax years beginning after December 31, 2025, OBBB amended Section 163(j) by:

Clarifying that business interest expense subject to Section 163(j) includes any interest incurred and capitalized during the tax year, except for interest capitalized under Sections 263(g) and 263A(f).
Excluding a U.S. shareholder’s controlled foreign corporation income inclusion items under Sections 951(a), 951A(a) and 78, and associated deductions from the computation of Adjusted Taxable Income.

12/11/2025

12/11/2025

***IP PIN Service Under Maintenance Until January 2026***

The IRS confirmed the Identity Protection Personal Identification Number (IP PIN) service is down for annual maintenance until sometime in January of next year. As of Nov. 16, 2025, taxpayers have been unable to get or view an IP PIN through their Individual Online Account.

Once enrolled in the IP PIN program, a new IP PIN is generated for the taxpayer each calendar year. Some taxpayers receive their new IP PIN by mail, while others must retrieve it each year in their IRS Online Account.

12/09/2025

**President Signs H.R. 998 Into Law**

On Nov. 25, 2025, President Donald Trump signed the IRS Math and Taxpayer Help Act (H.R. 998) into law, a bipartisan effort that strengthens taxpayer rights and improves transparency in IRS communications. The new law, led by Ways and Means members Randy Feenstra and Brad Schneider, requires the IRS to clearly show its math when it makes changes to a taxpayer’s return.

For years, millions of math error notices have gone out with little to no explanation, leaving taxpayers confused and often unaware that they had only 60 days to challenge the adjustment. Under the new requirements, the IRS must provide a straightforward description of the error and an itemized computation showing the exact calculation behind any changes. This added clarity gives taxpayers a fair chance to respond and provides practitioners with the details they need to advocate effectively.

12/09/2025

December 04, 2025
Upcoming Regulations for Trump Accounts

The IRS released Notice 2025-68, outlining upcoming regulations for the new Trump Accounts created under OBBBA. The accounts will function as a new, IRA-like account for minors (not a traditional IRA at the outset), established for eligible individuals under age 18 when the account is opened. Contributions can be made by the child’s parents/guardians and other individuals, employers under certain plans, and potentially other entities, as guidance is finalized. During the growth period, funds can be invested only in eligible mutual funds or exchange-traded funds (ETFs) (subject to further IRS/Treasury guidance on which funds qualify), and distributions are generally not permitted until the child turns 18. At that point, the account transitions to a standard traditional IRA and follows regular IRA rules moving forward.

The annual contribution limit for a Trump Account is its own annual limit under the Trump Account rules, giving families an additional planning opportunity. The Treasury Department will also launch a pilot program that provides a one-time $1,000 contribution for qualifying children born in years 2025 through 2028. The election to establish a Trump Account for calendar year 2026 may be made on IRS Form 4547, Trump Account Election(s), (once the final version is released) at any time, including at the same time that the 2025 income tax return is filed, or through the online tool or application. The online tool or application used to make the elections is expected to be available on trumpaccounts.gov in the middle of 2026.

Additionally, the IRS has requested comments on several key issues, including who may establish an account, investment requirements, trustee qualifications and the coordination of contributions from multiple sources. Tax professionals working with families may want to start evaluating how Trump Accounts fit into long-term savings and retirement strategies for minor children.