Before claiming a charitable deduction for 2025, make sure you can substantiate it

If you itemize deductions on your 2025 individual income tax return, you potentially can deduct donations to qualified charities you made last year. But your gifts must be substantiated in accordance with IRS requirements. Exactly what’s required depends on various factors. In some cases, you must have a written acknowledgment from the charity. Substantiating cash […]

Roth + Traditional: A Powerful Combo?

If you already contribute pre-tax dollars to a traditional 401(k) plan or IRA, you may also want to contribute to a Roth version. You’ll forgo tax savings now because Roth contributions are made with after-tax dollars. But diversifying retirement contributions across account types can help lower income tax bills later. That’s because you’ll owe tax […]

The Fine Line Between ‘Ordinary’ and ‘Necessary

It’s not always clear what costs businesses can deduct on their federal income tax return. According to the Internal Revenue Code, taxpayers are allowed to write off “all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” It’s important to stress that an expense must […]

Increase your current business deductions under tangible property safe harbors

Did your business make repairs to tangible property, such as buildings, equipment or vehicles, in 2025? Such costs may be fully deductible on your 2025 income tax return — if they weren’t actually for “improvements” that must be depreciated over a period of years. Betterment, restoration or adaptation In general, a cost that results in […]

2026 Mileage rates rise

Are you a business owner or self-employed? Do you drive for business purposes? If so, you’ll be happy to know that the IRS’s standard mileage rate for business driving in 2026 is 72.5 cents per mile (up from 70 cents in 2025). Meanwhile, medical and moving mileage rates are 20.5 cents per mile, while the […]

THe ROAD to Housing Act

On March 12, the U.S. Senate passed the bipartisan 21st Century ROAD to Housing Act. Among provisions intended to boost housing availability and affordability is one that would raise the public welfare investment cap from 15% to 20%. The cap dictates how much of a bank’s risk-adjusted capital can be invested in low-income housing projects. […]

IRS issues tip summarizing education credit and deductions

To offset the high costs of continuing education, the federal tax code offers eligible taxpayers several tax benefits, including credits and deductions. The IRS has issued a handy Tax Tip that summarizes a variety of education-related tax relief, beginning with two tax credits: the American Opportunity Tax Credit and the Lifetime Learning Credit. The Tax […]

IRS updates Withholding Estimator

The IRS has updated its Tax Withholding Estimator (https://bit.ly/3VjGqR1 ) to reflect changes under the One Big Beautiful Bill Act (OBBBA). This free online tool helps taxpayers calculate the correct amount of federal income tax to withhold from their paychecks or other payments, such as those from pensions, to avoid unexpected tax bills. The calculator […]

How auditors evaluate accounting estimates

Financial statements aren’t built solely on fixed numbers and historical facts. Many reported amounts rely on accounting estimates — management’s best judgments about uncertain future outcomes. Estimates are inherently subjective and can significantly affect reported results. How do external auditors evaluate whether amounts reported on financial statements seem reasonable? Understanding management’s assumptions and data External […]

Did you receive a notice from the IRS?

Received an IRS letter or notice after filing your tax return? Don’t panic, but don’t ignore it. The IRS often sends letters or notices to request information, notify a taxpayer of changes, verify a taxpayer’s identity or seek payment. If action is needed, follow the instructions and respond by the specified due date. If a […]