FIRE Is Ending — Are You Ready for the IRS Transition to IRIS?

The IRS has announced it will soon retire its Filing Information Returns Electronically (FIRE) system. FIRE is used primarily by small businesses, self-employed individuals, tax professionals, nonprofits, payroll companies and others to file tax forms such as Form 8955-SSA and Forms 1099. FIRE will be discontinued for tax year 2026, with the transition occurring in […]

🚀 Big Changes for 529 Plans: The OBBBA Unlocks More Education Funding!

The One, Big, Beautiful Bill Act (OBBBA) contains enhancements to Section 529 plans. The new law expands the list of educational expenses that can be paid with tax-free distributions. Starting in 2026, 529 plan funds can cover qualified expenses, including books, online instructional materials, tutoring or classes outside the home, and some testing fees. In […]

State Tax Implications of the One Big Beautiful Bill Act

State Tax Implications of the One Big Beautiful Bill Act https://bit.ly/46VVonV

Immediate deduction for R&D Credit reinstated in Big, Beautiful Bill

Does your business incur research and experimentation (R&E) expenses? The One, Big, Beautiful Bill Act reinstates the immediate deduction for research activities conducted in the United States, beginning in 2025. Before the new law was enacted, R&E expenses had to be capitalized and amortized over five years, beginning on or after Jan. 1, 2022. What […]

What is ordinary and necessary?

“Ordinary and necessary” business expense tax deductions are allowed when carrying on an active trade or business. In one case, a taxpayer engaged in real-estate-related activities. His business expense and depreciation deductions were denied by the U.S. Tax Court. The court ruled that the activities didn’t constitute an active trade or business. Instead, the property […]

The One, Big, Beautiful Bill Act extends many business-friendly tax provisions

The One, Big, Beautiful Bill Act (OBBBA) includes numerous provisions affecting the tax liability of U.S. businesses. For many businesses, the favorable provisions outweigh the unfavorable, but both kinds are likely to impact your tax planning. Here are several provisions included in the new law that may influence your business’s tax liability. Qualified business income […]

🏛️ Estate Tax Win: $15M Exemption Made Permanent — Wealth Transfer Just Got Easier 💼👨‍👩‍👧‍👦

Individuals with sizable estates can breathe a sigh of relief when it comes to the federal estate tax. Currently, the federal gift and estate tax exemption is $13.99 million for individuals ($27.98 million for married couples). This exemption was scheduled to revert to $5 million (plus inflation adjustments) in 2026. But under the One, Big, […]

🏡 Big Tax Break Could Be Coming for Home Sellers — Say Goodbye to the $250K Cap? 💰

If a new bill gains traction, there could be good news ahead for homeowners looking to sell their homes. Currently, qualified sellers can exclude up to $250,000 in capital gains from the sale of a primary residence ($500,000 for married couples filing jointly). This limit was set in 1997. U.S. Rep. Marjorie Taylor Greene (R-GA) […]

Is college financial aid taxable? A crash course for families

College can be expensive. According to the College Board, the average sticker price for tuition and fees at private colleges was $43,350 for the 2024–2025 school year. The average cost for tuition and fees for out-of-state students at public colleges was $30,780. For in-state students, the cost was $11,610. Of course, there are additional costs […]

📈 IRS Cracks Down on High Earners & Partnerships — But Will It Last? 💼🔍

A new Treasury Inspector General for Tax Administration (TIGTA) report says that IRS audits of high-income taxpayers and partnerships increased from fiscal years 2020 through 2023. Although audits of large corporations fell during the period, “examination starts” for partnerships rose by 63%. Audit rates of individuals with incomes over $400,000 rose from 5.2% in 2020 […]