Tip and Overtime Deductions may require extra effort for 2025 filings

Eligible workers can claim new federal income tax deductions on their 2025 returns for qualified tip income (up to $25,000) and qualified overtime premiums (up to $12,500, or $25,000 for joint filers). You don’t need to itemize to claim these breaks, but complex rules and restrictions apply. Both deductions begin phasing out when your modified […]

Bill advances requiring IRS to modernize processing for tax returns

The House Ways and Means Committee has advanced a bipartisan bill that would require the IRS to modernize its digital processing technology for tax returns. Dubbed the Barcode Automation for Revenue Collection to Organize Disbursement and Enhance (BARCODE) Efficiency Act, the bill would require prepared tax returns to include a scannable code on paper forms. […]

IRSAC publishes recommendations on current and emerging tax administration issues

The Internal Revenue Service Advisory Council (IRSAC) has published its annual public report, which provides recommendations to the IRS on current and emerging tax administration issues. The report covers 29 topics, including IRS operations, taxpayer service, compliance and administrative processes. Key areas addressed include funding for IRS operations, enhancements to IRS websites and online tax […]

IRA issues guidance on changes to first-year depreciation

On Jan. 14, the IRS released guidance on changes to the additional first-year depreciation deduction. Also known as bonus depreciation, this break was increased to 100% and made permanent by the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025. Notice 2026-11 explains how to determine whether depreciable property qualifies and how […]

Don’t Let Identity Thieves Steal Your Tax Refund

The IRS and the Security Summit are warning taxpayers that, as tax filing season begins, identity thieves are poised to scam people into sharing personal information to file false tax returns and steal refunds. Specific threats include phishing emails and smishing texts, where the thief impersonates a legitimate organization in the tax community, such as […]

Health Care in the Spotlight, Tax Reform on the Sidelines

Congress is back in session. Addressing health care seems to be high on the priority list. Last week, the House passed a three-year extension of the Affordable Care Act’s expired enhanced premium tax credits (PTCs). The bill’s fate in the Senate is uncertain, with Senate Majority Leader John Thune (R-SD) saying there’s “no appetite” for […]

PayPal, Venmo, and eBay: IRS Proposes Updated Withholding Rules

The IRS has proposed updates to the regulations for when certain third-party settlement organizations (TPSOs), such as PayPal, eBay and Venmo, must perform backup withholding. The updates are needed to comply with changes under the One Big Beautiful Bill Act. The proposed regulations clarify that TPSOs generally aren’t required to perform backup withholding on payments […]

IRS Filing Season Opens Jan. 26 — Are You Ready?

Mark your calendar: The IRS will start accepting tax returns on Jan. 26. You have until April 15 to file your 2025 return and pay any taxes you owe. The IRS expects to receive about 164 million individual income tax returns this year, with most taxpayers filing electronically. While IRS.gov offers useful resources, changes under […]

Are Your Business Records Audit-Ready?

Small businesses don’t always have the human or financial resources to devote to tax recordkeeping. Nevertheless, owners and independent contractors need to ensure their recordkeeping will enable them to substantiate their income and deductions when they file tax returns. A simple, yet comprehensive recordkeeping system will also help you make strategic decisions about budgeting and […]

Scam Alert: Seniors Are Being Targeted by Fake IRS Calls

Americans age 65 and older are disproportionately targeted by tax fraud schemes. The IRS warns seniors about impersonation scams where criminals call and claim to be IRS employees or other government officials. Scammers may tell would-be victims they owe tax and must pay immediately or be arrested. It’s important to know that most legitimate IRS […]