New Limits on Corporate Charitable Deductions Coming in 2026

If your C corporation traditionally makes deductible charitable gifts, make sure you know the rules for 2026 donations. Starting Jan. 1, 2026, corporations can only deduct charitable gifts in excess of 1% of the company’s taxable income, with a 10% of income cap. Amounts exceeding the 10% cap can be carried forward — as can […]

New “Trump Accounts” Option for Foster Care Children Announced by U.S. Treasury

Treasury Secretary Scott Bessent has announced plans to allow child welfare agencies to elect to open Section 530A accounts (also known as “Trump Accounts”) for children in foster care. The option is available when a state, territorial or tribal government agency is the legal guardian of a child with a Social Security number. A Sec. […]

The Taxpayer Advocate Service is reminding small businesses of an upcoming deadline for filing an amended return to claim a domestic research and experimental (R&E) deduction. Tax legislation signed into law last year allows businesses to deduct domestic R&E expenses in the year they’re incurred, starting with the 2025 tax year. It also allows eligible […]

IRS CP53E Notices Are Causing Confusion About Refunds — Here’s What to Know

Did you receive an IRS CP53E notice and wonder what it means for your tax refund? Millions of taxpayers received these notices — in some cases erroneously — causing confusion about refund processing and bank account information. The notices also raised concerns about potential fraud. In response, the American Institute of CPAs (AICPA) is urging […]

Midyear Tax Planning Tips for Noncorporate Business Owners

Noncorporate business owners: Midyear is a good time to step back and think about taxes. After all, your business income affects your personal federal tax liability. If you’re a sole proprietor or owner of a pass-through entity, start by reviewing your expected 2026 income, tax bracket, deductions and cash flow to determine whether it makes […]

Adoption Assistance Programs Can Offer Valuable Tax Benefits for Employers and Employees

Employers: A qualified adoption assistance program is a family-friendly benefit worth looking into. It can help your employees manage adoption costs by allowing qualifying employer-provided payments or reimbursements to be excluded from federal taxable income. You can fund the program yourself or, in some cases, through pretax employee salary reductions under a Section 125 cafeteria […]

IRS Direct Deposit Refunds Rise as Paper Check Delays Continue

According to the U.S. Treasury Dept., 98% of taxpayers receive their IRS refunds electronically. In 2026, direct deposit refunds increased by 14% over 2025, likely due to the IRS’s paperless initiative. Yet not all taxpayers can receive electronic refunds. The Federal Deposit Insurance Corporation has reported that 4% of U.S. households lack a bank account. […]

IRS Releases FY 2025 Data Book Highlighting Tax Filing and Refund Trends

The IRS has published its annual Data Book for fiscal year (FY) 2025. It provides a statistical overview of the tax agency’s operations. A few highlights: In FY 2025, the IRS processed 271.4 million federal tax returns and supplemental documents, including almost 162.8 million individual income tax returns. The total revenue collected exceeded $5.3 trillion. […]

IRS Announces 27 States Participating in New Federal Scholarship Tax Credit Program

The IRS has announced that 27 states have elected to participate in the Federal Scholarship Tax Credit (FSTC) program. Under the program, beginning in 2027, eligible taxpayers can claim a federal tax credit for contributions to Scholarship Granting Organizations (SGOs) that provide scholarships for qualified elementary and secondary education expenses. To claim the credit of […]

New IRS Security Framework Targets Identity Theft and Payroll Fraud

In response to ongoing threats to tax and payroll data, the IRS and Security Summit partners have introduced a new framework to better protect taxpayers from identity theft and related fraud. One key improvement is increased collaboration with payroll providers, whose wage and withholding data are frequent targets for cybercriminals. The initiative also establishes five […]