IRS Updates Per Diem Rates for Meals, Travel, and High-Cost Areas

The IRS has released new 2025–2026 special per diem rates for ordinary and necessary business expenses incurred when traveling away from home. The guidance includes: 1) special transportation industry meals and incidental expenses (M&IE) rates, 2) the incidental expenses only deduction, and 3) a list of high-cost localities used in the high-low substantiation method. Although […]

Permanent Expansion of Low-Income Housing Tax Credit Under OBBBA

One tax provision made permanent by the One Big Beautiful Bill Act (OBBBA) is the availability of the Low-Income Housing Tax Credit (LIHTC). According to the U.S. Dept. of Housing and Urban Development, this credit is “the most important resource for creating affordable housing in the United States today.” The OBBBA permanently increased 9% LIHTC […]

Paper’s Out, Digital’s In: IRS Takes Big Steps Toward Modernization

On Sept. 22, 2025, the U.S. Treasury Dept. updated the public on its IRS IT modernization initiatives. The goals are to improve taxpayer services, enhance cybersecurity, and strengthen compliance and filing season operations. To improve taxpayer services, the IRS has contracted with Salesforce to upgrade individual and business online accounts, various services, and customer contact […]

Drought-Driven Livestock Sales? IRS Offers Extended Tax Deferral

The IRS is providing tax relief to farmers and ranchers in applicable states and regions who sold or exchanged livestock because of drought conditions. Under the relief, eligible taxpayers may take more time to replace their livestock and defer tax on any gains from the forced sales or exchanges. Generally, livestock must be replaced within […]

Don’t Overlook the Kiddie Tax in Your Year-End Planning

As the fall season begins, thoughts turn to year-end tax planning. An overlooked area of the tax code is the “kiddie tax.” It generally applies to most unearned income of children under age 19 and of full-time students under age 24 (unless the students provide more than half of their own support from earned income). […]

Thinking of Donating to Charity? 2025 Is the Year to Do It

The last quarter of 2025 is nearly here. It’s a time when many people determine their year-end charitable donation strategy. In light of changes under the new tax law, it might be smart to rethink your 2025 giving. Beginning in 2026, you can deduct donations only to the extent they exceed 0.5% of your adjusted […]

New IRS Rule Lets Tip Earners Deduct Up to $25K—Find Out If You Qualify

IRS guidance is now available for the new tax deduction for workers who earn tips. The proposed regulations identify eight categories of jobs that qualify for the tip deduction. They include food service and hospitality workers, gambling dealers, home maintenance workers, golf caddies, and many others. “Qualified tips” are tips paid in cash or a […]

Yes, You Can File a Complaint About the IRS—Here’s How

Most IRS employees you might come in contact with are professionals committed to problem-solving and fair outcomes. However, there may be some bad apples. What should you do if you have a complaint about an IRS employee or the way an issue is being handled? The IRS instructs taxpayers to contact the Treasury Inspector General […]

Seniors, Tip Earners, Car Loan Payers — This Tax Update’s for You

Certain taxpayers will claim deductions made available by the One Big Beautiful Bill Act on a new tax form. These include new deductions for seniors, those who earn tips or overtime, and taxpayers who pay eligible interest on car loans. The IRS has released a draft of the new Schedule 1-A, Additional Deductions (https://bit.ly/4nkYaZ1). It’s […]

Fed Lowers Benchmark Rate Amid Cooling Labor Market

For the first time this year, the Federal Reserve has approved an interest rate cut. The Fed opted for a quarter-point reduction to the central bank’s benchmark rate. The rate range is now set at 4% to 4.25%. According to Fed Chair Jerome Powell, one reason for the reduction is that “the labor market is […]