Partnership Owners: Can You Deduct Out-of-Pocket Business Expenses?

Owners of businesses taxed as partnerships sometimes pay work-related expenses out of pocket. Whether such payments are deductible for federal tax purposes depends largely on the partnership agreement, LLC operating agreement, or an established policy or practice. Allowable expenses may be deductible if the owner is required to bear them without reimbursement. Expenses that could […]

Building Improvements: Can Your Business Deduct the Costs Now?

Some small business owners making building improvements may not have to wait years to deduct all of the costs. A special IRS safe harbor lets qualifying small businesses deduct certain improvement costs immediately instead of depreciating them over several years. To qualify, the business’s average annual gross receipts must be $10 million or less for […]

Jury Duty Pay: Don’t Miss This Tax Deduction

Did you serve on jury duty this year? You may qualify for a federal income tax deduction. If your employer continued paying you while you served and required you to turn over the jury duty pay you received from the court, you generally can deduct the amount you remitted to your employer. This deduction is […]

You May Receive an Adoption Tax Credit Refund Without Amending Your Return

If you’re one of the more than 50,000 taxpayers who claimed a prior-year carryforward of the adoption tax credit, you may receive a refund by the end of 2026. For tax year 2025, adoption tax credit carryforwards from tax years 2020 through 2024 can increase the refundable amount of the credit (limited to $5,000 per […]

IRS Finalizes Rules for Credit and Debit Card Tax Payments

The IRS has finalized regulations allowing it to accept credit and debit card tax payments directly. Previously, it was prohibited from paying fees under third-party processor contracts and taxpayers were directed to a separate site to make card payments. Taxpayers paid processing fees directly to the third-party processor. Now, the IRS may contract with processors […]

Adding Your Child to Your Home’s Title? Know the Tax Risks

Adding an adult child to the title of your home or other assets may seem like a way to simplify your estate plan. But joint ownership can create unexpected tax consequences. For example, adding your child as a joint tenant with right of survivorship may trigger gift tax reporting requirements and even gift tax liability. […]

Dyed Diesel Fuel Tax Relief: What Businesses Need to Know

The IRS has announced temporary nationwide tax penalty relief for the highway use of dyed diesel fuel. It’s retroactive to Oct. 1, 2026, and applies through Dec. 31, 2026. Dyed diesel fuel, normally used for heavy construction and farming equipment, generally triggers federal excise tax and penalties when used on public roads. During the relief […]

IRS Denied Your Kwong Claim? You May Still Have Options

Did you file a refund or abatement claim based on Kwong v. United States? This case found that the IRS improperly assessed certain penalties and interest during the COVID-19 pandemic. The IRS has denied some Kwong claims, but that doesn’t necessarily end the matter. Litigation is ongoing. If you received a denial letter, keep your […]

Whistleblowers Can Help Expose Offshore Tax Fraud

Catching wealthy individual and corporate tax evaders often requires cross-border cooperation. That’s why the IRS has partnered with the UK on its whistleblower program, the Strengthened Reward Scheme. According to the IRS, financial crimes increasingly employ “offshore accounts, shell companies, and fraudulent transfers that are incredibly difficult for external investigators to trace.” Among other things, […]

New Baby? A Proposed Bill Could Boost Your HSA

Changes could be coming to your Health Savings Account (HSA). A new U.S. House bill would enable families to contribute additional funds to their HSAs in the year a child is born or adopted. In 2027, HSA participants normally will be able to contribute up to $4,500 (self-only coverage) and $9,000 (family coverage) pre-tax. The […]