Hobby or Business? Why the Difference Matters for Your Taxes

Earning income from a personal interest raises a key tax question: Is it a hobby or a business? This distinction is important because different tax rules apply. All income must be reported, but expenses and losses are deductible only if the activity qualifies as a business. If it’s considered a hobby, you can’t deduct related […]

IRS Reinstates Private Letter Rulings for Key Corporate Tax Issues

In May 2026, the IRS reinstated a previously discarded policy that allows taxpayers to request private letter rulings (PLRs) from the IRS, but only for “significant issues” arising in corporate transactions. In the past, the IRS would, when requested, review entire proposed transactions. This could be time consuming and costly. Now, the agency will issue […]

Debt Forgiveness Could Create a Tax Bill

Debt forgiveness may result in taxes owed. Under federal tax law, gross income generally includes cancellation of debt income when a lender forgives all or part of a debt. However, there are exceptions. Debt discharged as part of a Chapter 7 or Chapter 13 bankruptcy case is generally excluded from income. Also, it may be […]

An IRS Letter Doesn’t Always Mean Bad News — But You Should Read It

If you receive a letter from the IRS, don’t discard it! Most IRS letters or notices relate to federal tax returns or tax accounts. A letter may reference changes to your account, taxes owed, a payment request, or a specific issue or credit on a tax return. You don’t need to respond unless the notice […]

IRS Offers Limited-Time Settlement Opportunity for Conservation Easement Cases

The IRS is offering a limited-time settlement opportunity for eligible taxpayers involved in conservation easement disputes. A conservation easement generally restricts the use of property to preserve land or meet other conservation goals and may qualify for a charitable tax deduction based on the easement’s value. However, the IRS continues to challenge abusive transactions involving […]

New Proposed Rules Could Expand Employer Fertility Benefits

The IRS and other federal agencies have proposed new rules that could expand employers’ ability to provide fertility benefits to employees as early as plan years starting Jan. 1, 2027. If finalized, the rules would create a new category of “limited excepted benefits” for fertility care, allowing services such as IVF, fertility medications, and infertility […]

Waiting on a Tariff Refund? Check Your Banking Information Now

Importers awaiting tariff refunds should ensure their banking information is up to date, because some payments are on hold pending account verification. Approximately $35.5 billion in refunds is currently being issued to importers who filed for refunds after the U.S. Supreme Court ruled certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were […]

Caring for a Loved One? Your Medicaid Waiver Payments May Be Tax-Exempt

Do you care for a relative or someone else and receive Medicaid waiver payments (MWPs) as compensation? These payments are generally tax-exempt. For you to exclude MWPs from income, the payments must be issued by your state’s MWP program, you need to live in the home with the Medicaid patient and you must not care […]

AICPA Shares Key Recommendations for Future IRS Filing Seasons

The American Institute of CPAs (AICPA) has weighed in on the 2026 tax filing season. In a recent letter to the U.S. Senate Finance Committee, it largely commended the IRS’s performance but mentioned that phone services were somewhat inconsistent. The AICPA letter also recommended ways the IRS can improve in future filing seasons. Specific ideas […]

Understanding IRS Fraud & Abuse Rules

The IRS categorizes a tax return containing inaccuracies that could lead to overstated credits or understated income as “potentially abusive.” It labels a return as “fraudulent” if the taxpayer attempts to file using another person’s Social Security number or includes information that has no basis in fact. Participating in an illegal scheme to evade taxes […]