The IRS has updated FAQs on educational assistance programs

The IRS released updated FAQs on Section 127 educational assistance programs, covering eligibility, tax treatment and recent legislative updates. Employees may exclude from their income up to $5,250 (adjusted for inflation after 2026) in combined benefits annually. Excess amounts are taxable, and no carry forward is allowed. Plans must be written, cover only employees and […]

Court finds IRS improperly assessed penalties and interest

A landmark court ruling, Kwong v. United States, found that the IRS improperly assessed certain penalties and interest during the COVID-19 pandemic. If you were charged penalties or interest for missing tax filing or payment deadlines from Jan. 20, 2020, through July 10, 2023, you may be eligible for a refund or abatement. But further […]

$166 Billion in Tariff Refunds: Are You Eligible?

In February, the U.S. Supreme Court ruled that tariffs ordered by President Trump last year under the International Emergency Economic Powers Act were illegal. To begin refunding U.S. businesses that paid tariffs, U.S. Customs and Border Protection has launched an online portal called the Consolidated Administration and Processing of Entries (CAPE). More than 330,000 importers […]

Changing jobs? Don’t forget your 401k

When you change jobs, what should you do with the money in your employer-sponsored retirement plan? You could roll over the balance to a new employer’s plan, but rolling it into an IRA may give you broader investment flexibility. Neither type of rollover is taxable, and both options allow you to continue benefiting from tax-deferred […]

IRS offers new tool for Tax Debt

The IRS now offers a new online Tax Debt Help tool (https://bit.ly/4cgNsjf ) to make addressing outstanding tax balances easier. The free resource uses interactive questions to help taxpayers understand their situation and see payment or resolution options. Those options may include installment plans, temporary pauses in collections or offers in compromise for eligible taxpayers. […]

Traditional vs. Roth 401(k): Should You Make the Switch?

Do you have both traditional and Roth accounts within your employer’s 401(k)? If so, and you’re willing and able to pay taxes now — and you’d prefer not to pay them in retirement — consider an in-plan rollover. That is, your plan may allow you to transfer funds from your traditional 401(k) account into your […]

College Financial Aid: What’s Tax-Free and What’s Not?

If you’re currently evaluating financial aid awards for your college-bound child, it’s important to understand what types of assistance are taxable. In general, free-money scholarships, fellowships, grants and tuition “discounts” are nontaxable. However, they must be used according to their designations — for example, for tuition, books and educational materials. Work-study compensation (even if referred […]

Gifting vs. Inheriting: The Tax Difference That Matters

Estate planning is different these days. With a historically high gift and estate tax exemption, most families are unlikely to face federal gift or estate tax liability. This makes it critical to understand the income tax impact of asset transfers, including the stepped-up basis rules. Generally, for people inheriting appreciated assets (such as stock, real […]

Tax Season Is Over—But Don’t Toss Those Records Yet

The April tax filing deadline has passed. If you filed your return on time, you may be wondering what tax-related records you need to retain. The IRS’s statute of limitations for auditing a tax return is generally three years from the return’s due date or the filing date, whichever is later. So keep the documents […]

White House budget request cuts IRS funding

In its April 6, 2026, budget request for fiscal year (FY) 2027 (https://bit.ly/3Of7xNI), the White House proposes allocating $9.8 billion to the IRS. This represents a $1.4 billion reduction from FY 2026. The White House says that IRS personnel cuts of 27% and the termination of the Direct File program make such cuts possible. It […]