IRS Releases 2026 Inflation-Adjusted Tax Brackets and Deductions

The IRS has announced its annual inflation-adjusted income tax brackets and other amounts. For 2026, the highest rate (37%) will apply to taxable income over $640,600 for individuals ($768,700 for married filing jointly and $384,350 for married filing separately). The standard deduction is increasing to $16,100 for individuals and married taxpayers filing separately ($32,200 for […]

Payroll Tax Mistakes Can Be Costly — Even Criminal

Employers who’re responsible for collecting payroll tax and remitting it to the IRS can face a penalty equal to 100% of the unpaid amount if they willfully fail to do so. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against those deemed to be “responsible.” In one case, the owners of four staffing […]

Year-End Gifting: Know the 2025–2026 Gift Tax Limits

As the year winds down, you may be hoping to combine smart estate tax planning with tax savings using the annual gift tax exclusion. For 2025 and 2026, this exclusion is $19,000, which you may give in cash or property to any number of family members or friends, without gift tax implications. Married couples may […]

Holiday Gifts & Taxes: What Employers Need to Know

The holidays are a time for gratitude, and when they arrive, many employers are planning to show appreciation by giving gifts to their staff. Different types of gifts can have different tax consequences. So whether it’s a gift card, a holiday turkey or a year-end bonus, it’s important to know how the IRS will treat […]

Bisignano takes over day-to-day operations of the IRS

Ever since Billy Long was removed as IRS Commissioner in August 2025, U.S. Treasury Secretary Scott Bessent has served as Acting IRS Commissioner. But recently, the Treasury Dept. announced that Frank Bisignano, current Commissioner of the Social Security Administration (SSA), will take over day-to-day operations as the IRS’s CEO. Bisignano will execute this newly created […]

Remittance transfer providers receive relief

The IRS is providing penalty relief during the first three quarters of 2026 for banks and money transfer companies (so called “remittance transfer providers”) that fail to deposit a new 1% federal remittance transfer tax on international money transfers. Beginning Jan. 1, 2026, remittance transfer providers are required to collect the remittance transfer tax from […]

Missed the Oct. 15 Tax Deadline? File ASAP — We Can Help

With the government shutdown now a little over a week old, the IRS announced it has begun furloughing nearly half of its staff. According to the tax agency’s updated shutdown contingency plan, around 34,400 of its 74,300 employees have been furloughed. The plan notes that the majority of employees being retained work in taxpayer services, […]

Giving Generously? Make Sure Your Charity Still Qualifies

Many Americans donate to charities they wish to support. If donors itemize deductions, they may also enjoy a tax break. But if a nonprofit violates tax laws or regulations, the IRS may revoke its tax-exempt status and remove it from the list of charities qualified to receive tax-deductible contributions. Suppose you’ve donated to a qualified […]

Emotional Distress = Taxable Income, Says Tax Court

For federal tax purposes, proceeds from legal settlements are generally included in taxable income unless specifically excluded by law, such as those for personal physical injuries or sickness. One taxpayer received $135,000 from her former employer to resolve claims of sexual harassment and discrimination. She didn’t report it on her tax return. After receiving an […]

Lawmakers Push for Clearer Tax Rules on Crypto

Members of the U.S. Senate Finance Committee recently met to discuss ongoing issues with the federal tax treatment of digital assets. Both Republicans and Democrats on the committee essentially agreed that the tax rules are confusing and could use improvement. One of the hearing’s witnesses asserted that the “tax code still treats digital assets as […]