LLC & Partnership Owners: Know Your Self-Employment Tax Exposure

Are you an owner-employee of a partnership or limited liability company (LLC)? In general, business income that flows through to you for income tax purposes is subject to self-employment taxes. This is true even if the income isn’t distributed to you. But such income may not be subject to self-employment taxes if you’re a limited […]

Government Shutdown Fallout: IRS Processing Slows Down

During the recent government shutdown, many of the IRS’s core functions, such as tax refund processing, audits and nonautomated collection efforts, were temporarily paused. (Work continued that was necessary to implement One Big Beautiful Bill Act provisions and to prepare for the 2026 tax filing season.) Not surprisingly, IRS workers are now dealing with a […]

New IRS Rules Narrow the 1% Stock Buyback Tax

The Inflation Reduction Act established a 1% excise tax on the fair market value of stock repurchases (often referred to as “buybacks”) made by certain publicly traded corporations after Dec. 31, 2022. The IRS has issued final regulations that explain the application of the tax and, generally, narrow its reach. For example, the final regs […]

Claiming New Tip and Overtime Deductions? IRS Issues Key Guidance

The IRS has issued guidance for taxpayers wanting to claim new deductions for qualified tip income and qualified overtime compensation for 2025. The guidance details alternative calculation methods for the deductions because 2025 information forms, including Form W-2 and Forms 1099, won’t be updated to account for the deductions. To determine the tips deduction, employees […]

Is Your Remote Workforce Creating State Tax Exposure?

Allowing employees to work remotely from other states may introduce significant tax and compliance challenges for employers. For example, when employees are located in multiple states, employers may be required to withhold and remit income and payroll taxes in each jurisdiction. Having employees in another state can also establish what’s known as a “nexus.” This […]

First-Time Abatement: Relief Exists, But Awareness Doesn’t

Recently, National Taxpayer Advocate Erin Collins told attendees of an American Institute of CPAs conference that she thought the IRS needed to address problems more quickly. As an example, she said that approximately 1 million taxpayers are eligible for first-time abatements each year, but many aren’t aware of it. The IRS acknowledged the problem a […]

Think You’ll Get a Whistleblower Reward? Not Always

Taxpayers who give the IRS Whistleblower Office (WBO) credible, specific tips about unpaid taxes may qualify for cash awards. To qualify for an award, the IRS must take action based on the tip and the WBO must collect proceeds from that action. In one new case, a tipster alleged tax fraud by several targets, including […]

Self-Employed? Don’t Miss This Valuable Health Insurance Deduction

If you’re self-employed and have realized a net profit for the year, you may be eligible for the self-employed health insurance deduction. This is an adjustment to income, rather than an itemized deduction, for premiums you paid on a health insurance policy covering medical care, including a qualified long-term care insurance policy for yourself, your […]

A Smart Tax Move You Might Be Missing: The 0% Gains Bracket

How does a 0% tax rate sound? Pretty great, right? Unfortunately, most people don’t qualify for it. But some lower-income taxpayers qualify for a 0% long-term capital gains rate if their taxable income keeps them within the 10% or 12% ordinary-income brackets. If you have adult children in one of these tax brackets, you might […]

When Loans to Friends Go Bad — Your Tax Break Might Not

If you’ve been burned after lending money to a friend or family member who didn’t pay you back, take heart: You may be able to deduct your loss. For federal income tax purposes, certain personal loans you make that aren’t repaid are classified as short-term capital losses. You can use the losses to offset short-term […]