Thinking of Outsourcing? A New Bill Could Add a 25% Tax

Recently, Sen. Bernie Moreno (R-OH) introduced a bill that could subject some U.S. businesses to a new tax. The Halting International Relocation of Employment (HIRE) Act would impose a 25% tax on outsourcing payments. The bill defines “outsourcing payments” as amounts paid to foreign persons for labor and services performed outside the United States that […]

OBBBA Permanently Increases Federal Estate and Gift Tax Exemption

Normally, certain inflation-adjusted numbers affect taxpayers’ estate plans every year. One is the federal gift and estate tax exemption. But for 2026, the One Big Beautiful Bill Act (OBBBA) permanently increases the exemption amount to $15 million (up from $13.99 million for 2025). That amount will be adjusted annually for inflation for 2027 and beyond. […]

Plan Ahead: OBBBA Doubles Sec. 179 Expensing for 2025

If you own a business, the Sec. 179 expensing election allows you to deduct the cost of purchasing eligible assets rather than depreciating them over multiple years. An annual expensing limit applies, which begins to phase out dollar-for-dollar when acquisitions for the year exceed the phaseout threshold. For qualifying property placed in service in 2025, […]

October Is National Cybersecurity Awareness Month

October is National Cybersecurity Awareness Month, a time when the IRS and its Security Summit partners remind us about best practices for protecting personal information. For example, use a virtual private network when connecting to public Wi‑Fi. Also, beware of unsolicited emails and texts that ask for tax or financial information. For businesses, it’s important […]

Tax Relief for Teachers: Deduction Rises to $350 in 2026

Teachers and other educators should be glad to know that the above-the-line tax deduction they can claim for unreimbursed educator expenses will soon rise. Currently $300 per year, in 2026 the maximum deduction will increase to $350. It will be adjusted for inflation in the future. Married educators who file a joint return can each […]

Enhanced Child Care Tax Credits Offer Big Benefits for Employers in 2025–2026

Employers seeking ways to attract and retain top talent may want to consider providing child care services to staff. A significantly enhanced tax credit can make this more feasible. For 2025, the maximum credit is $150,000. For 2026, it will increase to $500,000 ($600,000 for eligible small businesses). The 2026 credit will equal 40% of […]

New 2026 Health Benefit Limits Released by the IRS

Employers and employees, take note: The IRS has released 2026 inflation-adjusted limits for employee health benefits. Workers who defer earnings to health Flexible Spending Accounts (FSAs) can contribute as much as $3,400 in 2026 (up from $3,300 in 2025). And for FSAs that allow carryovers of unused amounts, the 2026 carryover maximum will be $680 […]

AICPA Urges IRS to Maintain Full Operations During Government Shutdown

The American Institute of Certified Public Accountants (AICPA) has asked the IRS to retain full staffing during the current government shutdown. However, the IRS has furloughed approximately half of its workers. In an Oct. 9, 2025, letter to the U.S. Treasury Secretary, the AICPA recalled the negative effects of past shutdowns, including the issuance of […]

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 […]