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Tax Court case provides lessons on best recordkeeping practices for businesses
October 9, 2025
Categories: Record Retention
Running a successful business requires more than delivering great products or services. Behind the scenes, meticulous recordkeeping plays a crucial role in financial health, compliance and tax savings. Good records can mean the difference between successfully defending a deduction and losing valuable tax breaks. A recent U.S. Tax Court decision underscores just how important this is. Why it matters The IRS requires all businesses — no matter how small — to maintain records that
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Understanding the most common IRS notices
October 9, 2025
Categories: IRS, Tax Notice
For many taxpayers, receiving a letter from the IRS can feel intimidating. The envelope arrives with the IRS seal, and immediately, worry sets in: Did I make a mistake? Am I in trouble? The truth is, IRS notices aren’t uncommon, and most of them can be resolved fairly easily once you understand what they mean. This article walks through the most common types of IRS notices, explains why taxpayers receive them, and provides guidance on how to respond. Why the IRS sends notices The
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The power of catch-up retirement account contributions after 50
September 25, 2025
Categories: 457 plan, Catch Up Contributions, IRA
Are you age 50 or older? You’ve earned the right to supercharge your retirement savings with extra “catch-up” contributions to your tax-favored retirement account(s). And these contributions are more valuable than you may think. IRA contribution amounts For 2025, eligible taxpayers can make contributions to a traditional or Roth IRA of up to the lesser of $7,000 or 100% of earned income. They can also make extra catch-up contributions of up to $1,000 annually to a traditional
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Receive $10,000 in cash at your business? The IRS wants to know about it
September 25, 2025
Categories: Form 8300
Does your business receive large amounts of cash or cash equivalents? If so, you’re generally required to report these transactions to the IRS — and not just on your tax return. Here are some answers to questions you may have. What are the requirements? Although many cash transactions are legitimate, the IRS explains that the information reported on Form 8300 “can help stop those who evade taxes, profit from the drug trade, engage in terrorist financing and conduct other
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Payroll tax implications of new tax breaks on tips and overtime
September 23, 2025
Categories: MAGI, OBBBA, Overtime, Payroll
Before the One Big Beautiful Bill Act (OBBBA), tip income and overtime income were fully taxable for federal income tax purposes. The new law changes that. Tip income deduction For 2025–2028, the OBBBA creates a new temporary federal income tax deduction that can offset up to $25,000 of annual qualified tip income. It begins to phase out when modified adjusted gross income (MAGI) is more than $150,000 ($300,000 for married joint filers). The deduction is available if a worker receives
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Run a business with your spouse? You may encounter unique tax issues
September 23, 2025
Categories: Form 1065, Schedule K-1, schedule SE, Small business
Do you and your spouse together operate a profitable unincorporated small business? If so, you face some challenging tax issues. The partnership issue An unincorporated business with your spouse is classified as a partnership for federal income tax purposes, unless you can avoid that treatment. Otherwise, you must file an annual partnership return using Form 1065. In addition, you and your spouse must be issued separate Schedules K-1, which allocate the partnership’s taxable
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Teachers and others can deduct eligible educator expenses this year — and more next year and beyond
September 23, 2025
Categories: Education Assistance Plan
At back-to-school time, much of the focus is on the students returning to the classroom — and on their parents buying them school supplies, backpacks, clothes, etc., for the new school year. But teachers are also buying school supplies for their classrooms. And in many cases, they don’t receive reimbursement. Fortunately, they may be able to deduct some of these expenses on their tax returns. And, beginning next year, eligible educators will have an additional deduction opportunity under
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Investing in qualified small business stock now offers expanded tax benefits
September 10, 2025
By purchasing stock in certain small businesses, you can diversify your investment portfolio. You also may enjoy preferential tax treatment, some of which is getting even better under the One Big Beautiful Bill Act (OBBBA) that was signed into law in July: Qualified small business (QSB) stock now offers more tax-saving opportunities. QSB defined A QSB generally is a U.S. C corporation that meets two requirements, one of which has been eased by the OBBBA to allow more businesses to qualify: 1.
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Divorcing as a business owner? Don’t let taxes derail your settlement
September 10, 2025
Categories: Divorce, Tax Free, Valuation
Divorce is stressful under any circumstances, but for business owners, the process can be even more complicated. Your business ownership interest is often one of your largest personal assets, and in many cases, part or all of it will be considered marital property. Understanding the tax rules that apply to asset division can help you avoid costly surprises. Tax-free transfers Most assets — including cash and business ownership interests — can be divided between spouses without triggering
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The next estimated tax payment deadline is coming up soon
September 10, 2025
Categories: EstimatedTaxPayment, OBBBA, Penalties
If you make quarterly estimated tax payments, the amount you owe may be affected by the One Big Beautiful Bill Act (OBBBA). The law, which was enacted on July 4, 2025, introduces new deductions, credits and tax provisions that could shift your income tax liability this year. Tax basics Federal estimated tax payments are designed to ensure that certain individuals pay their fair share of taxes throughout the year. If you don’t have enough federal tax withheld from your paychecks