Driving costs have surged in 2026 due to rising gasoline prices. To help taxpayers keep pace with these expenses, the IRS has announced mid-year increases to optional standard mileage rates, effective July 1. Here are the updated rates for the second half of 2026: Business: 76 cents per mile (up 3.5 cents from 72.5) Medical & Active-Duty Military Moving: 23.5 cents per mile (up 3 cents from 20.5) Charitable Activities: 14 cents per mile (unchanged, fixed by federal law) This

By February 2026, three million Americans canceled their Affordable Care Act insurance. This exodus is driven by the expiration of temporary Premium Tax Credit enhancements in late 2025. Congress failed to extend these benefits, eligibility tightened and subsidies decreased, causing premiums to skyrocket. 2026 tax rules now require all filers to fully repay any excess advance subsidies they received, regardless of their reported annual household income level this tax year. Re

A recent 2025 IRS legal memo clarifies exactly when internet scam victims can legally deduct theft losses on their taxes. To qualify, your financial loss must stem directly from a business or investment focused transaction. This important exemption covers common Ponzi schemes, fraudulent pitches promising large return alternative investments, and scams where victims are tricked into transferring money to protect their accounts. However, individuals defrauded through personal

The IRS is effectively combatting tax identity theft using adaptable anti-fraud filters. By continually adjusting these systems to catch emerging scams, the agency successfully blocked $7 billion in fraudulent refunds between 2024 and 2025. These smarter filters also flag fewer legitimate returns, which minimizes delays for honest taxpayers. Because earlier W-2 filing deadlines have significantly improved early fraud detection, the IRS and Treasury officials are now urging Co

The IRS remains buried under roughly 90 million physical documents annually, including tax returns and checks. This massive paper trail causes processing delays and slows down refunds. Their move to digital systems is being heavily hindered by outdated technology, budget shortages, strict security rules, and sheer volume. Just 5% of paper Forms 940 and 941 were digitized by May 2025. The IRS is trying to conquer this backlog and modernize its operations, the agency recently b

Starting with the 2026 tax year, the IRS is introducing new reporting requirements that affect how tips and overtime pay are reported on tax forms. These changes aim to improve accuracy and simplify the calculation of certain deductions for taxpayers who receive these types of income. Understanding these updates is essential for employees, employers, and tax professionals to ensure compliance and avoid errors. What Are the New Reporting Requirements? The IRS has updated For

The IRS will keep your refund if your return is filed more than three years after its original due date, including any extensions. In other words, if the due date for your 1040-2021 return was April 15, 2022, but you filed for an extension to October 15, 2022, you have until October 2025, to obtain your refund (three years from your due date). Also, refunds for a return filed more than three years after its original due date, plus extensions, would not be applied to an IRS ba

Recent changes to USPS regulations make clear that mail deposited at a local post office or placed in a collection box may not receive an official postmark until it reaches a regional processing center—often a day or more after the item is dropped off. If you choose, or are required, to file any return(s) on paper and/or remit payment by paper check, you are solely responsible for securing a timely, verifiable postmark to establish compliance with filing and payment deadlines

Trump accounts can be set up for children under age 18 who have a Social Security number. Beginning July 4, 2026, up to $5,000 can be contributed to the account each year. The government will also put in $1,000 for each kid born in 2025-28. Most contributions are not deductible. Payouts cannot be taken while the beneficiary is under 18. After that, distributions are taxed in a manner akin to rules that apply to traditional IRA payouts. Parents must elect to open a Trump accou

A change to 1099-K reporting is good news for IRS, taxpayers and business. The $600 reporting threshold for third-party settlement organizations is gone. In 2021, Congress passed a law requiring third-party settlement organizations, such as PayPal, Square and eBay, to send Form 1099-K to payees who are paid over $600 a year for goods and services. The rules first kicked in for 2023 1099-Ks, but IRS kept delaying them from taking effect. The OBBB repealed the 2021 change and r

Paying taxes may be the last thing on your mind as you head into a busy season of turkey, stuffing, and televised football. You may even feel tempted to hand over your income return to a professional before tax season begins. And according to a new survey, that’s not a surprise. Market research company, Talker Research , recently found that, at a certain stage in life, more than a third of taxpayers are “happy to just let professionals handle their taxes for them,” citing tha

If you’ve owned and lived in your primary residence for at least two out of the last five years , you could be sitting on a major tax break! Under current IRS rules: Up to $250,000 of your gain is tax-free if you file as an individual. Up to $500,000 is tax-free for joint filers. That’s right—those amounts are completely excluded from taxable income. Any gain above these limits? It’s taxed at long-term capital gains rates of 0%, 15%, or 20% , depending on your income bracke

The IRS is phasing out paper refund checks beginning after September 30, 2025. For 2024 tax returns filed under extension , the IRS strongly encourages taxpayers to include direct deposit information to avoid delays. For 2025 tax returns , taxpayers who do not provide bank account details or request an exemption will experience delayed refunds. The IRS will send a letter to these taxpayers explaining: How to provide bank account information, and How to request an exemption fr

If you are a doctor, lawyer, accountant, consultant, or any professional, the IRS has begun auditing how much Self-Employed Contribution...

Taxpayer gifted a large collection of Native American jewelry and artifacts in 2014 to the Wheelwright Museum of American Indian Museum...

If the SBA sent you a notice that you are late paying your monthly EIDL payment, make sure you timely pay your balance or call us to...

Taxpayer qualified for reasonable cause to avoid payment of the 941 quarterly payroll taxes withheld from his employee's wages. The...

Your miles earned on your credit card are NOT taxable! The IRS does not tax any extras you earn with your credit card – including miles,...

The U.S. The Supreme Court recently ruled, in Bittner v. the U.S.,469 F.Supp.3d 709 (2020), that the $10,000 penalty for failure to file...

The taxpayer challenged the IRS's denial of the taxpayer's Offer in Compromise and won! The IRS did not correctly consider the taxpayer's...