Accounting and Accountability

• Self-employment tax & limited partners — The IRS is challenging the self-employment tax exemption for LLC limited partners, especially those in management roles, with courts siding with the IRS
• October 15th tax deadlines — Extended deadlines for personal 1040 returns, C corporation returns, SEP IRA funding, and excess IRA contribution withdrawals
• FinCEN Form 114 (FBAR) — Filing requirements for foreign financial accounts exceeding $10,000 and the steep penalties for non-compliance
• Educator expense deduction — Increased to $350 per teacher (up to $700 for married couples) and expanded to include preschool teachers
• Student loan interest deductibility — Parents paying children's student loans can't deduct the interest unless they're legally liable on the debt
• IRS FAQs as legal authority — IRS frequently asked questions don't constitute binding legal precedent; reliance on them is limited
• Excessive refund claim penalty — A 20% penalty that may apply to excessive refund claims
• Employee Retention Credit (ERC) updates — ~14,900 claims still pending in various stages of IRS review
• Excess Social Security withholding — Employees who worked multiple employers and exceeded the 2026 wage base ($184,500) can claim the excess on their 1040
• Self-employed health insurance & Medicare premiums — Medicare premiums can be deducted as self-employed health insurance for S corp owners and LLC members if properly reported
• 1040 changes — New above-the-line charitable deduction for non-itemizers (up to $2,000 for joint filers) and Schedule A itemized deduction updates
• Proposed stimulus checks — Discussion of a proposed $5,000 stimulus contingent on Republican mid-term election results, with concerns about budget deficit impact
• 2026 tax brackets — Seven brackets unchanged since 2018, with the top bracket starting at $768,700 (joint) / $640,000 (single)
• Proposed new income tax brackets — Roosevelt Institute income-growth statistics and a proposal for up to seven new upper-income brackets reaching a top rate of 70%
• Tribal tax credit scam warning — Alert about a new scam involving fake tribal tax credits being sold to taxpayers

In this episode:

• Rehoboth Office News — Our upcoming open house and new location.
• Federal Estate Tax — Who may still be affected and where planning can help.
• Offers in Compromise — When the IRS may accept less than the full tax debt.
• Taxpayer Advocate Service — Help when an IRS issue stalls.
• Tax Fraud and Filing Deadlines — Why the usual statute of limitations may not apply.
• Net Investment Income Tax — The surtax that can catch investors and rental property owners.
• Late S Corporation Elections — What happens when the filing deadline is missed.
• IRS Online Accounts — Digital tools for payments, notices, transcripts, and more.
• IRS Audit Activity — What declining audit numbers mean for taxpayers.
• Maryland Tax Notices — Why some businesses are receiving questionable notices.

In this episode:

• IRA Rollovers — Rolling over traditional 401(k)s and IRAs, converting traditional IRAs to Roth IRAs, required minimum distributions, and estate planning considerations.
• Natural Disaster Tax Relief — New federal legislation easing casualty loss write-offs for qualified disaster victims, including timing and eligibility details.
• Corporate Transparency Act Update — Final ruling on beneficial ownership reporting requirements and what it means for US companies.
• Cybersecurity & Scam Prevention — Ongoing threats from cyber thieves targeting taxpayer data, reminders to use secure portals, and general vigilance against phishing and fraud.
• Proposed Restrictions on Refundable Tax Credits — Proposed regulations that would deny certain refundable credits (EITC, child tax credit, etc.) to immigrants who are not qualified aliens, and the legal challenges ahead.

In this episode:

• IRS Oversight of Unenrolled Tax Preparers
• Overtime Pay Tax Deduction Update
• Congressional Tax Proposals to Watch
• Tax Court Case: Customer-Funded Improvements
• IRS.gov Business Tax Account Expansion
• Attorney's Fees and Settlement Tax Traps
• New Cryptocurrency Scam Warning
• Improper Refundable Credit Payments
• Delaware Department of Labor IT Fee

In this episode:

• Inflation-indexed IRS deductions, credits, and thresholds for 2026.
• Non-indexed thresholds that haven't changed in decades (e.g., home sale gain exclusion).
• New above-the-line charitable deduction for non-itemizers.
• Rules for deducting donated vehicles.
• Conservation easements and farmland preservation.
• Tax treatment of donated timeshares and vacation home rentals.
• Qualified opportunity zone capital gains deferment.
• Health insurance marketplace premium tax credit pitfalls.
• Upcoming tax filing deadlines.
• IRS interest vs. penalty abatement rules.

In this episode:

• Hobby loss rules – refresher on when the IRS may reclassify a business as a hobby.
• Trump accounts – contributing up to $5,000 for a minor without triggering a gift tax filing.
• Gift tax basics – $19,000 annual exclusion, filing requirements above that, and the $15M lifetime exemption.
• Gambling loss changes – losses now deductible only up to 90% of winnings (previously 100%), and only if itemizing.
• Online sports betting – winnings are taxable income regardless of platform.
• Standard mileage rate increase – 76 cents/mile for July–Dec 2025 vs. 72.5 cents for Jan–June.
• Foreign bank account disclosure – steep penalties for not reporting foreign accounts/access to funds.
• IRS penalty relief – automatic first-time penalty abatement for compliant taxpayers (no longer needs to be requested).
• IRS penalty statistics – $1.25 trillion assessed in 2025, 92% from unpaid payroll taxes, with most later abated.
• Maryland's new tax portal – launching September 1st, with a blackout period and no penalties during the transition.

In this episode:

• Premium tax credit changes affecting Marketplace health coverage enrollees.
• Long-term care insurance premium deductions and new retirement plan withdrawal rules.
• A proposed Newborn Tax Credit and updates to ABLE accounts.
• IRS partnership audit trends and lingering ERC (Employee Retention Credit) claim backlog.
• A rundown of current IRS-impersonation scam tactics targeting seniors.

In this episode:

• Federal Scholarship Tax Credit (2027) — Up to $1,700 non-refundable credit for K–12 scholarship donations; no income limits; requires state opt-in
• Cryptocurrency staking rewards — Tokens taxable as income upon receipt; deferral legislation proposed but not yet law
• 1099-DA reporting (2027) — Brokers must report digital asset sales; provide all 1099s to your preparer
• Charitable contribution rules — Cash must be documented; GoFundMe not deductible; large non-cash donations require appraisals
• $4.2M charitable deduction denied — Tax court disallowed due to inadequate documentation
• Hobby loss rules — Losses only deductible if activity is run with genuine profit motive
• Family limited partnership discounts — Court upheld IRS challenge; deemed tax-motivated with no business purpose
• Estate tax Form 706 & closing letters — Portability elections, new request fee, and 2–3 year processing delays
• 2027 Social Security wage base — Increases to $190,200; effectively a tax hike for higher earners
• Amended returns (Form 1040-X) — 3-year filing window; e-file for faster refunds
• IRS workforce decline — Staffing down 28%; enforcement agents down 33%; fewer audits and slower service

In this episode:

IRS call strategies – A tip for getting through when the IRS won't accept calls

• Tax identity theft – How fraudsters file returns using stolen Social Security numbers

• Qualified Small Business Stock (QSBS) – A little-known tax exclusion that could eliminate gains for eligible investors

• IRS First-Time Abatement – An automated penalty relief process coming soon for late filers

• Investment fee deductibility – Why individuals can no longer deduct these fees, but businesses still can

• IRS interest rate increases – Higher rates on underpayments and overpayments starting Q3 2026

• 2026 W-2 changes – New codes to identify deductible tips and overtime pay

• SALT cap – The $40,000 state and local tax deduction limit reaffirmed through 2029

• 2027 HSA limits – Contribution limits going up, with a reminder of the long-term savings benefits

In this episode:

• A recent court case that could allow some taxpayers to recover certain IRS penalties and interest assessed during the COVID-era, and what steps may be available to protect refund claims.
• The growing problem of erroneous IRS and state tax notices, including what taxpayers should do before reacting to unexpected letters.
• Valuable but often-overlooked tax credits, including significant updates to the adoption tax credit and how proper communication with your tax preparer can prevent missed opportunities.
• A refresher on the Net Investment Income Tax (NIIT) and additional Medicare taxes, including why more taxpayers are being affected than ever before.
• Important considerations for farmers, landowners, and others exploring conservation easements or land preservation programs, including common compliance pitfalls.
• Tax-saving opportunities that may be disappearing soon, including credits related to electric vehicle charging equipment.
• Current mileage reimbursement rates, the importance of maintaining accurate mileage logs, and why mid-year IRS changes could matter.
• New direct deposit requirements for federal tax refunds, common IRS notice issues related to those requirements, and how to avoid unnecessary refund delays.
• Delaware-specific tax notice concerns that are affecting taxpayers across the state.
• A look at potential tax and legislative developments on the horizon, including discussions surrounding a possible federal gas tax holiday and what it could mean for consumers.