As discussed on pages 61 to 64 of the Tax Year 2025 M+O=CPE Individual Tax Reference Book, taxpayers who deferred gains at any time during 2018 to 2025 by investing in qualified opportunity zones must now recognize those deferred gains on their 2026 income tax returns. As practitioners complete 2025 returns that are on extension and/or prepare 2026 income tax projections, it is important to co...
The IRS has announced a midyear increase to the standard mileage allowance, which is effective on July 1, 2026. For business travel, it is 76 cents per mile for July 1, 2026, to December 31, 2026. This is up from 72.5 cents per mile, which applies for January 1, 2026, to June 30, 2026. For medical-related travel, it is $23.5 cents per mile, for July 1, 2026, to December 31, 2026. This is up...
Recently, the IRS issued guidance about the gift tax considerations for the new Trump accounts. Trump accounts under Internal Revenue Code §530A are effective for the 2026 and later tax years and are for children under the age of 18 as of the close of the calendar year. We have discussed these accounts in our prior post on February 17, 2026, and December 9, 2025. Parents and guardians that...
As a reminder, the New York Secure Choice Program requires New York employers with 10 or more employees who do not offer a qualified retirement plan to automatically enroll their employees in this new state-sponsored retirement plan. Employers with 10 to 14 employees are required to register by July 15, 2026. (Employers with 30 or more employees were already required to register with the progr...
Practitioners must annually certify that they have a written information security plan (WISP) for protecting client data when they renew their Practitioner Tax Identification Number (PTIN) each year. The IRS provides a model plan in its Publication 5708, Creating a Written Information Security Plan for your Tax & Accounting Practice. This publication was last updated in August of 2024. Pub...
As discussed in our post on January 29, 2026, and March 24, 2026, the IRS has been sending a CP53E notice in the mail to taxpayers who requested a refund by check when they filed their 2025 federal income tax returns. The notice requests that taxpayers provide bank account information for the direct deposit of the refund through an IRS online account. Recently, the Taxpayer Advocate Service of...
The IRS plans to retire the Filing Information Returns Electronically (FIRE) system used for e-filing 1099s. Until now, in recent years, there have been two systems available to electronically file Forms 1099, the FIRE system and the Information Returns Intake System (IRIS) system. Beginning with the 2027 filing season for tax year 2026 forms, only the IRIS system will be available. In May...
As a reminder, the New York Secure Choice Program requires New York employers with 10 or more employees who do not offer a qualified retirement plan to automatically enroll their employees in this new state-sponsored retirement plan. Employers with 15 to 29 employees are required to register by May 15, 2026, and employers with 10 to 14 employees are required to register by July 15, 2026. (Empl...
As we reach the point in tax season where most extensions are prepared, it is important to document key estimates and warnings to clients in writing. For missing items, practitioners should warn each client that if the client’s actual income or deductions differ from the estimates used to prepare the extensions, the client may owe additional tax when the actual income tax returns are filed, ...
As discussed in our post on January 29, 2026, the IRS is sending a CP53E notice in the mail to taxpayers who request a refund by check. The notice requests that taxpayers provide bank account information for the direct deposit of the refund through an IRS online account. Taxpayers can create an IRS online account at: https://www.irs.gov/payments/online-account-for-individuals. However, taxpaye...
