Each year, after the extended due date, the IRS shuts down the e-file system to allow them to prepare it for the next tax year. This year, that will occur later than usual. The IRS recently announced the date of the shutdown scheduled for this year, which will occur on Friday, December 26, 2025, at 11:59 p.m. Eastern time. Practitioners who need to e-file late returns or returns for fiscal-...
IRS Notice 2025-62 indicates that the IRS will not impose penalties on employers for not reporting information regarding tips and/or overtime paid to employees for the 2025 tax year only, even though the employees need this information to compute the new deductions for tips and overtime on the employees’ federal income tax returns. In our upcoming seminars, we will discuss strategies to comp...
The New York Secure Choice Program is now operational. This 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 30 or more employees are required to register with the program by March 18, 2026. Employers with 15 to 29 employees are required ...
On October 21, 2025, the IRS issued transition guidance for the new deduction for car loan interest. The new deduction is effective starting in the 2025 tax year. Notice 2025-57 allows lenders to provide statements to borrowers showing the total amount of interest, and the guidance does not require such lenders to file forms with the IRS for the 2025 tax year. In our upcoming seminars, we w...
On September 19, 2025, the Treasury Department issued proposed regulations for the new qualified tips deduction. The new deduction is effective starting in the 2025 tax year. The proposed regulations give detailed examples of what qualifies as tips for the purpose of the new deduction, and they specify that only those taxpayers with occupations listed in the table that is contained in the prop...
The IRS recently announced that the Filing Information Returns Electronically (FIRE) system used for e-filing 1099s is scheduled to be retired, and the target date for the retirement will be the 2027 filing season for tax year 2026 forms. Currently there are two systems available to electronically file Forms 1099, the FIRE system and the Information Returns Intake System (IRIS) system. Once t...
On September 23, 2025, the IRS announced that paper tax refund checks for individual taxpayers will be phased out beginning on September 30, 2025. However, it also indicated that, until further notice, taxpayers should continue using existing forms and procedure for filing 2024 returns on extension. The IRS has indicated that it will publish detailed guidance for 2025 tax returns before the 20...
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. Pra...
The IRS recently issued a fact sheet that clarifies the cut-off date for new, used and commercial clean vehicles (EVs). The major new federal tax law that was enacted on July 4, 2025 eliminates the credits for such vehicles effective after September 30, 2025. Such vehicles acquired after that date are no longer eligible for any credit. For taxpayers to be eligible for the credit, they must ...
Effective March 1, 2025, New York now imposes sales tax on the short-term rental of residential real estate, which is now defined as any rental that is less than 90 consecutive days. Those who operate residential real estate must assess whether they are subject to this new sales tax requirement. Our upcoming seminars in December and January will provide detailed examples and strategies to addr...
