EC Barrett, LLC

🚨 House Flippers: The IRS Classification Mistake That Could Cost You Thousands

Most flippers obsess over purchase price, rehab costs, and resale value.

But what if the biggest factor affecting your profit isn't the property at all?

The difference between being classified as a real estate dealer versus a real estate investor could dramatically change your tax bill.

Before your next flip, make sure you know which side of the IRS line you're on.

👉 Read more:

House Flipping Tax Strategies: Dealer Status vs. Investor Status When most house flippers evaluate a project, they focus on purchase price, renovation costs, holding expenses, and projected resale value. While these factors are critical, one of the most significant drivers of profitability often receives far less attention: tax classification. For real estate pro...

The Working Families Tax Cuts expanded the federal Paid Family and Medical Leave Tax Credit, creating new tax-saving opportunities for employers — particularly small businesses. This post walks through IRS Tax Tip 2026-64, who qualifies, and how to document and claim the credit. Stay compliant and save on payroll costs. Read the full article: https://wix.to/MLm0JgS

📅 September 15, 2026 Tax Deadline Reminder
If your business filed an extension for its 2025 tax return, don't forget that September 15, 2026 is the filing deadline for:

✅ Partnerships (Form 1065)
✅ S Corporations (Form 1120-S)
✅ Third-quarter estimated tax payments

Waiting until the last minute can lead to unnecessary stress and potential penalties. Contact the EC Barrett team today to ensure your return is completed and filed on time.

📞 Let us help you stay compliant and focused on growing your business.

📢 BOI Reporting Requirement Eliminated for U.S. Businesses
🚨 Major Update for Small Business Owners 🚨

The Financial Crimes Enforcement Network (FinCEN) has issued a final rule permanently eliminating Beneficial Ownership Information (BOI) reporting requirements for U.S. companies and U.S. persons under the Corporate Transparency Act.

✅ U.S. businesses are no longer required to report BOI information to FinCEN.
✅ FinCEN will delete BOI information previously reported by U.S. persons.
✅ Foreign entities that qualify as reporting companies must still report beneficial ownership information for foreign individuals.

This change removes a compliance burden for millions of U.S. small business owners.

👇 Poll Time: How do you feel about this change?

🔹 Relief from administrative burden
🔹 Neutral, didn't affect my business
🔹 Wish the requirement had remained
🔹 Need help understanding what this means

Let us know in the comments!

🚛 Truck Owners & Fleet Operators: Form 2290 Deadline Reminder. 🚚📋

At EC Barrett, LLC, we're helping clients stay ahead of important tax filing requirements. If you own or operate a heavy highway vehicle with a taxable gross weight of 55,000 pounds or more, make sure you're aware of the Form 2290 Heavy Highway Vehicle Use Tax (HVUT) filing requirements for the 2026-2027 tax period.
📅 Vehicles first used on public highways in July 2026 must have Form 2290 filed by August 31, 2026.

Key reminders:
✅ E-filing is encouraged and required for taxpayers reporting 25+ vehicles
✅ Low-mileage vehicles (5,000 miles or less, 7,500 for farm vehicles) still require Form 2290 filing
✅ A stamped Schedule 1 is required as proof of payment for vehicle registration

Don't risk penalties or registration delays. Contact EC Barrett, LLC for guidance on your tax and compliance needs.

🚗 IRS Increases Standard Mileage Rates for the Remainder of 2026

Due to rising fuel costs, the IRS has announced an increase to the optional standard mileage rates effective July 1, 2026.

✅ Business Use: 76¢ per mile (up from 72.5¢)

✅ Medical & Moving Purposes: 23.5¢ per mile (up from 20.5¢)

✅ Charitable Activities: Remains at 14¢ per mile

According to the American Automobile Association (AAA), the average price of regular gasoline increased from $2.819 per gallon in January to $3.890 per gallon in July, prompting the IRS to make this midyear adjustment.

This is the first midyear mileage rate increase since 2022 and could have a significant impact on businesses and self-employed individuals who track vehicle expenses.

📌 Be sure to update your mileage tracking systems and reimbursement policies to reflect the new rates effective July 1, 2026.

Need help determining which vehicle expense method is best for your tax situation? Contact the tax professionals at EC Barrett, LLC.

Receiving an IRS refund can feel like a win — until it’s not. A recent Tax Court decision involving a landscape architecture firm underscores that erroneous refunds may need to be repaid, potentially with interest. Our latest blog post explains the case, the IRS processing error that caused it, and best practices for businesses to respond if they receive an unexpected refund. Read more: https://wix.to/Ogvwwe8


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🚨 Beware of Charitable Giving Scams 🚨

Giving back is a wonderful way to support your community—but scammers often take advantage of people's generosity, especially after natural disasters and tragic events.

As highlighted in the IRS 2026 Dirty Dozen Tax Scams List, taxpayers should watch for these common charitable contribution scams:
🔎 Fake CharitiesBefore donating:
✅ Verify the organization is a qualified tax-exempt charity using the IRS Tax Exempt Organization Search tool.
✅ Remember that donations to individuals are not tax-deductible. ✅ Keep receipts and documentation for all contributions.

📦 Non-Cash Donation SchemesBe cautious of promoters who encourage inflated valuations of donated property, artwork, conservation easements, or other assets to generate larger tax deductions.

✅ Accurately document the fair market value of donated property.
✅ Maintain detailed records and appraisals when required.
❌ Avoid anyone promising to eliminate or dramatically reduce your tax liability through charitable donations.
🛡️ Think You've Encountered a Scam?The IRS allows taxpayers and tax professionals to confidentially report suspected fraud, scams, and tax-related misconduct at IRS.gov/submitatip.

If you believe your tax identity has been compromised, visit IRS.gov/idtheft immediately for guidance.

💡 EC Barrett, LLC Tip: A legitimate charitable donation can support a good cause and provide tax benefits—but only when made to a qualified organization and properly documented.

Identity Theft Central | Internal Revenue Service Identity Protection PIN (IP PIN) frequently asked questions.

Charitable donations are both impactful and potentially tax-advantageous—if you document them properly. Our new blog outlines crucial recordkeeping practices for 2026: written acknowledgments for donations, valuation guidance for non-cash gifts, tracking appreciated assets, and organized receipt retention. Read the full article: https://wix.to/iC2FlqK


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