Faw Casson CPA

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.

https://fawcasson.libsyn.com/episode-146-hobby-losses-gambling-wins-and-the-irss-fine-print

Catch Brian Stetina’s interview on WBOC TV 16 Delmarva's News Leader about being named Kent County Distinguished Citizen.

2026 Kent County Distinguished Citizen Award Winner Brian Stetina Shares his Work Brian Stetina is the 2026 Kent County Distinguished Citizen Award winner, and he's chatting with us about his work and Scouting America.

Our team recently gathered together to celebrate Michelle Osborne's retirement from Faw Casson after over 50 years with the firm.

Through her many years with our data processing department, Michelle watched the way we process tax returns, payrolls and financial statements transform dramatically. In the early days, she didn’t just run the AS400. She wrote programs for it. She also taught herself accounting and developed an unmatched eye for catching mistakes.

Michelle believed the work should be correct down to the penny, and she made sure the rest of us believed it, too. Through decades of changing technology and countless coworkers coming and going, she remained steady, meticulous and deeply dedicated.

Outside the office, Michelle cheered for Maryland Terps basketball, supported Little League and the Optimist Club, and built a wonderful family that includes a son, a daughter and five grandchildren.

Congratulations on your retirement, Michelle. Thank you for more than five decades of keeping Faw Casson accurate, accountable and, quite literally, to the penny. You will be deeply missed.

Attention Maryland retailers! Shop Maryland 2026 is coming. Share your video to spread the word and win some notoriety and prizes! Comptroller of Maryland

Shop Maryland Tax-Free Week starts August 9th, and you could win $1,000 from the Maryland Retailers Alliance if you help us spread the word!

Submit a short video, filmed at a local retailer, and share your best tips for saving on back-to-school essentials.

All contest rules and submission guidelines are available at MarylandComptroller.gov/Programs