Tax Matters

10/16/2026

Missed the October 15 tax deadline? Take the next step today.

If your extended filing deadline has passed, file promptly—even if you cannot pay in full. Pay what you can and explore payment options. An extension generally gave you more time to file, not more time to pay.

This edition of The Bottom Line explains where to start.

Tax Matters. Clarity creates control.

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10/15/2026

PAID THE IRS? KEEP THE PROOF.

An IRS notice showing a balance after you made a payment deserves a careful review.

A recent payment may not yet be reflected on the notice. There may also be a remaining balance that needs attention. Start by comparing the records.

Keep these details together:

* Payment confirmation or canceled check
* Payment date and amount
* Tax year or quarter
* Tax form and payment type
* The complete IRS notice, including its response date

Individuals can review payment history through their IRS Online Account. If the figures disagree, follow the notice’s instructions and contact the IRS with your supporting records.

Do not assume the notice is wrong—or that making a payment means nothing further is required.

Verify the payment. Reconcile the account.

Tax Matters can help you review the records and understand the next step in a confidential conversation.

https://TaxMattersOnline.com/
(915) 581-1040
Since 1988

10/13/2026

IRS PENALTY RELIEF: THE PROCESS IS CHANGING.

The IRS has introduced automatic relief for eligible taxpayers with a history of timely compliance. During the transition, some taxpayers may still need to request first-time abatement. Reasonable cause may provide another route for certain penalties.

Start by understanding the notice, the account history and the balance that remains.

The Bottom Line explains what to review before assuming a penalty must stay—or will disappear.

Explore The Bottom Line:
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Schedule a confidential conversation:
TaxMattersOnline.com | (915) 581-1040

Tax Matters — Since 1988

10/13/2026

10/12/2026

THE BOTTOM LINE
Unfiled Tax Returns: Understanding the IRS’s Six-Year Policy

When you’ve missed years of tax filings, getting current can feel overwhelming. But the first step is identifying which returns need to be addressed.

Under its general enforcement policy, the IRS normally pursues delinquent returns for the most recent six years. Requiring more—or fewer—years generally requires managerial approval.

That does not erase older filing obligations or tax debt. Your filing history, circumstances, and IRS activity can affect what is required.

At Tax Matters, we review your records, identify the years that need attention, and help build a practical plan for restoring compliance.

The Bottom Line: Don’t assume you must file every missing year—or that older years can simply be ignored. Understand where you stand before deciding how to proceed.

Clarity creates control.

Tax Matters, Inc. | Since 1988
915-581-1040
taxmattersonline.com

10/10/2026

BOTTOM LINE
The Augusta Rule: A Tax Break Worth Understanding

Your home may offer a tax planning opportunity that many people overlook.

Under Section 280A(g) of the Internal Revenue Code, commonly called the Augusta Rule, you can rent a home you use as a residence for 14 days or fewer during the year without including the rental income in your federal taxable income.

For example, if you rent your home for seven days at $1,000 per day, the $7,000 you receive can qualify for the exclusion. You cannot deduct expenses attributable to those rentals.

How Business Owners May Use It

A separate corporation may rent an owner’s home for legitimate business activities, such as an annual planning session or board meeting. When properly structured, the company may deduct a qualifying rental expense while the homeowner excludes the rental income.

But the company’s deduction is not automatic. The meeting must serve a real business purpose, and the rental rate must be reasonable and supported by comparable space in the local market. Simply transferring money from the business to the owner does not establish a valid rental expense.

A sole proprietor cannot create this result by paying rent to themselves. Entity structure and tax treatment matter.

Documentation Makes the Difference

Keep a written rental agreement, support for the rental rate, meeting agendas, attendance records, and proof of payment. These records should explain what occurred, why the business rented the space, and how the amount was determined.

Also, track every rental day. The limit is 14 total rental days for the home across all renters, including any vacation or event rentals. Renting it to multiple businesses does not create a separate allowance for each one.

If you reach 15 rental days, the exclusion no longer applies, and all the year’s rental income must be reported under the applicable rental rules.

The Bottom Line

The Augusta Rule can be a useful planning tool when the facts support it. Its value comes from a legitimate arrangement, a reasonable rate, and clear records.

At Tax Matters, we help you understand how tax planning fits your circumstances—before the transaction takes place.

Clarity creates control.

Tax Matters, Inc.
915-581-1040 | taxmattersonline.com

10/09/2026

BOTTOM LINE: FINISH THIS RETURN. START PLANNING FOR THE NEXT.

With the October 15 extension deadline approaching, the immediate priority is completing your 2025 return. But your 2026 tax year is already underway—and the return you’ll file in 2027 deserves attention now.

Start with what this filing taught you. Did you owe more than expected? Were your records incomplete? Did business income grow without a corresponding increase in tax payments? Those are signals to adjust your approach.

Check withholding and estimated payments. Review your current income and what you’ve paid toward taxes. A raise, side business, rental property, or investment gain can change the picture. An updated projection can help identify a shortfall while there is still time to respond.

Get your records current. Reconcile business accounts, separate personal and business expenses, and organize receipts, mileage records, and supporting documents. A monthly routine makes filing easier and gives you better information for decisions.

Review year-end opportunities. Discuss retirement contributions, charitable giving, investment gains and losses, and necessary business purchases with your tax professional. Eligibility, timing, and documentation matter. Spending a dollar solely to save a fraction of it in taxes is rarely a sound business decision.

Bring major changes into the conversation early. Selling property, starting a business, retiring, or changing your family circumstances can affect your return. Planning before a transaction gives you more options.

Schedule a planning meeting before year-end. Bring your latest return, current pay statements, year-to-date business financials, and tax payment records. Ask: “Based on where I stand today, what should I address before December 31?”

Remember: an extension provides additional time to file, not additional time to pay.

The Bottom Line: Filing tells you where you’ve been. Planning helps you take control of what comes next.

Tax Matters, Inc. — Clarity creates control.
915-581-1040
taxmattersonline.com

10/09/2026

BOTTOM LINE
Owe the IRS but Can’t Afford to Pay?
By Douglas L. Rutter | October 9, 2026

An IRS balance can feel overwhelming when your income barely covers everyday necessities. Before agreeing to a payment you cannot sustain, understand whether Currently Not Collectible (CNC) status may apply.

When paying would create hardship

If the IRS determines that you cannot pay your tax debt while meeting basic living expenses, it may classify your account as currently not collectible. There is no single income cutoff; the decision depends on your financial circumstances. (taxpayeradvocate.irs.gov⁠)

What changes—and what continues

CNC status temporarily suspends most collection activity. It does not forgive the balance. Interest and applicable penalties continue, federal refunds can be applied to the debt, and the IRS may still file a Notice of Federal Tax Lien. Collection may resume if your ability to pay improves. (irs.gov⁠)

The facts matter

The IRS may request a financial statement and documentation of income, expenses, bank accounts, and assets. It may also ask you to file past-due returns. Continue filing required returns on time, even when you cannot pay. (irs.gov⁠, taxpayeradvocate.irs.gov⁠)

Start with clarity

At Tax Matters, Inc., we begin by organizing the facts: what you owe, your filing history, and what your finances can realistically support. That review helps determine whether CNC status or another resolution option deserves consideration.

The Bottom Line: When you cannot afford to pay the IRS, understanding your options is the first step toward regaining control.

Tax Matters, Inc.
Clarity creates control.
915-581-1040 | taxmattersonline.com

10/08/2026

PROTECT YOUR IRS PAYMENT PLAN

An IRS installment agreement can provide a structured way to address a tax balance—but the agreement must remain in good standing.

To help avoid default:

* Make every scheduled payment on time.
* File all required tax returns by their deadlines.
* Pay current taxes in full and on time.
* Continue scheduled payments even when a refund is applied to the balance.
* Keep your address, banking information and payment details current.
* Respond promptly to IRS notices.

A missed payment or a new unpaid tax balance may place an existing agreement at risk.

If you receive a CP523 notice, the IRS is notifying you that it intends to terminate the agreement. Contact the IRS using the number printed on the notice as soon as possible—and no later than 30 days from the notice date. Appeal rights may also apply.

Pay on time. Stay current. Act on notices.

If your circumstances have changed or you are unsure how to respond, Tax Matters can help you review the situation in a confidential conversation.

TaxMattersOnline.com⁠
(915) 581-1040
Since 1988

10/07/2026

Paying off the past? Protect your progress.

Resolving an older tax balance is a meaningful step forward. Staying current deserves attention, too.

Tax Matters can help you review your situation and plan your next steps—with clarity and confidence.

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Call Tax Matters: (915) 581-1040