ACT Professional Services (Accounting, Consulting and Taxes)

08/29/2026

There’s a new tax benefit for charitable giving in 2026. Under the Working Families Tax Cuts, taxpayers who don’t itemize may be able to deduct up to $1,000 in cash contributions to certain qualified organizations, or up to $2,000 for married couples filing jointly. See the new charitable contribution deduction rules and find out what qualifies: https://ow.ly/yGkH50ZyczK

02/22/2026

It's almost time! Where's My Refund will begin updating after February 21 for those who claimed the Earned Income tax Credit or the Additional Child Tax Credit: www.irs.gov/refunds

01/13/2026

IR-2026-02, Jan. 8, 2026

WASHINGTON — The Internal Revenue Service announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season…..

12/04/2025

https://www.forbes.com/sites/kellyphillipserb/2025/12/02/irs-releases-guidance-on-new-trump-accounts-for-children/

The IRS has released initial guidance on contributions, limits and withdrawals for the new Trump accounts—as well as how to apply to open one.

07/29/2025

The IRS is not entirely stopping paper checks, but they are significantly moving towards electronic payments for both refunds and payments.

Here's a breakdown

Paper check refunds are being phased out: The U.S. Treasury, following an executive order, will generally no longer issue tax refunds by paper check after September 30, 2025. Most refunds will be sent via direct deposit, prepaid debit cards, or other digital payment systems.

Electronic payments are the preferred method for payments: The IRS strongly encourages electronic payment methods for tax liabilities. Options include:

IRS Direct Pay: A free and secure way to pay directly from your bank account.

Electronic Federal Tax Payment System (EFTPS): Another free and secure option for individuals and businesses, but requires enrollment.

Debit or Credit Card: Available online, by phone, or through the IRS2Go app (convenience fees apply).

Digital Wallets: Some options like PayPal are now accepted through approved channels.

Electronic Funds Withdrawal: Available when filing electronically.
Limited exceptions for paper checks: While paper checks are being phased out, some exceptions may be granted, particularly for individuals without access to banking services. Additionally, in rare circumstances (like rejected direct deposits), a paper check might still be issued as a last resort.

Mailing checks is still an option for a limited time: If paying by mail, enclose a check or money order payable to the United States Treasury and include Form 1040-V (for income tax liability without an accompanying return) or indicate the tax year and details on the memo line. Don't send cash.

Paying with cash: You can pay with cash at participating retail stores (limits and fees apply).

07/28/2025

One Big Beautiful Bill Act: Tax deductions for working Americans and seniors

FS-2025-03, July 14, 2025

Note: This Fact Sheet has been updated July 25 by adding to the section on “No Tax on Car Loan Interest” new language describing the requirement for “Final assembly in the United States.”
Below are descriptions of new provisions from the One Big Beautiful Bill Act, signed into law on July 4, 2025, as Public Law 119-21, that go into effect for 2025.
“No Tax on Tips”
• New deduction: Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified tips received in occupations that are listed by the IRS as customarily and regularly receiving tips on or before December 31, 2024, and that are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137.
o “Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing.
o Maximum annual deduction is $25,000; for self-employed, deduction may not exceed individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.
o Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
o Self-employed individuals in a Specified Service Trade or Business (SSTB) under section 199A are not eligible. Employees whose employer is in an SSTB also are not eligible.
o Taxpayers must:
 include their Social Security Number on the return and
 file jointly if married, to claim the deduction.
• Reporting: Employers and other payors must file information returns with the IRS (or SSA) and furnish statements to taxpayers showing certain cash tips received and the occupation of the tip recipient.
• Guidance: By October 2, 2025, the IRS must publish a list of occupations that “customarily and regularly” received tips on or before December 31, 2024.
o The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and payors subject to the new reporting requirements.
“No Tax on Overtime”
• New deduction: Effective for 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the “half” portion of “time-and-a-half” compensation -- that is required by the Fair Labor Standards Act (FLSA) and that is reported on a
o Form W-2, Form 1099, or other specified statement furnished to the individual.
o Maximum annual deduction is $12,500 ($25,000 for joint filers).
o Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
o Taxpayers must:
 include their Social Security Number on the return and
 file jointly if married, to claim the deduction.
• Reporting: Employers and other payors are required to file information returns with the IRS (or SSA) and furnish statements to taxpayers showing the total amount of qualified overtime compensation paid during the year.
• Guidance: The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and other payors subject to the new reporting requirements.
“No Tax on Car Loan Interest”
• New deduction: Effective for 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria. (Lease payments do not qualify.)
o Maximum annual deduction is $10,000.
o Deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).
• Qualified interest: To qualify for the deduction, the interest must be paid on a loan that is:
o originated after December 31, 2024,
o used to purchase a vehicle, the original use of which starts with the taxpayer (used vehicles do not qualify),
o for a personal use vehicle (not for business or commercial use) and
o secured by a lien on the vehicle.
If a qualifying vehicle loan is later refinanced, interest paid on the refinanced amount is generally eligible for the deduction.
• Qualified vehicle: A qualified vehicle is a car, minivan, van, SUV, pick-up truck or motorcycle, with a gross vehicle weight rating of less than 14,000 pounds, and that has undergone final assembly in the United States.
• Final assembly in the United States: The location of final assembly will be listed on the vehicle information label attached to each vehicle on a dealer's premises. Alternatively, taxpayers may rely on the vehicle’s plant of manufacture as reported in the vehicle identification number (VIN) to determine whether a vehicle has undergone final assembly in the United States.
o The VIN Decoder website for the National Highway Traffic Safety Administration (NHTSA) provides plant of manufacture information. Taxpayers can follow the instructions on that website to determine if the vehicle’s plant of manufacture was located in the United States.
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
o The taxpayer must include the Vehicle Identification Number (VIN) of the qualified vehicle on the tax return for any year in which the deduction is claimed.
• Reporting: Lenders or other recipients of qualified interest must file information returns with the IRS and furnish statements to taxpayers showing the total amount of interest received during the taxable year.
• Guidance: The IRS will provide transition relief for tax year 2025 for interest recipients subject to the new reporting requirements.
Deduction for Seniors
• New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.
o The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).
o Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
• Qualifying taxpayers: To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year.
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
o Taxpayers must:
 include the Social Security Number of the qualifying individual(s) on the return, and
 file jointly if married, to claim the deduction.

12/24/2024

Late today December 23 the Federal Court of Appeals once again says that BOI reports must be filed with a new due date of January 13, 2025 for both existing companies at 12/31/2024 and new companies established on or after 9/4/2024.

12/07/2024

A federal court issued an injunction on the BOI reporting requirement issued to businesses. The deadline to file was Jan 1 but is now on hold….many businesses have already complied, and the deadlines could be reinstated.

08/15/2024

IRS reopens Voluntary Disclosure Program to help businesses with problematic Employee Retention Credit claims; sending up to 30,000 letters to address more than $1 billion in errant claims
WASHINGTON —The Internal Revenue Service announced today a limited time reopening of the Voluntary Disclosure Program to help businesses fix incorrect Employee Retention Credit claims as the agency continues compliance work.
The Employee Retention Credit (ERC) Voluntary Disclosure Program (VDP) will run through November 22 and allow businesses a chance to correct improper payments at a 15% discount and avoid future audits, penalties and interest. During the first disclosure program that ended in March, there were more than 2,600 applications from ERC recipients that disclosed $1.09 billion worth of credits.
To underscore the importance of participating in the Voluntary Disclosure Program, the IRS also announced it plans to mail up to 30,000 new letters to reverse or recapture potentially more than $1 billion in improper ERC claims. Thousands more mailings on additional questionable payments will be made in the fall.
“The limited reopening of the Voluntary Disclosure Program provides an opportunity for those with improper claims to come in ahead of IRS compliance work and get a discount on repayments,” said IRS Commissioner Danny Werfel. “This is especially important given increasing IRS compliance actions involving bad claims, many of them are the result of aggressive marketing tactics to lure unsuspecting businesses into claiming the complex credit. This provides a final window of opportunity for those misled businesses to make adjustments and avoid future compliance action by the IRS.”
“The push by promoters flooded the IRS with questionable ERC claims, which clogged our systems and slowed work,” Werfel added. “We recognize well-meaning businesses are caught up in this, and we are taking important steps to help them. This includes reopening the Voluntary Disclosure Program as well as getting more payments out to qualifying businesses.”
Last week, the IRS announced it was taking additional steps to move forward with ERC, including updates on the processing moratorium, compliance actions and upcoming payments. In recent weeks, the IRS separately sent out 28,000 disallowance letters to businesses whose pending claims showed a high risk of being incorrect. The IRS estimates that these disallowances will prevent up to $5 billion in improper payments. The IRS has also identified 50,000 valid ERC claims and is quickly moving them into the pipeline for payment processing in coming weeks. These payments are part of a low-risk group of claims.
The ERC program began as an effort to help businesses during the pandemic, but as time went on, the program increasingly became the target of aggressive marketing – and potentially predatory in some cases – well after the pandemic ended. For example, some promoter groups called the credit by another name, such as a grant, business stimulus payment or government relief besides ERC or the Employee Retention Tax Credit (ERTC) to increase claims. The IRS continues compliance work on questionable ERC claims on multiple fronts, with thousands of audits underway and 460 criminal cases initiated.
ERC Voluntary Disclosure Program reopens; special discount available through November 22
Today’s announcement features a special reopening of the ERC Voluntary Disclosure Program (VDP) through November 22 to help businesses that received questionable payments to self-correct and repay the credit they received after filing ERC claims in error. The IRS urged businesses with claims that show warning sign indicators to review eligibility requirements and talk to a trusted tax professional to see if the disclosure program is a good option for them.
As the IRS continues intensifying its compliance work involving improper ERC claims, the disclosure program protects businesses from more costly future compliance action. The second VDP offers a 15% discount for businesses repaying credits for tax periods in 2021, a slightly reduced rate from the first program’s 20% discount that ended in March.
Businesses should act soon to resolve incorrect claims and avoid potential future issues such as audits, full repayment, penalties and interest. Full details are available in IRS Announcement 2024-30, also released today, with highlights outlined in another IRS news release, IR-2024-213, IRS provides details of second Employee Retention Credit Voluntary Disclosure Program; program for improper claims open through Nov. 22.
Thousands of new recapture letters going out for improper ERC claims made for Tax Year 2021, some Tax Year 2020
As part of ongoing compliance work, the IRS announced today plans to mail thousands of additional letters reversing or recapturing improperly paid ERC claims. The IRS currently anticipates this round of mailings could reach up to 30,000 letters this fall. These “clawback” notices potentially represent more than $1 billion in claims from Tax Year 2021 and some additional, later-filed Tax Year 2020 claims. These letters notify taxpayers that the IRS is reversing or recapturing their previous credit. Several thousand of the letters have been mailed, with more coming in upcoming weeks and into the fall.
The IRS notes that those who receive these recapture letters will be ineligible to participate in the Voluntary Disclosure Program for the calendar quarter the letter covers.
This is the second round of these letters. Previously, the IRS determined that more than 12,000 entities filed claims that were improper for Tax Year 2020, resulting in $572 million in assessments.
The latest letters generally involve larger claims than earlier letters regarding 2020 because Congress increased the maximum ERC in 2021. Congress increased the maximum ERC from $5,000 per employee per year in 2020 to $7,000 per employee for each quarter of the year in 2021.
When the IRS identifies an employer that has received excessive or erroneous ERC, the agency will reclaim that ERC through normal tax assessment and collection procedures.
"This new round of letters serves as another incentive for businesses that believe they received an erroneous Employee Retention Credit payment to come forward and participate in the disclosure program and resolve the matter on more favorable terms," Werfel said. “The disclosure program provides a limited, unique opportunity to avoid future IRS compliance problems as well as sidestep a significant repayment fee with penalties and interest.”
Separate ERC Claim Withdrawal Program remains available for those with pending claims
The IRS also continues to urge employers with pending, unpaid ERC claims to consider a separate ERC Claim Withdrawal Program that allows them to remove a pending ERC claim – one that the IRS has not processed yet. They can withdraw the claim and pay no interest or penalty. Already, the claim withdrawal process for those with unprocessed ERC claims has led to more than 7,300 entities withdrawing $677 million.
ERC compliance work continues
The IRS continues analyzing ERC claims, intensifying audits and pursing promoter and criminal investigations. Beyond the disallowance letters, current initiatives results include:
• Criminal investigations: As of July 1, 2024, IRS Criminal Investigation has initiated 460 criminal cases, with potentially fraudulent claims worth nearly $7 billion. In all, 37 investigations have resulted in federal charges so far, with 17 investigations resulting in convictions and nine sentencings with an average sentence of 20 months.
• Promoter investigations: The IRS is gathering information about suspected abusive tax promoters and preparers improperly promoting the ability to claim the ERC. The IRS’s Office of Promoter Investigations has received hundreds of referrals from internal and external sources. The IRS will continue civil and criminal enforcement efforts of these unscrupulous promoters and preparers.
• Audits: The IRS has thousands of ERC claims currently under audit.

07/18/2024

Here is what is coming down the pipeline for employers in 2027...

Share Share on Facebook Share on Twitter Share via E-mail Print News Washington Saves retirement act signed, set to launch in 2027 by Venice Buhain / March 28, 2024 Washington is set to create a state-run automatic retirement savings system for workers who don’t already have access to an employer-...