Suheyla Ciftci, CPA, Inc., A Professional Accountancy Corporation

PUT A PLAN IN PLACE FOR POTENTIAL DISASTERS

Hurricane season officially started at the beginning of the month, but they aren’t the only type of disaster that can occur. Taxpayers are encouraged to take steps now to ensure they’re prepared in case they are impacted by a disaster or emergency.

Review and update emergency preparedness plan annually
Taxpayers should review their emergency preparedness plan, at least annually. Ready.gov has resources and checklists to help people put together their emergency preparedness plan.

Create electronic copies of documents:

Taxpayers should keep important documents and storage devices in a safe place. If original documents are available only on paper, taxpayers should consider converting them to electronic versions and storing them on a USB flash drive or in the cloud. Many financial institutions provide statements electronically. All taxpayers are encouraged to create an IRS Individual Account. They can access online transcripts, notices, and other tax information.

Document valuables:

Take pictures or video of valuables before disaster strikes. It makes it easier to claim insurance and tax benefits. IRS.gov has a disaster loss workbook that can help taxpayers compile a room-by-room list of belongings.

Understand tax relief available for disaster situations:
Information on disaster assistance and emergency relief for individuals and businesses disaster assistance and emergency relief for individuals and businesses is available at IRS.gov. Taxpayers should also review Publication 547, Casualties, Disasters and Thefts.
Taxpayers who live in a federally declared disaster area can visit Around the nation on IRS.gov and click on their state to review the available disaster tax relief. Those who live in designated areas for disaster relief receive automatic filing and payment postponements for many currently due tax returns and don't need to contact the agency to get relief.
Taxpayers and practitioners who live in a federally declared disaster area with disaster-related questions can call the IRS Special Services Hotline at 866-562-5227 to speak with an IRS specialist.

More information:
Publication 3067, IRS Disaster Assistance

Source: IRS

IS THAT ACTIVITY JUST A HOBBY OR A BUSINESS?

Many people have hobbies - things they enjoy doing in their spare time - and some even make a little extra money from them. However, there’s a difference between a hobby and a business, especially how each is treated when it comes to filing taxes.

Businesses operate to make a profit while hobbies are for pleasure or recreation. Here are some common questions people should ask themselves when deciding if what they’re doing is a hobby or business. No single thing is the deciding factor.

Questions to help taxpayers decide if they have a hobby or business:
Is there an intent to make a profit?
If the activity makes a profit, how much is it?
Can they expect to make a future profit from the appreciation of the assets used in the activity?
Do they depend on income from the activity for their livelihood?
Are any losses due to circumstances beyond their control or are the losses normal for the startup phase of their type of business?
Are operations adjusted to improve profitability?
Is the activity carried out like a business with complete and accurate books and records kept?
Do the taxpayers and their advisors have the knowledge needed to carry out the activity as a successful business?

Taxpayers should review all the factors to make the best decision. Regardless of the decision, if they’re paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. These payments are taxable income and must be reported on federal tax returns.

Additionally, if they received payment in the form of digital assets, they may also get a Form 1099-DA. Whether taxpayers have a hobby or run a business, good recordkeeping throughout the year will help when they file taxes.

Source: IRS

IMPORTANT STEPS FOR FUTURE BUSINESS OWNERS

Thinking of starting a business? One of the most important first steps for new entrepreneurs and future business owners is to ensure the right business structure is chosen. That’s not all though, there’re a few other tips and best practices for those starting out. Let’s take a look.

Choose a business structure:

Each business structure has different tax filing requirements and legal considerations. Knowing the difference between them can help determine which option is best. The most common are:
Sole proprietorship: An unincorporated business owned by an individual. There's no distinction between the taxpayer and their business.
Partnership: An unincorporated business with ownership shared between two or more people.
Corporation: Also known as a C corporation. It's a separate entity owned by shareholders.
S corporation: A corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders.
Limited liability company: A business structure allowed by state statute.

Choose a tax year:

A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either:
Calendar year: 12 consecutive months beginning January 1 and ending December 31.
Fiscal year: 12 consecutive months ending on the last day of any month except December.

Apply for an employer identification number:

An EIN is also called a federal tax identification number. It's used to identify a business. Most businesses need one even if they don’t have employees. They can get an EIN for free directly from the IRS in minutes.

Make sure all employees have completed these forms:
Form I-9, Employment Eligibility Verification U.S. Citizenship and Immigration Services
Form W-4 Employee's Withholding Allowance Certificate

Pay all applicable taxes:

The form of business determines what taxes must be paid and how to pay them. Authorized users of certain entity types can securely access and manage their federal tax records and information online through Business Tax Account. BTA supports access for the following organizational types: sole proprietorships, partnerships, S corporations, C corporations, federal, state and local governments, Indian tribal governments, and tax-exempt organizations.

Check state specific requirements:

Prospective business owners should visit their state's website for info about state requirements.

Source: IRS

IRS VERIFIED IS THE WAY TO GO WHEN IT COMES TO SOCIAL MEDIA AND E-NEWS SERVICES

Social media can be a quick and easy way to get tax-related updates, especially with the many updates from the One, Big, Beautiful Bill. But not all online tax advice is accurate. Scammers and misinformation are common on social media. That’s why it’s important for taxpayers to follow official IRS social media accounts and subscribe to e-News updates, for the most reliable information.

IRS social media platforms:

Visit IRS.gov to get direct links to IRS verified social media accounts. IRS has accounts on:
X – Tax-related information for individuals, businesses, and tax professionals. A special IRS X handle, , shares information to help people avoid common scams
Facebook – Tax information and event announcements for a general audience
Instagram − Taxpayer-friendly information on a variety of topics such as tax law changes, reminders and scam info
YouTube − Short videos on specific tax topics for individual taxpayers, tax professionals and small businesses. Webinars are also available to explain more complex tax topics.
LinkedIn – Key agency communications including job announcements

The IRS never contacts taxpayers on social media to ask for their personal or financial information. Taxpayers should be aware scammers may pose as the IRS to steal a taxpayer's identity or defraud them. To stay informed, be sure to follow, like and subscribe.

Additionally, even though filing season has wrapped up, there’s a lot of tax related misinformation on social media. Don’t be tempted by these viral “tax hacks” that often encourage taxpayers to file returns with false information or claim credits they don’t qualify for.

Sign up for automatic email updates:

The IRS e-News subscription service sends tax information by email for many different audiences, including:
IRS Outreach Connection − Up-to-date materials for tax professionals and partner groups inside and outside the tax community. Subscribers can easily share the material with their clients or members through email, social media and the web
IRS Tax Tips – Tips in plain language on a wide range of general interest tax topics for taxpayers
IRS Newswire − News releases on tax issues from breaking news to details on legal guidance
IRS News in Spanish - Noticias del IRS en Español − IRS news releases, tax tips and updates in Spanish
e-News for Small Businesses – Tax information for small businesses and self-employed individuals
e-News for Tax Professionals – A roundup of news releases and legal guidance for tax professionals

Source: IRS

TAXPAYERS CAN NOW VIEW AND SUBMIT TRUMP ACCOUNT ELECTIONS IN THEIR IRS INDIVIDUAL ACCOUNT

IR-2026-68, May 28, 2026

The Internal Revenue Service announced new features in IRS Individual Accounts that allow taxpayers to view and submit Trump Account elections, making it easier to invest in these tax-advantaged accounts.

Through IRS Individual Account, taxpayers can securely access their tax information and complete common tasks online, including:
View the latest submission status of their Form 4547, Trump Account Election(s), including next steps.
Submit Form 4547, Trump Account Election(s), electronically.

“These new features reflect our continued focus on transforming the IRS into a digital-first agency that delivers a faster, more seamless experience for taxpayers and provides a new tax-advantaged investment account for children to save for college, retirement, and building generational wealth,” said IRS Chief Executive Officer Frank J. Bisignano. “By expanding the IRS Individual Account to include this new status, we are providing taxpayers with this tool in addition to features for managing their tax accounts, tracking important transactions, and completing key actions quickly and securely.”

Taxpayers benefit from greater transparency through real-time visibility into the Trump Account election process. Electronic submissions also improve accuracy, speed up processing times, and reduce delays associated with paper forms.
Trump Account election

Through the One, Big, Beautiful Bill, enacted on July 4, 2025, Trump Accounts allow parents, guardians, and other authorized individuals to establish a new type of individual retirement account for their children.

An account can be established for a child who has not reached age 18 by the end of the calendar year in which the election is made and who has a valid Social Security number.

A one-time $1,000 pilot program contribution from the Department of the Treasury is available for eligible children born between Jan. 1, 2025, and Dec. 31, 2028, who are U.S. citizens with a valid Social Security number. The IRS continues to provide updates and additional information about the tax benefits under the One, Big, Beautiful Bill. For details, see One, Big, Beautiful Bill Provisions on IRS.gov.

For more information about Trump Accounts, visit trumpaccounts.gov.

Source: IRS

SUMMER FUN HAS BEGUN: HOW COMMON ACTIVITIES COULD IMPACT THE NEXT TAX RETURN

Summer hasn’t officially started, but summertime events and happenings certainly have. Most people aren’t thinking about taxes when there’s summer fun to be had, but there’s some common activities that could impact taxpayers in the next filing season. Let’s look at a few.

Summer day camp:

If a taxpayer is sending a child to summer day camp, the cost may count toward the Child and Dependent Care Credit.

Marriage:

Summer is peak wedding season. Newlyweds can make their tax filing easier by taking two simple steps now:
First, report any name change to the Social Security Administration.
Next, notify the United States Postal Service, employers and the IRS of any address change. To officially change their mailing address with the IRS, taxpayers must complete and submit Form 8822, Change of Address. See page 2 of the form for detailed instructions.

Part-time/seasonal work:

Summer seasonal and part-time workers may not earn enough to owe federal income tax, but they’re encouraged to file a tax return in the next filing season to get any refund they may be owed. Part-time and seasonal workers can visit IRS.gov to learn more about who should file a tax return.

Some taxpayers earn income over the summer through a side hustle or doing gig work. They can visit the Gig economy tax center at IRS.gov to learn how participating in the gig economy can affect their taxes. If taxpayers are paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. For more information, go to IRS.gov/1099k.

Travel:

Most kids may have the summer off, but parents generally don't – and business travel happens year-round. Tax deductions are available for certain people who travel away from their home or main place of work for business reasons. Whether a business traveler is away for a few nights or all summer long, it’s important for them to remember the tax rules related to business travel.

Summer vacations are also something that should be considered, depending on how they are paid for. Taxpayers that sell digital assets to pay for a summer trip might get a 1099-DA, so keep good records.

Source: IRS

ELIGIBLE TAXPAYERS MAY BE ABLE TO RESOLVE TAX DEBT THROUGH AN OFFER IN COMPROMISE

There are options available to taxpayers if they can’t pay their tax debt in full or if doing so would cause financial hardship. One of them is called an offer in compromise. Factors such as income, expenses, asset equity and ability to pay are considered when a taxpayer applies for this option.

What’s an offer in compromise:

This is an agreement between a taxpayer and the IRS that settles a tax debt for less than the full amount owed.

The goal is a compromise that's in the best interest of both the taxpayer and the IRS. The OIC application requires a fee of $205 and an initial payment. Qualifying low-income taxpayers don't have to pay either the fee or the initial payment. Taxpayers should review the instructions for Form 656-B, Offer in Compromise, to see if they meet the qualifications to have these initial costs waived.

Who’s eligible:

Taxpayers can use the Offer in Compromise Pre-Qualifier Tool to check their eligibility to file an OIC and prepare a preliminary proposal. Individual taxpayers can make OIC payments online through their Individual Online Account. Eligible taxpayers who use Business Tax Account can now make their OIC payments through BTA. However, they can’t apply or submit an offer through BTA.

Review the Offer in Compromise Booklet
Eligible taxpayers should download and review the latest version of the OIC Booklet to avoid processing delays.

This booklet covers everything a taxpayer needs to know about submitting an OIC including:
Eligibility
Costs to apply
Application process
Forms

Beware of “OIC mills”:

“OIC mills” are aggressive or misleading marketing schemes that often overpromise results and charge high fees to taxpayers who don’t qualify for an OIC. They’re also on the 2026 IRS Dirty Dozen List. Taxpayers can check OIC eligibility using free IRS tools to avoid high-pressure sales tactics. For assistance filing an OIC from a legitimate representative, taxpayers are encouraged to check for a licensed enrolled agent or a reputable accountant in their area.

More information:
Offer in Compromise FAQs
Choosing a tax professional
Directory of Federal Tax Return Preparers with Credentials and Select Qualifications

Source: IRS

GOT MAIL FROM THE IRS? DON’T TOSS IT

Some taxpayers may get mail from the IRS. It’s important that they open any mail they receive and read it carefully.

Most letters or notices are about federal tax returns or tax accounts. Each notice will outline the specific issue and include steps the taxpayer needs to take. A notice may reference changes to a taxpayer's account, taxes owed, a payment request or a specific issue on a tax return or credit.

Review the information. If the mail is about a changed or corrected tax return, the taxpayer should review the information and compare it with the original return. If the taxpayer agrees, they should make notes about the corrections on their personal copy of the tax return and keep it for their records. Typically, a taxpayer will need to act only if they don't agree with the information, if the IRS asked for more information or if there’s a balance due.

Take any requested action. This may include making a payment. The IRS and authorized private debt collection agencies do send letters by mail. Taxpayers can also view digital copies of select IRS notices by logging into their IRS Online Account. The IRS offers several options to help taxpayers struggling to pay a tax bill. Taking prompt action could minimize additional interest and penalty charges.

Reply only if needed. Taxpayers don't need to reply to a notice unless specifically told to do so. If a taxpayer needs to call the IRS, they should use the number in the upper right-hand corner of the notice and have a copy of their tax return and letter.

Let the IRS know of a disputed notice. If a taxpayer doesn't agree with the IRS, they should follow the instructions in the notice to dispute what the notice says. The taxpayer should include information and documents for the IRS to review when considering the dispute.

Keep the letter or notice for their records. Taxpayers should keep notices or letters they receive from the IRS for three years from the date the tax return was filed. These include adjustment notices.

Watch for scams:

The IRS will never contact a taxpayer using social media. The first contact from the IRS usually comes in the mail.

More information:
Understanding your IRS notice or letter
IRS Taxpayer Bill of Rights

Source: IRS

HOMEOWNERS SHOULD REVIEW ANY TAX BENEFITS FOR HOMEOWNERSHIP

The year is nearly half over which makes it a good time to remind homeowners and future homeowners to review their eligibility for any tax deductions, programs and housing allowances. If eligible, these tax benefits could help with some of the common costs of being a homeowner.

Deductible house-related expenses:

Taxpayers must itemize their deductions to deduct homeownership expenses. Most home buyers take out a mortgage to buy their home, and their mortgage lender may bundle other home-related costs.

The costs the homeowner can deduct are:
State and local real estate taxes, subject to a $40,000 limit or $20,000 if married filing separately
Home mortgage interest, within the allowed limits

Homeowners can't deduct any of the following items:
Insurance including fire and comprehensive coverage and title insurance
The amount applied to reduce the principal of the mortgage
Wages paid to domestic help
Depreciation
The cost of utilities, such as gas, electricity or water
Most settlement or closing costs
Forfeited deposits, down payments or earnest money
Internet or Wi-Fi system or service
Homeowners’ association fees, condominium association fees or common charges
Home repairs

Mortgage Interest Credit:

The Mortgage Interest Credit helps people with lower income afford homeownership. Those who qualify can claim the credit each year for part of the home mortgage interest paid. A homeowner may be eligible for the credit if they were issued a qualified Mortgage Credit Certificate from their state or local government.

Ministers and military housing allowance:

Ministers and members of the uniformed services who receive a nontaxable housing allowance can still deduct their real estate taxes and home mortgage interest. They don't have to reduce their deductions based on the allowance.

More information:
Publication 530, Tax Information for Homeowners
Publication 936, Home Mortgage Interest Deduction

Source: IRS

Tax Withholding Estimator FAQs | Internal Revenue Service Find how to enter information in Tax Withholding Estimator pages to see how much tax to withhold.