News & Updates

During the dot-com boom, a software entrepreneur hit the ultimate payday: selling his company for a staggering $3.5 billion. Most people with $3.5 billion buy a private island, hire a fleet of advisors, and relax. Our protagonist, however, decided to get creative with his tax return. To shield his massive payout, he funneled $110 million…

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A self-described social media influencer recently learned the hard way that the Tax Court doesn’t care how many celebrities you’ve met. The taxpayer worked a full-time IT job at a major airline, ran an unlicensed transportation service on the side, and sold hard-to-get event tickets. Over a three-year period, he went on a celebrity-meeting spree,…

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A physicist-turned-consultant recently proved that a PhD and a rewards credit card can be a dangerous combination. The scheme was beautifully simple. His credit card paid 5% back on grocery store purchases. Gift cards are sold at grocery stores. Gift cards can be converted to money orders. Money orders can be deposited in a bank…

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A California CEO recently tested an age-old question: what happens when you treat your company like a personal ATM and hope nobody notices? The Tax Court just answered, and the taxpayer is not going to like his bill. Our protagonist worked his way up in a family aerospace manufacturing business, eventually becoming CEO. Business boomed.…

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Big news everyone. The IRS has blessed us with a mileage rate increase. Hold your applause. Starting July 1, 2026, the business mileage rate went up from 72.5 cents to 76 cents per mile. That’s 3.5 cents more per mile. At that rate, if you drive 1,000 miles for business in the second half of…

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Here’s a reminder that trying to outsmart the IRS rarely ends well. A taxpayer owed back taxes and was working through the collection process. As part of that process, the IRS requires you to fill out Forms 433-A and 433-B, which are basically financial disclosure forms. They want to know what you own, what you…

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Here’s a story that should make every business owner pay attention. A company paid its employment taxes on time, filed its Form 941 correctly, and did everything right. Then the IRS made a mistake. The IRS treated the company as being entitled to a COVID Employee Retention Credit it never claimed, assessed the tax liability…

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If you’ve got a clean track record with the IRS, I’ve got some good news for you. The IRS just announced a new program called Automatic Exemption from Penalty (AEP), and it’s replacing the old First Time Abate process that’s been around forever. Here’s the deal. Starting with tax year 2025 and 2026 quarterly returns,…

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A recent Tax Court decision could mean big refunds for taxpayers who were hit with penalties and interest during the COVID-19 pandemic. But here’s the catch: most people need to file a claim by July 10, 2026, or they could lose out entirely. The case, Kwong v. United States, interpreted a disaster-relief provision in the…

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Well folks, it looks like the IRS is about to drag us kicking and screaming into the 21st century. Starting September 30, 2025, those good old-fashioned check payments are getting the boot, and it’s time to get cozy with electronic transfers, mobile apps, and credit cards if you want to stay on Uncle Sam’s good…

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In the wake of the pandemic, the rise of remote work has upended the traditional nine-to-five office grind. While many employees have welcomed the flexibility and freedom that comes with working from home, they may be in for a rude awakening when it’s time to file their taxes – especially if they’ve relocated to a…

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In the intricate dance of tax compliance, few steps are more treacherous than the dreaded Form 8300. And in a recent tax court case, one taxpayer learned the hard way that when it comes to the IRS, there’s no such thing as a “get out of jail free” card – not even if you have…

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In the high-stakes game of tax reporting, one taxpayer recently found himself in a heated battle with the IRS over the intricacies of his engineering firm’s expenses. It was a classic case of “he said, they said,” with the taxpayer insisting he was entitled to deduct everything from contract labor to discounted customer rates, while…

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Proposed Tax Policies Offer Relief and (Hopefully) a Few Chuckles In a move that’s sure to have accountants and tax preparers everywhere scratching their heads, the government has introduced a series of proposed tax policy changes that offer a range of benefits and incentives. These changes, if enacted, are designed to help ease the tax…

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