A missed or underpaid June 15 payment no longer automatically eliminates the 2026 California PTE election. Learn how the 12.5% owner credit reduction is calculated, when the election may still produce federal tax savings, and how to prepare for the 2027 deadline.

The federal SALT deduction limit rises to $40,400 for 2026, but California taxpayers may lose part of the deduction when modified adjusted gross income exceeds $505,000. Learn how income tax, property tax, year end payments, and the PTE elective tax affect the deduction.

Certain IRS penalties require written supervisory approval under IRC Section 6751. Learn the current timing rules, which penalties are excluded, and how the final Treasury regulations affect penalties assessed after December 23, 2024.

A foreign owned U.S. LLC may need Form 5472 even when it owes no federal income tax. The answer depends on its tax classification, ownership, and transactions with related parties. Learn the rules and the cost of missed filings.

A tariff refund may be taxable income, a reduction of cost of goods sold, an inventory adjustment, or a basis adjustment. The answer depends on how the original tariff cost was reported.

Can an LLC member or partner receive a W-2? The answer depends on how the business is taxed. Learn when owners qualify as employees, how partnerships should report owner compensation, and what may need to be corrected when payroll was processed incorrectly.

A recent Tax Court case shows how the IRS may disallow business deductions when personal expenses, family costs, travel, meals, reimbursements, and shareholder advances are run through a company without proper records or a clear business purpose. For business owners, the lesson is direct: keep clean records, separate personal and business spending, and document why each expense belongs to the business.

The Tax Court denied more than $456,000 in horse business losses after finding that weak financial records, commingled funds, no credible profit plan, and eighteen years of losses outweighed the taxpayers’ expertise and substantial effort. Schumacher v. Commissioner shows what business owners must document to protect deductions under Section 183.

One missing sentence in a charity receipt can eliminate an otherwise valid tax deduction. Wells v. Commissioner shows why donors must obtain a timely acknowledgment that states whether the charity provided goods or services, and why Form 8283 is not enough.

Should your business elect S corporation status? Learn how reasonable compensation, Section 199A, accountable plans, shareholder basis, health insurance, state taxes, and distribution rules determine whether the election creates real savings.

Should a husband and wife LLC file Schedule C or Form 1065? Learn how community property rules affect eligibility and compare the filing costs, self employment tax treatment, deadlines, and state requirements of each option.

A recent Tax Court case denied a $16,901 interest deduction because the business owners could not prove the debt belonged to the business or adequately document the underlying transactions. Learn how to avoid the same mistake.

A recent federal court decision denied more than $100 million of claimed tax benefits because the underlying transaction lacked economic substance. Learn what business owners should know before implementing sophisticated tax planning strategies.

A late Form 1099 does not automatically mean additional tax is due. Learn what to review after receiving a Form 1099 after filing, how IRC Section 6201(d) applies to disputed information returns, and what changes if the IRS sends a CP2000 notice.

Most employers have never heard of Educational Assistance Plans. Learn how your business can provide up to $5,250 annually in tax free education and student loan repayment benefits while receiving a tax deduction.

The IRS recently reminded taxpayers that hobby income is taxable even when an activity is not operated as a business. Learn how hobby income is reported, why Forms 1099-K and 1099-DA matter, and how the IRS distinguishes a hobby from a business under IRC Section 183.

Worker misclassification is one of the most expensive tax mistakes a business can make. Learn how the IRS determines whether a worker is an employee or independent contractor and how to avoid payroll tax penalties, audits, and compliance issues.

A recent Tax Court case highlights the strict requirements for claiming the mortgage interest deduction. Learn when mortgage interest is deductible, why documentation matters, and how homeowners can avoid costly IRS challenges.

The Tax Court has now confirmed that cryptocurrency staking rewards are taxable income when received, not when sold. Learn how the Paschall case affects crypto investors, the IRS position on staking rewards, and what records you should maintain to avoid costly tax reporting mistakes.

Good records can be the difference between winning and losing an IRS hobby loss audit. Learn which documents impressed the Tax Court, how successful taxpayers proved profit motive, and the records every business owner should maintain under IRC Section 183.