We Do Books™ Blog

As you or your family members approach retirement years, it's important to have a basic understanding of the IRS gift giving rules. With this understanding, there are opportunities to leverage this tax law without creating a tax problem.

There's still time to act! At the end of each year there are a number of things to consider that may have a positive impact on your tax obligation. Here is a list of ideas that may be worth a quick review while there is still time. And especially this year with recent tax law changes.

🚨 California Expands Retirement Plan Mandate — Action needed by December 31, 2025 California has expanded its retirement mandate to the smallest employers. If you have even one W-2 employee (other than the owner or owner’s spouse) and do not sponsor a qualified plan, you must either (a) adopt a private plan (e.g., 401(k), SIMPLE IRA) or (b) register for CalSavers by December 31, 2025. Penalties for non-compliance: $250 per eligible employee if you remain non-compliant 90+ days after notice, plus an additional $500 per eligible employee at 180+ days. Those add up quickly.

The Social Security Administration announced a 2.8% boost to monthly Social Security and Supplemental Security Income (SSI) benefits for 2026, another rate drop versus last year's increase of 3.2%. The increase is based on the rise in the Consumer Price Index over the past 12 months ending in September 2025.

The IRS doesn’t care how exciting your rodeo belt buckle is… they care whether you’re engaged in the activity with the actual intent to make a profit.If it’s a business, losses are deductible.If it’s a hobby, deductions are limited and can’t create a net loss against other income.

Missed your quarterly estimates this year? You’re not alone. The IRS underpayment charge is nondeductible, compounds daily, and snowballs fast. Writing a big check today will stop new penalty accrual from this point forward, but it won’t erase the penalties tied to the quarters you already missed. There is, however, a lawful way to make it as if you paid each quarter on time. It relies on how the tax code treats withholding from retirement distributions.

As of October 2025, The One Big Beautiful Bill Act (OBBBA) didn’t just keep Opportunity Zones alive. It made the program permanent, tightened zone eligibility, and changes investor incentives starting January 1, 2027. Below is the upgraded, client-ready explainer with a now-vs-later comparison, a timeline, and the fine print sophisticated readers expect.

As of October 2025, if you’re age 70½ or older, you can transfer money directly from an IRA to qualifying charities. Those transfers are Qualified Charitable Distributions (QCDs). Thanks to the One Big Beautiful Bill Act (OBBBA), QCDs now protect even more tax benefits by keeping AGI/MAGI low while still satisfying charitable goals. Below is the upgraded, precise version:

The One Big Beautiful Bill Act (OBBBA) permanently extended a harsh TCJA rule: no deduction for “miscellaneous itemized deductions,” including hobby expenses. That’s brutal for dog breeders, because the IRS often labels breeding as a hobby.

OBBBA adds a temporary, targeted deduction for tips. It’s not a universal “no tax on tips.” Many tipped amounts are still taxable, and payroll taxes still apply. Here’s the clean, CFO-level breakdown you can put in front of clients.

We’ve heard the same questions you have: "Is Social Security closing?" "Are my benefits going away?" The short answer: no. What’s Actually Happening, no benefit cuts have been announced. Retirees and beneficiaries will continue to receive their monthly checks. Administrative reshuffling is underway. Some Social Security offices are being consolidated or reorganized, but this does not affect the benefit amounts people receive. The Trust Fund challenge remains.

We often receive questions about record retention, so let's take a moment to clarify what you need to know.Overall, the Federal law requires you to maintain copies of your tax returns and supporting documents for three years. This 'three-year law' leads many to believe that this 3-year period is set in stone and all-inclusive, but it is NOT.

Big changes are coming to clean energy incentives — and sooner than many realize. A wide range of popular tax credits for electric vehicles, home energy upgrades, solar installations, commercial clean fleets, and even new energy-efficient construction are all set to phase out starting in late 2025. If you’ve been considering an EV purchase, home solar, or energy-efficient improvements, the window to benefit from these incentives is closing fast. Dive into our full breakdown to see which credits are disappearing, when they end, and how to make the most of them before they’re gone.

The One Big, Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, and with it comes many new tax provisions that may directly affect you. There are many tax provisions contained in OBBBA beyond the ones we have highlighted here.

As required by law, in every Form 1040 instruction booklet there's a section that shows where our federal government gets its money and where it is spent. As taxpayers it makes sense to know this information. Here is the data for the government's fiscal year ending September 30, 2023, as reported by the IRS in the 2024 instruction booklet for Form 1040:

BOI e-Filing Alert: A federal court order issued onFebruary 19, 2025, has reaffirmed that businesses must file a Beneficial Ownership Information (BOI) report. The Corporate Transparency Act (CTA) and its BOI reporting requirement have been deemed unconstitutional in court rulings, but the legal battles continue. This law has been in and out of court multiple times, with decisions reversing course along the way. It is our opinion that these requirements will change again, but at this time, businesses must comply with the filing requirement to avoid penalties.

The IRS has issued 282 pages of proposed digital asset reporting regulations, along with official IRS explanation of the provisions, which cover a range of digital asset issues where there have been questions. Issues addressed include expansive definitions of brokers and a requirement that proceeds from the sale of digital assets be reported to the IRS starting in 2026, on new Form 1099-DA for transactions on, or after January 1, 2025.

Many of our clients that have applied for The Employee Retention Tax Credit (ERTC) ask about the taxability of the refunds received. Quick Answer: Yes, the ERTC refund is taxable.   The IRS has taken the position that the income is taxable in the tax year/tax period to which the credit applies. The ERTC refunds relate back to 2020 or 2021. These amounts will be received in later years and are to be included as income on the respective prior year return. This process will require amended returns for the entity and any shareholders/partners. This will result in tax due for in the amended tax year. Since this tax will now be deemed late, the IRS will impose Interest and Penalties. Good News — sort of... There is a process to apply for a penalty waiver with the IRS, but unfortunately it is a manual one.

After filing your taxes, you may start wondering... Where is my refund? The answer depends on how you filed your return: E-Filing will have your refund faster... your refund should be issued between two and three weeks. If paper filing via US Mail, this process will slow down the refund... your refund will be received in approximately six to eight weeks of filing a paper return. In the last 2 years, the process has been considerably lower. You can check on the status of your refund by clicking on the links below.