Traveling Bean Counters LLC

07/16/2026

IRS Announcement 2026-11 updates the standard mileage rates that taxpayers can use because gas prices increased significantly. Instead of waiting until next year, the IRS raised the mileage rates effective partway through the year.

The business mileage rate increases to 76 cents per mil from 72.5 cents. The rate for medical and moving expenses increases to 23.5 center per mile, while the charitable miles remains unchanged at 14 cents per mile.

The updated rates apply to deductible transportation expenses paid or incurred on or after July 1, 2026.

What this means

If you use your personal vehicle for:

Business driving – You can deduct more per mile than before.
Medical travel – You can also use the higher mileage rate.
Moving expenses – The higher rate applies, but only for taxpayers who are still legally eligible to claim moving expense deductions (primarily active-duty military members who qualify).
Why the IRS made the change

Normally, the IRS sets mileage rates once a year. However, because fuel prices rose unexpectedly, the IRS decided to increase the rates mid-year so taxpayers and employers could more accurately reflect the actual cost of driving.

07/14/2026

The case Waimana Enterprises, Inc. v. Commissioner is often cited as a cautionary example of what can happen when taxpayers try to disguise personal expenses or improperly structure transactions for tax benefits.

Here's a brief cautionary tale:

Waimana Enterprises used the company to pay for expenses that were really personal, not business-related. Instead of paying for certain costs out of pocket, they had the business claim them as business expenses to reduce the company's taxable income. The IRS determined that many of those expenses primarily benefited the owners personally rather than the business, so they were not legitimate business deductions. The court agreed, which meant the company had to pay the taxes it had avoided, plus penalties and interest.

The lesson: Just because a business pays for something doesn't make it a business expense. If an expense is mainly for personal benefit—such as personal travel, meals, entertainment, or other non-business costs—the IRS can disallow the deduction. Mixing personal and business expenses can become an expensive mistake.

07/02/2026

Traveling Bean Counters will be closed on Thursday, July 2nd and will reopen on Monday, July 6th in observance of Independence Day.

Have a safe and joyous Independence Day!

06/29/2026

WE HAVE MOVED!

Our new address is:
1421 Racine St, Unit D
Delavan, WI 53115

Our phone number and e-mail addresses remain the same.

05/18/2026

Due to unforeseen circumstances, we wanted to let you know that our office team will be working remotely on a temporary basis beginning Monday, May 18th. While our location may change for a short time, our service and availability will not.

Our team will continue to be fully accessible during normal business hours by phone, email, and virtual meetings. We remain committed to providing timely support for all your accounting, payroll, and bookkeeping needs.

During this temporary remote period:
• Email will be the quickest way to reach our staff.
• Documents can be securely submitted through our portal or by dropping them off in our secured lockbox.

We appreciate your understanding and flexibility and look forward to continuing to support your business without interruption.

04/22/2026

If you donate clothing or household items to charity, your deduction could be at risk—even when your intent and generosity are clear.

Where Things Go Wrong: Documentation

A recent Tax Court case highlights how easy it is to lose a valid deduction. A taxpayer’s $6,760 charitable contribution was denied—not because the donations weren’t legitimate, but because the documentation didn’t meet IRS requirements. The issue wasn’t the gift—it was the paperwork.

Here’s what the IRS requires:
• For non-cash donations over $250: a contemporaneous written acknowledgment from the charity
• For donations over $500: detailed records of what was donated, when it was acquired, and its cost or basis
• A properly completed Form 8283, including donation dates and fair market values

Receipts that simply state “miscellaneous household items” won’t hold up. And once you’re under audit, missing details generally can’t be corrected after the fact—the deduction may be disallowed entirely.

How to Safeguard Your Deduction

The best strategy is to plan ahead. Before making a donation:
• Create an itemized list with descriptions and estimated values
• Take photos of the donated items
• Provide your list to the charity and request it be referenced in their acknowledgment
• Keep all documentation organized with your tax records

The takeaway is straightforward: good intentions alone aren’t enough. When it comes to charitable deductions, thorough documentation is essential. Digitizing and organizing your records can make a meaningful difference in protecting your deductions.

04/02/2026

NOTICE REGARDING POSTMARKS!

The U.S. Postal Service finalized a rule clarifying how postmarks are defined and applied, with important implications for tax filings. Under new guidance, most machine-applied postmarks reflect the date an item is processed at a USPS facility, not when it is delivered to the Postal Service. Because mail may be transported before processing, postmark dates may differ from the actual mailing date and may even fall on a later day.

USPS also notes that not all mail receives a postmark, and the absence of one does not mean the item was not accepted. This change is significant because §7502 relies on the postmark date to determine timely filing. To ensure proof of mailing, taxpayers should request a manual postmark at the post office. Other options include certified or registered mail, a certificate of mailing or a postage validation imprint.

02/13/2026

As per the Taxpayer Advocate Service:

Published: January 26, 2026 | Last Updated: January 26, 2026
Direct Deposit Changes for 2026 Could Affect How and When You Get Your Refund

You may have seen that the IRS is moving away from paper checks. If you usually receive a tax refund by paper check, you might also be experiencing some confusion about how you will receive your refund this filing season.

If you claim a refund on your 2025 tax return, new rules may affect how the IRS issues the refund if you don’t provide direct deposit information or if your direct deposit is rejected. These changes are part of the IRS effort to modernize payments to and from America’s bank accounts.

Here’s what you need to know to avoid delays and understand your options.

New Rules for Refunds Starting in 2026
Beginning in 2026, the IRS will make changes to how refunds are handled when direct deposit information is missing or invalid:

Returns filed without direct deposit information
The IRS will still process individual income tax returns (Form 1040 series) filed without bank account information.
However, the IRS will temporarily freeze the refund until the taxpayer provides direct deposit information or requests a paper check.
Rejected direct deposits
The IRS will freeze most direct deposits that are rejected by the bank and will not automatically reissue them as paper checks.
Some reject codes are excluded, but most rejected direct deposits will require taxpayer action.
Some taxpayers are not affected:
International taxpayers;
Minors;
Prisoners;
Taxpayers with religious exceptions; and
Decedent taxpayers
What Happens If Your Refund is Frozen
If your refund is frozen, the IRS will send you a CP53E notice, which explains what you need to do next.

The notice asks you to add or update direct deposit information using your IRS Online Account .
You generally have 30 days to respond.
If you don’t take any action, the IRS will issue a paper check after six weeks.
Important: The CP53E notice is only issued once. If a second direct deposit is rejected, you will not get another opportunity to update your bank information.

How to Update Your Direct Deposit Information
Taxpayers can use their IRS Online Account to take action:

Enter new or corrected bank information for direct deposit.
If the IRS successfully verifies the new information, the IRS will issue the refund by direct deposit.
Taxpayers who do not have direct deposit information can request a paper check waiver through their online account.
Help by Phone
The CP53E notice includes a toll-free information-only phone line: 866-325-4066.

This line provides recorded explanations of the notice and next steps.
It does not transfer callers to a customer service representative or let you enter deposit information – it is for informational purposes only.
If you do not have a bank account or an online account, you will need to phone the main IRS phone number (800-829-1040) and request that the Customer Service Representative change your refund to a paper check.

Avoid Delays to Your Refund
To help ensure timely delivery of your refund in 2026:

Double-check your bank routing and account numbers before filing.
Use direct deposit whenever possible.
Set up or access your IRS Online Account so you can respond quickly if action is needed.
For general information about these changes, visit IRS.gov/modernpayments.

01/22/2026