Traveling Bean Counters LLC

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

12/31/2025

May your debits equal your credits and your New Year start balanced.

12/24/2025

Our entire accounting office is closed for Christmas and will return on January 5th.
Exception: Payroll, because apparently people like being paid.
All other departments are off drinking cocoa and pretending email doesn’t exist.
If you need help before then… may we suggest eggnog?

Happy Holidays!

12/22/2025

USPS finalized new rules clarifying that postmark dates reflect automated processing—not drop-off dates. This may affect timely tax filings under IRC §7502. Use manual postmarks or certified mail to protect deadlines.

Read more at https://nstp.org/article/usps-announces-changes-postmark-date-system

11/27/2025

Your friends at Traveling Bean Counters wish you a safe and Happy Thanksgiving.

Our office will be closed Thursday, November 27th and Friday, November 28th in observance of the holiday.

11/10/2025

International Accounting Day is celebrated annually on November 10th to recognize the work of accountants. The date commemorates the anniversary of the 1494 publication of a book by Venetian mathematician Luca Pacioli, who is considered the "father of accounting" for detailing double-entry bookkeeping. People celebrate by thanking accountants, learning more about the profession, or engaging in activities that highlight the importance of accounting in business and finance.

09/11/2025