Barbara J. Braley, CPA

05/08/2026

Did you receive a notice from IRS for Underpayment of Estimated Taxes?

Estimated Tax Payments have been around since around a long time. Recently, the IRS has started enforcing the law for estimated tax payments..

Estimated Taxes: Estimated taxes are prepayments of income tax made throughout the year to cover taxes on income not subject to withholding, such as self-employment or investment income.
Penalties: Failure to pay estimated taxes when required may result in penalties and interest from the IRS.
When To Pay: Estimated tax payments are typically due quarterly, with deadlines spaced throughout the year.

So, if you’ve ever been surprised by a large tax bill or penalty, understanding estimated taxes can help you plan better for the future and avoid repeating that situation.

Let’s start with the basics. Most workers have a portion of their wages withheld every time they get paid in order to cover their income taxes for the year. But what are self-employed people and small businesses supposed to do? Enter estimated taxes.
When you think about it, getting paid only once a year would create all sorts of financial complications for anyone. The IRS feels the same way, which is why it requires these quarterly payments to ensure a steady revenue stream throughout the year. These taxes apply to income sources such as:

Self-employment earnings (e.g., freelance or contract work).
Interest and dividends.
Rental income.
Capital gains.
Alimony (only in applicable cases).

04/25/2026

Recently several clients have been receiving Notices from IRS for underpayment of estimated taxes.

First payment deadline: April 15 (for 2025 income)

Subsequent deadlines: June 16, September 15, and January 15 of the following year U.S. News

These payments help avoid an underpayment penalty if you owe more than the minimum required by law.

Key Points to Remember
Filing deadline: April 15, 2026 (or October 15 if you request an extension

Payment deadline: April 15, 2026 — even with a filing extension

Estimated tax payments: Required for certain income types; due quarterly, with the first on April 15

Penalties: Failure to file or pay on time can result in monthly penalties (5% for filing late, 0.5% for underpayment) plus interest

Bottom line: April 15 is still the main tax payment date, but if your income isn’t taxed through withholding, you must also make estimated payments on that date to avoid penalties.

04/25/2026

Many people give a huge charitable deduction to Goodwill every year. Expecting no problems or issues with IRS.

One major issue that must be addressed is the DOCUMENTATION ISSUE.

Brutal IRS Trap Wipes Out Goodwill Clothing Deductions

An example a taxpayer donated $6,760 worth of goods to charity and followed what he thought were all the rules. The IRS didn’t question whether his donations were legitimate; they denied the deduction because of a documentation technicality that most taxpayers have never heard of.

In this example, the Tax Court delivered a harsh reminder: documentation rules for charitable deductions are rigid and unforgiving. Congress and the IRS have created rules so detailed and inflexible that even very generous donors can lose their deductions over a technicality.

REMINDER: DOCUMENT ALL CHARITABLE CONTRIBUTIONS NO EXCEPTIONS.

01/17/2026

Payroll Providers often misunderstand the tax implications of partners not receiving W-2's for federal income tax purposes.

Partners are treated as self-employed individuals and income is reported on a K-1 which is not a W-2.

This distinction is crucial for compliance with IRS regulations and property tax reporting.

Payroll providers may not fully grasp the difference, which leads to errors in processing payments and tax filings.

It is essential for payroll providers to stay updated on IRS guidelines and educate themselves on proper handling of partner compensation to avoid potential penalties and ensure compliance.

01/17/2026

Partners in a partnership do not get a W-2:

Partners in a partnership cannot receive a W-2. The partner receives a Schedule K-1 to report their share of partnership income.

Partnership Structure:
In a partnership, each partner is considered to be self-employed individual rather than an employee. The partners share in the profits and losses of the business and are not subject to the same tax treatment as employees.
Tax Reporting:
Instead of receiving a W-2 form, which is used for employees to report wages and withholdings, a partner receives a Schedule K-1.
Employment Taxes:
Partners are responsible for self-employment taxes on their share of partnership income which includes both the employer and employee share of F**A taxes.
IRS Regulations:
The IRS has long held that bona fide partners cannot be treated as employees for tax purposes. If a partner performs services for a partnership they cannot be classified as an employee and receive a W-2.

01/13/2026

Florida Corporation Annual Report - file through Sunbiz.org. Select file annual report from the login page. This is a verification process of information submitted to the State of Florida about your business. Review the information, sign, and submit for payment.

PLEASE NOTE:

THERE IS NO NEED TO HIRE [email protected] as this is an advertisement. You are NOT required to purchase anything from this company and the company is NOT affiliated, endorsed, or approved by any governmental entity. The item offered in this advertisement has NOT been approved or endorsed by any governmental agency, and this offer is NOT being made by an agency of the government.

01/08/2026

IRS announces opening of 2026 Tax Filing Season - January 26, 2026. Tax returns are due for S Corporations and Partnerships on March 16, 2026; Estate tax Returns, C Corporations and Individual Tax Returns are due on April 15, 2026.

12/30/2025

For tax year 2025, the One Big BeautifuL Bill added:

"The 2025 TCJA update lets nonitemizers deduct up to $1,000 ($2,000 joint) for cash donations and reduces itemizers’ deductions by 0.5% of AG"

12/18/2025

Treasury, IRS provide guidance for individuals who received tips or overtime during tax year 2025

IR-2025-114, Nov. 21, 2025 — The Department of the Treasury and the Internal Revenue Service today issued guidance for workers eligible to claim the deduction for tips and for overtime compensation for tax year 2025.

12/18/2025

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced a $6,000 tax deduction for individuals aged 65 and older. This deduction is designed to reduce the taxable income of seniors, effectively allowing many to avoid federal taxes on their Social Security benefits. Here are the key points regarding this change:
Deduction Details:
Amount: Seniors can deduct up to $6,000 from their taxable income, while married couples filing jointly can deduct up to $12,000.
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Income Limits: The deduction is available to single filers with a modified adjusted gross income (MAGI) under $75,000 and married couples under $150,000. Above these thresholds, the deduction phases out.

05/21/2025

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