Westbrook & Co, PC

10/01/2026

⏰ Overtime Pay Reporting Is Changing

The IRS has updated its guidance on the Qualified Overtime Deduction, introducing a new employer reporting requirement beginning in Tax Year 2026.

What Employers Need to Do

✅ Report qualified overtime pay separately on Form W-2

✅ Use Code TT in Box 12

✅ Ensure reported amounts are accurate

What Employees Should Know

📌 Overtime deductions can only be claimed using amounts reported on Form W-2

📌 Form 4852 cannot be used as a substitute for this deduction

📌 If overtime is missing or incorrect, request a corrected Form W-2 (Form W-2c)

Why It Matters

Accurate reporting helps employees receive the full overtime deduction they're entitled to claim.

09/24/2026

📢 New IRS Guidance for Employers

The Treasury Department and IRS have issued proposed regulations regarding employer contributions to Trump Accounts.

Key Highlights

✅ Employers may contribute up to $2,500 annually tax-free

✅ Contributions can be made for employees or eligible dependents

✅ Plans must meet nondiscrimination requirements

✅ Programs cannot favor highly compensated employees

✅ Employers must provide written plans and employee notifications

Important Dates

📅 Comment Deadline: September 25, 2026

📅 Public Hearing: October 15, 2026

📅 Proposed Effective Date: Tax years beginning after December 31, 2025

Employers should review these proposed rules to prepare for future compliance requirements.

09/15/2026

🚨 IRS Alert: Watch Out for Fake Charities

Scammers often take advantage of people's generosity, especially during disasters and emergencies.

What You Need to Know:

✅ Verify charities before donating

✅ Use the IRS Tax-Exempt Organization Search tool

✅ Keep records of all charitable donations

✅ Document fair market value for donated property

⚠️ Be cautious of inflated appraisals used to claim excessive tax deductions on assets such as artwork, conservation easements, and other non-cash gifts.

Protect Yourself

Before giving, confirm the organization is legitimate at IRS.gov.

📌 Suspected tax fraud can be reported confidentially at IRS.gov/submitatip

09/03/2026

08/24/2026

IRS Increases Optional Standard Mileage Rates Mid-Year for 2026

The IRS has announced a mid-year increase to the optional standard mileage rates for the second half of 2026, reflecting the impact of rising fuel costs.

Effective July 1, 2026, the updated rates are:

✅ 76 cents per mile for business use of a vehicle
✅ 23.5 cents per mile for deductible medical or moving expenses
✅ 14 cents per mile for charitable driving (unchanged by law)

These revised rates apply to deductible transportation expenses paid or incurred on or after July 1, 2026, creating a split-year reimbursement environment for employers and employees.

What employers should know: Organizations using accountable plans must apply the new mileage rates to travel occurring on or after the effective date. This means employers may need to review reimbursement processes, payroll procedures, and travel policies to ensure compliance with the updated IRS guidance.

With the rate change taking effect mid-year, now is a good time for businesses to confirm their mileage reimbursement practices are aligned with the latest IRS requirements.

📌 IRS Announcement 2026-11 provides the updated guidance for the final six months of 2026.

08/17/2026

IRS Releases Draft 2027 Form W-4: What Employers Need to Know

The IRS has issued a draft version of the 2027 Form W-4 (Employee’s Withholding Certificate), introducing updates that reflect new deductions for qualified tips and overtime compensation.

Key changes include expanded lines within the Step 4(b) Deductions Worksheet, allowing eligible employees with income below $150,000 ($300,000 for married filing jointly) to estimate and claim: ✅ Up to $25,000 in qualified tip deductions
✅ Up to $12,500 in qualified overtime compensation deductions ($25,000 for married filing jointly)

While the familiar five-step structure remains intact, several important figures, including the child tax credit and standard deduction amounts, are still listed as placeholders in the draft.

Important for employers: This is a draft form only. Employers should not distribute or accept the draft Form W-4 and should wait for the IRS to release the final version before making payroll system updates or revising employee communications.

Staying ahead of these changes will help ensure a smooth transition once final guidance is issued.

📄 Draft Form W-4:https://www.irs.gov/pub/irs-dft/fw4--dft.pdf

07/30/2026

Treasury Launches Trump Accounts Program for Children

The U.S. Department of the Treasury has announced the nationwide launch of the Trump Accounts app, the primary platform for managing a new tax-advantaged investment program for children.

📅 Beginning July 4, 2026:

✅ Eligible children will receive a $1,000 Treasury pilot-program contribution deposited directly into their Trump Account.
✅ Families can begin making additional contributions, subject to annual contribution limits.
✅ Activation emails will be sent in phases to families who previously enrolled using IRS Form 4547.

⚠️ Important Fraud Alert The Treasury advises families to remain vigilant against scams. Official activation emails will only come from: [email protected] The Treasury will not contact participants by phone or text message regarding account activation.

Enrollment for eligible children under age 18 remains open through IRS Form 4547.

07/23/2026

2027 HSA Contribution Limits Are Increasing

The IRS has announced the inflation-adjusted Health Savings Account (HSA) limits for 2027, providing individuals and families with additional opportunities to save for healthcare expenses while enjoying valuable tax benefits.

✅ 2027 HSA Contribution Limits • Self-only coverage: $4,500 (up from $4,400 in 2026)
• Family coverage: $9,000 (up from $8,750 in 2026)

✅ 2027 HDHP Minimum Deductibles • Self-only: $1,750
• Family: $3,500

✅ 2027 Out-of-Pocket Maximums • Self-only: $8,700
• Family: $17,400

HSAs remain one of the most tax-efficient tools available, offering tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

Now is a great time to evaluate your healthcare and savings strategy for 2027.

07/13/2026

Our CPA firm is looking for a motivated and detail-oriented Accountant to join our team!

Qualifications:
✅ Minimum 2 years of tax and payroll experience
✅ Bachelor’s degree in Accounting or related field required
✅ Strong knowledge of QuickBooks
✅ Highly organized with excellent attention to detail
✅ Ability to prioritize multiple tasks and meet deadlines
✅ Strong communication and problem-solving skills

If you are a dependable professional who thrives in a fast-paced environment and is committed to providing outstanding service to clients, we'd love to hear from you!

📧 To apply, please send your resume to [email protected]. Please feel free to share this post with anyone who may be interested!

06/19/2026

💻 IRS Launches “Tax Debt Help” Tool 💻

The IRS just rolled out a new online tool to make dealing with tax debt simpler and less stressful 🙌

Here’s what you should know:
🔍 What it does
The new “Tax Debt Help” tool walks you through a few quick questions about your financial situation—no personal info required.

✅ What you’ll get
Based on your answers, it shows possible options to resolve your tax debt, such as:
• Payment plans
• Offer in Compromise (settling for less)
• Temporary delays in collections
🔒 No sensitive info needed
You don’t have to enter your name, Social Security number, or any identifying details to use it.

📈 Why it matters
This is part of the IRS’s push to expand easy, self-service digital tools, helping taxpayers understand their options and take action with more confidence.

👉 Try it here: https://www.irs.gov/payments/get-help-with-tax-debt
If you are unsure how to handle tax debt, this is a great place to start 👍

If you owe a tax debt that you can't pay in full, we can help. You have options to resolve it.