Glynn D Murphy CPA

07/21/2026

Types of major life events and how they can affect filing
There are several kinds of major life events that can affect a taxpayer’s filing requirements, tax benefits and withholding. It could be marriage, welcoming a new child, divorce, or loss of a loved one- all of these can impact their tax situation. Here are some common life events and an overview of their effects.
Marriage
Getting married may affect a taxpayer's filing status, tax withholding and eligibility for certain tax benefits. Newly married couples should report any name change to the Social Security Administration and any address change to the U.S. Postal Service, employers and the IRS. They should also review their tax withholding and update their W-4 with their employer, if needed.
Birth or adoption of a child
A new child may make taxpayers eligible for tax benefits, including the Child Tax Credit, Adoption Credit or Child and Dependent Care Credit. There are individual eligibility requirements for each type of credit. The parent’s or taxpayer must have a valid Social Security number along with the child, to apply.
Divorce or legal separation
Getting divorced or legally separated affects filing status, tax withholding, who can claim dependents, and eligibility for certain credits and deductions. Changes to income, withholding and filing status may require taxpayers to update their Form W-4.
Death of a spouse or family member
The death of a spouse or loved one can affect filing requirements and status. In general, a final individual income tax return of a deceased person should be filed the same way if the person were alive. All income must be reported up to the date of death along with the claiming of any eligible credits or deductions.
After any major life event, taxpayers should review their withholding, update their personal information and keep important records. IRS online tools and resources at IRS.gov can help taxpayers understand how these changes may affect their taxes and prepare them for the next filing season.

07/07/2026

Marriage means making changes before next filing season
Marriage is an exciting milestone, but it can also affect a couple's tax situation. Here are some simple steps after the wedding that can help make filing next year's tax return easier.
Report a name change
If either person changes their name, it should be reported to the Social Security Administration prior to filing a tax return. The name on the tax return must match Social Security records to avoid processing delays.
Submit a change of address, if needed
If either or both spouses moved to a new home, they should notify their local post office, employers, financial institutions and the IRS of any address change. Taxpayers can officially change their mailing address with the IRS by completing and submitting Form 8822, Change of Address.
Check tax withholding
Marriage may change a couple’s tax responsibilities. Newlyweds should give their employers a new Form W-4, Employee's Withholding Certificate, within 10 days. If both people work, this could move them into a higher tax bracket or they may be affected by the additional Medicare tax. The IRS Tax Withholding Estimator can be used to estimate the amount of federal income tax to withhold from their paychecks now for the taxes they will owe next year.
Review filing status
A taxpayer's marital status as of December 31 determines their tax filing options for the entire year. Married people can choose to file their federal income taxes jointly or separately. While filing jointly is usually more beneficial, it's best to figure the tax both ways to find out which makes the most sense.
Keep tax records together
Combining important tax documents, such as Forms W-2, Forms 1099 and prior-year tax returns, can help make tax filing easier and ensure all income is reported.
Explore tax credits and deductions
Marriage may affect eligibility for certain tax credits and deductions. Couples should review available tax benefits before filing their return.
More information
• Topic no. 157, Change your address – How to notify the IRS
• Publication 505, Tax Withholding and Estimated Tax

06/23/2026

Understanding what the right to challenge the IRS’s position and be heard means
Every taxpayer has certain rights when working with the IRS. These 10 fundamental rights are collectively known as the Taxpayer Bill of Rights. Let’s get a better understanding of what the right to challenge the IRS's position and be heard means.
Taxpayers have the right to:
• Raise objections and to have them considered timely.
• Provide additional documentation to the IRS in response to formal or proposed actions and have it considered promptly and fairly.
• Receive a response if the IRS does not agree with their position.
What taxpayers can expect
In some cases, the IRS will notify a taxpayer that their tax return has a math or clerical error. If this happens, the taxpayer:
• Has 60 days to tell the IRS they disagree.
• Should provide copies of any records that may help correct the error.
• May call the number listed on the letter or bill for assistance.
• Can expect the agency to make the necessary adjustment to their account and send a correction if the IRS agrees with the taxpayer's position.
If the IRS does not agree with the taxpayer's position:
• The agency will send a notice proposing a tax adjustment.
• This notice provides the taxpayer with a right to challenge the proposed adjustment in U.S. Tax Court before paying it.
• If the taxpayer chooses to do this, they must file a petition within 90 days of the date of the notice, or 150 days if it is addressed outside the United States.
Taxpayers can submit documentation and raise objections during an examination or audit. If the IRS does not agree with the taxpayer's position, the agency issues a notice explaining why it is increasing the tax. Prior to paying the tax, the taxpayer has the right to petition the U.S. Tax Court and challenge the agency's decision.

In some circumstances, the IRS must provide a taxpayer with an opportunity to have a hearing with the Independent Office of Appeals before taking enforcement actions to collect tax debt. These actions can include levying the taxpayer's bank account or other property, or filing a notice of federal tax lien in the appropriate state filing location. If the taxpayer disagrees with the Appeals decision, they can petition the U.S. Tax Court.

06/09/2026

Put a plan in place for potential disasters
Hurricane season officially started at the beginning of the month, but they aren’t the only type of disaster that can occur. Taxpayers are encouraged to take steps now to ensure they’re prepared in case they are impacted by a disaster or emergency.

Review and update emergency preparedness plan annually
Taxpayers should review their emergency preparedness plan, at least annually. Ready.gov has resources and checklists to help people put together their emergency preparedness plan.

Create electronic copies of documents
Taxpayers should keep important documents and storage devices in a safe place. If original documents are available only on paper, taxpayers should consider converting them to electronic versions and storing them on a USB flash drive or in the cloud. Many financial institutions provide statements electronically. All taxpayers are encouraged to create an IRS Individual Account. They can access online transcripts, notices, and other tax information.

Document valuables
Take pictures or video of valuables before disaster strikes. It makes it easier to claim insurance and tax benefits. IRS.gov has a disaster loss workbook that can help taxpayers compile a room-by-room list of belongings.

Understand tax relief available for disaster situations
• Information on disaster assistance and emergency relief for individuals and businesses disaster assistance and emergency relief for individuals and businesses is available at IRS.gov. Taxpayers should also review Publication 547, Casualties, Disasters and Thefts.
• Taxpayers who live in a federally declared disaster area can visit Around the nation on IRS.gov and click on their state to review the available disaster tax relief. Those who live in designated areas for disaster relief receive automatic filing and payment postponements for many currently due tax returns and don't need to contact the agency to get relief.
• Taxpayers and practitioners who live in a federally declared disaster area with disaster-related questions can call the IRS Special Services Hotline at 866-562-5227 to speak with an IRS specialist.

06/04/2026

Important steps for future business owners
Thinking of starting a business? One of the most important first steps for new entrepreneurs and future business owners is to ensure the right business structure is chosen. That’s not all though, there’re a few other tips and best practices for those starting out. Let’s take a look.
Choose a business structure
Each business structure has different tax filing requirements and legal considerations. Knowing the difference between them can help determine which option is best. The most common are:
• Sole proprietorship: An unincorporated business owned by an individual. There's no distinction between the taxpayer and their business.
• Partnership: An unincorporated business with ownership shared between two or more people.
• Corporation: Also known as a C corporation. It's a separate entity owned by shareholders.
• S corporation: A corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders.
• Limited liability company: A business structure allowed by state statute.
Choose a tax year
A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either:
• Calendar year: 12 consecutive months beginning January 1 and ending December 31.
• Fiscal year: 12 consecutive months ending on the last day of any month except December.
Apply for an employer identification number
An EIN is also called a federal tax identification number. It's used to identify a business. Most businesses need one even if they don’t have employees. They can get an EIN for free directly from the IRS in minutes.
Make sure all employees have completed these forms
• Form I-9, Employment Eligibility Verification U.S. Citizenship and Immigration Services
• Form W-4 Employee's Withholding Allowance Certificate
Pay all applicable taxes
The form of business determines what taxes must be paid and how to pay them. Authorized users of certain entity types can securely access and manage their federal tax records and information online through Business Tax Account. BTA supports access for the following organizational types: sole proprietorships, partnerships, S corporations, C corporations, federal, state and local governments, Indian tribal governments, and tax-exempt organizations.
Check state specific requirements
Prospective business owners should visit their state's website for info about state requirements.

06/02/2026

Is that activity just a hobby or a business?
Many people have hobbies - things they enjoy doing in their spare time - and some even make a little extra money from them. However, there’s a difference between a hobby and a business, especially how each is treated when it comes to filing taxes.
Businesses operate to make a profit while hobbies are for pleasure or recreation. Here are some common questions people should ask themselves when deciding if what they’re doing is a hobby or business. No single thing is the deciding factor.
Questions to help taxpayers decide if they have a hobby or business
• Is there an intent to make a profit?
• If the activity makes a profit, how much is it?
• Can they expect to make a future profit from the appreciation of the assets used in the activity?
• Do they depend on income from the activity for their livelihood?
• Are any losses due to circumstances beyond their control or are the losses normal for the startup phase of their type of business?
• Are operations adjusted to improve profitability?
• Is the activity carried out like a business with complete and accurate books and records kept?
• Do the taxpayers and their advisors have the knowledge needed to carry out the activity as a successful business?
Taxpayers should review all the factors to make the best decision. Regardless of the decision, if they’re paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. These payments are taxable income and must be reported on federal tax returns.
Additionally, if they received payment in the form of digital assets, they may also get a Form 1099-DA. Whether taxpayers have a hobby or run a business, good recordkeeping throughout the year will help when they file taxes.

05/26/2026

Summer fun has begun: How common activities could impact the next tax return
Summer hasn’t officially started, but summertime events and happenings certainly have. Most people aren’t thinking about taxes when there’s summer fun to be had, but there’s some common activities that could impact taxpayers in the next filing season. Let’s look at a few.
Summer day camp
If a taxpayer is sending a child to summer day camp, the cost may count toward the Child and Dependent Care Credit.
Marriage
Summer is peak wedding season. Newlyweds can make their tax filing easier by taking two simple steps now:
• First, report any name change to the Social Security Administration.
• Next, notify the United States Postal Service, employers and the IRS of any address change. To officially change their mailing address with the IRS, taxpayers must complete and submit Form 8822, Change of Address. See page 2 of the form for detailed instructions.
Part-time/seasonal work
Summer seasonal and part-time workers may not earn enough to owe federal income tax, but they’re encouraged to file a tax return in the next filing season to get any refund they may be owed. Part-time and seasonal workers can visit IRS.gov to learn more about who should file a tax return.
Some taxpayers earn income over the summer through a side hustle or doing gig work. They can visit the Gig economy tax center at IRS.gov to learn how participating in the gig economy can affect their taxes. If taxpayers are paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. For more information, go to IRS.gov/1099k.
Travel
Most kids may have the summer off, but parents generally don't – and business travel happens year-round. Tax deductions are available for certain people who travel away from their home or main place of work for business reasons. Whether a business traveler is away for a few nights or all summer long, it’s important for them to remember the tax rules related to business travel.
Summer vacations are also something that should be considered, depending on how they are paid for. Taxpayers that sell digital assets to pay for a summer trip might get a 1099-DA, so keep good records.

05/21/2026

Homeowners should review any tax benefits for homeownership
The year is nearly half over which makes it a good time to remind homeowners and future homeowners to review their eligibility for any tax deductions, programs and housing allowances. If eligible, these tax benefits could help with some of the common costs of being a homeowner.
Deductible house-related expenses
Taxpayers must itemize their deductions to deduct homeownership expenses. Most home buyers take out a mortgage to buy their home, and their mortgage lender may bundle other home-related costs.
The costs the homeowner can deduct are:
• State and local real estate taxes, subject to a $40,000 limit or $20,000 if married filing separately
• Home mortgage interest, within the allowed limits
Homeowners can't deduct any of the following items:
• Insurance including fire and comprehensive coverage and title insurance
• The amount applied to reduce the principal of the mortgage
• Wages paid to domestic help
• Depreciation
• The cost of utilities, such as gas, electricity or water
• Most settlement or closing costs
• Forfeited deposits, down payments or earnest money
• Internet or Wi-Fi system or service
• Homeowners’ association fees, condominium association fees or common charges
• Home repairs
Mortgage Interest Credit
The Mortgage Interest Credit helps people with lower income afford homeownership. Those who qualify can claim the credit each year for part of the home mortgage interest paid. A homeowner may be eligible for the credit if they were issued a qualified Mortgage Credit Certificate from their state or local government.
Ministers and military housing allowance
Ministers and members of the uniformed services who receive a nontaxable housing allowance can still deduct their real estate taxes and home mortgage interest. They don't have to reduce their deductions based on the allowance.
More information
• Publication 530, Tax Information for Homeowners
• Publication 936, Home Mortgage Interest Deduction

05/19/2026

A more detailed look at what the right to be informed means
All taxpayers have the right to know what they need to do to comply with tax laws. This is one part of the Right to be Informed, one of the 10 fundamental rights that make up the IRS Taxpayer Bill of Rights.
The right to be informed means taxpayers have the right to:
• Know and understand what they need to do to comply with the tax laws
• Have clear explanations of the laws and IRS procedures in all forms, instructions, publications, notices and correspondence
• Be informed of IRS decisions about their tax accounts
• Receive clear explanations of the outcomes of IRS decisions
To make sure taxpayers are informed, the IRS will:
• Include within certain notices any amount of tax, interest and certain penalties the taxpayer owes
• Explain why the taxpayer owes any balance due
• Explain the specific reasons why a refund claim was denied
• Post information on IRS.gov to help taxpayers understand their IRS notice or letter
• Send a letter when the agency makes an assessment. That letter must include:
o Information on how the taxpayer can appeal the decision
o An explanation of the entire process from audit through collection
o Details on how the Taxpayer Advocate Service can help
• Send an annual statement to taxpayers who enter into a payment plan, also known as an installment agreement. The statement will include how much the taxpayer:
o Owes at the beginning of the year
o Paid during the year
o Still owes at the end of the year
• Make forms and publications available on IRS.gov.
• Use social media to provide helpful tax information to a wide audience of taxpayers.

05/07/2026