JL Accounting

08/31/2026

https://www.taxgirl.com/2026/08/31/social-security-and-taxes-what-you-pay-and-what-you-get/?fbclid=IwY2xjawUCvQtwZG9mAWV4dG4DYWVtAjExAHNydGMGYXBwX2lkEDIyMjAzOTE3ODgyMDA4OTIAAR7cMF6Q-Yz1FFtjAQYF5ZGTEYPrEh27Ej_jCuFcvFdgZB-TtBIh6RrlTuAr-A_aem_3uWB3JJtFUlQZw8OmxJxtQ

Learn how Social Security taxes work in 2026, including payroll and self-employment taxes, retirement benefits, and when benefits may be taxable.

08/07/2026

From the Missouri Department of Revnue:
Dear Missouri Retailers and Business Owners,

The Department of Revenue (DOR) is issuing this letter to provide information regarding recently passed legislation (HB 2819 that goes into effect August 28, 2026) that allows vendors to round purchase totals on cash transactions.
The purpose of this legislation is to simplify low‑denomination cash handling, reduce reliance on pennies, and ensure proper sales tax collection and remittance.

Key Provisions for Retailers and Businesses
Rounding applies only to CASH transactions.
Rounding may be used only on the final total of a purchase, after all items, discounts, and taxes have been calculated.

Round Down: Final cent totals ending in 1, 2, 6, or 7
Round Up: Final cent totals ending in 3, 4, 8, or 9
Examples:
A $1.92 total rounds down to $1.90.
A $1.93 total rounds up to $1.95.

Non‑cash payments must NOT be rounded.
Credit, debit, mobile/online payments, checks, or any non‑cash method must reflect the exact calculated amount with no rounding.
Rounding does not change your tax obligations.
Sales tax must continue to be calculated and remitted exactly as required. Rounding affects only the customer‑facing cash total not the tax you report.

Good‑faith protection is included.
Businesses that follow the law’s rounding rules in good faith are not considered in violation of any state or local regulation or standard.

No impact on local tax distribution.
The state’s existing process for handling under‑remitted local taxes remains unchanged.
What This Means for Your Business
You may begin using penny‑rounding on cash transactions starting August 28, 2026.
You are not required to round; this is optional.
There are no changes to how you calculate, report, or remit sales tax.
You may want to update staff procedures or point‑of‑sale instructions to ensure rounding is applied properly and only when allowed.
Need Assistance?

If you have questions or want help implementing this change, please contact the Missouri Department of Revenue. We are committed to supporting retailers as the new law takes effect.

Sincerely,
Missouri Department of Revenue

07/20/2026

Identity Protection PINs help taxpayers guard against tax-related identity theft

One of the best ways taxpayers can protect themselves from identity theft is by requesting an Identity Protection Personal Identification Number.

What taxpayers should know about an IP PIN

Anyone with a Social Security number or an Individual Taxpayer Identification Number can request a free IP PIN, including taxpayers living abroad.
It’s a unique six-digit number known only to the taxpayer and the IRS.
It helps verify a taxpayer's identity when they file a federal tax return. It also protects the taxpayer's account, even if they aren't required to file a return.
Taxpayers must verify their identity before receiving an IP PIN.
Tax professionals cannot request an IP PIN for a client but may use the number provided by the taxpayer when preparing and filing a return.
A new IP PIN is issued each year for added security.
Taxpayers who request an IP PIN online will need to retrieve their new one annually, starting mid to late January.
Taxpayers who receive an IP PIN must include it on all federal tax returns they file during the year, including prior-year and amended returns.
The IRS will never call, email, text, or message a taxpayer through social media channels to request their IP PIN.
The fastest way to get an IP PIN
The quickest and easiest way to request an IP PIN is through an IRS Individual Account. After signing in, taxpayers can select the IP PIN option under their profile. Those who do not already have an account will need to complete the identity verification process before requesting an IP PIN.

Options for taxpayers who can't verify their identity online
Taxpayers who are unable to verify their identity online may still be able to get an IP PIN.

Eligible taxpayers with an adjusted gross income below $84,000 for individuals or $168,000 for married filing joint may apply by submitting Form 15227, Application for an Identity Protection Personal Identification Number.
Taxpayers who cannot verify their identity online or by phone, are not eligible to use Form 15227, or experience technical issues can make an appointment at a Taxpayer Assistance Center to complete the process in person.
More information

Data Security Resource Guide for Tax Professionals, Publication 5293
Identity Theft Central

07/17/2026

A new automatic process provides penalty relief for clients with a history of filing and paying on time reduces the need for tax professionals to request penalty abatement.

The new Automatic Exemption from Penalty (AEP) will replace the long-standing First Time Abate administrative relief. AEP is a systemic administrative relief program expected to begin this summer. AEP applies to eligible original returns beginning with tax year 2025 and 2026 quarterly returns, as well as future tax periods. Clients qualify if they have a history of timely filing the return and paying any tax due in the three prior years (or 12 consecutive quarters for quarterly returns). When taxpayers qualify, penalties are not assessed during processing for:

Failure to file;

Failure to pay; or

Failure to deposit.

Tax professionals and their clients do not need to take action to receive this relief. If a client is eligible, the IRS will apply AEP and issue a notice confirming that the relief was granted.

Clients who do not qualify for AEP may still request penalty relief based on reasonable cause. The IRS will review those requests and notify taxpayers of the outcome.

While AEP prevents the assessment of certain penalties, clients must still pay any tax and interest due, as well as any penalties not eligible for relief.

The recent IRS news release explains that not all returns are eligible for AEP and provides details on the phaseout of First Time Abate.

07/16/2026

Abby DeGeare and I attended the NATP Taxposium this week, where we learned from some of the top instructors in the tax industry. We learned some up to date information about Trump Accounts. We also learned proper ways to use AI in our profession. We strive to be a progressive firm, and education is one way to stand out front.

07/14/2026

The 2026 IRS standard mileage rates vary depending on the half of the year. For the second half of 2026 (July 1 to December 31), the business rate is 76 cents per mile. For the first half of the year (January 1 to June 30), it was 72.5 cents per mile
Be sure to keep an ACCURATE MILEAGE LOG, so you can take advantage of this dual mileage rate for 2026.

07/09/2026

Business and Personal Expenses Don’t Mix

A recent Tax Court decision, Waimana Enterprises, Inc. v. Commissioner, offers a cautionary reminder for owners of closely held corporations. The court upheld more than $2 million in tax deficiencies and civil fraud penalties after determining that the corporation's sole shareholder routinely used corporate funds to pay personal expenses over several years.

The case involved expenses ranging from family vacations and private school tuition to college costs and personal massage therapy. Many of the expenses were reimbursed through the corporation and recorded as business deductions despite lacking a legitimate business purpose or adequate substantiation. The court reclassified the payments as constructive dividends and found evidence of a pattern of mischaracterizing personal expenses as deductible business costs.

This decision reinforces the importance of keeping personal and corporate finances strictly separate.

04/23/2026

The IRS announced a new online tool to help clients understand and resolve tax debt.

The Tax Debt Help tool provides individuals and businesses with a simple way to explore payment options and identify next steps based on their situation. It walks users through a series of straightforward questions about their financial situation and tax debt. Based on responses, the tool will guide users to potential payment and resolution options available through the IRS.

The tool does not require specialized knowledge. It can be used at any time. To protect client privacy, the tool does not require users to enter personally identifiable information.

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

04/06/2026

Be informed, not fooled by ghost preparers and tax credit scams

The tax filing season is coming to an end in a couple of weeks, but that doesn’t mean scammers and schemers take a break. Here’s a couple more things from the recently released Dirty Dozen, that taxpayers should be mindful of.

Ghost preparers
Taxpayers should choose their tax professional wisely. Paid preparers must sign and include a valid Preparer Tax Identification Number on every tax return. A “ghost” preparer prepares a return but refuses to sign it and/or refuses to include a PTIN. These unlicensed or unethical tax return preparers should be avoided. When a preparer refuses to sign or provide a PTIN, that is a major red flag; the taxpayer is legally responsible for what is filed. Taxpayers should never sign a blank or incomplete return.

Ghost preparers also often exploit credits by promising large refunds. These preparers may:

Exaggerate eligibility for deductions
Claim credits that taxpayers do not qualify for
Disappear after filing, leaving the taxpayer responsible for penalties, interest, or audits
People can make a complaint about a tax return preparer, if a paid preparer filed a fraudulent return, without consent or if they followed improper tax preparation practices.

04/02/2026

USPS Rule Affects Postmarks and Timely Tax Filings

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.

The bottom line, is that it is better to pay online. You will receive an immediate confirmation of payment.