Linda D. Cosgray, Inc.

06/17/2026

A written Information Security Plan- or WISP - is just one tool for tax professionals to protect their client's tax data, and is required by law. A WISP focuses on

Employee training and management
Information systems
Detecting and Managing system failures

06/16/2026

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.

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.

06/15/2026

Highlights from fiscal year 2025
• Returns filed: The IRS processed 271.4 million federal tax returns and supplemental documents, including almost 162.8 million individual income tax returns. Revenue collected exceeded $5.3 trillion.
• Taxpayer Service: Customer service representatives answered almost 18.6 million calls. At 363 Taxpayer Assistance Centers nationwide, employees assisted nearly 2 million taxpayers.
• IRS online: As important as phone and in-person assistance are, taxpayers continued to show their preference for online services. There were nearly 417 million inquiries on our popular “Where’s My Refund?” online tool that enables taxpayers to check the status of their tax refund – up 9% from FY 2024.

06/12/2026

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?

06/11/2026

Deductible travel expenses while away from home include, but aren't limited to, the costs of:

Travel by airplane, train, bus or car between your tax home and your business destination. (If you're provided with a ticket or you're riding free as a result of a frequent traveler or similar program, your cost is zero.)

Fares for taxis or other types of transportation between:

The airport or train station and your hotel,
The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location.

Shipping of baggage, and sample or display material between your regular and temporary work locations.

Using your car while at your business destination. You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking fees. If you rent a car, you can deduct only the business-use portion for the expenses.

Lodging and non-entertainment-related meals.

Dry cleaning and laundry.

Business calls while on your business trip. (This includes business communications by fax machine or other communication devices.)

Tips you pay for services related to any of these expenses.

Other similar ordinary and necessary expenses related to your business travel.
(These expenses might include transportation to and from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer.)

06/10/2026

A do-it-yourself tax software ad says "it doesn't take a genius to do your taxes." That is quite correct. It doesn't take a genius to do your taxes.
It also doesn't take a genius to do the wiring in your house nor does it take a genius to install a toilet. It doesn't take a genius to make a soufflé; and it does not take a genius to change the brakes on your car.
All of these things you can certainly do yourself. If you figure them out without training or experience, you may luck out and not get electrocuted, or flood your house, or serve an embarrassing dessert to your guests, or hit something because your brakes fail.
Yes, you can certainly do your own taxes, but you don't know what you don't know. The IRS knows this about do-it-yourselfers, and give those tax returns more scrutiny.
You don't need me to do your taxes and you also don't need insurance on your house. But, once your house is in flames and your tax return under scrutiny, you're going to wish you had spent the money.
Hire an Enrolled Agent. Maybe a genius, maybe not, but we are highly educated and experienced in the field of income taxes....and these days, it is more important than ever to avoid dealing with the IRS.

06/09/2026

Form 1099-K is a report of payments you received for goods or services during the year from:

Credit, debit or stored value cards such as gift cards (payment cards)
Payment apps or online marketplaces, also called third party settlement organizations or TPSOs
These organizations are required to fill out Form 1099-K and send copies to the IRS and to you.

Use Form 1099-K with other records to help you figure and report your taxable income when you file your tax return.

06/08/2026

Inflation-adjusted Health Savings Account (HSA) Figures for 2027: HSAs allow eligible individuals to make deductible contributions that can be withdrawn tax-free for reimbursement of eligible medical expenses. For 2027, the limitation on HSA deductions is $4,500 (up from $4,400 for 2026) for an individual with self-only coverage under a High Deductible Health Plan (HDHP) or $9,000 (up from $8,750 for 2026) for family coverage. An HDHP is defined under IRC Sec. 223(c) as a health plan with an annual deductible not less than $1,750 (up from $1,700 for 2026) for self-only coverage or $3,500 (up from $3,400 for 2026) for family coverage, with annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) not exceeding $8,700 (up from $8,500 for 2026) for self-only coverage or $17,400 (up from $17,000 for 2026) for family coverage.

06/05/2026

06/04/2026

Social media can be a quick and easy way to get tax-related updates, especially with the many updates from the One, Big, Beautiful Bill. But not all online tax advice is accurate. Scammers and misinformation are common on social media. That’s why it’s important for taxpayers to follow official IRS social media accounts and subscribe to e-News updates, for the most reliable information.
IRS social media platforms
Visit IRS.gov to get direct links to IRS verified social media accounts. IRS has accounts on:
• X – Tax-related information for individuals, businesses, and tax professionals. A special IRS X handle, , shares information to help people avoid common scams
• Facebook – Tax information and event announcements for a general audience
• Instagram − Taxpayer-friendly information on a variety of topics such as tax law changes, reminders and scam info
• YouTube − Short videos on specific tax topics for individual taxpayers, tax professionals and small businesses. Webinars are also available to explain more complex tax topics.
• LinkedIn – Key agency communications including job announcements

Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.