Johns Benson & Johns CPAs, P.A.

12/04/2025

12/01/2025

IR-2025-116, Nov. 26, 2025

WASHINGTON — The Internal Revenue Service encourages taxpayers to take steps now to prepare for the upcoming filing season by visiting IRS.gov/GetReady for tips on what is new and what to consider before filing. This is the first in a series of special IRS "Get Ready" reminders to help taxpayers prepare in early 2026 for the upcoming tax filing season. A little advance work preparing paperwork and organizing information now can help with filing tax returns quickly and accurately.

It is important for taxpayers to get ready now because the One, Big, Beautiful Bill can significantly affect federal taxes, credits and deductions. The IRS and Treasury are working to implement the new legislation, including providing information on the new tax deductions, such as no tax on tips, no tax on overtime, no tax on car loan interest, the new temporary deduction for seniors and others. The IRS will release new information as it becomes available.

Gather and organize tax records

Having organized tax records helps taxpayers file complete and accurate tax returns and avoid errors that could delay refunds. Start by collecting:

• Bank account information.
• Forms W-2 from your employer(s).
• Forms 1099 from banks and other payers.
• Records of digital asset transactions.

Taxpayers should wait to file until they have received all their tax records. Keeping documents organized can also make it easier to locate information needed to claim deductions or credits.

Online Account

An IRS online account allows taxpayers to access personal tax information, including recently filed returns, securely. Through this tool, taxpayers can:

• View tax records, including adjusted gross income and transcripts.
• Make, schedule and view payments.
• Get or view their Identity Protection PIN (IP PIN).
• Authorize a tax professional to access their tax records digitally.
• Access available Forms W-2 and certain 1099s.

Speed tax refunds with direct deposit

Direct deposit is the fastest way to receive a refund. Additionally, in accordance with Executive Order 14247 , the IRS began phasing out paper tax refund checks on Sept. 30, 2025, which means most taxpayers must provide routing and account numbers to get their refunds directly deposited into their bank accounts.

Taxpayers without a bank account can learn how to open one at an FDIC insured bank or through the National Credit Union Locator Tool. Veterans, see the Veterans Benefits Banking Program for financial services options at participating banks.

Prepaid debit cards, digital wallets or mobile apps may support direct deposit. To use these options, taxpayers must have routing and account numbers associated with their personal accounts.
Check with the mobile app provider or financial institution to confirm which numbers to use.

Get ready to file your taxes. See tips that can make filing taxes easier next year. Learn about tax law changes, how to view your tax account information online, and ways to get help.

11/20/2025

Issue Number: IR-2025-110
Inside This Issue
________________________________________
Treasury, IRS provide penalty relief for tax year 2025 for information reporting on tips and overtime under the One, Big, Beautiful Bill

IR-2025-110, Nov. 5, 2025

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued guidance providing penalty relief to employers and other payors for tax year 2025 regarding new information reporting requirements for cash tips and qualified overtime compensation under the One, Big, Beautiful Bill.

Transition penalty relief for tax year 2025

Notice 2025-62 provides penalty relief from the new information reporting requirements for cash tips and qualified overtime compensation under the OBBB to employers and other payors for not filing correct information returns and not providing correct payee statements to employees and other payees.

Specifically, employers and other payors will not face penalties for failing to provide a separate accounting of any amounts reasonably designated as cash tips or the occupation of the person receiving such tips. In addition, employers and other payors will also not face penalties for failing to separately provide the total amount of qualified overtime compensation. The relief is limited to returns and statements filed and provided for tax year 2025 and applies only to the extent that the person required to make the return or statement otherwise files and provides a complete and correct return or statement.

Treasury and IRS are aware that employers and other payors may not currently have the information required to be reported under the OBBB, or the systems or procedures in place to be able to correctly file the additional information with the IRS, or SSA in the case of a Form W-2 and provide it to employees and other payees. Moreover, the IRS has announced that Forms W-2 and 1099 for tax year 2025 will not be updated to account for the OBBB-related changes. Therefore, tax year 2025 will be treated as a transition period for IRS enforcement and administration of the new information reporting requirements for cash tips and qualified overtime compensation under the OBBB.

While not a requirement to receive the penalty relief provided in Notice 2025-62, employers and other payors are encouraged to provide employees and payees, particularly those in a tipped occupation, with the occupation codes and separate accountings of cash tips, so the employee or payee can claim the deduction for qualified tips for tax year 2025. Likewise, employers and payors are encouraged to provide employees and payees with separate accountings of overtime compensation, so the employee or payee has readily available the information necessary to claim the deduction for qualified overtime compensation for tax year 2025. Employers and payors can make the information available to their employees and payees through an online portal, additional written statements provided to the employees or payees, other secure methods, or in the case of qualified overtime compensation in Box 14 of the employee’s Form W-2.

New reporting requirements under the OBBB

No tax on tips: Certain employees and self-employed individuals who receive qualified tips may deduct qualified tips that are reported on a Form W-2, Form 1099, or reported directly by the individual on Form 4137. Employers and other payors must file information returns with the IRS, or SSA in the case of Form W-2, and provide statements to taxpayers showing certain cash tips received during the year and the occupation of the tip recipient.

No tax on overtime: Certain individuals who receive qualified overtime compensation may deduct the qualified overtime compensation that is reported on a Form W-2 or Form 1099. Employers and other payors are required to file information returns with the IRS, or SSA in the case of Form W-2, and provide statements to taxpayers showing the total amount of qualified overtime compensation paid during the year.

Additional guidance for individual taxpayers that addresses how they can claim the deductions for qualified tips and qualified overtime compensation when they file their tax year 2025 returns is forthcoming.

For more information, please see the One, Big, Beautiful Bill provisions page on IRS.gov.

09/30/2025

📣 Final Reminder: October 15th Tax Deadline! 🗓️

If you filed for an extension on your personal tax return, the final deadline to submit is Tuesday, October 15th. ⏳

Don't wait until the last minute—now is the time to gather your documents and get everything filed to avoid penalties or interest.
Need help finishing up? Our team is here to support you every step of the way. Reach out today and let’s get it done ✅

📞 321.890.1384
📧 [email protected]
💻 https://www.johnsbensoncpa.com

Johns Benson & Johns CPAs provides bookkeeping, payroll, tax and advisory services in the Viera, FL area.

09/02/2025

🌟 Exciting News Alert! 🌟

We are thrilled to share that Johns Benson & Johns CPAs, P.A. has been honored with an Honorable Mention in the 2025 Best of Florida Awards by Guide to Florida, in the Financial & Insurance Services category!

This recognition is a testament to our team's relentless commitment to exceptional client service, professionalism, and community support. Even though voting continues through July 31, 2026, we’re deeply proud to be among the select businesses recognized across the state Guide to Florida.

Thank you to everyone—clients, supporters, friends, and community members—who helped make this possible. Your trust, votes, and encouragement matter deeply.

Help us take it further! If you believe we deserve more support, your continued votes would mean the world to us. Simply search “Johns Benson & Johns CPAs, P.A.” in the Financial & Insurance Services category, and cast your vote.

Here’s to more milestones together—thank you for being a part of our journey!

07/28/2025

https://nam04.safelinks.protection.outlook.com/?url=https%3A%2F%2Fguidetoflorida.com%2Fbest-of%2Fvote%2Ffinancial-services&data=05%7C02%7Ctfisk%40jbjcpas.com%7C13f8587dec6f4dcf263208ddce10405e%7C569b92e2d051455e935b8fb8bf90d5f5%7C0%7C0%7C638893291399930121%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=s2onF5IneUnbqBmH%2BSypJCBNxa4i74U%2F1sM%2FdrcbhoE%3D&reserved=0

Throughout the year, readers of The Guide to Florida vote for everything they love in the Best of Florida annual awards. The votes are tabulated and compiled along with our editor’s picks and, voilà! The result is a fabulous resource that showcases great businesses across our state.

08/22/2024

CORPORATE TRANSPARENCY ACT

New rules implementing the Corporate Transparency Act (“CTA”) require that, as of January 1, 2024, substantially all business entities, including limited liability companies, corporations, limited partnerships, and the beneficial owners of each, file certain information with the Financial Crimes Enforcement Network (FinCEN). The purpose of the CTA is to prevent money laundering, terrorism financing, and other illicit activities by increasing transparency and accountability in entity ownership. The sweep of this law is very broad and includes small business entities and entities created for estate planning purposes. These new requirements may be onerous but cannot be ignored.

The CTA currently exempts twenty-three (23) types of entities from the reporting requirements. While each exemption should be reviewed carefully, the most common exemptions include (i) qualified charities; (ii) business entities satisfying all three of the following criteria: (a) has an operating presence at a physical office within the United States; (b) has at least twenty (20) full-time employees; and (c) has more than $5 million in gross receipts or sales in the previous year; and (iii) publicly traded entities or those otherwise regulated by the federal government.

Beneficial ownership information includes certain information of individuals who (1) directly or indirectly exercise substantial control over a reporting entity, or (2) directly or indirectly own or control twenty five percent (25%) or more of the ownership or voting rights of a reporting entity. Further, if a trust satisfies either of the above two requirements, the trustee or beneficiaries may be considered beneficial owners under the CTA. Whether an individual has “substantial control” over a reporting entity requires an analysis of the provisions of the CTA.

WHAT MUST BE REPORTED

The new rules establish two groups of information that are required to be reported: (1) company information, and (2) beneficial owner and company applicant information.

Company Information:
This is a reporting entity’s basic organizational information, and consists of its:
• full legal name and any trade or d/b/a names of the company;
• street address for its principal place of business;
• state, tribal, or foreign jurisdiction of formation; and
• Employer Identification Number or foreign tax identification number.

Beneficial Owner and Company Applicant Information:
This is the main purpose of the reporting requirements under CTA and must be reported for each beneficial owner and company applicant. This information consists of such individuals’:
• full legal name;
• date of birth;
• residential address (with limited exceptions);
• an image of and the unique identifying number shown on, any one of the following:
o current US passport;
o current state-issued driver’s license;
o current state, local, or tribal identification document; or
o if none of the foregoing are applicable to such individual, the individual’s current foreign passport.

Alternatively, reporting entities and individuals may apply to FinCEN and obtain a “FinCEN identifier” number that may be submitted to FinCEN in lieu of this information. Entities and individuals must update and correct information through an updated application for a FinCEN identifier (similar to the requirement to update and correct previously filed beneficial ownership reports).

WHEN TO FIRST REPORT

Existing Entities - Entities that already exist as of January 1, 2024 will be required to submit BOI Reports by no later than January 1, 2025.

New Entities - Entities created on or after January 1, 2024 and before January 1, 2025 will be required to submit BOI Reports within ninety (90) calendar days of the earlier of the date on which: the reporting entity receives actual notice from a governmental authority that its formation has become effective; or a governmental agency first provides public notice (typically, this is when a state agency, such a secretary of state, publishes a company entity on a searchable database available to the public) that the company has been created. Entities created on or after January 1, 2025 will be required to submit BOI Reports within thirty (30) calendar days of the earlier of the date on which the reporting entity receives actual notice from a governmental authority that its formation has become effective; or a governmental agency first provides public notice that the company has been created.

Reporting entities also have thirty (30) days to report changes to an initial filing or to correct errors in a previous filing. This includes, but is not limited to, any change in a beneficial owner’s residential address or in the reporting entity’s business address.

FILING METHODS

Unless alternative methods are approved in the future, all reporting entities will file their reports through the FinCEN website: https://www.fincen.gov/. Failure to file the required report with FinCEN or submitting false or inaccurate information can result in significant fines and even imprisonment. Penalties can range from five hundred dollars ($500) for each day that a violation continues, up to ten thousand dollars ($10,000) and/or two (2) years in prison. Therefore, it is very important that you determine whether the CTA imposes a filing requirement upon any entities in which you own an interest, and if so, how each entity will comply.

08/20/2024

IRS announces tax relief for victims of Tropical Storm Debby in Florida; various deadlines postponed to Feb. 3, 2025

FL-2024-07, Aug. 9, 2024 — The Internal Revenue Service announced today tax relief for individuals and businesses in Florida that were affected by severe storms and flooding that began on Aug. 1, 2024.

02/15/2023

IRS issues guidance on state tax payments to help taxpayers

IR-2023-23, Feb. 10, 2023

WASHINGTON — The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022.

The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns.

During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. Alaska is in this group as well, but please see below for more nuanced information.

In addition, many people in Georgia, Massachusetts, South Carolina and Virginia also will not include state payments in income for federal tax purposes if they meet certain requirements. For these individuals, state payments will not be included for federal tax purposes if the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit.

The IRS appreciates the patience of taxpayers, tax professionals, software companies and state tax administrators as the IRS and Treasury worked to resolve this unique and complex situation.

The IRS is aware of questions involving special tax refunds or payments made by certain states related to the pandemic and its associated consequences in 2022. A variety of state programs distributed these payments in 2022 and the rules surrounding their treatment for federal income tax purposes are complex. While in general payments made by states are includable in income for federal tax purposes, there are exceptions that would apply to many of the payments made by states in 2022.

To assist taxpayers who have received these payments file their returns in a timely fashion, the IRS is providing the additional information below.

Refund of state taxes paid

If the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit (for example, because the $10,000 tax deduction limit applied) the payment is not included in income for federal tax purposes.

Payments from the following states in 2022 fall in this category and will be excluded from income for federal tax purposes unless the recipient received a tax benefit in the year the taxes were deducted.

Georgia
Massachusetts
South Carolina
Virginia

General welfare and disaster relief payments

If a payment is made for the promotion of the general welfare or as a disaster relief payment, for example related to the outgoing pandemic, it may be excludable from income for federal tax purposes under the General Welfare Doctrine or as a Qualified Disaster Relief Payment. Determining whether payments qualify for these exceptions is a complex fact intensive inquiry that depends on a number of considerations.

The IRS has reviewed the types of payments made by various states in 2022 that may fall in these categories and given the complicated fact-specific nature of determining the treatment of these payments for federal tax purposes balanced against the need to provide certainty and clarity for individuals who are now attempting to file their federal income tax returns, the IRS has determined that in the best interest of sound tax administration and given the fact that the pandemic emergency declaration is ending in May, 2023 making this an issue only for the 2022 tax year, if a taxpayer does not include the amount of one of these payments in its 2022 income for federal income tax purposes, the IRS will not challenge the treatment of the 2022 payment as excludable for income on an original or amended return.

Payments from the following states fall in this category and the IRS will not challenge the treatment of these payments as excludable for federal income tax purposes in 2022.

Alaska [1]
California
Colorado
Connecticut
Delaware
Florida
Hawaii
Idaho
Illinois [2]
Indiana
Maine
New Jersey
New Mexico
New York [2]
Oregon
Pennsylvania
Rhode Island

For a list of the specific payments to which this applies, please see this chart https://www.irs.gov/newsroom/state-payments

Other payments that may have been made by states are generally includable in income for federal income tax purposes. This includes the annual payment of Alaska's Permanent Fund Dividend and any payments from states provided as compensation to workers.

Feb. 10, 2023 — State payment information.

01/26/2023

Know your numbers.

As a business owner, it’s important to know your company’s financial health at all times. But it can be overwhelming to decipher financial documents. In our first article of the Financial Foundations series, we’ve gathered seven financial indicators to track to help you gauge your business progress, guide operational decisions and set goals for long-term success.

The basics of metrics and KPIs

Before we dive into the top financial indicators you should track, let’s do a quick review of metrics and KPIs (key performance indicators). Metrics are any quantifiable data that companies monitor to track performance and improvements. They create a baseline so you can compare future numbers to see how performance has changed over time.

KPIs are the key metrics that are important to your business and impact whether your company thrives or struggles. They typically have predetermined goals, which differentiates them from metrics. While metrics and KPIs can be tracked for almost anything, we’re going to focus on financials.

1. Operating cash flow

One of the best financial KPIs to track is your operating cash flow. It's the amount of cash your business generates from core operational activities, like providing services, selling and purchasing inventory, and paying staff. Operating cash flow shows whether your business is earning enough to keep operating.

There are two ways to calculate your operating cash flow: direct and indirect. The direct method is simpler but gives you a good idea of your business’s profitability, while the indirect method considers factors such as depreciation, accounts receivable and accounts payable.

Direct formula

Operating cash flow = total revenue - operating expenses

Indirect formula

Operating cash flow = net income + noncash expenses ± changes in working capital

2. Cash flow to debt
Keep an eye on your cash flow to ensure you can repay debts with the cash flow-to-debt ratio. This helpful metric will tell you whether you can cover your bills without having to secure additional funds. Be aware that a cash flow-to-debt ratio of less than one is a sign that you won’t be able to pay your debts.

Cash flow-to-debt ratio = (net income + depreciation) ÷ total debt

3. Earnings before interests and taxes (EBIT)
EBIT is used as a profitability measurement of your core business operations by calculating earnings before interest and taxes. It allows you to compare your business to other similar businesses in your industry and see where you’re making money.

EBIT = revenue - cost of goods sold - operating expenses

4. Working capital

The amount of money your business has available to pay for daily functions and short-term debts is your working capital. Assets (e.g., cash, accounts receivable, inventory) and liabilities (e.g., accounts payable, taxes, lines of credit) are considered within this equation.

Working capital = current assets - current liabilities

5. Accounts receivable turnover

Accounts receivable turnover measures how timely your company is being paid once a sale has been made. If the turnover is high, you want to focus on your accounts receivable process so you can get paid on time and keep your cash flow consistent.

Accounts receivable turnover = (total outstanding accounts receivable ÷ total sales) × number of days

6. Accounts payable turnover

Do you know how long it takes for your business to pay its bills and invoices? Use the accounts payable metric to see how quickly you’re paying your bills. The higher the ratio, the shorter amount of time it takes for you to pay invoices. It’s also a good sign for creditors and investors as it’s an indicator your business has less debt on its books.

Accounts payable turnover ratio = average number of days ÷ 365

If you want to convert the turnover to days, use the formula below:

Accounts payable turnover in days = 365 ÷ payable turnover ratio

7. Average customer acquisition cost

Use the average customer acquisition cost to uncover how much your business spends (on average) to add new customers during a certain period of time. This metric accounts for expenses in marketing, payroll, technology and more, and can help you determine whether your business model is sustainable.

Average customer acquisition cost = (cost of sales + cost of marketing) ÷ new customers acquired

Keep it simple
Before you concern yourself with keeping up with multiple calculations in a spreadsheet, know that there are several financial and accounting applications that will automatically track these numbers for you. Knowing your numbers using metrics and defining KPIs will help your business stay on track toward success.