Tax Organizer - brief format
An employee is someone who:
Is told where to work
Is told when to work
Is told what work to do
Uses employer's tools, equipment or supplies
May be hired and fired at the employer's discretion
is paid a salary or by the hour rather than on the job basis
Does not have risk of operaeting loss
Credit for dependents attending kindergarten through 12th grade at an Iowa school. Select article for details. In addtion, items required by school for entrollment are included, such as the list a school may provide as required items the first day of school (or ongoing). It would be best to keep the documented list with accompanying receipts.
The standard Meal/Snack Rates increased slightly for 2012. For 2011 breakfast was $1.19, lunch/dinner $2.22 and Snacks $.66. For 2012 the rates are breadfast $1.24, lunch/dinner $2.32 and snacks $.69
If you would like a copy of your tax return sent to a bank or someone else please Select Consent to Disclose Tax Return Information, print the form and return to us via e-mail or fax. We will assist with your request as soon as possible.
Need help with preparation of 1099's? Select 1099's for questionnaire to let us know information so we can be of assistance. just print the questionnaire and return the completed information to use via e-mail or fax.
Select for form for us to assist you with 1099 preparation. Just print form, complete and forward to Collins Cosnulting Service.
1099
Select job related expenses deductible job related expenses. (uniforms are deductible if required by employer and not suitable for ordinary wear - For example, Rocky Wolverine's work boots were disallowed when he wore them to the IRS audit) There is a deduction of 2% of income from the total of these expenses (and you must itemize), so small amounts will not create a tax deduction.
Safety equipment, small tools and supplies needed for the job
Uniforms required by the employer that are not suitable for ordinary wear (Military uniforms are only deductible if regulations prohibit their off-duty wear)
Protective clothing such as hard hats, safety shoes or glasses not suitable for continuouse usage as ordinary clothing
Physical examinations required by employer
Dues of porfessional organizations or chambers of commerce
Subscriptions to professional journals
Employment agency fees or costs to search for a new job
Certain business use of home
Certain educational expenses
Certain meals and entertainment
Vehicle Expense - not travel back and forth to metro area work place
Tax Preparation fees
Selcted Lawsuite settlements for list of awards and info about taxability
Personal Injury Exempt
Class Action award (consumer) Exempt
Civil Rights Taxable
Punitive damages Taxable
Contract claims Taxable
Slander/Defamaton Taxable
Backpay Taxable
interest Taxable
Emotional distress Taxable
Mental Anguish Taxable
Loss of reputaton Taxable
Other Awards Taxable
Select Disaster Losses to review computation of a disaster loss. The IRS indicates a claim must be filed with insurance company or FEMA to get a tax deduction. Appraisals before and after loss will be helpfull if audited.
Determine cost or other basis of property before the disaster
less fair market value after the disaster
less amount reimbursed by insurance or other reimbursements
less $100
less 10% of your income
net Casualty Loss
or the second method is the actual cost of repairing the property to original condition before the loss which can only be done when the property is actually repaired.
Thus small losses will get no tax deductions (such as insurance deductibles). If you disagree with insurance companies value, sorry, but the IRS will probably ue the same amounts as the insurance company.
You generally have 2 years to replace the property involved in the disaster for which you may receive funds from insurance companies or others. The replacement period ends 2 years after the close of the 1st tax year in which the gain was realized (4 years for personal residences and livestock). If property is not replaced, the reimbursement is generally taxable income.
Select Travel heading for list of required proof to deduct these business expenses
Date the expense took place
Place the expense was incurred
Business purpose of the expense
Business relationship (for entertainment and gifts)
Amount of the expenses
All lodging expenses require receipts - there is not a per diem rate
All entertainment or meals require a receipt for over $75 per meal
Promotional or closing gifts for customers are limited for tax deduction purposes to $25 per year per customer
Proof is to be timely documented. The last day of the year, the day before your tax appointment or after receiving an audit letter is not timely doccumented.
We've heard for many years, social security may not be around when I need it. Select Social Security to find list of what does my social security/self employment tax really get me.
Retrirement benefit for you as early as age 62
Retirment benefit based on my account for your spouse, if married for at least 10 years
Disability benefit for you at any age
Disability benefit for your spouse as early as age 50 if married for at least 10 years
income benefits for your children under age 18 if you become deceased, disabled or drawing retirement benefits
income benefits for your spouse if there is a child in your home under age 16 and you become deceased, disabled or drawing retirement benefits
Lifetime medical benefits for you at age 65 or earlier if disabled
Lifetime medical benefits for your spouse at age 65 or earlier if disabled
income for your dependent parents if you become deceased, disabled or retired
Death benefit for your spouse upon your death
Items to review before trying to get out of paying social security
Horrible things happen if you are determined to be operating a hobby. Losses are not deductible, no office in home deduction, no reduction in social security taxes, sales are added to income, expenses are deducted as an itemized deduction reduced by 2% of total income. The overall impact is paying taxes on additonal income rather than a tax write-off. Select Business or hobby for what the Internal Revenue looks at to determine if business or hobby.
Must illustracte a profit motive, such as making a profit 3 out of 5 years
And/or business organiztion factors such as a separate checking account, business name, separate set of accounting records, business license, separate phone and/or fax line, stationery, business cards, advertising or marketing, existence of a business plan and growth of asset values.
Review the time and effort extended by the taxpayer thru regular time spent each day or week on this business activity, new ideas, plans or concepts to make a profit, regular meetings with customers, reasonable profit-oriented efforts similar to successful competitors, or losses due to circumstances beyound the taxpayer's control.
Other factors such as history of profit-making activiities in other ventures, reasonable expertise or knowledge, and dependency on the activity for income.
Select Depreciation Schedule for a list of various equipment and properties with the current length they are depreciated. This is after applicable Bonus or first year depreciaiton.
Select standard mileage rate for a list of standard mileage rates for the last 6 years. For 2012 the business reate remains at $.555 per mile but the medical rate decreases to $.23 and charitable to $.14.
Select Charitable Contributions to find a list of normal Charitable Contributions that are deductible and those that are not. Remember donations of over $250 at one time or in one day requires a receipt to reflect the charity's name, amount and date and must be dated before the due date or actual filing date of the tax return. A cancelled check is not adequate. ALL deductilbe contribtuions must be substantiated with a receipt.
The are some tricky rules about who can claim the College Tuition and related expenses based on who is eligible to claim the student and who actually pays for the tuition. In some cases the tuition may not be deductible by anyone.
Several free online calculators are available to help you weigh option of whether it is better to purchase or rent a home.
The IRS has issued final regulations modifying reporting obligations for partnerships involved in Code Sec. 751(a) exchanges of partnership interests. The regulations remove the requirement that partnerships furnish transferors with certain information relating to unrealized receivables and inventory items by January 31 following the exchange year. The regulations are effective for returns filed for tax years ending on or after May 20, 2026.
The IRS has issued final regulations modifying reporting obligations for partnerships involved in Code Sec. 751(a) exchanges of partnership interests. The regulations remove the requirement that partnerships furnish transferors with certain information relating to unrealized receivables and inventory items by January 31 following the exchange year. The regulations are effective for returns filed for tax years ending on or after May 20, 2026.
Under Code Sec. 6050K, partnerships must file Form 8308, Report of a Sale or Exchange of Certain Partnership Interests, for transfers involving Code Sec. 751(a) property. The IRS and Treasury Department received comments that many partnerships could not determine the information required for Part IV of Form 8308 by the January 31 furnishing deadline. As a result, the final regulations remove Reg. §1.6050K-1(c)(2) and revise Reg. §1.6050K-1(c)(1) to permit partnerships to furnish Form 8308 completed in accordance with the form instructions.
Although partnerships are no longer required to furnish Part IV information to transferors and transferees by January 31, they must still file a completed Form 8308, including Part IV, with Form 1065. The IRS finalized the regulations without substantive changes from the proposed regulations issued in 2025.
T.D. 10048
The IRS has issued guidance on qualified long-term care distributions from qualified retirement plans. The guidance affects providers of certified long-term care insurance (issuers), plan administrators, and individual participants receiving qualified long-term care distributions. The IRS also extended the general deadline for amending a plan to permit qualified long-term care distributions to December 31, 2027.
The IRS has issued guidance on qualified long-term care distributions from qualified retirement plans. The guidance affects providers of certified long-term care insurance (issuers), plan administrators, and individual participants receiving qualified long-term care distributions. The IRS also extended the general deadline for amending a plan to permit qualified long-term care distributions to December 31, 2027.
Background
The SECURE 2.0 Act of 2022 (SECURE 2.0 Act), permitted defined contribution plans to make qualified long-term care distributions, effective for distributions made after December 29, 2025. The 10 percent additional tax on early distributions would not apply to distributions under Code Sec. 401(a)(39). However, a qualified long-term care distribution would be included in the taxpayer’s gross income.
Disclosure Requirements
The guidance addresses content requirements and procedures for submitting an Issuer Disclosure to the IRS. There is no general deadline for submitting an Issuer Disclosure. However, an issuer must submit an Issuer Disclosure to the IRS before the issuer can file a long-term care premium statement with a defined contribution plan.
Distribution Requirements
Under the guidance, the plan administrator is permitted to rely on the issuer’s statement and the information provided on the long-term care premium statement in making a qualified long-term care distribution. It is optional for a plan to permit qualified long-term care distributions, but the exception to the 10% additional tax only applies if the plan permits qualified long-term care distributions, even if the employee uses a distribution to pay for long-term care insurance. Unlike other permitted distributions, a qualified long-term care distribution would not be eligible for an extended 3-year repayment to a retirement plan.
Reporting Requirements
The payment of a qualified long-term care distribution to an employee must be reported by the payor on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc.
Further, issuers must make a return to the IRS using Form 1099-LPS, Long-Term Care Premiums Paid Statement. The issuer will report the long-term care premiums paid for the calendar year. The Form 1099-LPS must be filed with the IRS no later than February 1 of the calendar year following the calendar year the long-term care premium statement was filed with the plan.
Deadline Extension
The guidance extends the deadline for a plan sponsor of a defined contribution plan that is not a governmental plan, a section 403(b) plan maintained by a public school, or an applicable collectively bargained plan, to amend its plan to permit qualified long-term care distributions from December 31, 2026, to December 31, 2027. The deadlines to amend defined contribution plans that are applicable collectively bargained plans or governmental plans remain as provided in Notice 2024-02. Thus, Notice 2024-2, I.R.B. 2024-2, 316, is modified in part.
Notice 2026-33
The IRS finalized regulations treating income derived by individual members of an Indian tribe from fishing rights-related activities as compensation for purposes of limitations on benefits and contributions under a qualified retirement plan. These regulations are effective for plan years beginning on or after May 4, 2026, and affect participants, beneficiaries, sponsors, and administrators of Tribal plans.
The IRS finalized regulations treating income derived by individual members of an Indian tribe from fishing rights-related activities as compensation for purposes of limitations on benefits and contributions under a qualified retirement plan. These regulations are effective for plan years beginning on or after May 4, 2026, and affect participants, beneficiaries, sponsors, and administrators of Tribal plans.
Fishing rights-related income is exempt from federal income tax and employment tax under Code Sec. 7873. However, proposed reliance regulations would allow contributions to be made to qualified retirement plans based on fishing rights-related income. Also, plans that accept contributions of fishing rights-related income may still use safe harbor definitions of compensation. The IRS finalized this rule as proposed without material modification.
Although the final rule is somewhat limited in scope, the IRS addressed additional issues in the preamble. The IRS clarified that plan contributions attributable to a Tribal employee's fishing rights-related activiity is treated as investment in the contract under Code Sec. 72 . Thus, distributions of the amount contributed would generally be tax-free (subject to basis recovery rules) and distributions attributable to earnings would be taxable. The IRS also indicated that plans that permit designated Roth contributions may allow contributions attributable to fishing rights-related activity to be made on a Roth basis.
T.D. 10046
The IRS has introduced a streamlined option allowing taxpayers to extend the time to challenge disallowed Employee Retention Credit (ERC) claims, reducing the need for immediate refund litigation. The measure applies to taxpayers who received Letter 105-C or 106-C, are awaiting review by the IRS Independent Office of Appeals and have six months or less remaining in the statutory two-year period.
The IRS has introduced a streamlined option allowing taxpayers to extend the time to challenge disallowed Employee Retention Credit (ERC) claims, reducing the need for immediate refund litigation. The measure applies to taxpayers who received Letter 105-C or 106-C, are awaiting review by the IRS Independent Office of Appeals and have six months or less remaining in the statutory two-year period.
Taxpayers generally have two years from the disallowance notice to resolve the claim or file a refund suit, but an administrative appeal does not suspend this deadline. Once the period expires, the IRS cannot issue a refund even if the taxpayer later prevails. To address this, eligible taxpayers may execute Form 907, Agreement to Extend the Time to Bring Suit, provided it is signed by both parties before the limitation period ends.
The IRS now permits submission of Form 907 through its Document Upload Tool, with qualifying requests reviewed and confirmed in writing. While the IRS is issuing notices to eligible taxpayers, others meeting the criteria may also apply. The agency indicated that the initiative is intended to preserve taxpayer rights and facilitate administrative resolution of ERC disputes.
The IRS has established a significant issue ruling program for cerain corporate transactions (Rev. Proc. 2026-21). This program would not diminish the availability of letter rulings under existing programs. This procedure modifies and amplifies the ruling procedures provided in Rev. Proc. 2026-1, I.R.B. 2026-1, 1, and Rev. Proc. 2026-3, I.R.B. 2026-1, 143.
The IRS has established a significant issue ruling program for cerain corporate transactions (Rev. Proc. 2026-21). This program would not diminish the availability of letter rulings under existing programs. This procedure modifies and amplifies the ruling procedures provided in Rev. Proc. 2026-1, I.R.B. 2026-1, 1, and Rev. Proc. 2026-3, I.R.B. 2026-1, 143.
The significant issue ruling program allows taxpayers to request rulings on one or more issues that:
- are solely under the jurisdiction of the Associate Chief Counsel (Corporate);
- are significant issues, as defined in section 4.02 of Rev. Proc. 2026-21; and
- involve the tax consequences or characterization of a transaction (or part of a transaction) that is described in Code Sec. 332, 351, 355, 368, or 1036.
Significant Issue Ruling Program
Taxpayers may request, and the IRS may issue, a ruling on part of an integrated transaction described in the above provisions, or a ruling on a particular legal issue under a section of the Code or regulations with respect to a transaction (or part thereof) rather than a ruling that addresses all aspects of that section (or any other section) with respect to the transaction (or part thereof).
In addition, the IRS may rule on the tax consequences resulting from integrated transactions described in the above provisions to the extent that a significant issue is presented under related Code sections that address such tax consequences.
A significant issue generally is a germane and specific issue of law, provided that a ruling on the issue would not be a comfort ruling or the conclusion in such a ruling otherwise would not be essentially free from doubt.
The requests for ruling must contain (1) narrative description of the transaction that puts the significant issue in context; (2) statement identifying the issue; (3) analysis of the solvability of issue; and more.
Effect on Other Documents
Rev. Proc. 2026-1 and Rev. Proc. 2026-3 are modified and amplified.
Effective Date
The significant issue ruling program applies to all letter ruling requests described in section 4.01 of Rev. Proc. 2026-21 postmarked or, if not mailed, received by the IRS after May 5, 2026.
Rev. Proc. 2026-21
Other References:
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The IRS has announced a new time-limited settlement opportunity for eligible taxpayers involved in conservation easement and historic preservation easement disputes with the IRS. The program aims to resolve cases faster and on terms that are generally more favorable than recent Tax Court decisions.
The IRS has announced a new time-limited settlement opportunity for eligible taxpayers involved in conservation easement and historic preservation easement disputes with the IRS. The program aims to resolve cases faster and on terms that are generally more favorable than recent Tax Court decisions. Since 2020, the IRS has settled 405 cases through earlier initiatives, although taxpayers still had to pay penalties and were allowed only limited deductions for certain out-of-pocket costs. More than 1,100 conservation easement cases currently remain pending before the IRS and the Tax Court. Under the new initiative, many eligible partnerships will not have to make an upfront payment to participate. In addition, taxpayers whose earlier settlement offers expired or were rejected may now have another chance to resolve their cases, while some partnerships that were not previously eligible may also qualify. IRS Chief Executive Officer Frank J. Bisignano said Congress created the conservation easement deduction to encourage legitimate preservation efforts rather than tax shelters based on inflated property values.
The IRS said partnerships that accept the offer during the initial 90-day period generally will not be allowed a charitable contribution deduction, but they may qualify for a limited deduction tied to certain out-of-pocket expenses. Those partnerships generally would face a 10 percent gross valuation misstatement penalty, while partnerships settling during an additional 45-day period generally would face a 20 percent penalty. Interest also will continue to accrue as required by law. At the same time, the IRS noted that courts have repeatedly reduced claimed deductions and upheld significant penalties in conservation easement disputes. Certain cases, such as those already tried or currently under appeal, will not qualify for the initiative. The IRS added that eligibility will depend on the status and specific facts of each case.
Following a 2026 tax filing season that was consistent with the 2025 season, the American Institute of CPAs offered legislators a series of recommendations to help improve filing season in the future.
Following a 2026 tax filing season that was consistent with the 2025 season, the American Institute of CPAs offered legislators a series of recommendations to help improve filing season in the future.
“Based on limited and anecdotal information, many practitioners noted that the IRS appeared to operating consistently compared with the prior year’s service,” AICPA said in a recent letter to the Senate Finance Committee’s top leadership following a hearing on the 2026 tax filing season, adding that data currently available shows “tax return processing remained relatively consistent, though the quality of telephone services appeared to vary depending on the hotline.”
AICPA did observe that while Internal Revenue Service modernization efforts have allowed for consistent customer service levels compared to recent prior years, “IRS customer service has not returned to pre-COVID-19 pandemic levels according to IRS data and the AICPA’s most recent annual membership survey.”
With that, the industry organization offered recommendations in the areas of governance and oversight, taxpayer services, and dedicated practitioner services.
In the area of IRS governance and oversight, AICPA recommended the following:
- Requiring a Government Accountability Office review to determine whether a private sector board with sufficient authority to hold the IRS accountable and oversee implementation of key recommendations from advisory groups;
- Re-establish the annual joint hearing review to focus on strategic and business plans, taxpayer service and compliance, technology and modernization, and the filing season; and
- The Joint Committee on Taxation should provide a bi-annual report on the overall state of the Federal tax system.
In the area of taxpayer service, the following recommendations were offered:
- Hire more qualified and experienced professionals from the private sector, adequately train all agency employees, skillfully manage IRS resources, and ensure organizational alignment between Congress, the executive branch, and the IRS;
- Congress should determine what the appropriate level of service is and then ensure that the appropriate resources are allocated to achieve that level;
- Continue to improve the technology infrastructure modernization; and
- Effectively utilize customer satisfaction surveys to assess IRS performance, improve the taxpayer experience, and effectuate modernization efforts or process improvement.
AICPA pushed for the passage of the Taxpayer Assistance and Services Act, which it states “would significantly improve IRS services, reinforce fairness and transparency in our tax system, and reduce tax administrative burdens on taxpayers and practitioners, including many critical tax provisions for which AICPA has previously advocated.”
In the area of dedicated practitioner services, AICPA recommended:
- Create consolidated dedicated “executive-level” practitioner services comparable to private sector services that are implemented and adapted based on practitioner feedback solicited periodically; and
- Continue to expand the functionality of a robust and enhanced tax professional account as part of the IRS’s online portal with account access to all of a practitioner’s client information, allowing for IRS to communicate directly with authorized practitioners, enable a centralized login system, and prioritize the protection and privacy of user identities and data;
- Provide practitioners with a robust practitioner priority hotline with high-skilled employees capable of resolving complex technical and procedural issues; and
- Assign customer service representatives to each geographic area to address unusual or complex issues that practitioners were unable to resolve through the priority hotlines.
The letter to the Senate Finance Committee leadership and other AICPA 2026 tax policy and advocacy comment letter can be found here.
