You may have a once-in-a-generation opportunity to claim refunds or obtain abatement of IRS penalties and interest that were assessed or paid during the COVID-19 pandemic. However, you must act quickly to preserve your potential claim.

Here is the background: In Kwong v. United States, the U.S. Court of Federal Claims ruled that a COVID-era disaster relief statute automatically postponed many federal tax deadlines from January 20, 2020, through July 11, 2023. Until now, the IRS had largely ignored this provision.

As a result, you may qualify for refunds or abatement of failure-to-file penalties, failure-to-pay penalties, estimated tax penalties, and underpayment interest that accrued during this 3.5-year disaster period. These amounts can be substantial.

At this stage, however, you should not assume the IRS will automatically issue refunds. The IRS will likely challenge the broad application of the Kwong decision, and appellate courts could narrow or overturn the ruling. In…

Many charitably minded individual retirement account (IRA) owners use qualified charitable distributions (QCDs) to satisfy required minimum distributions (RMDs) while avoiding income tax. One simple mistake, however, can turn an otherwise tax-free QCD into fully taxable income.

After age 70 1/2, you may direct up to $111,000 in 2026 from your traditional IRA to a qualified charity; for married couples, each spouse may give that amount from their own IRA.

The QCD can count toward your RMD once you reach age 73, and the QCD stays out of your adjusted gross income. Lower adjusted gross income can help you avoid higher tax brackets, higher Medicare premiums, and taxation of Social Security benefits.

The trouble arises under the strict no-benefit rule.

You must send a QCD directly to a Section 501(c)(3) charity, not to a donor-advised fund. More importantly, you must not receive anything of value in return. If you do,…

The One Big Beautiful Bill Act (OBBBA) introduces a substantial expansion of the tax credits available to businesses that provide childcare support to their employees. Beginning in 2026, the maximum credit for small businesses will increase from $150,000 to $600,000. This change reflects a growing recognition of childcare as a critical component of workforce stability and business growth.

Under these new guidelines, a business does not necessarily need to own an on-site facility to qualify for the credit. Expenses related to contracting with licensed off-site providers, utilizing childcare referral services, or participating in third-party childcare platforms are generally eligible. Furthermore, the OBBBA allows smaller employers to pool their resources, making it easier to provide high-quality childcare options without a prohibitive administrative or financial burden.

As we look toward 2026, it is important for business owners to evaluate their current benefit structures. While these credits can offer significant net tax savings,…

Starting in 2026, the rules around employer-provided meals are getting a major shake-up under OBBBA — and that “50% deductible lunch” might soon cost you 100%!

Here’s what’s changing ⬇️

🚫 No more deductions for:

• Meals provided for the convenience of the employer (Sec. 119(a))

• Employer-operated cafeterias or snack areas (Sec. 132(e)(2))

Before this? Those were typically 50% deductible, sometimes even fully deductible.

Extended Filing and Payment Deadlines 

Los Angeles Wildfires:

📅Deadlines from Jan 7 to Oct 15, 2025, are extended to October 15, 2025. This includes individual and business tax returns, estimated tax payments, and 2024 contributions to IRAs & HSAs. Relief does not apply to information returns.

📅 2025 LLC annual tax payments/LLC estimated fee payments, passthrough entity elective tax payments, and nonresident/real estate withholding filings and payments have all been extended to October 15, 2025.

📅 CDTFA returns deadline has provided a 3-month extension for tax filings