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Tax Prep Toolbox: Avoid IRS Penalties with These Essential Tools
If you’ve ever been hit with an unexpected IRS penalty, you’re not alone. The tax code is full of traps for the unwary—but there are also smart, legal tools you can use to avoid unnecessary charges. Whether you’re a self-employed freelancer, a high-earning individual, a corporation, or managing a trust or estate, this post gives…
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Understanding the Internal Revenue Manual (IRM)
The Internal Revenue Manual (IRM) is one of the most important internal tools used by IRS employees. It provides detailed instructions for carrying out administrative and procedural functions, such as how to: While the IRM is not legally binding and does not have the force of law, it plays a crucial role in how the…
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IRS Updates Automatic Accounting Method Changes
Overview On May 13, 2025, the IRS released Revenue Procedure 2025-23, updating the framework under which taxpayers can request automatic consent for changing their method of accounting. This new guidance modifies and expands upon the prior procedures in Rev. Proc. 2015-13 and the list of automatic changes under Rev. Proc. 2024-23. The updates are especially…
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S&P 500: A Strong Start to the Year
Q1-25 has seen impressive earnings performance from S&P 500 companies. Approximately 78% of these companies surpassed their earnings-per-share (EPS) expectations, exceeding both the 5-year average of 77% and the 10-year average of 75%. Now, part of this may be due Key Highlights: Conclusion: The robust earnings performance in Q1 2025 underscores the resilience and adaptability…
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The Dynamics between income , self-employment, and net investment income tax.
The U.S. federal tax system applies different taxes to various types of income, primarily ordinary income, self-employment, and the net investment income taxes (NIIT). Ordinary income tax applies broadly to wages, business profits, and most other types of earned income, with rates for the 2025 tax year ranging from 10% to 37%, depending on your…