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IRS Changes 501(c)(4) Filing Requirements: What Organizations Need to Know

IRS Changes 501(c)(4) Filing Requirements: What Organizations Need to Know

The Internal Revenue Service has announced an important change to how 501(c)(4) organizations file their initial notifications. Beginning March 9, 2026, social welfare organizations will be required to use a new digital filing process. Understanding this change and preparing for the transition is essential to maintaining compliance and avoiding disruptions.

What Is 501(c)(4) Status?

Social welfare organizations operating under Section 501(c)(4) occupy a unique space in the nonprofit landscape. Unlike 501(c)(3) organizations, they can engage more actively in lobbying and political advocacy while maintaining tax-exempt status. Their primary purpose must be the promotion of social welfare — civic betterment and community improvement. They also enjoy tax-exempt income and, notably, are not required to publicly disclose their donors. This combination of tax benefits, advocacy flexibility, and donor privacy has made 501(c)(4) status increasingly attractive to groups seeking to influence public policy.

What Is Changing?

Organizations have historically used the IRS Electronic Notice Registration System to file Form 8976, “Notice of Intent to Operate Under Section 501(c)(4).” This form is not an application for tax-exempt status — it is a required notification that must be submitted within 60 days of the organization’s formation.

Starting March 9, 2026, organizations must submit Form 8976 through Pay.gov, the federal government’s centralized payment portal, as part of the IRS’s broader Digital First initiative. The $50 user fee remains unchanged. Payment options will include bank account transfers, credit cards, and debit cards, and filers will receive immediate electronic payment confirmation.

Critical Deadlines to Know

March 9, 2026 is a hard cutoff for the old Electronic Notice Registration System. Organizations will have a narrow 30-day window — through April 8, 2026 — to download copies of any previously submitted Form 8976 filings. After this window closes, those records will no longer be directly accessible. While the IRS can still provide copies upon request, doing so will involve additional time and administrative complexity.

Historical filings can be critical during audits or when applying for grants that require documentation of an organization’s formation and compliance history. Do not wait on this.

How to Prepare

  • Download historical records now. Access the Electronic Notice Registration System before April 8, 2026, and save copies of all previous Form 8976 submissions in multiple formats and locations.
  • Familiarize yourself with Pay.gov. Consider creating an account in advance and exploring the platform before you need to file.
  • Update payment information. Ensure the appropriate staff have authorized access to bank accounts, credit cards, or debit cards for electronic payments.
  • Update internal procedures. Revise compliance calendars, train relevant staff, and retain all new filing records — including confirmation numbers and payment receipts — indefinitely.

The Bigger Compliance Picture

Form 8976 is just one piece of a larger compliance framework for 501(c)(4) organizations. These organizations must also file annual information returns (Form 990 or 990-EZ), carefully monitor their activity levels to protect their tax-exempt status, and manage political activity so it does not become their primary purpose. The regulatory environment for 501(c)(4) organizations has grown increasingly complex, making thorough documentation and consistent compliance more important than ever.

Effective compliance requires a comprehensive calendar of filing deadlines, clearly designated responsibility for compliance matters, disciplined record-keeping — including board minutes, program documentation, and financial records — and a system for monitoring IRS regulatory updates. Regular compliance reviews can help identify potential issues before they become serious problems.

How HTB Can Help

501(c)(4) compliance can be demanding, especially for organizations with limited administrative staff. Our team of tax professionals have worked with 501(c)(4) and other not-for-profit organizations and can assist with filing under the new Pay.gov system, annual Form 990 preparation and review, and compliance assessments.

If your organization needs guidance on these changes or any aspect of 501(c)(4) compliance, contact us today.

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Five Steps to Protect Your Business from the USPS Postmark Policy Shift

Five Steps to Protect Your Business from the USPS Postmark Policy Shift

A quiet regulatory change that took effect on December 24, 2025, has fundamentally altered a long-relied-upon business practice: the certainty of the postmark. Under the USPS’s updated policy (FR Doc. 2025-20740), the official postmark now reflects when a piece of mail is first processed by an automated sorting machine, not when it is handed to a postal clerk or dropped in a mailbox. As a result, a tax return mailed on April 15 could receive a postmark dated April 16 or later—creating the appearance of a late filing despite timely mailing.

Because the IRS and most state agencies treat the postmark as legal proof of filing, this shift affects any individual or business that relies on mailed submissions for tax returns, estimated payments, extensions, property tax filings, charitable donations, and other time-sensitive documents.

Background: A Major Change to the “Mailbox Rule”

For decades, the mailbox rule provided simple protection: if a document was properly addressed, stamped, and mailed by the deadline, the postmark proved timely filing. Tying the postmark to automated processing removes that protection. The gap between mailing and processing, often driven by transportation schedules and regional facility capacity, can push a timely-mailed item into “late” territory under IRC Section 7502. This exposes businesses to penalties, interest, and the administrative hassle of disputing compliance after the fact.

Step 1: Shift to Electronic Filing and Payment

The most reliable solution is to eliminate the postmark from the process altogether. Electronic filing and payment systems—such as EFTPS, IRS Direct Pay, and state e-filing portals—provide immediate confirmation and clear evidence of on-time submission. Transitioning to e-filing includes setting up agency accounts, training staff, and creating a system to store digital confirmations securely and consistently across departments.

Step 2: Implement Earlier Internal Deadlines

When paper mail is required, build USPS processing time into your workflows. Send critical documents three to five business days before the due date, and expand that buffer during peak periods like April tax season, quarterly estimated deadlines, and year-end charitable giving. Update internal calendars to distinguish between official deadlines and internal mailing cutoffs, and use automated reminders to ensure teams follow them.

Step 3: Use Manual Postmarking and Trackable Services

For last-minute mailings, request a manual hand-stamped postmark at the post office counter—this is applied immediately and reflects the true date of submission. Combine this with trackable services such as a Certificate of Mailing (PS Form 3817), Certified Mail, or Registered Mail for added documentation. Photograph stamped envelopes and retain all receipts as part of your compliance file.

Step 4: Update Policies, Procedures, and Communications

Review your mailing and compliance procedures to reflect the new postmark rules. Create checklists specifying when e-filing is required, when to use certified or registered mail, and what documentation must be retained. Provide staff training on updated procedures and USPS forms. Professional service firms should also revise engagement letters and proactively communicate new expectations and internal cutoffs to clients.

Step 5: Develop Contingency Plans for High-Stakes Deadlines

Identify your most time-sensitive submissions and establish a tiered approach:

  1. Primary: E-file whenever possible.
  2. Secondary: Mail early using certified/trackable services.
  3. Last resort: Use manual postmarking for unavoidable last-day situations.

Maintain long-term records of all proof-of-filing documents—electronic confirmations, certified mail receipts, Certificates of Mailing, and images of hand-stamped envelopes. Since the IRS can audit most returns for up to three years (longer in some cases), consistent documentation is essential.

Conclusion: Act Now to Reduce Risk

The updated USPS postmark policy represents more than a procedural change—it alters a longstanding assumption that mailing on the deadline is enough. By shifting to electronic filing, building in mailing buffers, using trackable services, updating internal procedures, and preparing contingency plans, businesses can protect themselves from avoidable penalties and compliance issues.

At HTB, we go beyond the numbers to keep our clients ahead of changes like this one. Whether you need help updating your compliance procedures, adjusting your filing calendar, or understanding how this shift affects your specific obligations, our team is ready to help. Contact us today.

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HTB Recognized as an Accounting Today Gulf Coast Regional Leader

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HTB is proud to be recognized by Accounting Today as a 2026 Gulf Coast Regional Leader, reflecting our continued growth and commitment to exceptional client service.

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Business Personal Property Reporting: What Every Louisiana Business Owner Needs to Know

Business Personal Property Reporting: What Every Louisiana Business Owner Needs to Know

If you own a business in Louisiana, you have an important deadline approaching: April 1, 2026. Every year, Louisiana business owners are required to report their moveable business assets to their parish assessor. Missing this deadline can result in an estimated assessment that may significantly overvalue your property and increase your tax bill.

What Is Business Personal Property?

Louisiana law requires all businesses to report moveable assets used to operate their business. This includes inventories, merchandise, furniture and fixtures, machinery and equipment, leasehold improvements and miscellaneous property, consigned goods, leased, loaned, or rented equipment, furniture, etc. used for business purposes. If you use it to generate revenue and it is not permanently attached to real estate, it is likely reportable.

The LAT-5 Form and the April 1 Deadline

Parish assessors mail the LAT-5 form and any other required forms each February, giving business owners roughly two months to gather their information and file. The deadline is April 1.

Did not receive your forms in the mail? You are still required to file. It is your responsibility to notify the assessor’s office of any address changes, and a missed form does not excuse you from filing. Forms are available for download on your parish assessor’s website, so do not wait.

Where to File

Because business personal property reporting is handled at the parish level, businesses must submit their LAT-5 directly to the assessor’s office in the parish where their assets are located. Each parish provides its own filing address and submission instructions, which are available on your parish assessor’s website.

What Happens If You Miss the Deadline?

If you do not file by April 1, the assessor’s office will assign an estimated assessed value based on whatever information they have available or the previous year’s report. Estimated assessments rarely work in your favor. They may not account for assets you have disposed of or the actual condition of your property. Filing on time is the only way to ensure your business is assessed fairly.

A Few Tips to Stay Compliant

  • Update your address. Make sure the assessor’s office has your current mailing address. Do not assume other address updates carry over.
  • Gather your records now. You will need asset descriptions, original costs, and acquisition dates. If you track assets for federal income tax purposes, you likely have most of this already.
  • Review your asset list before you file. Do not simply resubmit last year’s listing without reviewing it first. If assets have been sold, disposed of, or retired, remove them before filing. Any assets left on your form will be included in your assessment, even if they are no longer in use.
  • Keep copies of everything you submit. This protects you if questions arise later.
  • Know that your information is confidential. All forms filed with the assessor’s office are strictly confidential under Louisiana law.

Supporting Your Business Every Step of the Way

Business personal property reporting can become complex—especially for businesses with significant fixed assets, operations in multiple parishes, or gaps in prior-year compliance. Ensuring accuracy now can help you avoid unnecessary assessments, penalties, or administrative headaches later.

If you have questions about your filing obligations or need support preparing your LAT-5, our team is here to help you meet the April 1 deadline with confidence. Contact us today.

 

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New IRS Guidance Clarifies Rules for Permanent 100% Bonus Depreciation

New IRS Guidance Clarifies Rules for Permanent 100% Bonus Depreciation

The IRS has released new guidance on how the permanent 100% bonus depreciation provisions, enacted as part of the One Big Beautiful Bill Act (OBBBA) in 2025, will apply beginning in the 2025 tax year. Notice 2026-11 provides important clarification on eligible property, key elections, and opportunities for taxpayers to strategically time their deductions.

Before reviewing the updates, it’s helpful to revisit the history of bonus depreciation.

A Quick Refresher: What is Bonus Depreciation?

Bonus depreciation allows businesses to immediately deduct the full cost of qualifying capital assets in the year they are placed in service, rather than recovering the cost over the asset’s useful life. This tool has long been used to encourage investment and was significantly expanded under the Tax Cuts and Jobs Act (TCJA) in 2017.

Under the TCJA, 100% bonus depreciation applied to qualified property placed in service between September 27, 2017, and December 31, 2022, with a scheduled phase-out beginning in 2023. Without legislative action, the deduction would have fully phased out by 2027.

The OBBBA reversed that course. Beginning January 19, 2025, the law reinstated and made permanent 100% first-year bonus depreciation for eligible property placed in service after that date.

Bonus depreciation remains distinct from Section 179 expensing, which also offers accelerated deductions but is subject to annual limits, income thresholds, and phase-outs. Many businesses continue to use both provisions as part of their tax planning strategy.

Key Clarifications From the IRS

Under the updated rules, taxpayers may continue to claim a full 100% deduction on most new or used tangible business assets with a recovery period of 20 years or less. This generally includes:

  • Equipment
  • Machinery
  • Certain vehicles
  • Computer and technology systems
  • Furniture
  • Certain leasehold improvements

To qualify, the property must be acquired and placed in service after January 19, 2025.

Confirmation of Eligible Property

The IRS reaffirmed that the definition of qualified property remains consistent with prior years. Eligible assets must:

  • Be depreciable under MACRS
  • Have a recovery period of 20 years or less
  • Be placed in service after January 19, 2025
  • Be new or used, subject to existing limitations

Notably, the updated law expands eligibility to include qualified sound recordings, which may benefit media, entertainment, and advertising businesses.

Elections that Remain Available to Taxpayers

The IRS confirmed that several elections, helpful for managing taxable income, continue to apply. Taxpayers may choose to:

  • Elect a reduced first-year bonus depreciation amount (40% instead of 100%)
  • Opt out of bonus depreciation for one or more classes of property
  • Expense specific components of self-constructed property
  • For farming and media businesses: elect bonus depreciation on certain plants or production assets

These elections can be beneficial when businesses anticipate higher future income and prefer to defer deductions rather than fully accelerating them. Elections are made on the tax return for the year the asset is placed in service and are generally irrevocable.

Special Rules for Farming and Long-Production Assets

The IRS also outlined guidance for two key categories:

Specified Plants for Farming Operations
Farmers may elect to take 100% bonus depreciation when specified plants—such as fruit trees, vines, or nut trees—are planted or grafted, rather than waiting until they begin producing income.

Long-Production-Period Property and Certain Aircraft
Taxpayers may elect a 60% bonus depreciation rate for certain assets that require an extended construction or manufacturing period. This applies for the first taxable year ending after January 19, 2025.

Planning Considerations Moving Forward

While the IRS characterizes this update as “interim guidance,” it provides meaningful direction for the upcoming filing season. With permanent 100% bonus depreciation now restored, businesses may find renewed opportunities to accelerate deductions and improve cash flow.

If you are planning capital investments, equipment purchases, or long-term construction projects, this is an ideal time to evaluate how these rules may impact your overall tax strategy. Coordinating bonus depreciation with Section 179, long-term planning, and projected income patterns can help you optimize the benefit.

HTB’s tax team is ready to help you make the most of permanent bonus depreciation. Contact us today to evaluate opportunities that support your capital planning and strengthen your long-term tax outlook.

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Understanding the New Child-Focused “Trump Accounts”: What Parents Need to Know

Understanding the New Child-Focused “Trump Accounts”: What Parents Need to Know

The IRS recently issued additional guidance (IR-2025-117 and Notice 2025-68, released December 2, 2025) on a new type of retirement savings vehicle known as a Trump Account, set to become available in 2026. While many administrative questions remain, families can now begin to understand how these accounts may fit into long-term financial planning for children.

What is a Trump Account?

A Trump Account is a newly created, tax-advantaged individual retirement account (IRA) established under the One Big Beautiful Bill Act (OBBBA) and codified in Section 530A of the Internal Revenue Code. It is designed specifically for children under age 18, with the goal of helping families start retirement-focused investing early—even before the child has earned income.

Unlike traditional or Roth IRAs, no earned income is required. Parents and other eligible contributors may fund the account on the child’s behalf.

The IRS has confirmed that contributions will not be permitted until July 4, 2026.

Eligibility

A Trump Account may be opened for any child who:

  • Has a Social Security number, and
  • Has not reached age 18 by the end of the year the election is made.

The election to open the account is expected to be made by a parent, legal guardian, adult sibling, or grandparent using Form 4547 (currently in draft form).

Although full custodial rules have not yet been finalized, Trump Accounts are expected to operate similarly to custodial IRAs, with an adult serving as custodian until the child is legally allowed to assume control.

How do Trump Accounts Work?

Contributions

Under current guidance:

  • Total contributions are capped at $5,000 per year, aggregated across all contributors.
  • This limit applies whether contributions come from parents, relatives, employers, or others.
  • The limit will be indexed for inflation beginning in 2028.

Exceptions to the $5,000 cap include:

  • The one-time $1,000 federal pilot contribution (details below)
  • Qualified contributions from governments or charities for defined beneficiary groups

Employers may contribute up to $2,500 per year to an employee’s dependent’s Trump Account. These contributions:

  • Are not included in the employee’s taxable income
  • Do count toward the child’s $5,000 annual limit

Employers may also allow employees to contribute via a Section 125 cafeteria plan, enabling pre-tax salary reductions into the account.

Certain governmental and charitable organizations may also make contributions for eligible populations, such as children in foster care.

Investments

Trump Accounts are restricted to broad-based U.S. equity index funds, such as those tracking the S&P 500.
Investments cannot include:

  • Individual stocks
  • Cryptocurrency
  • Alternative investments

Withdrawals and Tax Treatment

Withdrawals are prohibited until January 1 of the year in which the child turns 18, except for limited circumstances that remain undefined.

Afterward, the account is treated much like a traditional IRA, with:

  • Withdrawals taxed as ordinary income
  • Early withdrawal penalties applying before age 59½ (unless an exception applies)
  • IRA basis rules determining how contributions and earnings are taxed

The $1,000 Pilot Program Contribution

The highly discussed $1,000 federal seed contribution applies only to certain children.

To qualify, a child must be:

  • A U.S. citizen
  • Born between January 1, 2025, and December 31, 2028
  • Properly enrolled using a timely Trump Account election

This contribution does not count toward the $5,000 annual limit. Children born outside the 2025–2028 window do not qualify unless Congress acts to extend the program.

How Trump Accounts Compare to Other Common Options

Many parents are already familiar with Roth IRAs, custodial Roth IRAs, and 529 plans, and may wonder how Trump Accounts fit alongside or compete with those tools.

Feature

Trump Account (as of Dec. 2025)

Custodial Roth IRA

Roth IRA

529 Plan

Eligible Owner

Child under 18 with social security number

Minor with earned income

Adult with earned income

Anyone (beneficiary designated)

Earned Income Required

No

Yes

Yes

No

Annual Contribution Limit

$5,000

$7,000 (2025)

$7,000 (2025)

High lifetime limits (state-specific)

Tax Treatment

Tax-deferred (traditional IRA rules)

Tax-free growth if qualified

Tax-free growth if qualified

Tax-free for education

Investment Restrictions

U.S. equity index funds only

Broad

Broad

Plan-dependent

Withdrawals Before 18

Generally prohibited

Contributions can be withdrawn

N/A

Allowed for education

Federal Seed Money

$1,000 (limited pilot)

None

None

None

The key distinction: Trump Accounts are specifically designed for long-term retirement savings—not education funding or short-term needs.

What We Don’t Know Yet

Several important elements remain unresolved pending additional IRS guidance, including:

  • Whether funds can be rolled into Trump Accounts from 529 plans or other custodial arrangements
  • How states will treat Trump Accounts for tax purposes
  • Detailed rules for custodians and trustees

The IRS has requested public comments, and further clarification is expected throughout 2026.

What Can Parents Do Now? 

Even though contributions cannot start until July 2026, families can begin preparing by:

  • Reviewing eligibility for children born between 2025 and 2028
  • Understanding how contribution caps and custodial rules may apply
  • Meeting with a tax or financial advisor to see how a Trump Account fits into existing savings strategies

Parents already utilizing 529 plans or custodial Roth IRAs should be especially cautious about assuming a one-for-one replacement. Based on current guidance, Trump Accounts serve a separate and more restrictive purpose.

A New Tool, Still Taking Shape

The IRS’s December 2025 guidance provides meaningful clarity, but these accounts are still evolving. More information is expected in the months ahead.

For now, families should know this: Trump Accounts are coming, they may offer meaningful long-term benefits, and the landscape will continue to develop as the IRS releases additional guidance.

HTB’s tax professionals are here to help you navigate these emerging rules with clarity and confidence. Contact us today to explore how Trump Accounts may fit into your family’s long-term financial strategy and to plan with foresight as the guidance continues to develop.

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HTB Consulting Partner Ferdie Genre Receives Livingston Parish Bob Easterly Award

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Ferdie P. Genre has been honored with the 2026 Bob Easterly Award for his decades‑long commitment to strengthening and supporting the Livingston Parish community.

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Bookkeeper, Controller, or CFO: Which Financial Role Does Your Growing Business Need?

Bookkeeper, Controller, or CFO: Which Financial Role Does Your Growing Business Need?

As your business grows, so do your financial management needs. What starts as simple transaction recording quickly evolves into budgeting, forecasting, and strategic planning. Understanding the difference between a bookkeeper, controller, and CFO, and knowing when you need each, is one of the most important decisions a growing business can make. Getting it wrong can leave you with either too little support to manage complexity or too much overhead for where you are today.

Signs It Is Time to Get Help

Businesses typically reach an inflection point where managing finances internally is no longer sustainable. Common triggers include rapid growth that strains existing systems, increasing complexity from new locations or entities, persistent cash flow challenges, a need to raise capital, or the early stages of exit planning. When any of these arise, the right financial support can be the difference between reacting to problems and getting ahead of them. And the longer you wait, the harder it becomes to course-correct.

The Bookkeeper: Your Financial Foundation

Every business needs accurate bookkeeping from day one. Bookkeepers manage daily transactions, accounts receivable and payable, payroll, bank reconciliations, and basic financial reporting. They are the keepers of your financial record, ensuring that every dollar in and out is captured accurately and on time. Without this foundation in place, everything built on top of it, including budgeting, tax planning, and strategic planning, rests on unreliable data. No matter how sophisticated your financial leadership becomes, it is only as good as the books beneath it.

The Controller: Your Accounting Operations Manager

Where a bookkeeper records what happened, a controller helps you understand what it means. Controllers oversee the accounting function, develop and monitor budgets, analyze budget-versus-actual performance, forecast short-term cash needs, and implement internal controls and more complex accounting processes such as accrual-based accounting or expense allocation for proper margin analysis. They also play a critical role in implementing and maintaining the financial systems your business depends on. If your financial complexity is outpacing what a bookkeeper alone can handle, a controller brings the analytical depth and operational oversight to keep you on track.

The CFO: Your Strategic Financial Leader

A CFO operates at the highest level, focused on the long-term financial direction of your business. Working closely with ownership and senior leadership, a CFO develops financial strategy, optimizes capital structure, leads fundraising efforts, and manages investor and lender relationships. They use financial modeling and forecasting to guide decision-making, identify risk, and evaluate major opportunities. CFO-level expertise becomes essential at strategic inflection points: rapid scaling, a capital raise, a significant acquisition, or planning for a future business sale. At these moments, having the right financial leadership in place is not optional.

Choosing the Right Level of Support

Think of these roles as layers, not alternatives. Bookkeepers provide the reliable data that controllers analyze, and controllers produce the insights that CFOs use to drive strategy. Each layer builds on the one beneath it, which is why gaps in the foundation create problems all the way up. Most businesses need solid bookkeeping from the start, with controller and CFO services added as complexity and strategic demands grow.

For many growing businesses, outsourced financial services offer the most practical path forward. Rather than committing to full-time salaries, benefits, and overhead for roles you may only need part-time, outsourcing gives you access to bookkeeper, controller, and CFO-level expertise in a structure that scales with your business. It also means you are drawing on professionals who have worked across industries and business situations, bringing perspective and experience that a single in-house hire rarely can match.

How HTB Can Help

HTB’s Outsourced Accounting Services, also known as Client Accounting and Advisory Services (CAAS), provide the full spectrum of financial management support, from foundational bookkeeping to controller oversight to strategic CFO advisory, tailored to where your business is today and where you want it to go. To learn how we can help you build the right financial management structure, contact us today.

 

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What to Prepare for the 2026 Tax Season: A Complete Guide

What to Prepare for the 2026 Tax Season: A Complete Guide

For many individuals, tax season brings a mix of uncertainty and last-minute stress. With some thoughtful preparation, you can reduce surprises, minimize your tax liability, and make the process more efficient for you and for your advisor.

Here are a few practical ways to stay ahead this year.

Start With the Essentials: The Documents You’ll Need

Effective tax preparation begins with gathering the right documents. Once you have these in one place, the rest of the process becomes much easier.

Start by collecting basic personal information such as Social Security numbers, your current address, and details for any dependents. Next, pull together all income forms including W-2s, 1099s, K-1s, and investment statements.

For above-the-line deductions, gather records for IRA and HSA contributions along with any student loan interest. For itemized deductions, compile your mortgage interest statement, property tax receipts, state and local tax payments, charitable contributions, and qualified medical expenses. If you are self-employed or purchased insurance through the marketplace, include your health insurance documents as well.

You should also note any major life changes during the year. Events such as a birth, marriage, divorce, death, or the purchase or sale of a home or business can have significant tax effects.

Be Patient With Late or Corrected Forms

Although organization is important, filing too early can create problems. This is especially true if you have investment accounts or receive K-1s. Some custodians do not issue 1099s until mid-February or later, and corrected forms may continue arriving weeks after that.

Waiting to file until all final documents are available helps you avoid amended returns and the time, cost, and stress that come with them.

Do Not Overlook These Common Deductions and Credits

Tax season is a time when very simple oversights can lead to missed savings.

Self-employed individuals may be able to deduct health insurance premiums. HSA contributions are another strong tool for reducing taxable income. Childcare expenses, education costs, charitable giving, and certain energy-efficient home improvements may also qualify for valuable benefits.

If you contributed to a SEP IRA, solo 401(k), or traditional IRA, those contributions may be deductible based on your income and plan type. Even if you did not qualify in the past, changes in your situation or in current tax law may make these opportunities worth revisiting.

New Deductions Under the One Big Beautiful Bill Act

The One Big Beautiful Bill Act, signed on July 4, 2025, introduced several new deductions that may lower your taxable income this year.

Tip income deduction. Workers in tipped occupations may deduct qualified tips from federal taxable income. The limit is $25,000 for married couples filing jointly and lower for other taxpayers. The deduction phases out as income rises and has strict eligibility rules. Learn more about the new tip deduction by clicking here.

Overtime pay deduction. The premium portion of overtime pay, often the additional half-rate in time-and-a-half, may now be deductible. The annual limit is $12,500, or $25,000 for joint filers. Income phase-outs apply. Learn more about the new overtime pay deduction by clicking here.

Car loan interest deduction. Taxpayers may deduct up to $10,000 in interest paid on loans used to purchase a new personal-use vehicle. The vehicle must be new. Lease payments do not qualify. Income limits apply to this deduction as well.

Additional deduction for seniors. Taxpayers age 65 or older may claim an additional $6,000 deduction. Married couples where both spouses qualify may claim $12,000. Income thresholds determine eligibility.

Each provision includes detailed requirements and documentation standards. A qualified tax advisor can help you determine whether you are eligible.

Business Owners: Additional Items to Keep in Mind

Business owners have additional responsibilities that affect both business and personal tax returns.

If you operate an S corporation or partnership, your business return should be filed before your personal return. Your Schedule K-1 flows through to your individual taxes, and delays in filing the business return will delay your personal filing.

Make sure your books are complete and accurate. This includes reconciling bank accounts, categorizing expenses, and reviewing any unusual transactions.

If you paid independent contractors at least $600 last year, you are likely required to issue a 1099-NEC by February 2. Missing the deadline can result in penalties, so confirm that these forms have been sent.

Use this time to review mileage logs, home-office expenses, and business-related travel or meals paid out of pocket. Strong records make your deductions easier to support and give you more confidence if your return is ever reviewed.

Understand Your Deadlines and What an Extension Means

For most taxpayers, the filing deadline this year is April 15, 2026. State deadlines may differ, especially in areas affected by disaster declarations.

If you need more time to file, you can request an extension. An extension gives you more time to submit your return, but it does not give you more time to pay. If you expect to owe taxes, sending a payment with your extension form by April 15 can help you avoid interest and penalties.

Why Working With a Tax Professional Matters

Even simple returns can involve layers of complexity. Major life events such as marriage, divorce, inheritance, or the sale of a business often carry tax implications that are easy to overlook.

Items like equity compensation, cryptocurrency transactions, multi-state income, passive K-1 activity, and prior IRS notices require careful review. While software can be helpful, it cannot always identify key risks or opportunities that an experienced CPA will recognize.

Partnering with a professional early ensures compliance with current rules, reduces errors, and helps you make informed decisions.

A Little Preparation Goes a Long Way

The more organized you are now, the more smoothly tax season will go. Early preparation helps you avoid missed deductions, penalties, and last-minute issues. If you are unsure whether your current process is working for you, this is an ideal time to ask for guidance.

HTB’s tax professionals are here to guide you through every stage of the filing process and help you make informed decisions for the year ahead. Contact us today to begin planning with clarity and confidence.

 

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New IRS guidance offers tax break for lenders in agricultural lending market

The IRS has released new temporary guidance under Section 139L, allowing eligible lenders to exclude 25% of interest income from certain agricultural and rural loans. Learn more about what qualifies and how this provision may impact your lending activities.

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