TRUE DAT!

 

SOME GOOD ADVICE

 

Here is some good advice.

If you receive a notice from the IRS or a state tax agency relating to a tax return you filed - send it to your tax preparer ASAP.

If you had a balance due on a federal or state income tax return, which you paid with the filing of the return, and you receive a check from the IRS or the state relating to that return – do not cash the check.

The IRS or state agency will send you a notice that should arrive within a few days after receiving the check explaining why the check was sent.  Send this notice to your tax preparer and do not cash the check unless the preparer tells you it is ok.

If you “self-prepared” the return in question - consult a tax professional before paying any balance requested on a notice or depositing any check received.

In my 50+ years of experience as a tax professional more often than not notices from the IRS and state tax agencies are wrong.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* Jeff Stimpson brings tax professionals some good news with “PTIN season to kickoff with lower fees” at ACCOUNTING TODAY -

“The IRS Return Preparer Office conducted a biennial review of the PTIN user fee in 2025 and determined that the full cost of issuing or renewing a PTIN should be reduced from $11 to $10, plus $8.75 payable directly to a third-party contractor.”

$1.00 less – big whoop.  I still do not understand the reason for the $8.75 paid to a third-party contractor.

* The IRS has released Rev Proc 2025-32 which “sets forth inflation-adjusted items for 2026 for various {Tax} Code provisions”.   

Click here for an IRS IR-2025-103 “IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill”.   

* Kelley R. Taylor reminds taxpayers with a “side hustle” of “Another IRS 1099-K Threshold Change to Know for Your 2025 Taxes” at KIPLINGER.COM.

Thanks to the Big but Not So Beautiful Bill -

“So, for payments you receive for 2025 (sent to you in early 2026), you should only receive a Form 1099-K if:

+ You receive more than $20,000 in gross payments and

+ You conduct more than 200 transactions on a single platform within a year.”

* The IRS has issued a draft form of a new much more complicated Form W-4 for 2026, reflecting the changes made to the BBNSBB, with new worksheets for deductions and multiple jobs.

It looks like a new income source for tax professionals.

* Peter J Reilly tells us “IRS Draft Form Confirms Tip Deduction Marriage Penalty” at FORBES.COM.

IMHO there should be neither a marriage penalty or a marriage benefit in the Tac Code.

 * Financial Planner Sean Mullaney, THE F.I. TAX GUY tells us “it’s that time of year again” and discusses “2025 Year-End Tax Planning”.

THE LAST WORD

A reminder.

The current President of the Unites States, convicted felon and indicted traitor Donald J. “The Man Who Would Be King” Trump, is a totally worthless human being, completely devoid of intelligence, character, integrity, honor, humanity, sympathy, and empathy who does not possess a single redeeming positive human quality or value.  He does not care one ounce about anyone or anything but himself and has never performed a single totally unselfish act in his entire adult life.

America and American democracy will not be safe until Trump is gone.

Hey – just calling a spade a shovel.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

All the BUZZ this time around comes from the IRS.

* “IRS extends relief to farmers and ranchers affected by drought in 49 states, other regions.”

* And “IRS to phase out paper tax refund checks starting with individual taxpayers” –

“The Internal Revenue Service, working with the U.S. Department of the Treasury, today announced that paper tax refund checks for individual taxpayers will be phased out beginning on Sept. 30, 2025, as required by Executive Order 14247, to the extent permitted by law. This marks the first step of the broader transition to electronic payments.”

I had always recommended to my clients that they receive their refunds via Direct Deposit.

Also coming –

“Executive Order 14247 also applies to payments made to the IRS. Taxpayers should continue to use existing payment options until further notice. Additional guidance and information for filing 2025 taxes will be issued prior to the 2026 filing season.”

* Jeff Stimpson reports “IRS unveils new per diem rates” –

“The Internal Revenue Service, in Notice 2025-54, announces the special per diem rates effective Oct. 1, 2025, which taxpayers may use for expenses for lodging, meals and incidental expenses when traveling away from home.”

You can go here for the per diem rates.

THE LAST WORD

How appropriate that Republican states are called red and Democratic states are called blue.

Red is a symbol of danger used in warning signs. Blue has been called an “honest, reliable, and responsible color” that “makes us feel confident and secure”.

The greatest threat and danger facing America is today’s Trump-embracing and Religious Right controlled Republican Party.

I respect the beliefs of true conservatives and traditional Republicans.  I have absolutely no respect for the MAGA morons of today’s Republican Party.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* From Ashleigh Fields at THE HILL – “Here are the jobs covered by Trump’s ‘No tax on tips’ law” –

“There are more than 60 jobs that will qualify for President [replace with ‘convicted felon and indicted traitor’ – rdf] Trump’s ‘no tax on tips’ law ushered in through his ‘One, Big, Beautiful Bill Act’.”

Here is the IRS publication of the individual Codes for qualifying “tipped” occupations.

* The IRS has issued drafts of the 2025 Form 1040, Schedule A, and a new Schedule1-A to reflect the tax law changes made by the Big but Not So Beautiful Bill.

The 2025 Form 1040 also enhances the section on Dependents, moves the check boxes for age 65 and blind to the Tax and Credits section on Page 2, adds additional check boxes for the Earned Income Credit, and makes the form 2 full pages.  Page 1 ends with the Adjusted Gross Income, which is very appropriate.

The 2025 Schedule A expands the Taxes You Paid section to reflect the increased SALT limit and has a worksheet to calculate the phase-down of the deduction.

The new Schedule 1-A provides sections to calculate new the tip, overtime, and senior deductions reflecting the AGI phase-outs.

* Kelley R. Taylor reports that a “New Bill Would End Taxes on Social Security Benefits in 2026: What Retirees Should Know” at KIPLINGER.COM –

“On September 4, Sen. Ruben Gallego (D-Ariz.), joined by Rep. Angie Craig of Minnesota, who introduced a parallel bill in the U.S. House of Representatives in April, unveiled the ‘You Earned It, You Keep It’ Act in the U.S. Senate.”

Kelley explains, “The bill would permanently abolish federal taxes on Social Security benefits”.

I have always said that Social Security benefits should be taxed the same way as any other contributory pension – but I do not oppose completely abolishing federal income taxes on Social Security benefits. 

When I first started preparing taxes Social Security benefits were exempt from income tax.  Benefits were first made partially taxable via the “Social Security Amendments of 1983”, signed into law by Ronald Reagan.  

A reminder - this bill has not yet passed.  So, no reason to celebrate yet.

* A warning from the NJ Division of Taxation –

“SCAM ALERT: If you receive an unsolicited text message claiming to be from the New Jersey Division of Taxation, it is a scam. We do NOT initiate text messages with taxpayers. We only send text messages if requested through our phone system. Never click links or share personal information in an unsolicited message. If you are unsure about a message, contact us directly through our official channels.”  

THE LAST WORD

America no longer a Democracy – it is a Kakistocracy.

Look it up.

TTFN

NEVER FORGET!

 

   Police Officer Maurice Barry - PATH Emergency Service Unit - P.O. Shield #1038

A Port Authority officer for 16 years, Maurice "Moe" Barry, 48, was assigned to the PATH commuter train system. The resident of Rutherford, NJ, upon hearing the reports of the terrorist attacks, was one of the first on scene when he rushed from Jersey City to Lower Manhattan and then into the North Tower to help in the rescue efforts. As thousands fled the searing flames and smoke of the Towers, Officer Barry was attempting to reach trapped and frightened workers on the upper floors. The last time he was seen, he was on his way to the higher floors to get people out.
.
Moe had a history of heroism - he was involved in rescue efforts during an airplane crash at La Guardia airport; he once climbed a bridge to retrieve the body of a person electrocuted there; he was involved in the rescue effort during the 1993 bombing of the World Trade Center; and he rescued a woman from her home, by boat, during Hurricane Floyd. Moe was also a volunteer for the Rutherford Ambulance Corps.

------------------------------------------------------

Most of us can remember exactly where we were and what we were doing on dates of historic importance.

The day President Kennedy was shot I was on a 6th Grade field trip to the Museum of Natural History in New York City. I was sitting in the theatre at the Hayden Planetarium watching a presentation when the show suddenly stopped. The lights went on and it was announced over the PA system that President Kennedy had been shot. We were all told to go home.

The day President Nixon resigned I was at a Crosby, Stills and Nash concert in Roosevelt Stadium on Route 440 in Jersey City (it no longer exists – it has been replaced by condos). CSN announced that Nixon had just resigned and proceeded to break into a rousing version of "Ohio" (“Tin soldiers and Nixon’s coming…).

When the planes crashed into the World Trade Center on September 11, 2001, I was on a Parker Tours escorted bus trip to Ocean City, Maryland. At the time of the attack our group was at the Assateague Island National Seashore. We were not told about it until we had returned to the bus and were driving back to our hotel, where we were supposed to attend a welcome reception. The reception was cancelled, and we all went to our individual rooms to watch the tragedy unfold on television.

On September 11, 2001, my client, and fellow Dickinson High School Class of 1971 graduate (although we did not discover this until many, many years later when he happened to notice an award I had received from my high school graduating class that was hanging on the wall of the Newark Avenue office and said that he graduated from DHS in 1971 too), Maurice “Moe” Barry was one of the members of the Port Authority Police Emergency Response Team, among the “first responders” to the initial attack, who were killed when the tower collapsed.

Moe always came in to have his tax return prepared on the very last day of the season, April 15, 16 or 17 of each year, a long-standing tradition he first began as a client of my mentor Jim Gill before I “inherited” the practice. Each year when we saw Moe we knew it was almost over. One year he came in on April 10th and we told him to go away and come back on the 15th. To honor Moe’s memory, before I retired, I no longer worked on 1040s on the last day of “the season”. For me the tax filing season ended each year on April 14th (or 15th or 16th). 

 

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* The 2025–2026 New York State budget provides for the state’s first-ever Inflation Refund Checks for residents based on their 2023 IT-201 NY Adjusted Gross Income.

“Checks will be mailed over a period of several weeks beginning in mid-October of 2025.”

* The IRS has issued Fact Sheet 2025-05 to address the accelerated termination of several energy provisions under the big but not so beautiful bill -  

“OBBB accelerated the termination of several energy credit and deduction provisions. The following incentives expire the soonest:”

IRC	Credit	Termination date
25C	Energy efficient home improvement credit	Property placed in service after December 31, 2025.
25D	Residential clean energy credit	Expenditures made after December 31, 2025.
25E	Previously-owned clean vehicles credit	Any vehicle acquired after September 30, 2025.
30C	Alternative fuel vehicle refueling property credit	Any property placed in service after June 30, 2026.
30D	New clean vehicle credit	Any vehicle acquired after September 30, 2025.
45L	New energy efficient home credit	Any qualified new energy efficient home acquired after June 30, 2026.
45W	Qualified commercial clean vehicle credit	Any vehicle acquired after September 30, 2025.
179D	Energy efficient commercial buildings deduction	The deduction will not be allowed with respect to any property the construction of which begins after June 30, 2026.

* Speaking of the termination of energy credits, Kay Bell reports “IRS tweaks EV tax credit’s Sept. 30 ending date” at DON’T MESS WITH TAXES -

“ . . the IRS’ frequently asked questions (FAQ) fact sheet issued Aug. 21 says that a vehicle is acquired, per the OBBB requirement, ‘as of the date a written binding contract is entered into and a payment has been made.’”

* And Kay tells us “IRS releases draft 2026 Form W-2, incorporating no tax on tips or overtime income” in another DMWT post.

Kay explains how the newly required information on tip and overtime income available for the OBBA tax deductions are reported for 2026.  But there is no word on how this information will be reported on the 2025 W-2.  

* Russ Fox gives us the word that “IRS Closes Cincinnati Lockboxes; New Addresses In Effect Immediately” at TAXABLE TALK –

“The major change for residents of Alaska, California, Colorado, Hawaii, Idaho, Kansas, Michigan, Montana, Nebraska, Nevada, Ohio, Oregon, North Dakota, South Dakota, Utah, Washington, and Wyoming is that there are new addresses to mail Forms 1040-V and 1040-ES. (Paper-filed forms 1040 with a payment go to the 1040-V address.)”

His source is IRS Publication 3891 “Lockbox Addresses for 2026”.

THE LAST WORD

Supporting and enabling convicted felon and indicted traitor Trump and his attempt to effectively become the King of the United States is unconscionable.

The Republicans in Congress should be ashamed.

Every day brings more proof that nothing is more important – and I mean nothing – for the future of America than making sure the Democrats take control of Congress by a safe majority in 2026.

If Republicans maintain control of Congress, 2026 will not only be the 250^th anniversary of the Declaration of Independence but it will also be the end of American freedom and democracy.

TTFN