Huston Tax & Accounting, Inc.

A QSB is a domestic C corporation meeting specific requirements, including being engaged in an active trade or business and meeting gross-asset limits. The OBBBA increased the asset ceiling to $75 million. Benefits include potential capital gains exclusion (50% after 3 years, 75% after 4 years for stock acquired after July 4, 2025), a per-issuer exclusion limit of $15 million, and a special 28% federal rate on non-excluded gains.

The top 5 audit risk areas are: 1) Inconsistent or unreported income, 2) Excessive or unusual deductions, 3) Repeated business losses, 4) Issues with meal and travel deductions, and 5) Third-party reporting mismatches (1099 forms and payment-platform data).

Offering an educational assistance program is a way for businesses to attract and retain talent by providing tax-advantaged benefits to employees.

Key steps include updating Form W-4 for accurate withholding, making quarterly estimated tax payments if income has changed, revisiting deductions and credits (charitable giving, medical expenses, business costs), and reevaluating retirement contributions to IRAs or employer plans.

Yes. A landmark court ruling (Kwong v. United States) found the IRS improperly assessed certain penalties and interest during the pandemic. Taxpayers charged penalties between Jan. 20, 2020, and July 10, 2023, may be eligible for a refund or abatement, with a protective claim filing deadline of July 10, 2026.

Beginning in 2026, employers generally cannot deduct 1) meals treated as de minimis fringe benefits, or 2) employer-provided meals that are excludable from an employee's income and provided for the employer's convenience on business premises. For 2025, the former were 100% deductible and the latter 50% deductible.

June 15: Individuals file 2025 returns or extensions (Form 4868), pay estimated taxes (Form 1040-ES), and corporations pay estimated income taxes (Form 1120-W). Employers deposit Social Security, Medicare, and withheld income taxes. July 10: Individuals report June tip income of $20 or more to employers (Form 4070).

The Tax Center offers tools to track your federal and state refund, view tax due dates, check current tax rates, quickly view and print IRS tax forms and publications, use a record retention guide, and print state tax forms from any state.