Taxation Insights

The phase out of paper checks has begun as the IRS shifts towards a modernized practice of using electronic payments. This order primarily effects individual or fiduciary tax payers since most businesses have already been required to use electronic payments.

Tax Tip: The Work Opportunity Tax Credit (WOTC) is available to employers that hire workers from targeted groups who face significant barrier to employment.

Will you be able to benefit from the One Big, Beautiful Bill Act (OBBBA), signed into law earlier this year? The law makes many tax provisions, which were scheduled to expire at year end, permanent and includes other favorable changes for individual taxpayers.

Tax Tip: Businesses can generally deduct their “ordinary and necessary” business expenses. But even a legitimate expense isn’t deductible unless it’s adequately substantiated.

The OBBBA contains more than 110 tax provisions. Most are effective beginning in 2026. However, a number of important provisions are effective in 2025.

Tax Tip: Using a donor-advised fund (DAF) is worth considering if charitable giving is high on your estate planning objectives. What’s the main attraction? Among other things, a DAF can give you greater control over your charitable endeavors than direct donations.

“Nonprobate assets” bypass more traditional estate planning vehicles, such as a will or revocable trust. Instead, they’re transferred to family members through beneficiary designations.

To handle their finances and file taxes, most small business owners must decide between two accounting methods: cash or accrual. This decision determines how and when income and expenses are reported, which can have a major effect on tax obligations and cash flow.