Plain-text accounting insights, tutorials, and updates from the Beancount.io team.
The One Big Beautiful Bill Act creates an above-the-line deduction of up to $25,000 in qualified tips for tax years 2025 through 2028, available only to workers in IRS-listed tipped occupations and phased out above $150,000 MAGI ($300,000 joint).
The One Big Beautiful Bill Act creates an above-the-line deduction of up to $12,500 ($25,000 joint) on FLSA-required overtime premium pay for tax years 2025-2028, with a MAGI phase-out starting at $150,000 single and mandatory W-2 Box 12 Code TT reporting from 2026.
IOLTA violations triggered 1,247 attorney discipline cases in 2025. As twelve states adopt a 30-day reconciliation deadline on July 1, 2026, this guide walks through how three-way reconciliation works, the workflow that keeps individual client ledgers tied to the bank balance, and the mistakes that most often end legal careers.
A practical comparison of FIFO, LIFO, weighted average, and specific identification — with IRS rules, Form 970 and Form 3115 mechanics, the LIFO conformity trap, and a five-step framework for picking the right inventory method in 2026.
Form 8832 lets eligible entities — domestic LLCs and most foreign companies — elect to be taxed as a disregarded entity, partnership, or C corporation. This guide covers default classifications, the 60-month lockout, late-election relief under Rev. Proc. 2009-41, and how Form 8832 differs from Form 2553.
A side-by-side comparison of the simplified $5-per-square-foot method and Form 8829's actual expense method for the 2026 home office deduction, with worked examples, depreciation recapture math, carryover rules, and a decision framework for self-employed filers.
Form 8594 allocates a business sale's purchase price across seven asset classes under IRC Section 1060. Mismatched buyer-seller filings risk $50,000 penalties.
A practical walkthrough of how Revenue Procedure 2013-30 lets businesses cure a missed Form 2553 S-corp election within three years and 75 days — no $3,500+ private letter ruling fee, no negotiation, just a checklist and a well-written statement.
A side-by-side guide to Form 1023 ($600, 30+ pages) and Form 1023-EZ ($275, three pages) — including the $50,000 gross receipts test, $250,000 asset cap, the 27-month retroactive recognition deadline, and why 37% of streamlined approvals failed to meet legal requirements.
A side-by-side guide to Form 1116 (Foreign Tax Credit) and Form 2555 (Foreign Earned Income Exclusion) for expats and cross-border workers in 2026 — the $132,900 FEIE cap, the five-year revocation lock-in, the FTC stacking rule, and a worked example showing when each one actually saves money.
Starting filing season 2026, the IRS will apply First-Time Penalty Abatement automatically for taxpayers with a clean three-year compliance record — wiping Failure-to-File, Failure-to-Pay, and Failure-to-Deposit penalties without a phone call or Form 843. Here is how the rollout works, who qualifies, and when reasonable cause is the smarter move.
ERISA Section 409 imposes personal liability on 401(k) plan fiduciaries, and the corporate veil does not shield small business owners. This guide explains the prudent-expert standard, the Tibble v. Edison duty to monitor, and how hiring a Section 3(38) investment manager shifts investment discretion — and most related liability — away from the plan sponsor.
