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Tax

Tax strategies, planning, and compliance for individuals and businesses

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May 13, 2026

Subpart F Income and Controlled Foreign Corporations: Why U.S. Owners Get Taxed on Foreign Profits Before the Cash Comes Home

Subpart F forces U.S. shareholders of a controlled foreign corporation to recognize foreign profits as current-year income, even when no cash is distributed. This guide covers the 10 percent threshold, the four triggering income categories, Section 958 constructive ownership traps, Form 5471 penalties, and how the 2026 OBBBA rewrite (NCTI, restored 958(b)(4), 40 percent Section 250 deduction) reshapes the rules.

mike

international-taxforeign-corporationstax-compliance

May 13, 2026

Subpart F Income and CFC Rules: U.S. Tax on Foreign Corporation Profits Under NCTI in 2026

How U.S. shareholders of foreign corporations are taxed on undistributed profits in 2026: the 10 percent threshold, Section 958 constructive ownership, Form 5471 filing duties, and the OBBBA rewrite that replaced GILTI with Net CFC Tested Income (NCTI).

mike

international-taxforeign-corporationstax-compliance

May 13, 2026

Treasury Bills for Business Cash Management: A 2026 T-Bill Ladder Guide

A practical 2026 playbook for small businesses using a Treasury-bill ladder to earn ~3.66% on idle operating cash, capture the state and local tax exemption on Treasury interest, and keep the bookkeeping clean.

mike

treasury-managementsmall-businesscash-flow

May 12, 2026

Additional Medicare Tax 0.9%: How Form 8959 Reconciles Employer Withholding With Filing Status Thresholds

A 0.9% surtax applies to earned income above $200,000 (single) or $250,000 (joint), but employers withhold using a flat $200,000 per-job trigger. Form 8959 reconciles the two rules — generating a balance due for most dual-income couples and a credit for over-withheld single earners.

mike

taxtax-planningtax-compliance

May 12, 2026

The BBA Partnership Audit Playbook: Partnership Representatives, Push-Out Elections, and the Imputed Underpayment Trap You Did Not See Coming

Under the Bipartisan Budget Act centralized audit regime, the IRS assesses partnership tax adjustments at the entity level at the highest individual rate. This guide explains when to elect out under Section 6221(b), how the partnership representative can modify or push out the imputed underpayment under Section 6226, and how to file an administrative adjustment request on Form 8082.

mike

partnershipstaxtax-compliance

May 12, 2026

FIRPTA Withholding: The Buyer's 2026 Guide to Section 1445 and Form 8288

FIRPTA requires US real estate buyers to withhold 15 percent of the gross sale price from foreign sellers and remit it on Form 8288 within 20 days of closing. This guide explains Section 1445, the $300,000 personal residence exemption, the 10 percent reduced rate, withholding certificates on Form 8288-B, and how buyers avoid personal liability with an Affidavit of Non-Foreign Status.

mike

real-estateinternational-taxtax-compliance

May 12, 2026

Form 2290 and the HVUT: How Trucking Operators File Heavy Highway Vehicle Use Tax Before the August 31 Deadline

Form 2290 funds federal highway maintenance through an annual excise tax on vehicles with a taxable gross weight of 55,000 pounds or more. Owner-operators and fleets owe up to $550 per truck and must file by August 31 — late filings trigger a 4.5% monthly penalty and DMV registration suspension.

mike

taxtax-compliancetax-deadlines

May 12, 2026

Form 5329 and the Missed RMD: How SECURE 2.0's 25%/10% Penalty Rules Work

SECURE 2.0 cut the missed-RMD excise tax from 50% to 25%, and to just 10% if the shortfall is corrected within a two-year window. Form 5329 is how taxpayers claim the reduced rate or request a full reasonable-cause waiver, and the form also starts the IRS's three-year limitations clock.

mike

taxtax-compliancetax-planning

May 12, 2026

Form 8027: How Restaurants Apply the 8% Tip Allocation Rule and Avoid W-2 Box 8 Surprises

Form 8027 requires large food and beverage establishments to reconcile gross receipts against employee-reported tips and allocate any shortfall below 8% to directly tipped employees on W-2 Box 8. This guide covers the 10-employee filing test, the three approved allocation methods, the tip-versus-service-charge distinction, and the reconciliation discipline that keeps Box 8 empty.

mike

restaurantpayrolltax-compliance

May 12, 2026

Form 8867 Paid Preparer Due Diligence in 2026: Avoiding $650-Per-Credit Penalties on EITC, CTC, AOTC, and HOH Returns

Form 8867 due diligence carries a $650 penalty per credit in 2026 — up to $2,600 per return — plus EFIN, PTIN, and OPR risk. A practical breakdown of the four IRC §6695-2 duties, the red flags IRS examiners hunt for, and the file structure that survives a 25-return due diligence visit.

mike

tax-compliancetax-preparationcpa

May 12, 2026

Saver's Credit 2026: The Last $1,000 Tax Credit Before SECURE 2.0's Saver's Match

Tax year 2026 is the final year for the Saver's Credit, a nonrefundable credit worth up to $1,000 per person ($2,000 MFJ) for IRA and 401(k) contributions. This guide covers the 2026 AGI brackets, Form 8880 line by line, and what changes when the Saver's Match arrives in 2027.

mike

taxtax-creditsretirement-savings

May 12, 2026

Schedule M-1 and M-3 Book-Tax Reconciliation: From GAAP Net Income to Form 1120 Taxable Income

Schedule M-3 kicks in at $10 million of year-end total assets and demands four-column detail on every book-tax difference; M-1 stays single-page below that line. A CFO walkthrough of how the reconciliation works, the recurring permanent and temporary differences, and the habits that keep the schedule clean.

mike

taxtax-compliancec-corp

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