20 Reasons Why You Should Be Working With A Tax Accountant

We value the loyal, long-standing clients that we have had the pleasure of working with for many years. Kevin Malick of Appreciated Advertising is one of those clients, and he recently shared some thoughts on his experience of working with us for nearly a decade.

“I have been working with the professionals at The Bookkeeping Company since 2007. As a small business owner, I don’t have time to do everything and I never have to worry about my payroll and finances. Knowing that the professionals at The Bookkeeping Company are taking care of everything for me gives me great peace of mind.

When my father passed away, I took over the family business and I sought an accountant and a bookkeeper. As a member of OEA (Omaha Executives Association), I knew Bob and trusted his expertise. I thought Berger & O’Toole and The Bookkeeping Company would be a good fit for my business, and they have been ever since. They now manage my personal finances as well.

The entire staff at The Bookkeeping Company is always friendly and courteous. I used to dread tax time and tax preparation, but their staff takes care of everything for me and they have taken the worry out the process for me.”

It is our pleasure to work with Kevin, and the many clients that we have been working with for many years. Give us a call today to learn more about how the experienced accountants at Berger & O’Toole and the professionals at The Bookkeeping Company can help take the worry out of your taxes and finances.

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Working for home can have many benefits, and while it may not be for everyone, many employees prefer a home office over a commute to a traditional office. According to Global Workplace Analytics, regular work-at-home employment among the non-self-employed population has increased 100% since 2005.

A recent study conducted by the organization, one of the foremost authorities on how, when and where people are working, found that 50% of the US workforce holds a job that is compatible with at least partial telecommute, and as much as 25% of the population works from home with regularity. The study found that 80-90% of the US workforce would like to telecommute at least part-time.

The benefits of telecommuting extend beyond convenience and lack of a commute – there can be significant tax benefits for employees. Understanding if you qualify for a home office deduction is critical, and our experienced staff can help.

Here are some considerations to keep in mind:

• You must use your home for business use on a regular basis and as your principal place of business
• You must use part of your home exclusively for conducting business
• Your business use must be for the convenience of the employer, not the employee
• You must not rent any portion of your home to your employer or receive any reimbursements for the use of your home for business

If you qualify for the home office deduction, you can deduct prorated amounts for the following:

Home mortgage interest, or rent
• Utility bills
• Home repairs
• Depreciation

If you do not qualify for the home office deduction, you may still qualify for some business-related expenses. These expenses can fall into one of two categories:

• Business Expenses: business costs that are ordinary, necessary and reasonable, such as office supplies, postage, telephone line. You may also be allowed to depreciate the cost of computers, office furniture and possibly even the cost of the office itself
• Homeowners’ Deductions: expenses that are related to your home, such as home mortgage interest and real estate taxes, are allowed as itemized deductions regardless of your home office status

Taking advantage of available benefits is always advised, but the home office deduction is highly scrutinized by the IRS so understanding the rules and keeping meticulous records are essential. The experts with the Bookkeeping Company can help you manage your records on a regular basis in order to maximize eligible deductions. For example, if you conduct client meetings in your home you may qualify but the home office deduction, but meticulous records of dates and times of meetings, as well as understanding the minimum requirements, are important. Our bookkeepers can assist with the proper documentation.

As technological advances continue to improve, more companies are opting for a virtual environment. In many industries, employees can work from anywhere, and the need for a traditional brick and mortar building becomes less important. If you work virtually, or would like to consider it, let the experts in our office help you maximize the arrangement!

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One thing we hear all the time from small business owners is that they never expected all the paperwork! Budgets, payroll, tax forms – it can all be very overwhelming! The Bookkeeping Company can help you wade through all the paperwork, and determine if you need the help of a bookkeeper or if an accountant is what you need.

We help individuals and small business owners everyday who become overwhelmed with the papers and forms and deadlines. It’s not unusual for us to meet a client who thinks they need the help of an accountant, when in fact a bookkeeper is a better fit. So how do you know if you need a bookkeeper or an accountant? We can help!

If you struggle to keep up with invoices or the budget never seems to balance, a bookkeeper can help keep you on track and alleviate the worry. Here is a look at some of the areas a bookkeeper can help manage:

Bank and Budget reconciliation
Accounts payable and receivable
Payroll services, including year-end tax reporting
Quickbook Pro Advisor
Financial Statements
Sales and Use Tax Services

Our experienced staff can help with many other tasks, including notary public, contractor registration and new hire reporting. A full list of services offered by our qualified staff can be found here.

If you are comfortable with budgets and payroll, or have those covered by a qualified staff member, but you struggle with taxes, an accountant can assist you. Here’s a look at where an accountant can help:

Full accounting services
Audits, reviews and compilations
Financial forecasts and projections
Complete tax services
Tax planning and preparation

Give us a call, we are happy to help you determine if you need the help of a bookkeeper or an accountant – or both!

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According to Webster’s Dictionary, an entrepreneur is a person who starts a business and is willing to risk loss in order to make money. It is exciting to turn your dream and hard work into reality in the form of a successful business; but failing to take the proper steps to ensure your business is financially healthy can be disastrous.

When establishing your business, it is vital that you meet with an attorney to ensure your business is properly filed with state and federal entities and that your business is established with the proper state and federal IDs. Most business owners, who are experts in their own fields, are not experts in the rapidly- changing rules and regulations, so trusting those who are is crucial.

Business owners quickly learn the importance of proper record keeping. Missed deadlines or inaccurate tax or payroll filings can lead to penalties that are potentially insurmountable. Enlisting the help of The Bookkeeping Co. can give you the peace of mind that your company’s financial needs are being constantly monitored and maintained.

The Bookkeeping Co. will ensure your taxes are filed properly and on schedule, thereby avoiding any penalties for late or missed deadlines. We will not only help you balance and maintain your company’s budget, but we will help you understand the current and predicted future of your company’s financial situation. We will advise you accordingly, and ensure you understand the value and worth of your business.

Make an appointment with The Bookkeeping Co. today to learn more about how we can alleviate the worries associated with running a financially sound business, so you can focus on doing what you do best- running your business!

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It’s tax season, the time of year when we are reminded of how much paper we collect and save. Many financial institutions are moving towards electronic records, which is a good solution to help cut down on the growing piles of paper. But it’s important to save and file some of documents.

The IRS recommends maintaining tax returns and any supporting documents (W-2’s, income, deduction or credit documents, etc.) for at least seven years. This is the period of time you have to claim a refund that you are entitled to, or for the IRS to assess an additional tax if your reporting wasn’t accurate. Additional recommendations and details can be found on the IRS website.

The length of time you should hold on to other documents differs depending on the documents. Records of home improvement costs should be kept for as long as you own the home. Stock purchase documents showing the purchase price and date should be saved until you sell the investment. This can be extremely helpful if you decide to switch to a new stock broker.

Everyday documents such as credit card statements, utility bills, banks statements and paycheck stubs can be destroyed after a year. Hold on to quarterly investment statements until you receive the annual statement. Medical bills, cancelled insurance policies and records of real estate sales should be filed for three years. Records of satisfied loans should be kept for at least seven years.

When you do dispose of records that are no longer necessary, they should be shredded to protect your sensitive information. Many organizations also offer free document shredding events to assist with safe disposal of records.

There are some documents that should be kept forever – marriage licenses, birth certificates, wills, adoption papers, death certificates and records of paid mortgages. We recommend storing these records in a safe lock box or safety deposit box.

The paper collection can be overwhelming. The Bookkeeping Co. can help you manage that growing pile by answering your questions about what needs to be kept and what can be tossed. Give us a call today and we will help you simplify your record keeping.

Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out.

The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax. The information below reflects the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.

Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.

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The IRS has outlined key provisions of the One Big Beautiful Bill Act (P.L. 119-21), signed into law on July 4, 2025, that introduce new deductions beginning in tax year 2025. The deductions apply through 2028 and cover qualified tips, overtime pay, car loan interest, and a special allowance for seniors.

Under the “No Tax on Tips” provision, employees and self-employed individuals may deduct up to $25,000 in voluntary cash or charged tips received in IRS-designated tip-based occupations. Tips must be reported on Form W-2, Form 1099 or directly on Form 4137. The deduction phases out above $150,000 in modified adjusted gross income ($300,000 for joint filers). Self-employed individuals engaged in a Specified Service Trade or Business under Code Sec. 199A and employees of SSTBs are ineligible.

The “No Tax on Overtime” provision permits workers to deduct the premium portion of overtime pay required under the Fair Labor Standards Act. The deduction is capped at $12,500 ($25,000 for joint filers), with a similar income-based phaseout.

The “No Tax on Car Loan Interest” rule allows individuals to deduct up to $10,000 in interest on loans used to purchase new, personal-use vehicles assembled in the U.S. Qualifying loans must originate after December 31, 2024, and be secured by the vehicle. Used and leased vehicles do not qualify. The deduction phases out for income above $100,000 ($200,000 for joint filers).

Finally, taxpayers aged 65 or older can claim a new $6,000 deduction per person in addition to the current senior standard deduction. The deduction phases out above $75,000 ($150,000 for joint filers).

All deductions are available to itemizing and non-itemizing taxpayers. Transition relief for tax year 2025 will be provided.

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Funding uncertainty and a constantly changing tax law environment are presenting challenges to the Internal Revenue Service as it works to meet legislative and executive mandates to improve the taxpayer experience.

A July Government Accountability Office report highlighted three specific challenges that the agency is facing as it works to improve the taxpayer experience.

GAO noted that "uncertainty about stable multiyear funding hinders efforts to modernize IRS computer systems and offer digital services to quickly resolve taxpayer issues. "

IRS had been using the supplemental funding provided by the Inflation Reduction Act to help address these issues, but those fundings have been a constant target for Republicans in Congress as well as the current Trump Administration, despite regular calls for stable and adequate funding.

The second challenge GAO reported was that "complicated and changing tax laws limit IRS’s ability to offer timely guidance to taxpayers," the report states, though agency officials said it had plans in place to ensure the guidance flowing from the IRS is provided in a manner that is accurate, up-to-date, and available in a user-friendly format.

Staffing was highlighted as the third challenge.

GAO reported that "being unable to hire enough staff trained to help taxpayers can undercut the ability to optimally improve taxpayer experiences. IRS officials said IRS had efforts to boost hiring and training as well as improved systems to enable staff to improve taxpayer experiences."

However, in March 2025, "IRS officials said it was unclear how reductions to the IRA funding and to its staffing will affect these efforts to address the challenges," GAO reported.

The government watchdog also noted that IRS has not established key practices to:

Define taxpayer experience goals related to service improvements;
Generate new evidence from measures, analytical tools, and dashboards to track progress with the taxpayer experience goals;
Involve external stakeholders to help assess the affects of its service improvements on the taxpayer experience; and
Promote accountability for achieving the taxpayer experience goals.

"IRS officials said establishing an evidence-based approach using these and other key practices has been delayed," GAO reports. "The IRS offices that had been coordinating IRA and taxpayer experience initiatives were disbanded in March 2025 and April 2025, respectively, according to IRS officials."

GAO recommends that the agency "fully establish an evidence-based approach to determine the effects of service improvements on the taxpayer experience."

By Gregory Twachtman, Washington News Editor

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Audits on high-income individuals and partnerships have increased in recent years as audits on large corporations have decreased in response to the Internal Revenue Service’s focus on the former group, the Treasury Inspector General For Tax Administration found.

In a report on trends in compliance activities through fiscal year 2023 dated July 10, 2025, examination starts for partnerships increased 63 percent from FY 2020 (4,106 starts) to FY 2023 (6,709 starts), while examination starts decreased 18 percent in the same time frame from 1,700 to 1,400.

For individuals, the overall combined number of examinations open and closed from FY 2020 through 2023 decreased from 466,921 to 400,446. For individuals with income tax returns of $400,000 or less, the percentage of examinations opened and closed dropped from 94.8 percent to 91.2 percent (442,856 to 365,229) while the percentage of examinations opened and closed for individual income tax returns more than $400,000 increased from 5.2 percent to 8.8 percent (24,065 to 35,217).

"The IRS planned to increase enforcement activities to help ensure tax compliance among high-income and high-wealth individuals," TIGTA reported, adding that it planned to use the supplemental funding provided by the Inflation Reduction Act and that the IRS as of May 2024, the agency plans to audit twice the number of individual returns with more than $400,000 in FY 2024 compared to FY 2023.

However, whether the IRS will be able to meet any compliance goals for both individuals as well as partnerships and corporations is questionable, with agency’s "ability to move forward with hiring efforts in these complex audit areas of corporations, partnerships and high-income individuals is uncertain considering the decreased enforcement funding and recent government staffing cuts."

To that end, the agency’s Field Collection, Campus Collection, and Examination staff is already on a downward trend.

TIGTA reported that the staff decreased from 18,472 employees in FY 2020 to 17,475 in 2023 due to attrition. The Collection staff slightly increased from 7,246 to 7,371 and the Examination staff decreased from 11,226 to 10,104.

"The status of the IRS’s IRA plan, other IRA transformational initiatives, along with the IRS’s hiring plans is uncertain, at best," TIGTA reported. "Although the IRS made substantial progress with hiring 4,048 revenue officers and revenue agents in FY 2024, the recissions of IRA funding, the hiring freeze, early retirement incentives, and future reductions in force present a challenge to improving taxpayer service and enforcing the nation’s tax laws."

The report also noted that in FY 2023, $10.1 billion in enforcement revenue was collected by the Automated Collection System. Field Collection collected a total of $5.9 billion.

In a separate report dated July 10, 2025, TIGTA reported the IRS planned to increase examinations across individuals, partnerships and businesses reporting total positive income of more than $400,000 in FY 2024. The average starts from FY 2019-2023 was 29,466 and the IRS planned to increase that to 70,812. At the same time, the number of returns with a total positive income reported of less and $400,000 is planned to decrease from an average of 452,051 from FY 2019-2023 to 354,792 in FY 2024. But it is not clear whether the agency will be able to meet these targets even though it was on track to meet these goals.

The agency "has not defined key terminology or aspects of its methodology for compliance to meet with these goals as outlined in the 2022 Treasury Directive that higher income earners would be targeted for audit," TIGTA reported. "The IRS stated that the FY 2024 plan was created with the assumptions available at the time. Any subsequent decisions about these issues could affect the effectiveness of future examination plans in meeting compliance requirements."

TIGTA did not make any recommendations in either report and the IRS did not make any comments on them.

By Gregory Twachtman, Washington News Editor

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The IRS has released guidance clarifying the withholding and reporting obligations for employers and plan administrators when a retirement plan distribution check is uncashed and later reissued.

In the scenario addressed, a plan administrator issued an $800 designated distribution to a former employee, withheld the correct amount of federal income tax under Code Sec. 3405, and sent the remaining balance by check. When that check went uncashed and was subsequently voided, a second check was mailed. Because the original withholding amount was correct and fully remitted, the IRS has concluded that no refund or adjustment is available under Code Secs. 6413 or 6414, as there was no overpayment involved.

For the second check, the IRS has stated that no further withholding is required if the amount reissued is equal to or less than the original distribution. However, if the new amount exceeds the prior distribution—due, for example, to accumulated earnings—the excess portion is treated as a separate designated distribution subject to new withholding under Code Sec. 3405.

With respect to reporting obligations, the IRS noted that Code Sec. 6047(d) requires a Form 1099-R to be filed for designated distributions of $10 or more. For the first check, the $800 distribution must be reported for the applicable year, with the full amount listed in Boxes 1 and 2a, and the tax withheld in Box 4. No additional reporting is required for the second check if the amount is equal to or less than the original. However, if the second check includes an excess of $10 or more, that additional amount must be reported on a separate Form 1099-R for the year in which the second distribution occurs.

Rev. Rul. 2025-15

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The Treasury Department and the IRS have withdrawn proposed rules addressing the treatment of built-in income, gain, deduction, and loss taken into account by a loss corporation after an ownership change under Code Sec. 382(h). The withdrawal, effective July 2, 2025, follows public criticism on the proposed regulations’ approach.

The proposed rules were Reg. §1.382-1, proposed on September 10, 2019 (84 FR 47455), and Reg. §§1.382-1, 1.382-2 and 1.382-7, proposed on January 14, 2020 (85 FR 2061). The proposed regulations would have adopted as mandatory, with certain modifications, (a) the safe harbor net unrealized built-in gain (NUBIG) and net unrealized built-in loss (NUBIL) computation provided in Notice 2003-65, 2003-40 I.R.B. 747, based on the principles of Code Sec. 1374, and (b) the “1374 approach,” (as described in Notice 2003-65) for the identification of recognized built-in gain and recognized built-in loss. The IRS considered that the 1374 approach would make it easier for taxpayers to calculate built-in gains and built-in losses and comply with Code Sec. 382(h).

The IRS received critical comments from practitioners on the proposed rules, leading the agency to conclude that further study is needed before issuing any new proposed regulations.

The proposed regulations are withdrawn. Taxpayers may continue to rely on Notice 2003-65 for applying Code Sec. 382(h) to an ownership change before the effective date of any temporary or final regulations under Code Sec. 382(h).

Proposed Regulations, NPRM REG-125710-18

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The Treasury and IRS removed this final rule from the Code of Federal Regulations (CFR) that involved gross proceeds reporting by brokers for effectuating digital asset sales.

The Treasury and IRS removed this final rule from the Code of Federal Regulations (CFR) that involved gross proceeds reporting by brokers for effectuating digital asset sales. The agencies reverted the relevant text of the CFR back to the text that was in effect immediately prior to the effective date of this final rule.

Congress passed a joint resolution disapproving the final rule titled “Gross Proceeds Reporting by Brokers that Regularly Provide Services Effectuating Digital Asset Sales.” The Treasury Department and the IRS were not soliciting comments on this action, nor delaying the effective date.

Effective Date

This final rule is effective on July 11, 2025.

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A more then 25 percent reduction in the Internal Revenue Service workforce will likely present some significant challenges on the heels of a 2025 tax season described as a "measured success," according to the Office of the National Taxpayer Advocate.

In the "Fiscal Year 2026 Objectives Report to Congress," National Taxpayer Advocate Erin Collins noted that the 2025 filing season marked the IRS’ "third consecutive year of delivering a generally successful filing season, and by some measures, it was the smoothest yet. Most taxpayers filed their returns and paid their taxes or received their refunds without any delays or intervention from the IRS."

The report highlights that more than 95 percent of individual returns were filed electronically and more than 60 percent of taxpayers received refunds, "the majority within standard processing timeframes."

Despite having a successful season, the agency has reduced its workforce by more than 25 percent since the federal government under President Trump began cutting the federal workforce.

In analyzing what agency functions are affected by this workforce reduction, the report states that "many functions are more visible to taxpayers and directly impact service delivery, while other functions play vital supporting roles in providing taxpayer service and delivering on the IRS’s mission."

Collins in the report when on to encourage Congress ignore requests to cut the IRS budget and ensure the agency is properly staffed and financed.

"The Administration’s budget proposal envisions a 20 percent reduction in appropriated IRS funding next year and an overall reduction of 37 percent after taking into account after taking into account the decrease in supplemental funding from the Inflation Reduction Act. A reduction of that magnitude is likely to impact taxpayers and potentially the revenue collected."

The issues of the workforce reduction could be compounded by the expected permanent extension of the Tax Cuts and Jobs Act.

Collins stated that most of the changes related to the extension won’t take effect until January 1, 2026, "but several provisions impacting tens of millions of taxpayers will likely be effective during the 2025. This suggests additional complexity with taxpayers file their 2025 tax returns during the 2026 filing season and more complexity the following year. In addition, the reduction of more than 25 percent in the IRS workforce has the potential to reduce taxpayer services."

The report also echoed ongoing calls it has made in the past, as well as calls by other stakeholders, to continue to improve its information technology modernization strategy. Collins notes that in recent years, "the agency has made notable strides in modernizing its systems. … If this momentum continues, the IRS will be well positioned to deliver high quality service, enhance the taxpayer experience, and perhaps improve tax compliance at a reduced cost."

She highlighted the improvements that were made possible through the supplemental funding from the Inflation Reduction Act, but added that the Trump Administration has paused indefinitely or cancelled projects and replaced them with nine distinct modernization "’vertical,’ which are technology projects designed to meet specified technology demands."

"While these initiatives are promising, the IRS must provide clear and detailed communication to Congress and the public regarding the objectives, scope, business value, milestones, projected timelines, costs, and anticipated impacts of these nine vertical projects on taxpayer service," the report stated. "Without such transparency, there is a real risk these initiatives could stall or deviate from their intended outcomes."

Collins also made a case for sustained funding for IT improvements, recalling a 2023 blog post where she highlighted that large U.S. banks "spend between $10 billion and $14 billion a year on technology, often more than half on new technology systems. Yet in fiscal year (FY) 2022, Congress appropriated just $275 million for the IRS’s Business Systems Modernization (BSM) account. That’s less than five percent of what the largest banks are spending on new technology each year, and the IRS services far more people and entities than any bank."

By Gregory Twachtman, Washington News Editor

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The Internal Revenue Service Electronic Tax Administration Advisory Committee (ETAAC) released its 2025 annual report during a public meeting in Washington, D.C., outlining 14 recommendations—ten directed to the IRS and four to Congress.

The Internal Revenue Service Electronic Tax Administration Advisory Committee (ETAAC) released its 2025 annual report during a public meeting in Washington, D.C., outlining 14 recommendations—ten directed to the IRS and four to Congress. ETAAC operates under the Federal Advisory Committee Act and collaborates with the Security Summit, a joint initiative established in 2015 by the IRS, state tax agencies and the tax industry to address identity theft and cybercrime.

ETAAC recommended that the IRS update tax return forms to strengthen security and reduce fraud and identity theft. It also advised the agency to revise Modernized e-File reject codes and explanations, expand information sharing with state and industry partners, and continue transitioning taxpayers toward fully digital interactions.

Congress was urged to support tax simplification aligned with policy objectives, grant the IRS authority to regulate non-credentialed tax return preparers, ensure stable funding for taxpayer services and operations, and prioritize sustained technology modernization. For more information, visit the Electronic Tax Administration Advisory Committee (ETAAC) page.

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Effective Date