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 issued final regulations modifying reporting obligations for partnerships involved in Code Sec. 751(a) exchanges of partnership interests. The regulations remove the requirement that partnerships furnish transferors with certain information relating to unrealized receivables and inventory items by January 31 following the exchange year. The regulations are effective for returns filed for tax years ending on or after May 20, 2026.

Under Code Sec. 6050K, partnerships must file Form 8308, Report of a Sale or Exchange of Certain Partnership Interests, for transfers involving Code Sec. 751(a) property. The IRS and Treasury Department received comments that many partnerships could not determine the information required for Part IV of Form 8308 by the January 31 furnishing deadline. As a result, the final regulations remove Reg. §1.6050K-1(c)(2) and revise Reg. §1.6050K-1(c)(1) to permit partnerships to furnish Form 8308 completed in accordance with the form instructions.

Although partnerships are no longer required to furnish Part IV information to transferors and transferees by January 31, they must still file a completed Form 8308, including Part IV, with Form 1065. The IRS finalized the regulations without substantive changes from the proposed regulations issued in 2025.

T.D. 10048

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The IRS has issued guidance on qualified long-term care distributions from qualified retirement plans. The guidance affects providers of certified long-term care insurance (issuers), plan administrators, and individual participants receiving qualified long-term care distributions. The IRS also extended the general deadline for amending a plan to permit qualified long-term care distributions to December 31, 2027.

Background

The SECURE 2.0 Act of 2022 (SECURE 2.0 Act), permitted defined contribution plans to make qualified long-term care distributions, effective for distributions made after December 29, 2025. The 10 percent additional tax on early distributions would not apply to distributions under Code Sec. 401(a)(39). However, a qualified long-term care distribution would be included in the taxpayer’s gross income.

Disclosure Requirements

The guidance addresses content requirements and procedures for submitting an Issuer Disclosure to the IRS. There is no general deadline for submitting an Issuer Disclosure. However, an issuer must submit an Issuer Disclosure to the IRS before the issuer can file a long-term care premium statement with a defined contribution plan.

Distribution Requirements

Under the guidance, the plan administrator is permitted to rely on the issuer’s statement and the information provided on the long-term care premium statement in making a qualified long-term care distribution. It is optional for a plan to permit qualified long-term care distributions, but the exception to the 10% additional tax only applies if the plan permits qualified long-term care distributions, even if the employee uses a distribution to pay for long-term care insurance. Unlike other permitted distributions, a qualified long-term care distribution would not be eligible for an extended 3-year repayment to a retirement plan.

Reporting Requirements

The payment of a qualified long-term care distribution to an employee must be reported by the payor on Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc.

Further, issuers must make a return to the IRS using Form 1099-LPS, Long-Term Care Premiums Paid Statement. The issuer will report the long-term care premiums paid for the calendar year. The Form 1099-LPS must be filed with the IRS no later than February 1 of the calendar year following the calendar year the long-term care premium statement was filed with the plan.

Deadline Extension

The guidance extends the deadline for a plan sponsor of a defined contribution plan that is not a governmental plan, a section 403(b) plan maintained by a public school, or an applicable collectively bargained plan, to amend its plan to permit qualified long-term care distributions from December 31, 2026, to December 31, 2027. The deadlines to amend defined contribution plans that are applicable collectively bargained plans or governmental plans remain as provided in Notice 2024-02. Thus, Notice 2024-2, I.R.B. 2024-2, 316, is modified in part.

Notice 2026-33

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The IRS finalized regulations treating income derived by individual members of an Indian tribe from fishing rights-related activities as compensation for purposes of limitations on benefits and contributions under a qualified retirement plan. These regulations are effective for plan years beginning on or after May 4, 2026, and affect participants, beneficiaries, sponsors, and administrators of Tribal plans.

Fishing rights-related income is exempt from federal income tax and employment tax under Code Sec. 7873. However, proposed reliance regulations would allow contributions to be made to qualified retirement plans based on fishing rights-related income. Also, plans that accept contributions of fishing rights-related income may still use safe harbor definitions of compensation. The IRS finalized this rule as proposed without material modification.

Although the final rule is somewhat limited in scope, the IRS addressed additional issues in the preamble. The IRS clarified that plan contributions attributable to a Tribal employee's fishing rights-related activiity is treated as investment in the contract under Code Sec. 72 . Thus, distributions of the amount contributed would generally be tax-free (subject to basis recovery rules) and distributions attributable to earnings would be taxable. The IRS also indicated that plans that permit designated Roth contributions may allow contributions attributable to fishing rights-related activity to be made on a Roth basis.

T.D. 10046

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The IRS has introduced a streamlined option allowing taxpayers to extend the time to challenge disallowed Employee Retention Credit (ERC) claims, reducing the need for immediate refund litigation. The measure applies to taxpayers who received Letter 105-C or 106-C, are awaiting review by the IRS Independent Office of Appeals and have six months or less remaining in the statutory two-year period.

Taxpayers generally have two years from the disallowance notice to resolve the claim or file a refund suit, but an administrative appeal does not suspend this deadline. Once the period expires, the IRS cannot issue a refund even if the taxpayer later prevails. To address this, eligible taxpayers may execute Form 907, Agreement to Extend the Time to Bring Suit, provided it is signed by both parties before the limitation period ends.

The IRS now permits submission of Form 907 through its Document Upload Tool, with qualifying requests reviewed and confirmed in writing. While the IRS is issuing notices to eligible taxpayers, others meeting the criteria may also apply. The agency indicated that the initiative is intended to preserve taxpayer rights and facilitate administrative resolution of ERC disputes.

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The IRS has established a significant issue ruling program for cerain corporate transactions (Rev. Proc. 2026-21). This program would not diminish the availability of letter rulings under existing programs. This procedure modifies and amplifies the ruling procedures provided in Rev. Proc. 2026-1, I.R.B. 2026-1, 1, and Rev. Proc. 2026-3, I.R.B. 2026-1, 143.

The significant issue ruling program allows taxpayers to request rulings on one or more issues that:

are solely under the jurisdiction of the Associate Chief Counsel (Corporate);
are significant issues, as defined in section 4.02 of Rev. Proc. 2026-21; and
involve the tax consequences or characterization of a transaction (or part of a transaction) that is described in Code Sec. 332, 351, 355, 368, or 1036.

Significant Issue Ruling Program

Taxpayers may request, and the IRS may issue, a ruling on part of an integrated transaction described in the above provisions, or a ruling on a particular legal issue under a section of the Code or regulations with respect to a transaction (or part thereof) rather than a ruling that addresses all aspects of that section (or any other section) with respect to the transaction (or part thereof).

In addition, the IRS may rule on the tax consequences resulting from integrated transactions described in the above provisions to the extent that a significant issue is presented under related Code sections that address such tax consequences.

A significant issue generally is a germane and specific issue of law, provided that a ruling on the issue would not be a comfort ruling or the conclusion in such a ruling otherwise would not be essentially free from doubt.

The requests for ruling must contain (1) narrative description of the transaction that puts the significant issue in context; (2) statement identifying the issue; (3) analysis of the solvability of issue; and more.

Effect on Other Documents

Rev. Proc. 2026-1 and Rev. Proc. 2026-3 are modified and amplified.

Effective Date

The significant issue ruling program applies to all letter ruling requests described in section 4.01 of Rev. Proc. 2026-21 postmarked or, if not mailed, received by the IRS after May 5, 2026.

Rev. Proc. 2026-21

Other References:

Code Sec. 332
CCH Reference - FED ¶16,052.188

Other References:

Code Sec. 351
CCH Reference - FED ¶16,405.48

Other References:

Code Sec. 355
CCH Reference - FED ¶16,466.923

Other References:

Code Sec. 368
CCH Reference - FED ¶16,753.53

Other References:

Code Sec. 1036
CCH Reference - FED ¶29,702.11

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The IRS has announced a new time-limited settlement opportunity for eligible taxpayers involved in conservation easement and historic preservation easement disputes with the IRS. The program aims to resolve cases faster and on terms that are generally more favorable than recent Tax Court decisions.

The IRS has announced a new time-limited settlement opportunity for eligible taxpayers involved in conservation easement and historic preservation easement disputes with the IRS. The program aims to resolve cases faster and on terms that are generally more favorable than recent Tax Court decisions. Since 2020, the IRS has settled 405 cases through earlier initiatives, although taxpayers still had to pay penalties and were allowed only limited deductions for certain out-of-pocket costs. More than 1,100 conservation easement cases currently remain pending before the IRS and the Tax Court. Under the new initiative, many eligible partnerships will not have to make an upfront payment to participate. In addition, taxpayers whose earlier settlement offers expired or were rejected may now have another chance to resolve their cases, while some partnerships that were not previously eligible may also qualify. IRS Chief Executive Officer Frank J. Bisignano said Congress created the conservation easement deduction to encourage legitimate preservation efforts rather than tax shelters based on inflated property values.

The IRS said partnerships that accept the offer during the initial 90-day period generally will not be allowed a charitable contribution deduction, but they may qualify for a limited deduction tied to certain out-of-pocket expenses. Those partnerships generally would face a 10 percent gross valuation misstatement penalty, while partnerships settling during an additional 45-day period generally would face a 20 percent penalty. Interest also will continue to accrue as required by law. At the same time, the IRS noted that courts have repeatedly reduced claimed deductions and upheld significant penalties in conservation easement disputes. Certain cases, such as those already tried or currently under appeal, will not qualify for the initiative. The IRS added that eligibility will depend on the status and specific facts of each case.

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Following a 2026 tax filing season that was consistent with the 2025 season, the American Institute of CPAs offered legislators a series of recommendations to help improve filing season in the future.

“Based on limited and anecdotal information, many practitioners noted that the IRS appeared to operating consistently compared with the prior year’s service,” AICPA said in a recent letter to the Senate Finance Committee’s top leadership following a hearing on the 2026 tax filing season, adding that data currently available shows “tax return processing remained relatively consistent, though the quality of telephone services appeared to vary depending on the hotline.”

AICPA did observe that while Internal Revenue Service modernization efforts have allowed for consistent customer service levels compared to recent prior years, “IRS customer service has not returned to pre-COVID-19 pandemic levels according to IRS data and the AICPA’s most recent annual membership survey.”

With that, the industry organization offered recommendations in the areas of governance and oversight, taxpayer services, and dedicated practitioner services.

In the area of IRS governance and oversight, AICPA recommended the following:

Requiring a Government Accountability Office review to determine whether a private sector board with sufficient authority to hold the IRS accountable and oversee implementation of key recommendations from advisory groups;
Re-establish the annual joint hearing review to focus on strategic and business plans, taxpayer service and compliance, technology and modernization, and the filing season; and
The Joint Committee on Taxation should provide a bi-annual report on the overall state of the Federal tax system.

In the area of taxpayer service, the following recommendations were offered:

Hire more qualified and experienced professionals from the private sector, adequately train all agency employees, skillfully manage IRS resources, and ensure organizational alignment between Congress, the executive branch, and the IRS;
Congress should determine what the appropriate level of service is and then ensure that the appropriate resources are allocated to achieve that level;
Continue to improve the technology infrastructure modernization; and
Effectively utilize customer satisfaction surveys to assess IRS performance, improve the taxpayer experience, and effectuate modernization efforts or process improvement.

AICPA pushed for the passage of the Taxpayer Assistance and Services Act, which it states “would significantly improve IRS services, reinforce fairness and transparency in our tax system, and reduce tax administrative burdens on taxpayers and practitioners, including many critical tax provisions for which AICPA has previously advocated.”

In the area of dedicated practitioner services, AICPA recommended:

Create consolidated dedicated “executive-level” practitioner services comparable to private sector services that are implemented and adapted based on practitioner feedback solicited periodically; and
Continue to expand the functionality of a robust and enhanced tax professional account as part of the IRS’s online portal with account access to all of a practitioner’s client information, allowing for IRS to communicate directly with authorized practitioners, enable a centralized login system, and prioritize the protection and privacy of user identities and data;
Provide practitioners with a robust practitioner priority hotline with high-skilled employees capable of resolving complex technical and procedural issues; and
Assign customer service representatives to each geographic area to address unusual or complex issues that practitioners were unable to resolve through the priority hotlines.

The letter to the Senate Finance Committee leadership and other AICPA 2026 tax policy and advocacy comment letter can be found here.

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Blog

Background

Disclosure Requirements

Distribution Requirements

Reporting Requirements

Deadline Extension

Significant Issue Ruling Program

Effect on Other Documents

Effective Date