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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.

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.

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.

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!

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.

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!

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.

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!

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.

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.

Contributions to Trump accounts will be treated as completed gifts that are not future interests in property and the gift tax annual exclusion amount will apply under a safe harbor for certain donors making contributions to Trump accounts created under Code Sec. 530A.

Contributions to Trump accounts will be treated as completed gifts that are not future interests in property and the gift tax annual exclusion amount will apply under a safe harbor for certain donors making contributions to Trump accounts created under Code Sec. 530A.

Pursuant to the rules of Code Sec. 530A, distributions from Trump accounts are limited during the growth period, which is the period ending on January 1 of the year in which the account beneficiary attains age 18. During the growth period, annual contributions are limited to $5,000 per year, as adjusted for inflation after 2027. Gifts of future interests in property are not eligible for the annual gift tax exclusion and must be reported on a federal gift tax return.

The safe harbor applies for a particular year if the following requirements of section 4.02 are met:

• The taxpayer is an individual;
• The only taxable gifts made by the taxpayer during the calendar year are cash contributions to one or more Trump accounts, each made before the calendar year in which the account beneficiary attains age 18;
• The taxpayer's total gifts during the calendar year to each individual who is an account beneficiary, including contributions to that individual beneficiary's Trump account, do not exceed the Code Sec. 2503(b) annual exclusion;
• Such contributions to Trump accounts during the calendar year do not generate for that year either a gift or generation-skipping transfer (GST) tax liability after application of the taxpayer's remaining applicable credit amount against the gift tax or remaining GST exemption; and
• Disregarding the Trump account contributions described in section 4.02(2) of the revenue procedure, a gift tax return is not required to be filed, and no gift tax return is otherwise filed for that calendar year by or on behalf of the taxpayer for any other purposes.

If these requirements are satisfied, each Trump account contribution made by the taxpayer during the calendar year will be treated as a completed gift to the account beneficiary that is not a future interest in property and to which the annual exclusion applies for purposes of gift and GST tax reporting. As a result, taxpayers within the scope of the safe harbor will not be required to file a gift tax return reporting the such contributions.

Rev. Proc. 2026-25

IR 2026-80

The IRS has issued final regulations identifying certain Charitable Remainder Annuity Trust (CRAT) transactions and substantially similar transactions as listed transactions subject to the reportable transaction disclosure rules. The regulations require participants and material advisors to disclose these transactions to the IRS while clarifying that charitable organizations whose only interest is as charitable remaindermen are not treated as participants or parties to prohibited tax shelter transactions. The regulations are effective July 9, 2026.

The IRS has issued final regulations identifying certain Charitable Remainder Annuity Trust (CRAT) transactions and substantially similar transactions as listed transactions subject to the reportable transaction disclosure rules. The regulations require participants and material advisors to disclose these transactions to the IRS while clarifying that charitable organizations whose only interest is as charitable remaindermen are not treated as participants or parties to prohibited tax shelter transactions. The regulations are effective July 9, 2026.

Under Code Secs. 6011 and 6707A, the IRS may identify transactions with tax avoidance potential as listed transactions. The final regulations add Reg. §1.6011-15, identifying transactions in which appreciated property is contributed to a purported CRAT, sold by the trust, and the sale proceeds are used to purchase an annuity, with the beneficiary improperly treating the annuity payments under Code Sec. 72 instead of applying the distribution ordering rules of Code Sec. 664(b).

Although participants and material advisors remain subject to the applicable disclosure requirements, organizations described in Code Sec. 170(c) that merely receive the charitable remainder interest are excluded from participant status and are not treated as parties to prohibited tax shelter transactions under Code Sec. 4965 solely because of that interest. The IRS finalized the regulations without substantive changes from the proposed regulations issued in 2024.

T.D. 10051

IR 2026-82

A portion of litigation settlement proceeds consisting of attorney’s fees and costs was includible in the gross income of two individuals (taxpayers). Said portion was not deductible under Code Sec. 62(a)(20). The Fair Credit Reporting Act’s (FCRA) (P.L. 91-508) fee-shifting provisions were inapplicable in this case.

A portion of litigation settlement proceeds consisting of attorney’s fees and costs was includible in the gross income of two individuals (taxpayers). Said portion was not deductible under Code Sec. 62(a)(20). The Fair Credit Reporting Act’s (FCRA) (P.L. 91-508) fee-shifting provisions were inapplicable in this case.

Background

The taxpayers sued multiple credit reporting agencies under FCRA provisions. They eventually settled with each agency. In all relevant Forms 1099–MISC the settlement amounts were reflected without the attorney’s fees and costs.

Civil Rights Interpretation for FCRA Claims Denied

The taxpayers’ FCRA claims of unlawful discrimination did not fall under Code Sec. 62(e)(18)(i). Said claims were based on fair and accurate credit reporting and not consumer privacy. Particularly, the taxpayers’ concerns did not fall under “highly sensitive” and “intimate personal information” categories.

J.W. Eiler, 167 T.C. No. 3, Dec. 62,865

The IRS has reminded taxpayers that major life events can affect tax filing requirements, eligibility for tax benefits and the amount of tax withheld from paychecks. The agency explained that changes such as marriage, the birth or adoption of a child, divorce or the death of a loved one may require updates to tax information and a review of filing status.

The IRS has reminded taxpayers that major life events can affect tax filing requirements, eligibility for tax benefits and the amount of tax withheld from paychecks. The agency explained that changes such as marriage, the birth or adoption of a child, divorce or the death of a loved one may require updates to tax information and a review of filing status. A name change following marriage should be reported to the Social Security Administration so the updated name matches Social Security records. An address change should be reported to the IRS by filing Form 8822, Change of Address, and employers, financial institutions and the U.S. Postal Service should also be notified. Marriage may also require submission of a new Form W-4, Employee's Withholding Certificate, to ensure the correct amount of tax is withheld.

Additionally, the IRS noted that the birth or adoption of a child may make a taxpayer eligible for valuable tax benefits, including the Child Tax Credit, Adoption Credit and Child and Dependent Care Credit, if applicable requirements are satisfied. Divorce or the death of a spouse may also affect filing status, tax withholding and eligibility for certain tax benefits. The IRS encouraged prompt updates to tax records, careful evaluation of changes affecting tax obligations and use of available IRS resources to better understand the tax consequences of major life events. Early action can help avoid filing issues, support accurate tax reporting, maximize available tax benefits and improve preparation for the next tax filing season.

IRS Tax Tip 2026-55

The Internal Revenue Service received and processed less returns during 2026, according to the Treasury Inspector General for Tax Administration.

The Internal Revenue Service received and processed less returns during 2026, according to the Treasury Inspector General for Tax Administration.

In a recently released report, TIGTA stated that from March 1, 2025, through February 28, 2026, the IRS received 51.5 million tax returns, down from 52. 4 million in the previous year, though it did see a significant drop in paper returns received from 1.2 million in 2025 to 618,000 in 2026. Of the returns received in 2026, the agency processed 50.9 million returns, down from 51.8 million.

From the beginning of the 2026 tax filing season to the end of February 2026, TIGTA reported that the inventory backlog in key tax return processing programs increased from 1.9 million to 2.4 million. Additionally, nearly 75 percent of the amended return inventory is over-aged during the 2026 tax filing season.

“Generally, inventories increase during the filing season as the IRS balances efforts to answer phone calls and reduce inventories,” TIGTA stated in the report. “However, with the reduction in staff, increases in key inventories could become a concern.”

The number of refunds dipped to 36.5 million from 36.9 million, although there was a $360 increase in the average refund from $3,382 in 2025 to $3,742.

TIGTA also reported that the IRS did not meet its hiring goals for the 2026 tax filing season. The agency had been approved to hire 1,900 employees for submission processing (these workers process original and amended returns and resolve tax return errors) but only onboarded 800 individuals. Likewise, it was approved to hire 3,500 account management employees (handlers of taxpayer contacts through telephone and mail and process adjustments) but brought 2,300 on board.

Submission processing management said it would be onboarding new hires throughout the tax season, while account management leadership had no plans to hire new employees and would only be onboarding those who previously received offers but had delays in the hiring process.

In a positive from the 2026 season, TIGTA reported that the new and modified “e-file business rules associated with the child tax Credit, state and local tax deduction, and adoption credit are working as intended.”

Taxpayer Assistance Centers offered incorrect tax guidance during nearly half of unannounced visits by Treasury Inspector General for Tax Administration staff.

Taxpayer Assistance Centers offered incorrect tax guidance during nearly half of unannounced visits by Treasury Inspector General for Tax Administration staff.

According to a recent TIGTA report, during the 2025 tax filing season, the Treasury watchdog made 91 unannounced visits to TACs nationwide at various time (regular and extended hours), at the 61 visits where TIGTA staff did receive assistance, “TAC employees did not provide the correct tax law guidance during 28 of those visits (46 percent).”

TAC employees were presented with questions across one of the three areas – injured spouse, selling your main home, and American Opportunity Tax Credit. The report notes that for questions related to tax law topics, “TAC employees must use the Interactive Tax Law Assistant ITLA) tool to respond to taxpayers. The ITLA tool asks a series of questions, then generates accurate and complete responses based on the taxpayer’s situation. The tool is designed for TAC employees and is intended to improve operational performance in the areas of quality, efficiency, customers satisfaction, and employee satisfaction.”

TIGTA noted that during the 2025 filing season, “managers counseled several TAC employees for not using the ITLA tool during taxpayer interactions. During our site visits, we also observed that TAC employees did not always the ITLA tool to answer our tax law questions.”

Additionally, of those 91 visits, TIGTA “did not receive full assistance during 30 of our 91 visits due to incomplete or inaccurate responses to tax law questions, denial of entry by security or unexpected TAC closures.”