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Congress needs to do more to protect taxpayers in the wake of the Supreme Court’s decision in the Commissioner of the Internal Revenue Service v. Zuch, National Taxpayer Advocate stated in a recent blog post.

Congress needs to do more to protect taxpayers in the wake of the Supreme Court’s decision in the Commissioner of the Internal Revenue Service v. Zuch, National Taxpayer Advocate stated in a recent blog post.

NTA Erin Collins noted in the post that Congress in 1998 created the collection due process (CDP) “to give taxpayers a meaningful opportunity to contest proposed levies and Notices of Federal Tax Lien,” allowing them to request a hearing with appeals and possibly petition the tax court.

The Supreme Court decision, according to Collins, “adopted a narrow view of the Tax Court’s review in a CDP case, holding that the Tax Court’s jurisdiction under IRC Sec. 6330(d)(1) terminates once the lien or levy is no longer at issue.” She cited Justice Neil Gorsuch’s dissent noting that “under this approach, the IRS can cut off Tax Court review by choosing when and how to collect. He also noted that telling taxpayers to file a refund suit instead is often unrealistic, especially when strict refund claim deadlines have expired while CDP and Tax Court proceedings are still pending.”

Collins noted that the Supreme Court decision and an earlier Tax Court order “reveal serious gaps in the protections Congress intended CDP to provide. They make CDP and Tax Court an unreliable path to a merits-based solution. A taxpayer can do everything right: request a CDO hearing, raise issues with Appeals, and timely petition the Tax Court yet still never receive a final determination on what they owe if, for example, the IRS fully collects through offsets or accepts an OIC and then declares that a levy is no longer warranted.”

She added that “the fallback remedy of refund litigation may not grant a taxpayer full relief … which is an unrealistic option for many small businesses and individuals. … Zuch raises due process concerns when collection action is withdrawn. A taxpayer typically receives only one CDP hearing for a given tax period and type of collection action. If the IRS abandons collection after that hearing and later restarts collection on the same liabilities, the taxpayer may not get a second CDP hearing with Tax Court review, but only an IRS ‘equivalent hearing,’ which does not provide a right to Tax Court review.”

Collins noted that Congress has begun to take steps to remedy this with the House of Representatives’ introduction of the Taxpayer Due Process Enhancement Act (H.R. 6506), including clarifying and expanding Tax Court jurisdiction in CDP cases, ensuring that jurisdiction over a properly underlying liability challenges whether the collection is abandoned, protects refund rights, and prohibits the IRS from crediting the overpayment against other liabilities without taxpayer consent.

However, she is calling for more Congressional action to address the “one hearing” limitation.

“Congress should create an exception to the ‘one hearing’ limitation for cases when the IRS withdraws or abandons collection,” Collins stated in the blog. “If the IRS has effectively reset the collection episode by withdrawing or abandoning the prior levy or lien and later initiates the same collection action for the same tax period, taxpayers should be entitled to a new CDP hearing with the full protections of IRC Sec. 6330, including Tax Court review.”

She added that Congress “should also ensure that taxpayers are not permanently barred from CDP when the IRS withdraws and later restarts collection and the Tax Court has clear authority to grant meaningful relief when the IRS has already collected more than the correct amount.”

The IRS has provided interim guidance addressing the special 100 percent bonus depreciation allowance for qualified production property enacted by the One Big Beautiful Bill Act (OBBBA) (P.L. 119-21). The interim guidance provides the definition of qualified production property, qualified production activities, and other related terms. It also establishes a safe harbor for property placed in service in 2025, provides instructions for the time and manner for electing the 100-percent depreciation allowance, and addresses recapture and certain special rules. Taxpayers may rely on the interim guidance until the Treasury Department issues proposed regulations.

The IRS has provided interim guidance addressing the special 100 percent bonus depreciation allowance for qualified production property enacted by the One Big Beautiful Bill Act (OBBBA) (P.L. 119-21). The interim guidance provides the definition of qualified production property, qualified production activities, and other related terms. It also establishes a safe harbor for property placed in service in 2025, provides instructions for the time and manner for electing the 100-percent depreciation allowance, and addresses recapture and certain special rules. Taxpayers may rely on the interim guidance until the Treasury Department issues proposed regulations.

Background

OBBBA enacted Code Sec. 168(n), which allows taxpayers to elect to take a 100 percent bonus depreciation allowance for qualified production property constructed after January 19, 2025, and before January 1, 2029, and placed in service after July 4, 2025, and before January 1, 2031.

Qualified Production Property Defined

Qualified production property is generally defined as new MACRS nonresidential real property that is (or will be once placed in service) as an integral part of a qualified production activity. Qualified production property must be placed in service in the United States, or its territories. Each building, including its structural components, is a single unit of property and any improvement of structural component that the taxpayer later places in service is a separate unit of property. A special rule is available for integrated facilities. For purposes of determining whether used property is acquired after January 19, 2025, and before January 1, 2029, a taxpayer applies rules consistent with Reg. § 1.168(k)-2(b)(5).

Under the interim guidance satisfies the integral part requirement if the qualified production activity takes place within the physical space of the property. The guidance provides a de minimis rule that permits a taxpayer to elect to treat the entire property as qualified production property if 95 percent or more of the physical space of a property satisfies the integral part requirement.

Although leased property that is owned by the taxpayer and used by a lessee does not qualify, the guidance provides an exception for consolidated groups, commonly controlled pass-through entities, and certain sole proprietorships, partnerships, or corporations of which 50 percent or more is owned, directly or by attribution by the lessor.

Under the guidance, a taxpayer may use any reasonable method to allocate a property’s unadjusted depreciable basis between eligible property and ineligible property. Each allocation method must be applied consistently and reflect the property’s facts and circumstances. In the case of property that contains infrastructure that serves both eligible property and ineligible property, a taxpayer may allocate the basis of such property between eligible property and ineligible property using any reasonable method.

Qualified Production Activity Defined

Generally, a qualified production activity means the manufacturing, production, or refining of a qualified product. The guidance provides specific definitions of production, qualified product, manufacturing, refining, agricultural production, chemical production, and substantial transformation of the property comprising a qualified product.

Under the guidance, a related business activity will not fail to be a qualified production activity if the related activity occurs within the same property. Such activities include: oversight and management of activities, material selection of vendors or materials related to the qualified product, developing product design and other intellectual property used in conducting a manufacturing, production, or refining activity that results in a substantial transformation of the property comprising the qualified product.

Safe Harbor for Qualified Production Property Placed in Service in 2025

For property placed in service after July 4, 2025, and on or before December 31, 2025, a taxpayer’s trade or business activity will be treated as a qualified production activity if the principal business activity code that the taxpayer, or the relevant trade or business of the taxpayer, used on its most recently filed Federal income tax return filed before February 19, 2026, is listed under sectors 31, 32, or 33, or under subsectors 111 or 112, that appear in the North American Industry Classification System (NAICS), United States, 2022, published by the Office of Management and Budget (OMB), Executive Office of the President. In addition, the activity must result in, or is otherwise essential to, the substantial transformation of the property comprising a qualified product.

Recapture

Recapture of the 100-percent bonus depreciation taken on qualified production property if a change in use occurs within 10 years after qualified production property is placed in service. Under the guidance a change in use occurs if the qualified production property ceases to satisfy the integral part requirement. A change in use has not occurred if a taxpayer begins to use qualified production property in a different qualified production activity. Property that has been placed in service but is temporarily idle does not cease to satisfy the integral part requirement.

Making the Election

A taxpayer may elect to treat property as qualified production property by attaching a statement to its Federal income tax return for the taxable year in which the eligible property is placed in service. The statement must include the following information: the name and taxpayer identification number of the taxpayer making the election; the street address, city, state, zip code, and a description of the property; the unadjusted depreciable basis of the property; the dollar amount of the unadjusted depreciable basis of eligible property the taxpayer is designating as qualified production property. Separate instructions are available for taxpayers applying the de minimis rule. A election may be revoked only by filing a request for a private letter ruling and obtaining the written consent of the IRS.

Request for Comments

The IRS requests comments on the interim guidance provided in Notice 2026-16. Comments must be submitted by the date, and in the form and manner, specified in Section 10.02 of Notice 2026-16.

Notice 2026-16

IR 2026-25

The Treasury Department and the IRS have extended the deadline for amending individual retirement arrangements (IRAs), SEP arrangements, and SIMPLE IRA plans to comply with the SECURE 2.0 Act of 2022. The new deadline is December 31, 2027. The extension does not apply to qualified plans such as 401(k) and 403(b) plans.

The Treasury Department and the IRS have extended the deadline for amending individual retirement arrangements (IRAs), SEP arrangements, and SIMPLE IRA plans to comply with the SECURE 2.0 Act of 2022. The new deadline is December 31, 2027. The extension does not apply to qualified plans such as 401(k) and 403(b) plans.

Under section 501 of the SECURE 2.0 Act (P.L. 117-328), retirement plans and contracts had until the end of the first plan year beginning on or after January 1, 2025, or by a later date prescribed by the Secretary, to adopt plan amendments reflecting changes made by the SECURE Act, the SECURE 2.0 Act, the CARES Act, and the Taxpayer Certainty and Disaster Tax Relief Act of 2020. In the absence of model language from the IRS, IRA custodians have requested more time to ensure proper amendments. Notice 2026-9 gives stakeholders until the end of 2027 to complete the necessary changes.

The extension applies to governing instruments of IRAs under Code Sec. 408(a) and (h), annuity contracts under Code Sec. 408(b), SEP arrangements under Code Sec. 408(k), and SIMPLE IRA plans under Code Sec. 408(p). Further, the IRS is developing model language to be used by IRA trustees, custodians, and issuers to amend an IRA for compliance with the legislation.

Notice 2026-9

The IRS issued answers to frequently asked questions (FAQs) about the implementation of Executive Order 14247, Modernizing Payments to and from America’s Bank Account. The order described advancing the transition to fully electronic federal payments both to and from the IRS. The purposes of said order were to (1) defend against financial fraud and improper payments; (2) increase efficiency; (3) reduce costs; and (4) enhance the security of federal transactions.

The IRS issued answers to frequently asked questions (FAQs) about the implementation of Executive Order 14247, Modernizing Payments to and from America’s Bank Account. The order described advancing the transition to fully electronic federal payments both to and from the IRS. The purposes of said order were to (1) defend against financial fraud and improper payments; (2) increase efficiency; (3) reduce costs; and (4) enhance the security of federal transactions.

The FAQs discussed included:

Tax Refunds and Tax Filing

The IRS stopped issuing paper refund checks for individual taxpayers after September 30, 2025. The Service would publish all guidance for filing 2025 tax returns before opening the 2026 tax filing season.

Further, direct deposit into a bank account would remain the primary method for issuing refunds. Alternative electronic payment methods, mobile apps and prepaid debit cards, would also be available. Limited exceptions to the paper check phase-out would also be established.

Alternative to Providing Direct Deposit Information

It is not mandatory for taxpayers to provide electronic payment information. However, if no exception applies, their refunds could take longer to process.

Sunset of Enrollment to EFTPS

Effective October 17, 2025, individual taxpayers are no longer able to create new enrollments via EFTPS.gov. Individual taxpayers not enrolled in the Electronic Federal Tax Payment System (EFTPS).gov by October 17, 2025 can instead create an IRS Online Account for Individual taxpayers or use the IRS Direct Pay guest path.

FS-2026-2

IR 2026-13

The IRS has encouraged all taxpayers to create an IRS Individual Online Account to access tax account information securely and help protect against identity theft. It emphasized that this digital resource is available to anyone who can verify their identity. Thus, the IRS highlighted how taxpayers have used the account with the same convenience as online banking to view adjusted gross income, check refund statuses, and request identity protection PINs.

The IRS has encouraged all taxpayers to create an IRS Individual Online Account to access tax account information securely and help protect against identity theft. It emphasized that this digital resource is available to anyone who can verify their identity. Thus, the IRS highlighted how taxpayers have used the account with the same convenience as online banking to view adjusted gross income, check refund statuses, and request identity protection PINs.

Further, the IRS supported collaboration between taxpayers and tax professionals through the use of digital authorizations. When taxpayers utilize Individual Online Accounts, they are able to approve power of attorney and tax information authorization requests entirely online. This digital process has allowed tax professionals to use their own Tax Pro Accounts to complete authorized actions on their clients’ behalf more efficiently. Tax professionals have supported this effort by encouraging clients to receive and view over 200 digital notices.

Additionally, the IRS expanded the account’s capabilities in early 2025 to allow taxpayers to view and download certain tax documents. It has made forms such as the W-2, 1095-A, and various 1099s available for the 2023, 2024, and 2025 tax years. These documents provide essential information return data reported by employers and financial institutions to help taxpayers file their returns. Consequently, the IRS advised individuals to visit IRS.gov to learn more about accessing records and managing payment plans.

IR 2026-21

Limited liability companies (LLCs) remain one of the most popular choice of business forms in the U.S. today. This form of business entity is a hybrid that features the best characteristics of other forms of business entities, making it a good choice for both new and existing businesses and their owners.

Limited liability companies (LLCs) remain one of the most popular choice of business forms in the U.S. today. This form of business entity is a hybrid that features the best characteristics of other forms of business entities, making it a good choice for both new and existing businesses and their owners.

An LLC is a legal entity existing separately from its owners that has certain characteristics of both a corporation (limited liability) and a partnership (pass-through taxation). An LLC is created when articles of organization (or the equivalent under each state rules) are filed with the proper state authority, and all fees are paid. An operating agreement detailing the terms agreed to by the members usually accompanies the articles of organization.

Choosing the LLC as a Business Entity

Choosing the form of business entity for a new company is one of the first decisions that a new business owner will have to make. Here's how LLCs compare to other forms of entities:

C Corporation: Both C corporations and LLCs share the favorable limited liability feature and lack of restrictions on number of shareholders. Unlike LLCs, C corporations are subject to double taxation for federal tax purposes - once at the corporate level and the again at the shareholder level. C corporations do not have the ability to make special allocations amongst the shareholders like LLCs.

S Corporation: Both S corporations and LLCs permit pass-through taxation. However, unlike an S corporation, an LLC is not limited to the number or kind of members it can have, potentially giving it greater access to capital. LLCs are also not restricted to a single class of stock, resulting in greater flexibility in the allocation of gains, losses, deductions and credits. And for estate planning purposes, LLCs are a much more flexible tool than S corporations

Partnership: Partnerships, like LLCs, are "pass-through" entities that avoid double taxation. The greatest difference between a partnership and an LLC is that members of LLCs can participate in management without being subject to personal liability, unlike general partners in a partnership.

Sole Proprietorship: Companies that operate as sole proprietors report their income and expenses on Schedule C of Form 1040. Unlike LLCs, sole proprietors' personal liability is unlimited and ownership is limited to one owner. And while generally all of the earnings of a sole proprietorship are subject to self-employment taxes, some LLC members may avoid self-employment taxes under certain circumstances

Tax Consequences of Conversion to an LLC

In most cases, changing your company's form of business to an LLC will be a tax-free transaction. However, there are a few cases where careful consideration of the tax consequences should be analyzed prior to conversion. Here are some general guidelines regarding the tax effects of converting an existing entity to an LLC:

C Corporation to an LLC: Unfortunately, this transaction most likely will be considered a liquidation of the corporation and the formation of a new LLC for federal tax purposes. This type of conversion can result in major tax consequences for the corporation as well as the shareholders and should be considered very carefully.

S Corporation to an LLC: If the corporation was never a C corporation, or wasn't a C corporation within the last 10 years, in most cases, this conversion should be tax-free at the corporate level. However, the tax consequences of such a conversion may be different for the S corporation's shareholders. Since the S corporation is a flow-through entity, and has only one level of tax at the shareholder level, any gain incurred at the corporate level passes through to the shareholders. If, at the time of conversion, the fair market value of the S corporation's assets exceeds their tax basis, the corporation's shareholders may be liable for individual income taxes. Thus, any gain incurred at the corporate level from the appreciation of assets passes through to the S corporation's shareholders when the S corporation transfers assets to the LLC.

Partnership to LLC: This conversion should be tax-free and the new LLC would be treated as a continuation of the partnership.

Sole proprietorship to an LLC: This conversion is another example of a tax-free conversion to an LLC.

While considering the potential tax consequences of conversion is important, keep in mind how your change in entity will also affect the non-tax elements of your business operations. How will a conversion to an LLC effect existing agreements with suppliers, creditors, and financial institutions?

Taxation of LLCs and "Check-the-Box" Regulations

Before federal "check-the-box" regulations were enacted at the end of 1996, it wasn't easy for LLCs to be classified as a partnership for tax purposes. However, the "check-the-box" regulations eliminated many of the difficulties of obtaining partnership tax treatment for an LLC. Under the check-the-box rules, most LLCs with two or more members would receive partnership status, thus avoiding taxation at the entity level as an "association taxed as a corporation."

If an LLC has more than 2 members, it will automatically be classified as a partnership for federal tax purposes. If the LLC has only one member, it will automatically be classified as a sole proprietor and would report all income and expenses on Form 1040, Schedule C. LLCs wishing to change the automatic classification must file Form 8832, Entity Classification Election.

Keep in mind that state tax laws related to LLCs may differ from federal tax laws and should be addressed when considering the LLC as the form of business entity for your business.

Since the information provided is general in nature and may not apply to your specific circumstances, please contact the office for more information or further clarification.

Maintaining good financial records is an important part of running a successful business. Not only will good records help you identify strengths and weaknesses in your business' operations, but they will also help out tremendously if the IRS comes knocking on your door.

Maintaining good financial records is an important part of running a successful business. Not only will good records help you identify strengths and weaknesses in your business' operations, but they will also help out tremendously if the IRS comes knocking on your door.

The IRS requires that business owners keep adequate books and records and that they be available when needed for the administration of any provision of the Internal Revenue Code (i.e., an audit). Here are some basic guidelines:

Copies of tax returns. You must keep records that support each item of income or deduction on a business return until the statute of limitations for that return expires. In general, the statute of limitations is three years after the date on which the return was filed. Because the IRS may go back as far as six years to audit a tax return when a substantial understatement of income is suspected, it may be prudent to keep records for at least six years. In cases of suspected tax fraud or if a return is never filed, the statute of limitations never expires.

Employment taxes. Chances are that if you have employees, you've accumulated a great deal of paperwork over the years. The IRS isn't looking to give you a break either: you are required to keep all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. These records include payroll tax returns and employee time documentation.

Business assets. Records relating to business assets should be kept until the statute of limitations expires for the year in which you dispose of the asset in a taxable disposition. Original acquisition documentation, (e.g. receipts, escrow statements) should be kept to compute any depreciation, amortization, or depletion deduction, and to later determine your cost basis for computing gain or loss when you sell or otherwise dispose of the asset. If your business has leased property that qualifies as a capital lease, you should retain the underlying lease agreement in case the IRS ever questions the nature of the lease.

For property received in a nontaxable exchange, additional documentation must be kept. With this type of transaction, your cost basis in the new property is the same as the cost basis of the property you disposed of, increased by the money you paid. You must keep the records on the old property, as well as on the new property, until the statute of limitations expires for the year in which you dispose of the new property in a taxable disposition.

Inventories. If your business maintains inventory, your recordkeeping requirements are even more arduous. The use of special inventory valuation methods (e.g. LIFO and UNICAP) may prolong the record retention period. For example, if you use the last-in, first-out (LIFO) method of accounting for inventory, you will need to maintain the records necessary to substantiate all costs since the first year you used LIFO.

Specific Computerized Systems Requirements

If your company has modified, or is considering modifying its computer, recordkeeping and/or imaging systems, it is essential that you take the IRS's recently updated recordkeeping requirements into consideration.

If you use a computerized system, you must be able to produce sufficient legible records to support and verify amounts shown on your business tax return and determine your correct tax liability. To meet this qualification, the machine-sensible records must reconcile with your books and business tax return. These records must provide enough detail to identify the underlying source documents. You must also keep all machine-sensible records and a complete description of the computerized portion of your recordkeeping system.

Some additional advice: when your records are no longer needed for tax purposes, think twice before discarding them; they may still be needed for other nontax purposes. Besides the wealth of information good records provide for business planning purposes, insurance companies and/or creditors may have different record retention requirements than the IRS.

After your tax returns have been filed, several questions arise: What do you do with the stack of paperwork? What should you keep? What should you throw away? Will you ever need any of these documents again? Fortunately, recent tax provisions have made it easier for you to part with some of your tax-related clutter.

After your tax returns have been filed, several questions arise: What do you do with the stack of paperwork? What should you keep? What should you throw away? Will you ever need any of these documents again? Fortunately, recent tax provisions have made it easier for you to part with some of your tax-related clutter.

The IRS Restructuring and Reform Act of 1998 created quite a stir when it shifted the "burden of proof" from the taxpayer to the IRS. Although it would appear that this would translate into less of a headache for taxpayers (from a recordkeeping standpoint at least), it doesn't let us off of the hook entirely. Keeping good records is still the best defense against any future questions that the IRS may bring up. Here are some basic guidelines for you to follow as you sift through your tax and financial records:

Copies of returns. Your returns (and all supporting documentation) should be kept until the expiration of the statute of limitations for that tax year, which in most cases is three years after the date on which the return was filed. It's recommended that you keep your tax records for six years, since in some cases where a substantial understatement of income exists, the IRS may go back as far as six years to audit a tax return. In cases of suspected tax fraud or if you never file a return at all, the statute of limitations never expires.

Personal residence. With tax provisions allowing couples to generally take the first $500,000 of profits from the sale of their home tax-free, some people may think this is a good time to purge all of those escrow documents and improvement records. And for most people it is true that you only need to keep papers that document how much you paid for the house, the cost of any major improvements, and any depreciation taken over the years. But before you light a match to the rest of the heap, you need to consider the possibility of the following scenarios:

• • Your gain is more than $500,000 when you eventually sell your house. It could happen. If you couple past deferred gains from prior home sales with future appreciation and inflation, you could be looking at a substantial gain when you sell your house 15+ years from now. It's also possible that tax laws will change in that time, meaning you'll want every scrap of documentation that will support a larger cost basis in the home sold.
  • You did not use the home as a principal residence for a period. A relatively new income inclusion rule applies to home sales after December 31, 2008. Under the Housing and Economic Recovery Act of 2008, gain from the sale of a principal residence will no longer be excluded from gross income for periods that the home was not used as the principal residence. These periods of time are referred to as "non-qualifying use." The rule applies to sales occurring after December 31, 2008, but is based only on non-qualified use periods beginning on or after January 1, 2009. The amount of gain attributed to periods of non-qualified use is the amount of gain multiplied by a fraction, the numerator of which is the aggregate period of non-qualified use during which the property was owned by the taxpayer and the denominator of which is the period the taxpayer owned the property. Remember, however, that "non-qualified" use does not include any use prior to 2009.

• • You may divorce or become widowed. While realizing more than a $500,000 gain on the sale of a home seems unattainable for most people, the gain exclusion for single people is only $250,000, definitely a more realistic number. While a widow(er) will most likely get some relief due to a step-up in basis upon the death of a spouse, an individual may find themselves with a taxable gain if they receive the house in a property settlement pursuant to a divorce. Here again, sufficient documentation to prove a larger cost basis is desirable.

Individual Retirement Accounts. Roth IRA and education IRAs require varying degrees of recordkeeping:

• • Traditional IRAs. Distributions from traditional IRAs are taxable to the extent that the distributions exceed the holder's cost basis in the IRA. If you have made any nondeductible IRA contributions, then you may have basis in your IRAs. Records of IRA contributions and distributions must be kept until all funds have been withdrawn. Form 8606, Nondeductible IRAs, is used to keep track of the cost basis of your IRAs on an ongoing basis.

• • Roth IRAs. Earnings from Roth IRAs are not taxable except in certain cases where there is a premature distribution prior to reaching age 59 1/2. Therefore, recordkeeping for this type of IRA is the fairly simple. Statements from your IRA trustee may be worth keeping in order to document contributions that were made should you ever need to take a withdrawal before age 59 1/2.
  • Education IRAs. Because the proceeds from this type of an IRA must be used for a particular purpose (qualified tuition expenses), you should keep records of all expenditures made until the account is depleted (prior to the holder's 30th birthday). Any expenditures not deemed by the IRS to be qualified expenses will be taxable to the holder.

Investments. Brokerage firm statements, stock purchase and sales confirmations, and dividend reinvestment statements are examples of documents you should keep to verify the cost basis in your securities. If you have securities that you acquired from an inheritance or a gift, it is important to keep documentation of your cost basis. For gifts, this would include any records that support the cost basis of the securities when they were held by the person who gave you the gift. For inherited securities, you will want a copy of any estate or trust returns that were filed.

Keep in mind that there are also many nontax reasons to keep tax and financial records, such as for insurance, home/personal loan, or financial planning purposes. The decision to keep financial records should be made after all factors, including nontax factors, have been considered.

A. When you contribute an auto to a charitable organization, you must determine its fair market value at the time of the contribution to determine the amount of the charitable deduction on your tax return. For a contribution valued at over $5,000, a written appraisal is required and must be attached to the return.

While guides like the Kelly Blue Books are helpful and can provide a good estimate of the value of your auto, the values shown are not "official" and do not qualify as an appraisal of any specific donated property. Once a qualified appraisal of the property has been secured, you must complete Section B of Form 8283 for each item or group of items for which you claim a deduction of over $5,000. The organization that received the property must complete and sign Part IV of Section B. Failure to properly report the contribution on Form 8283 or attach the appraisal report can result in the IRS disallowing your deduction for your noncash charitable contribution. Please note that appraisal fees do not increase your charitable deduction but are miscellaneous itemized deductions on Schedule A of Form 1040.

Next ask, “how are we going to get there?” This will be your roadmap to realizing your vision. This requires careful planning, research and designing systems that will enable your organization to achieve its goals. Ultimately, your goal as a business owner is to create a valuable business. A valuable business that someone else will want to buy. You should be rewarded for your years of hard work. By planning and designing systems within your business, you will create a valuable asset that will be much more marketable when its time to sell.

As we all know travel plans sometimes must be changed. Your business is no different. External factors such as a new competitor or internal factors such as a change in personnel will require you to modify your business plan. You must have the ability to realize when this is the case and have alternative plans. The path to your business’ destination will more than likely be a winding one, but if you set long term goals, it could be a lucrative one.

If you’d like more information on strategic business planning, call and ask about our business enhancement services. We have helped many of our clients develop a vision and a plan for reaching it.