July 2026

Taxpayers have been told for years that the IRS never sends a text message. But under the 2026 digital rules, they can reach out for three specific reasons.

The IRS will soon implement a new process that automatically provides penalty relief for taxpayers with a history of filing returns and paying tax dues on time. This new relief system is expected to be phased in this summer.

The new Automatic Exemption from Penalty will replace the long-standing First Time Abate administrative relief and is designed to simplify the process and reduce burden for those with a timely compliance history.

One of the biggest problems that I have seen with those new to building a business is the need to properly do the paperwork involved.  I've seen people co-mingle their funds in their personal bank account instead of having a separate business bank account.  I've had people bring me a bunch of receipts in a box where they had personal and business expenses on the same receipts.  Another no-no.  Some never even balance their checkbooks.  I could go on and on.