top of page
Tax Tips
Here you’ll find practical articles about U.S. taxation, bookkeeping, business compliance, IRS issues, LLC filings, international tax topics, and financial strategy for individuals and business owners navigating the American system.
Recent Posts
IRS & Tax Problems
Practical guidance for individuals and business owners dealing with IRS issues, tax penalties, audits, IRS notices, late filings, payment plans, and tax compliance problems. Learn how to respond to IRS letters, avoid costly tax mistakes, resolve federal and state tax issues, and stay compliant with U.S. tax laws.
The Accumulated Earnings Tax (§531): The Hidden 20% Penalty on Cash-Rich C Corporations
If your C corporation is profitable and holding a lot of cash, the accumulated earnings tax under IRC Section 531 can add a 20% penalty on top of the regular corporate tax — and it's easy to trigger without realizing it. This plain-English guide from an Enrolled Agent explains how the tax works, who is (and isn't) at risk, the $250,000/$150,000 accumulated earnings credit, what qualifies as "reasonable needs of the business" under §537, the IRS red flags, and the concrete ste
Tetiana Voita
Jul 67 min read
Kwong v. United States: Could You Be Entitled to an IRS Penalty and Interest Refund?
A plain-English guide to the Kwong v. United States decision and the COVID-era IRS penalty and interest refund opportunity it created. The article explains how IRC Section 7508A(d) automatically postponed tax deadlines from January 20, 2020 through July 10, 2023, who may be eligible for a refund, how to file a protective Form 843 claim, and why taxpayers should act before the July 10, 2026 statute-of-limitations deadline rather than waiting for the government's appeal to be r
Tetiana Voita
Jun 127 min read
Unfiled Crypto Taxes: Where to Start If You Haven’t Filed in Years
If you have unfiled crypto taxes from past years, do not wait for the IRS to calculate the amount for you. This article explains how to gather records, rebuild cost basis, file accurate past due returns, and avoid common crypto tax mistakes.
Tetiana Voita
Jun 98 min read
IRS Payment Plan: How to Add a New Tax Debt to an Existing Installment Agreement
Have an IRS payment plan and received a new tax bill? Learn how to add new tax debt, update an installment agreement, avoid default, and handle IRS notices.
Tetiana Voita
Jun 78 min read
Your IRS Refund Is Still Missing? The IRS Now Owes You Interest — Here's What's Actually Happening (June 2026)
Filed by April 15 but still no refund? As of May 30, 2026, the IRS owes you 6% interest (Q2 rate, daily compounded) on your overpayment. Learn how to read your account transcript codes (570, 971, 846), decode the most common 60-day letters (CP05, CP05A, 4464C, 5071C), the three mistakes you should not make, and the exact step-by-step plan to follow. Free 30-minute consultation included.
Tetiana Voita
Jun 17 min read
IRS Account Transcripts Are Broken Right Now — Here's What Tax Professionals and Clients Need to Know (May 2026)
Multiple critical IRS transaction codes — including TC 290 (additional tax assessed), TC 240 (penalties), and TC 977/971 (amended returns) — are missing from IRS Account Transcripts in May 2026.
Tetiana Voita
May 294 min read
The TFSA/FHSA Trap for Canadian-American Dual Citizens: Why Canada's "Tax-Free" Accounts Aren't Tax-Free for You
Canada's TFSA and FHSA are genuinely tax-free north of the border — but for Canadian-American dual citizens, the IRS taxes the income every year and can demand foreign-trust Forms 3520/3520-A, PFIC Form 8621, FBAR, and Form 8938. An Enrolled Agent breaks down the four traps, what RRSP and RESP do differently, what these accounts really cost, and how to get back into compliance. Book a free 30-minute cross-border consultation.
Tetiana Voita
May 287 min read
Overdue 1099 Taxes: How to File Back Taxes in 2026 (Step-by-Step Guide for Self-Employed Workers)
Overdue 1099 taxes? File back returns in 2026 with this step-by-step guide — penalties, OBBBA thresholds, QBI deduction, and IRS payment plans explained. Learn how the new $2,000 1099-NEC and $20,000 1099-K rules affect freelancers, how to claim the QBI deduction (now permanent), how First-Time Abate works in 2026, and how to avoid 25% failure-to-file penalties. Written by an IRS Advanced Certified tax professional and NAEA member with 23+ years of cross-border CFO and tax ex
Tetiana Voita
May 2412 min read
Closed Your Business but Did Not Close Business Registration? Why Business Tax Penalties May Continue
Closed your business but still getting tax notices?
Stopping operations does not always mean your business is officially closed. Open state registration, sales tax accounts, missed annual reports, or unfiled final returns can continue creating penalties and notices. TaxesZenPro helps business owners review inactive business accounts, identify missing filings, and properly close tax registrations before penalties grow.
Tetiana Voita
May 153 min read
U.S. Tax Obligations After Leaving America: What Green Card Holders Must Know
Leaving the United States does not automatically end your U.S. tax obligations. Learn how green card holders, expatriates, and former U.S. residents may still face IRS filing requirements, worldwide income reporting, Form 8854 rules, and U.S. tax consequences after moving abroad.
Tetiana Voita
May 143 min read
Form 1099-DA for Digital Assets: How to Determine Your Cost Basis When the Broker Didn't Report It
A practical 2026 guide to Form 1099-DA, the new IRS reporting form for digital assets. It explains the phased 2025–2026 rollout, why cost basis is missing from most first-year forms, and gives a step-by-step method for reconstructing basis — from exchange records and blockchain explorers to the Rev. Proc. 2024-28 safe harbor and wallet-by-wallet accounting — so crypto investors can file Form 8949 accurately and avoid being taxed on 100% of their proceeds.
Jul 20
Investment Income Tax in the U.S.: Why the Type of Income Determines Your Tax Bill
When you invest in the United States, your money can work through a wide range of financial institutions: mutual funds, money market funds, exchange-traded funds (ETFs), banks, and brokerage accounts. Each of these vehicles earns money in its own way — and, most importantly for a taxpayer, the type of income you receive directly determines how much tax you will pay. The U.S. investment income tax system works in such a way that the same dollar of income can be taxed at 37%, a
Jul 19
The Accumulated Earnings Tax (§531): The Hidden 20% Penalty on Cash-Rich C Corporations
If your C corporation is profitable and holding a lot of cash, the accumulated earnings tax under IRC Section 531 can add a 20% penalty on top of the regular corporate tax — and it's easy to trigger without realizing it. This plain-English guide from an Enrolled Agent explains how the tax works, who is (and isn't) at risk, the $250,000/$150,000 accumulated earnings credit, what qualifies as "reasonable needs of the business" under §537, the IRS red flags, and the concrete ste
Jul 6
Car Loan Interest Deduction 2026: Can You Really Write Off Your Auto Loan Interest?
For the first time, everyday car buyers can deduct their auto loan interest — up to $10,000 a year for 2025 through 2028, even without itemizing. But the rules are specific: the vehicle must be new, assembled in the U.S., and for personal use, the loan must be originated after 2024, and income limits apply. This plain-English guide from an Enrolled Agent covers who qualifies, the common mistakes, how to claim it on Schedule 1-A, and how it fits with the other new 2025 tax ded
Jul 1
No More Paper Refund Checks: How to Actually Get Your IRS Refund in 2026
Starting with the 2026 filing season, the IRS has stopped mailing paper refund checks for most taxpayers — refunds now go out electronically by default. This plain-English guide from an Enrolled Agent explains what changed under Executive Order 14247, how to set up direct deposit so your refund arrives fast, your options if you don't have a bank account (prepaid cards, digital wallets, low-cost accounts), the refund scams to watch for, and what to do if your refund is still d
Jul 1
Trump Accounts Explained: How to Claim the $1,000 the Government Is Giving Your Child in 2026
The new Trump Account can come with a free $1,000 from the federal government for your child — but most parents have to claim it. This plain-English guide from an Enrolled Agent covers what a Trump Account is, who qualifies for the $1,000 seed, how to open one with Form 4547 or at trumpaccounts.gov, the 2026 contribution rules, and how a Trump Account compares to a 529 plan, so your family doesn't miss out.
Jun 30
The New $6,000 Senior Deduction: What Every Taxpayer Over 65 Should Know for 2026
The 2025 tax law created a new senior deduction worth up to $6,000 per person (or $12,000 per couple) for taxpayers 65 and older, running from 2025 through 2028. This plain-English guide from an Enrolled Agent covers who qualifies, the MAGI income limits where the deduction phases out, the truth behind the "no tax on Social Security" headlines, and how the break stacks on top of the standard deduction — so retirees don't miss out.
Jun 30
Crypto Taxes in 2026: What You Really Owe When You Sell Bitcoin
Sold or swapped crypto this year? This plain-English guide breaks down exactly when you owe taxes on selling Bitcoin, how short-term and long-term gains are taxed in 2026, and what the brand-new Form 1099-DA means now that exchanges report your sales straight to the IRS. You'll learn the cost-basis trap that can turn a normal sale into an inflated tax bill, how crypto losses can lower what you owe, and the most common mistakes a tax expert sees — plus how to report everything
Jun 30
What Is the Qualified Business Income Deduction? A Plain Guide for 2026
A clear, plain-English guide to the qualified business income (QBI) deduction for 2026. The article explains what the Section 199A deduction is, which pass-through businesses qualify (sole proprietorships, LLCs, partnerships, and S corporations), and what counts as qualified business income. It covers the updated 2026 income thresholds ($201,750 single / $403,500 married filing jointly), the wage and property limits that apply above those thresholds, the specified service bus
Jun 22
Small Business Bookkeeping: Which Software to Use, and Why It's Not Optional
A practical, plain-English guide to small business bookkeeping in 2026. The article explains why keeping accurate financial records is a legal responsibility under IRS rules (not a preference), how good bookkeeping protects cash flow and helps both owners and their accountants, and what happens when owners ignore it. It compares the top bookkeeping software options — QuickBooks Online, Xero, Zoho Books, FreshBooks, and Wave — shares habits that make any tool work, and closes
Jun 20
Got an Expired Tax Refund? You May Have Until July 10, 2026 to Claim It Back (Kwong Ruling Explained)
If the IRS said your refund is expired, the 2026 Kwong ruling may give you one last chance to recover it — but only through July 10, 2026. A working tax professional explains the IRC §6511 deadline, the COVID tolling rule, the financial disability exception, disaster zone extensions, and how to file Form 843 before the window closes.
Jun 20
No Tax on Tips for 2026: What the New OBBBA Tip Deduction Actually Means for Servers, Stylists, and Drivers
The new "No Tax on Tips" rule sounds great in a TikTok caption — but the actual law has eight categories, seventy-plus job titles, an income phase-out, and three things almost everyone misunderstands. A working tax professional explains who really qualifies, who doesn't, and the New Jersey twist you need to know. Why this article exists If you work for tips — at a restaurant, a salon, behind a bar, in the back of a cab — you've probably heard the slogan "No Tax on Tips" about
Jun 20
1099-R Box 7 Codes Decoded: Why Your "Tax-Free" Roth Conversion May Be Fully Taxable (2026 Guide)
If you did a backdoor Roth conversion and got a 1099-R with Code 2 in Box 7, the IRS may treat almost all of it as taxable — not tax-free. A working tax professional decodes the 2026 1099-R Box 7 codes, explains the IRC §408(d)(2) pro-rata rule that catches high earners every year, the Form 8606 most people skip, and the specific New Jersey twist that often results in double taxation. Free 30-minute consultation.
Jun 14
Form 5472: The $25,000 Penalty Trap Every Foreign-Owned US LLC Owner Needs to Know About in 2026
If you opened a US LLC as a non-US owner and never filed Form 5472, the IRS may already be sitting on a $25,000-per-year penalty against you — even if your LLC made zero income. Learn what counts as a reportable transaction, the April 2026 IRS reasonable-cause update, and how to fix missed years before the IRS finds you.
Jun 13
Innocent Spouse Relief or Injured Spouse Allocation?
If the IRS took your refund or sent you a bill from a joint return you barely understood, there are two different reliefs that could help — and most people confuse them. A working tax professional explains Innocent Spouse Relief (Form 8857) vs Injured Spouse Allocation (Form 8379), the 2026 rules, the domestic abuse exception, and which form fits your situation. Free 30-minute consultation.
Jun 13
Kwong v. United States: Could You Be Entitled to an IRS Penalty and Interest Refund?
A plain-English guide to the Kwong v. United States decision and the COVID-era IRS penalty and interest refund opportunity it created. The article explains how IRC Section 7508A(d) automatically postponed tax deadlines from January 20, 2020 through July 10, 2023, who may be eligible for a refund, how to file a protective Form 843 claim, and why taxpayers should act before the July 10, 2026 statute-of-limitations deadline rather than waiting for the government's appeal to be r
Jun 12
1099 Misclassification: When an Employer Offers 1099 Instead of W-2
This article explains 1099 misclassification, why an employer cannot simply choose 1099 to avoid payroll taxes, what red flags workers should watch for, and when to seek professional tax help.
Jun 9
Unfiled Crypto Taxes: Where to Start If You Haven’t Filed in Years
If you have unfiled crypto taxes from past years, do not wait for the IRS to calculate the amount for you. This article explains how to gather records, rebuild cost basis, file accurate past due returns, and avoid common crypto tax mistakes.
Jun 9
IRS Payment Plan: How to Add a New Tax Debt to an Existing Installment Agreement
Have an IRS payment plan and received a new tax bill? Learn how to add new tax debt, update an installment agreement, avoid default, and handle IRS notices.
Jun 7
Could You Qualify for an IRS Penalty Refund After the Kwong Case? | July 2026 Deadline
A recent court decision may create an opportunity for some taxpayers to seek refunds of IRS penalties and interest assessed during the COVID-19 disaster relief period. Learn who may qualify, how Form 843 works, and why July 10, 2026 could be an important deadline.
Jun 7
Claim a Dependent on Your Tax Return: IRS Dependent Rules Explained
Not everyone you financially support qualifies as a dependent for tax purposes. Learn the IRS rules for qualifying children and qualifying relatives, avoid common mistakes, and understand how dependent claims affect tax credits and filing status.
Jun 7
Behind on Your Tax Filings? The Honest 7-Step Plan for Non-Filers — and How to Spot the Tax-Relief Scams Designed to Take Advantage of You
If you haven't filed taxes for several years and just got an IRS letter, you have more options than you think — but only if you act and only if you don't fall for the "tax relief" industry built to take advantage of you. A working tax professional explains the IRS Policy Statement 5-133 six-year rule, the Substitute for Return process, the seven-step plan to get back into compliance, the real payment programs (Installment Agreement, PPIA, CNC, Offer in Compromise)
Jun 2
Your IRS Refund Is Still Missing? The IRS Now Owes You Interest — Here's What's Actually Happening (June 2026)
Filed by April 15 but still no refund? As of May 30, 2026, the IRS owes you 6% interest (Q2 rate, daily compounded) on your overpayment. Learn how to read your account transcript codes (570, 971, 846), decode the most common 60-day letters (CP05, CP05A, 4464C, 5071C), the three mistakes you should not make, and the exact step-by-step plan to follow. Free 30-minute consultation included.
Jun 1
IRS Account Transcripts Are Broken Right Now — Here's What Tax Professionals and Clients Need to Know (May 2026)
Multiple critical IRS transaction codes — including TC 290 (additional tax assessed), TC 240 (penalties), and TC 977/971 (amended returns) — are missing from IRS Account Transcripts in May 2026.
May 29
The TFSA/FHSA Trap for Canadian-American Dual Citizens: Why Canada's "Tax-Free" Accounts Aren't Tax-Free for You
Canada's TFSA and FHSA are genuinely tax-free north of the border — but for Canadian-American dual citizens, the IRS taxes the income every year and can demand foreign-trust Forms 3520/3520-A, PFIC Form 8621, FBAR, and Form 8938. An Enrolled Agent breaks down the four traps, what RRSP and RESP do differently, what these accounts really cost, and how to get back into compliance. Book a free 30-minute cross-border consultation.
May 28
Using Your 401(k) to Buy a House in 2026: What Your TikTok Advisor Isn't Telling You
TikTok says first-time homebuyers can tap their 401(k) penalty-free. The IRS says otherwise. A federally licensed Enrolled Agent explains the real 2026 rules, the NJ and NY tax traps, the one legal workaround most articles skip, and how much a $40,000 401(k) withdrawal actually costs you after federal tax, 10% penalty, and state tax. Book a free 15-minute consultation before you close.
May 27
Overdue 1099 Taxes: How to File Back Taxes in 2026 (Step-by-Step Guide for Self-Employed Workers)
Overdue 1099 taxes? File back returns in 2026 with this step-by-step guide — penalties, OBBBA thresholds, QBI deduction, and IRS payment plans explained. Learn how the new $2,000 1099-NEC and $20,000 1099-K rules affect freelancers, how to claim the QBI deduction (now permanent), how First-Time Abate works in 2026, and how to avoid 25% failure-to-file penalties. Written by an IRS Advanced Certified tax professional and NAEA member with 23+ years of cross-border CFO and tax ex
May 24
Got a CP2000 Today? What an IRS CP2000 Notice Means and How to Respond
Received an IRS CP2000 notice today? Don't panic and don't ignore it. A CP2000 is not a formal audit, but a proposed adjustment due to mismatched W-2 or 1099 data. In this guide, Enrolled Agent Tetiana Voita (TaxesZenPro) explains exactly what a CP2000 underreported income letter means, whether you need to file Form 1040-X, and how to prepare a strong response with proper cost basis documentation to legally minimize your tax liability.
May 18
Closed Your Business but Did Not Close Business Registration? Why Business Tax Penalties May Continue
Closed your business but still getting tax notices?
Stopping operations does not always mean your business is officially closed. Open state registration, sales tax accounts, missed annual reports, or unfiled final returns can continue creating penalties and notices. TaxesZenPro helps business owners review inactive business accounts, identify missing filings, and properly close tax registrations before penalties grow.
May 15
New Jersey LLC owners: don’t forget your Annual Report filing
NJ Annual Report filing is required for most New Jersey LLCs and corporations. Learn about deadlines, $75 state filing fees, compliance requirements, penalties, and how to keep your business in good standing.
May 14
U.S. Tax Obligations After Leaving America: What Green Card Holders Must Know
Leaving the United States does not automatically end your U.S. tax obligations. Learn how green card holders, expatriates, and former U.S. residents may still face IRS filing requirements, worldwide income reporting, Form 8854 rules, and U.S. tax consequences after moving abroad.
May 14
bottom of page