Category: Tax

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Tax

Key Tax Law Changes Impacting Individuals and Families

By Elizabeth Russell Owen, CPA | Private Client Tax Services Practice Leader  

The One Big Beautiful Bill Act (OBBBA) maintains existing provisions from current law and introduces new benefits for individuals and families, which include:  

Extend current tax rates: The bill generally makes the current tax rates enacted in 2017 in the Tax Cuts and Jobs Act (TCJA) permanent (adjusted for inflation). 

Standard deduction: The bill permanently increases the standard deduction amounts established by the TCJA. Starting in 2025, the standard deduction will be $15,750 for single filers, $23,625 for heads of household, and $31,500 for married couples filing jointly. These amounts will be adjusted for inflation in subsequent years.  

Deduction for State & Local Taxes is increased: The bill temporarily increases the limit on the federal itemized deduction for state and local taxes to $40,000 ($20,000 for married filing separately). In 2026, the deduction limit will increase to $40,400, and will then increase by 1% annually, through 2029. Starting in 2030, the deduction will revert to the previous $10,000 limit.  

The state and local tax deduction begins to phase out for filers with modified adjusted gross income exceeding $500,000 ($250,000 for married filing separately).  

Personal exemptions gone but new senior deduction added: The legislation permanently eliminates the deduction for personal exemptions. However, it introduces a temporary $6,000 deduction for individual taxpayers age 65 or older. The new senior deduction targets social security eligible individuals and is intended to offset income taxes on their social security benefits. The senior deduction begins to phase out when a taxpayer’s modified adjusted gross income exceeds $75,000 ($150,000 for joint filers). The senior deduction will be in effect from 2025 through 2028. 

Child tax credit increased: The legislation raises the nonrefundable child tax credit to $2,200 per child starting in 2025 and adjusts this amount for inflation. It also makes the $1,400 refundable child tax credit permanent, with adjustments for inflation. Additionally, the bill permanently sets the increased income phaseout thresholds at $200,000 ($400,000 for joint filers) and maintains the $500 nonrefundable credit for each dependent other than a qualifying child. 

Qualified Business Income deduction made permanent: The bill makes the Sec. 199A qualified business income (QBI) deduction permanent, maintaining the deduction rate at 20%.   

Larger estate and gift tax exemption: The amount an individual can give away during their lifetime without paying federal estate or gift taxes (the lifetime exemption) was permanently increased to $15 million (adjusted for inflation) beginning in 2026. Note however, for the tax year 2025, individuals have an annual gift tax exclusion of $19,000 per donee that they can use without impacting their lifetime exemption.    

New deduction for certain tips and overtime pay: Employees may now deduct certain tips and overtime pay from their federal taxable income. These deductions phase out for higher income individuals. Employers will need to review their payroll system reporting to accurately identify the qualifying amounts paid to their employees.  

We’re Here to Help 

The entire OBBBA exceeds 900 pages in length and contains many complexities. Accordingly, please reach out to your ATA advisor to obtain further details and address your questions.  

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Tax

Key Tax Law Changes Impacting Businesses

By Mark Puckett, CPA | Tax Principal 

Most business owners were concerned about the impending expiration of the business-friendly provisions of the Tax Cuts and Jobs Act enacted in 2017 that were set to expire at the end of this year. The One Big Beautiful Bill Act (OBBBA) extends those business-friendly items and adds some new ones as well. The key highlights of the business-related provisions included in the legislation follow: 

Qualified Business Income deduction made permanent: The legislation makes the Sec. 199A qualified business income (QBI) deduction permanent, maintaining the deduction rate at 20%.   

Bonus depreciation: The legislation makes the Sec. 168 additional first-year (bonus) depreciation deduction permanent. It increases the allowance to 100% for property acquired and placed into service on or after January 19th, 2025. 

Limit for Sec. 179 asset expensing increased: The legislation raises the maximum amount the taxpayer may elect to expense under Sec. 179 to $2.5 million. The deduction limit is reduced when the cost of qualifying asset additions exceeds $4 million. 

Research-and-development expenses: The legislation restores the deduction for domestic research and development expenditures paid or incurred in tax years starting after December 31, 2024. Note however, smaller businesses (those with average annual gross receipts of $31 million or less) are permitted to apply this change retroactively to tax years beginning after December 31, 2021.  

Limitation on business interest is relaxed: For tax years beginning after December 31, 2024, the legislation allows the interest expense deduction to be computed without regard to the deductions for depreciation, amortization, or depletion. Essentially, this change restores the prior EBITDA limitation.  

Special depreciation deductions allowed for qualified production property: The legislation permits a first-year depreciation deduction equal to 100% of the adjusted basis of “qualified production property.” Qualified production property is nonresidential real property used in manufacturing. 

Tax break for “small business” investors made more generous: The new law expands which businesses qualify and how much gain can be excluded when selling qualified small business stock. 

We’re Here to Help 

The entire OBBBA exceeds 900 pages in length and contains many complexities. There may be other beneficial provisions in the new law that may save taxes on your business income. Accordingly, please reach out to your ATA advisor to obtain further details and address your questions. 

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Tax

It’s Wedding Season: Say ‘I Do’ to This Tax Checklist

By Elizabeth Russell Owen CPA | Private Client Tax Services Practice Leader 

Schedule a Consultation 

The Top Line 

Wedding season is a time for celebration, but it also marks a new chapter in your financial life. Along with shared responsibilities and future planning, marriage brings several important tax considerations that newlyweds should not overlook. 

Whether you are still enjoying your honeymoon or diving into name change paperwork, now is the perfect time to update your tax situation and avoid surprises next spring. Here are four key steps every newly married couple should take. 

 

  1. Report Any Name Changes

What it means for you:
If either spouse changed their last name, you must update that information with the Social Security Administration. If your tax return name does not match the name on file, your refund could be delayed. 

To update your name, file Form SS5, Application for a Social Security Card. You can complete this through SSA.gov, by calling 800 772 1213, or by visiting a local Social Security office. 

Takeaway:
Make the update as soon as possible to avoid errors when filing your return. 

 

  1. Update Your Address with the Right Agencies

What it means for you:
If you moved after getting married, inform the IRS, your employer, and the postal service to ensure timely delivery of important tax documents. 

To notify the IRS directly, complete and submit Form 8822, Change of Address. Instructions for filing are included on page two of the form. 

Takeaway:
Keeping your address current helps ensure W-2s, IRS letters, and refunds reach you without delay. 

 

  1. Check and Adjust Your Withholding

What it means for you:
Marriage may place you in a different tax bracket. If both spouses work, the change could lead to a higher combined income and affect your tax liability. 

Submit a new Form W4 to your employer within ten days of getting married. Use the IRS Tax Withholding Estimator online to make sure your new withholding is accurate and helps avoid tax season surprises. 

Takeaway:
This quick step can prevent underpayment penalties and reduce stress at tax time. 

 

  1. Choose the Right Filing Status

What it means for you:
Your marital status as of December 31 determines your filing status for the entire tax year. Couples may choose to file jointly or separately. 

Filing jointly often results in better tax benefits, but depending on income and deductions, filing separately may be more advantageous. Use a comparison calculator or consult a tax advisor to explore both options. 

Takeaway:
A thoughtful filing decision can result in significant savings or better refund outcomes. 

 

Why This Matters to You 

Marriage is an exciting life change, and getting your taxes in order now can help you start this chapter with financial clarity and confidence. By updating records and understanding how your new status affects your taxes, you can avoid delays, penalties, or missed savings. 

 

Resources for More Information 

  • IRS Topic 157: Change Your Address 
  • IRS Publication 505: Tax Withholding and Estimated Tax 

Questions about your new tax situation? Contact our team for personalized guidance. We are here to help you start your financial journey on the right foot.

Congratulations to all the newlyweds celebrating this wedding season; best wishes for a successful marriage and a prosperous financial future! 

 

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Helpful Articles Paris, TN Tax

Still Have Tax Questions? You’re Not Alone 

By Elizabeth Russell Owen, CPA | Private Client Tax Services Practice Leader  

Schedule a Consultation 

Executive Summary 

Even after filing a federal income tax return, many individuals still face important follow-up items. From tracking refunds, organizing records, and responding to IRS correspondence, this article outlines five post-filing priorities to help you stay organized, informed, and prepared. Our team remains available year-round to support you beyond tax season. 

Key Highlights 

  • Track Your Refund: Use the IRS “Where’s My Refund?” tool with your Social Security number, filing status, and exact refund amount. 
  • Record Retention: Keep supporting tax documents for at least six years; some should be stored indefinitely. Use cloud storage to back up essential files. 
  • Amendment Window: Did you miss any deductions or credits? File Form 1040-X within three years of filing or two years of payment to receive a refund. 

Even after submitting your federal return, there are often a few loose ends to tie up. Below are some of the top things our clients ask about and what to do next. 

  1. Wondering when your refund will arrive?

Use the IRS’s “Where’s My Refund?” tool at IRS.gov to track the status. Have the following ready: 

  • Your Social Security number 
  • Filing status 
  • Exact refund amount 

Once submitted, the tracker will show whether your refund has been received, approved, or issued. 

  1. How long should you hold on to tax records?

At a minimum, keep records associated with your tax return for as long as the IRS has the authority to audit or assess additional taxes. In most cases, this period is known as the statute of limitations, which is three years from the date you filed your return. That means you can typically remove most supporting documentation related to 2021 and earlier years, unless you filed late or with an extension (if you filed an extended 2021 return, wait at least three years from the filing date before removing records). 

However, that time frame can extend to six years if more than 25% of your gross income was omitted from a return. In rare cases, such as failing to file a return or filing a fraudulent one, the IRS has no time limit to act. Hence, keeping supporting tax return documents for at least six years is recommended.  

Certain records should be kept longer: 

  • Keep all filed tax returns indefinitely to confirm your filing history. 
  • Upload older records to secure cloud storage before discarding physical files, ensuring you maintain access if needed later. This approach helps reduce clutter while preserving key documents in case of a future inquiry. 
  • Other types of documents should be kept longer or permanently in some cases. Examples include but are not limited to business and payroll documentation, estate and trust records, and property basis support. Consult with an ATA professional for details. 
  1. Think you missed a deduction or credit?

You may still be eligible for a refund by filing an amended return (Form 1040-X). In most cases, you have: 

  • Three years from the original filing date, or 
  • Two years from the date you paid the tax — whichever is later 

In limited situations, additional time may be available, such as up to seven years to claim a bad debt deduction. 

While the IRS has time limits for assessment of additional taxes, if income was omitted or understated, the IRS will usually accept an amended return past the three-year window if the amendment results in a balance due. It is best to file the amended return as soon as the discrepancy is discovered to minimize interest and penalties.  

  1. Received a notice from the IRS?

If the IRS needs additional information or adjusts your return, you’ll be contacted by mail only. Be aware: the IRS will never call, text, or email you to discuss your return. If you receive a letter from the IRS, reach out to us, and we’ll help you review the notice and respond appropriately.

  1. Moved recently? Don’t forget to update your address.

To avoid missing important IRS correspondence, complete Form 8822 to officially report a change of address. 

We’re Here for You Year-Round 

Tax questions don’t stop after April 15 and neither do we. Whether you’re facing a notice, amending a return, or preparing for next year, our team is here to help every step of the way. 

Need More Help? Contact your ATA tax advisor today. 

Categories
Helpful Articles Memphis, TN Tax

What Income Tax Documents Should You Keep and What Can You Discard? 

By Mark Puckett, CPA | Tax Principal 

Key Highlights 

  • Keep income tax returns forever as proof of filing. 
  • Hold supporting documents for six years, depending on your situation. 
  • Retain property and investment records until six years after the asset is sold. 
  • In divorce or separation, keep copies of joint returns and custody agreements. 
  • Protect documents using cloud storage or a fireproof safe. 

Once your 2024 tax return is filed, it may be tempting to clear out your files. But before you reach for the shredder or delete old digital folders, consider this: certain documents can still protect you in the event of an IRS audit or help establish the value of assets you sell in the future. 

Keep Your Tax Returns — Indefinitely 

Your filed tax returns serve as the cornerstone of your financial records. These should always be kept permanently. While most supporting documents (like receipts or canceled checks) only need to be retained temporarily, the return itself is essential for confirming what was filed and when. 

Supporting Documentation — Hold for at Least Six Years 

In general, the IRS has three years from the due date of your return (or the actual filing date, if later) to audit you, unless exceptions apply. During this window, you should keep supporting records such as: 

  • W-2s and 1099s 
  • Receipts and invoices 
  • Bank and credit card statements 
  • Charitable donation records 
  • Medical expense documentation 

If you understated income by more than 25%, the IRS has six years to assess taxes. And if you never file a return, there’s no time limit. Keep signed copies of all returns to prove filing. 

Property and Investment Records — Keep Until Six Years After Sale 

Some documents tie to transactions that span decades. For example, if you: 

  • Bought a home in 2009 
  • Made improvements in 2016 
  • Sold the home in 2024 

For this example, you’ll need to retain documentation from 2009 and 2016 to prove your cost basis on your 2024 tax return. This includes: 

  • Purchase documents 
  • Receipts for renovations 
  • Closing statements 

This same rule applies to investment assets, such as stocks or mutual funds, especially if dividends are reinvested over time. Each reinvestment counts as a separate purchase and should be documented. 

Special Circumstances — Divorce or Separation 

If you’re going through a divorce or separation, secure copies of all joint tax returns and related documents. Access to these records may be difficult later, and both spouses remain jointly liable for taxes filed on a joint return. Also retain custody agreements and any documents stating which parent can claim dependents. 

Protect Your Records from Loss 

Fire, theft, and natural disasters can destroy paper records. To keep your information safe: 

  • Use a fireproof safe or bank safe deposit box 
  • Maintain digital backups in encrypted cloud storage 
  • Organize records in a central location for quick evacuation if needed 

We’re Here to Help 

If you’re unsure about what records to keep and for how long, our team can guide you. Thoughtful record keeping today can help you avoid stress, penalties, and lost deductions tomorrow. Contact your ATA representative for guidance.  

 

Categories
News Tax

IRS Pushes Kentucky’s Tax Deadline to Nov. 3 After Spring Storms

IRS news Release KY-2025-02 granted comprehensive disaster‑related tax relief for individuals and businesses across the entire state of Kentucky after the severe storms, straight-line winds, flooding, and landslides that began on February 14, 2025. Kentucky taxpayers now have until November 3, 2025 to file enumerated federal returns and make tax payments.

The news Release specifies that a Nov. 3, 2025 deadline will now apply to:

  • Individual income tax returns and payments normally due on April 15, 2025.
  • 2024 contributions to IRAs and health savings accounts for eligible taxpayers.
  • The estimated tax payments normally due on April 15, June 16, and Sept. 15, 2025.
  • Penalties on payroll and excise tax deposits due on or after Feb. 14, 2025, and before March 3, 2025, will be abated as long as the tax deposits are made by March 3, 2025.
  • Estate, gift, and generation-skipping transfer tax returns that have an original or extended due date occurring on or after Feb. 14, 2025, and before Nov. 3, 2025.
  • Calendar-year fiduciary returns and payments normally due on April 15, 2025.
  • Calendar-year tax-exempt organization returns normally due on May 15, 2025.

The Nov. 3, 2025, deadline also applies to affected businesses:

  • Calendar-year corporation returns and payments normally due on April 15, 2025.
  • Quarterly payroll and excise tax returns normally due on April 30, July 31, and Oct. 31, 2025.
  • Calendar-year partnership and S corporation returns normally due on March 17, 2025.

Taxpayers who receive qualified disaster relief payments may generally exclude payments from gross income.

Taxpayers may be able to take a special disaster distribution from retirement plans or individual retirement arrangements (IRAs) without being subjected to the additional 10% early distribution tax and may be able to spread the income over three years.

Click here to read the full IRS statement. Please contact us if you have further questions.

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AR Tax

All of Arkansas qualifies for disaster tax relief; various deadlines postponed to Nov. 3

IRS Information Release IR-2025-49 grants comprehensive disaster‑related tax relief to all individuals and businesses across Arkansas’s 75 counties after the severe storms, tornadoes and flooding that began on April  2,  2025. Arkansas taxpayers now have until November 3, 2025 to file and pay enumerated  federal returns and related taxes.

The Notice specifies that the Nov. 3, 2025 deadline will now apply to:

  • Individual income tax returns and payments normally due on April 15, 2025.
  • 2024 contributions to IRAs and health savings accounts for eligible taxpayers.
  • Quarterly estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025.
  • Quarterly payroll and excise tax returns normally due on April 30, July 31 and Oct. 31, 2025.
  • Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.
  • Calendar-year tax-exempt organization returns normally due on May 15, 2025.

In addition, penalty for failing to make payroll and excise tax deposits on or after April 2, 2025, and before April 17, 2025 will be abated if deposits are made by April 17, 2025.

Further, the Notice provides guidance on how individuals and business who suffered uninsured or unreimbursed disaster-related losses can choose to claim them.

Taxpayers who receive qualified disaster relief payments may generally exclude such payments from gross income.

Taxpayers may be able to take a special disaster distribution from retirement plans or individual retirement arrangements (IRAs) without being subjected to the additional 10% early distribution tax and may be able to spread the income over three years.

Click here to read the full IRS statement. Please contact us if you have further questions.

Categories
Tax TN

All of Tennessee qualifies for disaster tax relief; various deadlines postponed to Nov. 3, 2025

IRS Information Release IR-2025-47 grants comprehensive disaster‑related tax relief to all individuals and businesses across Tennessee’s 95 counties after the severe storms, tornadoes, straight‑line winds and flooding that began on April  2,  2025. Tennessee taxpayers now have until November 3, 2025 to file and pay enumerated  federal returns and related taxes.

The Notice specifies that the Nov. 3, 2025 deadline will now apply to:

  • Individual income tax returns and payments normally due on April 15, 2025.

  • 2024 contributions to IRAs and health savings accounts for eligible taxpayers.

  • Quarterly estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025.

  • Quarterly payroll and excise tax returns normally due on April 30, July 31 and Oct. 31, 2025.

  • Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025.

  • Calendar-year tax-exempt organization returns normally due on May 15, 2025.

Further, the Notice provides guidance on how individuals and business who suffered uninsured or unreimbursed disaster-related losses can choose to claim them.

Taxpayers who receive qualified disaster relief payments may generally exclude such payments from gross income.

Taxpayers may be able to take a special disaster distribution from retirement plans or individual retirement arrangements (IRAs) without being subjected to the additional 10% early distribution tax and may be able to spread the income over three years.

Click here to read the full IRS statement. Please contact us if you have further questions.

Categories
Tax

IRS Update: Key Tax Extension Guidance for Disaster-Affected Businesses

By Mark Puckett, CPA | Tax Principal 

The IRS reminds taxpayers affected by 2024 federally declared disasters that they automatically receive extended deadlines to file and pay 2024 federal income taxes. In most cases, the new deadline is May 1, 2025. Additional relief applies in select areas and for individuals impacted by international events. 

 

Key Highlights 

  • May 1, 2025, is the new deadline for most affected taxpayers 
  • Applies automatically—no need to request relief 
  • Further extensions: Oct. 15 and Nov. 3 in certain states, Sept. 30 for international cases 
  • Tax payments are still due by May 1, even if filing is delayed 

 

Who Qualifies for the May 1 Deadline? 

The May 1, 2025, deadline applies to taxpayers in areas covered by 2024 FEMA disaster declarations, including: 

  • Entire states: Alabama, Florida, Georgia, North Carolina, South Carolina 
  • Localities in: Alaska (Juneau), New Mexico (Chaves County), Tennessee (refer to detailed list), Virginia (refer to detailed list) 

The full list is here.   

 

What’s Covered Under the Extension 

Automatic relief includes: 

  • 2024 individual tax returns and payments (normally due April 15) 
  • Partnership and S Corporation returns (normally due March 17) 
  • Corporate and fiduciary returns and payments (normally due April 15) 
  • Quarterly estimated taxes (normally due April 15) 
  • Other time-sensitive filings as designated by the IRS  

No action is needed if your IRS address is in an affected area.  

 

Need More Time to File? 

To file beyond May 1, submit Form 4868: 

  • Electronically if before April 15 
  • On paper if between April 15 and May 1 

This extends the filing deadline to October 15, 2025, but does not extend the payment deadline—taxes must still be paid by May 1. 

 

Extended Relief: Other Deadlines 

Some areas have later deadlines: 

  • Oct. 15, 2025 – Los Angeles County, CA (January wildfires) 
  • Nov. 3, 2025 – All of Kentucky and parts of West Virginia 
  • Sept. 30, 2025 – U.S. taxpayers affected by 2023 terrorist attacks in Israel, Gaza, and the West Bank 

 

Additional Notes 

  • Penalty relief is automatic, but call the IRS if you get a notice in error 
  • Taxpayers outside the disaster area with records inside it can request relief: 866-562-5227 
  • Workers aiding disaster recovery may also qualify 
  • Disaster losses can be claimed on either the current or prior year’s return (see Publication 547) 

 

Need More Help? Contact your ATA tax advisor or visit IRS Disaster Relief Center
 

Categories
Tax

Will IRS Staff Reductions Affect Filing My Taxes?

You might be wondering:

Will the recent IRS staff cuts impact my ability to file my taxes and get my refund on time? It’s a fair concern. With the IRS recently firing nearly 7,000 employees and shutting down 100 Taxpayer Assistance Centers (TACs)—and with reports suggesting even deeper cuts ahead—many taxpayers are left asking how this will affect their tax filing experience.

The IRS is responsible for processing millions of tax returns every year, issuing refunds, and answering taxpayer questions. With fewer employees, there’s a possibility of:

  • Longer processing times for refunds
  • More difficulty getting IRS assistance
  • Potential backlogs
  • Increased risk of errors

What Can I Do to Make Sure My Taxes Are Filed Without Delays?

The best way to avoid issues this tax season is to take action early. Here’s what you can do:

  • File as early as possible – The sooner you submit your return, the faster it will be processed.
  • Use e-filing and direct deposit – These methods are the quickest way to get your refund.
  • Double-check your return – Mistakes or missing information can slow down processing, so ensure everything is accurate.
  • Monitor your refund status – The IRS “Where’s My Refund?” tool can help you track your return.

Have Questions? Contact Your ATA Advisor.

If you have concerns about filing, refund timing, or how these IRS changes may impact you, reach out to your ATA advisor today.

Our team is here to help ensure your tax season runs smoothly—so you don’t have to worry.