IRS Compliance

Pro Rata Share of Subpart F Income, Tested Income, or Tested Loss: What CPA Firms Must Do Now

The IRS published proposed regulations on August 26, 2026 that reshape how U.S. shareholders must calculate their pro rata share of Subpart F income, tested income, or tested loss from controlled foreign corporations. The rules affect any CPA firm with clients who hold CFC interests — including S-corporation shareholders, individual investors, and partnerships with offshore structures. Here is a focused action brief for firm owners.

Transfer Pricing for CPAs: How to Document Intercompany Transactions for Small Business Clients

Transfer pricing isn't only a Big 4 problem. As more small businesses have foreign owners, cross-border activity, or related-entity structures, the IRS is scrutinizing intercompany loans, management fees, and cost-sharing arrangements at every size. This guide walks CPA practitioners through the documentation requirements, applicable safe harbors, and how to scope and price a transfer pricing engagement for smaller clients.

Guidance on Eligible Investments for Trump Accounts: What CPA Firms Must Do Now

The IRS released proposed regulations on August 21, 2026 defining eligible investments for Trump Accounts—the new minor-beneficiary savings vehicles created under recent tax legislation. The rules restrict allowable assets until the beneficiary turns 18 and affect trustees, account administrators, and CPAs advising individual and employer-plan clients. Here is what small and mid-size CPA firms need to know and do this week.

Self-Directed IRA Tax Traps: What CPAs Must Catch Before Filing

Self-directed IRAs holding real estate, private equity, or crypto create compliance landmines that most tax software won't flag automatically. This practitioner-level guide walks CPAs through prohibited transaction rules, UBTI and Form 990-T obligations, year-end valuation requirements, and a pre-filing checklist to protect both the client and the firm.

SECURE 2.0 Act for CPAs: What Retirement Rule Changes Mean for Your Clients

SECURE 2.0 Act provisions are still rolling out through 2026 and 2027, with catch-up contribution Roth requirements, auto-enrollment mandates, and plan amendment deadlines all converging. This guide breaks down the operational implications for CPAs advising small business owner clients — and how to track compliance across a full book of business without anything slipping through.

IRS Income Taxes Rule Published August 21 2026: What CPA Firms Must Do Now

The IRS published a new income taxes document in the Federal Register on August 21, 2026 (Document No. 2026-17154). This brief cuts through the agency language to tell CPA firm owners exactly which client segments are affected and what steps to take before the week is out.

Fixed Asset Depreciation Schedule: How CPAs Build and Maintain Them at Scale

Managing fixed asset depreciation schedules across dozens of business clients is one of the most error-prone workflows in a CPA firm. This guide walks through how to build a scalable system — from MACRS method elections to bonus depreciation phase-downs in 2026 — and explains how AI-assisted reconciliation eliminates the trial-balance discrepancies that cost firms hours every filing season.

Employer Contributions to Trump Accounts and Nondiscrimination Rules Explained for CPAs

On August 11, 2026, the IRS published proposed regulations governing employer contributions to Trump accounts and nondiscrimination rules for dependent care assistance programs. This news brief extracts the operational impact for small and mid-size CPA firms and lists what to do this week across 1040, S-corp, partnership, and nonprofit client files.

Health Insurance Deduction for S Corp Owners: What CPAs Must Get Right

The health insurance deduction for S corp owners involves a precise chain of steps — payroll add-back, W-2 Box 1 inclusion, and a 1040 deduction — that most payroll platforms get wrong by default. This guide gives CPAs a staff-ready workflow to execute the deduction correctly on every return, catch prior-year errors, and avoid the Section 199A trap that quietly kills the deduction for many S corp shareholders.

Installment Sale Reporting: How CPAs Handle Principal and Interest Splits for Clients

Installment sale reporting is one of the most workflow-intensive annual tasks a CPA can inherit — gross profit percentages that travel across years, depreciation recapture that hits in Year 1 regardless of cash received, and related-party resale traps that can accelerate a client's entire gain. This practitioner guide walks through Form 6252 mechanics, interest allocation rules, dealer vs. non-dealer distinctions, and how AI-native tools eliminate the copy-forward errors that cost firms malpractice exposure.

Foreign Currency Gain or Loss of Controlled Foreign Corporations: What CPA Firms Must Do Now

Treasury and the IRS published proposed regulations on August 14, 2026 that reshape how controlled foreign corporations compute and recognize foreign currency gain or loss on QBU remittances. CPA firms with international clients need to assess exposure now and document their review before comments close.

Goodwill Amortization for CPAs: How to Handle Section 197 Intangibles

Section 197 amortization is one of the most consequential post-close tasks in any business acquisition engagement — and one of the easiest to mishandle across a large client base. This guide walks CPAs through identifying qualifying intangibles, computing the 15-year straight-line schedule, navigating partial-year rules, and flagging the allocation mistakes that invite IRS scrutiny.

Foreign Earned Income Exclusion: How CPAs File for Expat Clients

Most FEIE content is written for taxpayers, not for the CPA managing a queue of expat returns. This guide covers Form 2555 mechanics, a repeatable decision tree for choosing between the foreign earned income exclusion and the foreign tax credit, state tax traps, and how to package expat work as a high-margin advisory service line.

Qualified Opportunity Zone Investing: How CPAs Guide Clients Through Tax Deferral

Qualified opportunity zone investing offers clients a powerful capital gains deferral strategy — but the compliance burden on CPAs is substantial. This workflow-first guide covers eligibility screening, deferral calculations, IRC 1400Z-2 documentation requirements, and how AI-native practice management can automate multi-year holding-period monitoring before inclusion events catch you off guard.

Amended Tax Return Workflow: How CPAs Fix Client Errors Without Chaos

Amended returns are a profit-draining blind spot for most CPA firms — handled reactively, scoped poorly, and almost never priced correctly. This guide maps a repeatable amended tax return workflow covering intake triage, QA delegation, IRS tracking, and billing so every 1040-X your firm processes turns into a structured engagement instead of free rework.

SOC 2 Compliance for CPA Firms: What It Is and Why Clients Care

SOC 2 compliance is no longer just a checkbox for enterprise SaaS vendors — sophisticated CPA clients are asking about it, and firms that can demonstrate verified data security win engagements that others lose. This guide breaks down what SOC 2 actually means for your practice, how it fits with IRS Publication 4557 and your WISP obligations, what Type II certification costs and takes, and how to use it as a competitive differentiator when pitching high-net-worth and mid-market clients.

Clergy Tax Returns: How CPAs Handle Minister Housing Allowances and Self-Employment

Clergy tax returns sit at the intersection of employment law, IRS code, and church governance — a combination that trips up even experienced CPAs. This guide walks through minister dual tax status, the Section 107 housing allowance exclusion, self-employment tax obligations, voluntary withholding agreements, and how to build an engagement workflow that handles every minister client consistently.

Worker Classification for CPAs: IRS Employee vs Independent Contractor Rules

Worker classification is one of the most audit-prone areas of small-business tax compliance — and most CPAs only engage with it when the IRS is already knocking. This guide covers the IRS common law test, Section 530 safe harbor, Form SS-8 strategy, and how AI-native practice management can surface high-risk clients before penalties attach.

Section 199A Deduction: How CPAs Maximize the QBI Benefit for Pass-Through Clients

The Section 199A deduction remains one of the most valuable — and most frequently miscalculated — benefits available to pass-through entity clients. This guide walks CPAs through the full calculation workflow, SSTB boundary analysis, W-2 wage and UBIA property limitations, and how AI-assisted practice management tools can systematize documentation before the potential 2025 TCJA sunset.

Inherited IRA Distribution Rules: What CPAs Must Tell Clients Now

The SECURE 2.0 Act and the IRS's 2024 final regulations reshaped inherited IRA distribution rules in ways that still catch clients — and some CPAs — off guard. This guide breaks down the 10-year rule, beneficiary categories, annual RMD requirements, and, critically, how to systematize inherited IRA conversations into a profitable, repeatable advisory service your firm offers every year.

Agency Information Collection Activities: IRS Seeks Comments on Contractor Disclosure Burden

The IRS published a Paperwork Reduction Act comment request on July 27, 2026, targeting the disclosure of return information under written contractor agreements for tax administration. Small and mid-size CPA firms that serve government contractors, nonprofits, or multi-entity clients with IRS data-sharing agreements have a narrow window to comment. Here is the operational breakdown your firm needs.

Estate Tax Planning for CPAs: How to Guide Clients Before the Sunset

The TCJA doubled the federal estate tax exemption, but that window closes after 2025. CPAs — not estate attorneys — are typically the first advisor high-net-worth clients call. This guide walks through how to identify which clients are at risk, which planning vehicles apply, how to price these engagements, and how to coordinate with counsel without crossing into unauthorized practice.

NACHA Phase 2 Compliance: What CPA Firms Managing ACH Payments Must Do Now

NACHA Phase 2 compliance is not optional for CPA firms collecting ACH payments from clients. This action guide walks through exactly what must change in your engagement letters, payment processor configuration, and account validation workflows — before the deadline catches you unprepared.

Information Reporting and Transfer for Valuable Consideration Rules: What CPA Firms Must Do Now

The IRS published final regulations on July 9, 2026 that extend information reporting and transfer for valuable consideration rules to Section 1035 exchanges of life insurance contracts. Small and mid-size CPA firms with individual and business clients holding life insurance policies need to act now to identify affected transactions and update their intake workflows.

Automatic Exemption from Penalty: What CPAs Must Know After IRS Replaces First Time Abate

The IRS has replaced the familiar First Time Abate process with a new automatic exemption from penalty system — and many CPAs are still relying on outdated FTA playbooks. This guide breaks down exactly what changed, how the new automatic relief process works, and what penalty abatement strategies still hold up for clients with complex histories.

CPA Adding RIA: How to Register an Investment Advisory Practice Alongside Your Tax Firm

Many CPAs already provide informal investment guidance — the leap to a registered RIA is a natural next step for formalizing that value. This guide walks through Series 65 licensing, state vs. SEC registration thresholds, custodian selection, AUM fee structures, and the compliance obligations that come with dual registration.

California Sales Tax on Software 2027: What CPA Firms Need to Know About SB 122

California's SB 122 will extend the state's sales tax to SaaS subscriptions and downloaded software beginning in 2027 — a significant shift that raises operating costs for every CPA firm relying on cloud-based practice management tools. This guide breaks down exactly what the law covers, how much more California firms may pay, and what steps to take now before the effective date.

Charitable Remainder Annuity Trust Listed Transaction: What CPA Firms Must Do Now

The IRS published final regulations on July 9, 2026, officially designating certain charitable remainder annuity trust (CRAT) transactions as listed transactions. CPA firms with high-net-worth clients, nonprofit advisees, or estate planning engagements face immediate disclosure obligations and stiff penalties for non-compliance. Here is the operational breakdown every firm owner needs this week.

IRS Standard Mileage Rate Mid-Year Change: What CPAs Must Do Now

A mid-year IRS standard mileage rate adjustment is rare — and it forces CPAs to apply two separate rates to a single tax year's business miles. This guide walks through the split-year calculation methodology, client communication steps, and how AI-native practice tools can reduce the manual burden across your entire mileage-tracking client base.

Non-Filer Back Tax Returns: How CPAs Reconstruct Expenses Without Records

When a non-filer client hands you nothing but a box of cash-deposit records and a vague memory of what they spent, reconstructing Schedule C expenses becomes an exercise in forensic accounting. This guide walks CPAs through IRS-accepted methods, industry expense ratio sources, and the documentation workflow that keeps your firm protected on multi-year back tax engagements.

Qualified Domestic Trust Regulations Under Section 2056A Revised by IRS

The IRS published final regulations on July 10, 2026, revising the Qualified Domestic Trust rules under Section 2056A to eliminate outdated references and modernize filing procedures. CPA firms with clients who have noncitizen spouses in estate plans need to review open files now. Here is what changed, who it affects, and a short action checklist for this week.

Increase in Threshold for Requiring Information Reporting

On July 2, 2026, the IRS published a hearing notice for proposed regulations (REG-113229-25) that would raise the dollar thresholds triggering 1099 information reporting and backup withholding for trade or business payments. CPA firms serving self-employed clients, S-corps, partnerships, and nonprofits need to understand the operational implications now — before the public comment window closes.

State Tax Nexus for Growing Clients: How Small CPA Firms Manage Multi-State Compliance

When a business client hires their first remote employee in another state or crosses a sales threshold in a new market, multi-state tax obligations follow immediately. This guide walks small CPA firms through a repeatable workflow for identifying nexus triggers, managing state registrations, and deciding when a referral makes more sense than in-house compliance.

IRS Practitioner Priority Service Tips: How to Actually Get Through in 2025

IRS Practitioner Priority Service hold times routinely stretch past two hours — and even then, many CPAs get disconnected before speaking to anyone. This guide compiles the most effective tactics tax professionals are using in 2025 to reach the PPS line, survive callbacks, and close out client notices without losing entire afternoons.

Nonprofit Audit Preparation: How CPAs Streamline Form 990 and Compliance Reviews

Nonprofit audit preparation is one of the most document-intensive engagements a CPA firm handles — combining Form 990 accuracy, Uniform Guidance compliance, and board governance reviews into a single high-stakes workflow. This guide walks through the full nonprofit audit lifecycle and shows how AI-native practice management platforms auto-flag compliance gaps before the auditor even opens the file.

IRS CP2000 Notice Response: How CPAs Resolve Underreporter Inquiries Fast

A CP2000 notice gives your client — and you — roughly 30 days to respond before the IRS assesses a proposed tax change. This step-by-step playbook covers everything CPAs need: reading the notice, AI-assisted document matching, drafting the response letter, and building automated monitoring so no underreporter inquiry ever slips through.

Like-Kind Exchange 1031: How CPAs Guide Real Estate Clients Through a Tax-Deferred Swap

Most 1031 exchange content is written for investors. This guide is for the CPA executing the transaction — covering qualifying property rules, strict 45- and 180-day deadlines, boot calculations, reverse exchanges, and how modern practice management tools keep every step documented and on track.

CAF Number for CPAs: What It Is, How to Get One, and Why It Matters

Your CAF number is more than a one-time IRS registration — it is the foundation of every client authorization your firm will ever file. This guide explains what the centralized authorization file number is, how to obtain it through Form 2848 and IRS e-services, and how growing CPA firms use AI-native practice management to track dozens of active POAs at scale without dropping a single IRS notice.

Cryptocurrency Tax Reporting: How CPAs Handle Digital Asset Clients

Cryptocurrency tax reporting is no longer a niche specialty — it's a growing source of complexity that lands in nearly every CPA's inbox. This guide covers how forward-thinking firms build a repeatable crypto client workflow, from reconciling multi-exchange CSV files with AI extraction to pricing digital asset engagements as a premium service line.

Form 8879-TA: What CPAs Need to Know About the E-File Signature Authorization for Trump Account Elections

Form 8879-TA, released in December 2025, is the IRS e-file signature authorization for Form 4547, Trump Account Election(s) — not for trusts and estates (that's Form 8879-F). This guide covers when 8879-TA is required, who signs it, the Practitioner PIN rules, ERO responsibilities, and retention requirements.

IRS Installment Agreement CPAs: How to Negotiate Payment Plans for Clients

When clients owe back taxes they cannot pay in full, a properly negotiated IRS installment agreement is often the fastest path to resolution. This guide walks CPAs through eligibility thresholds, Form 9465, streamlined versus non-streamlined agreements, Direct Debit advantages, and how AI-powered practice management tools keep ongoing compliance from slipping through the cracks.

Offer in Compromise: How CPAs Negotiate IRS Debt Settlement for Clients

An Offer in Compromise is one of the most complex — and lucrative — engagements a CPA firm can take on. This guide breaks down the full OIC workflow from reasonable collection potential analysis to IRS correspondence tracking, and shows how AI-native tools eliminate the manual burden at every stage.

Lease Accounting for CPAs: ASC 842 Client Workflows That Scale

Every guide to ASC 842 is written for controllers and CFOs inside the company — almost none address the CPA firm practitioner managing dozens of client lease schedules simultaneously. This guide covers what lease data to capture at intake, how to build repeatable right-of-use asset and amortization workflows, and how AI-native practice management eliminates the spreadsheet chaos of scaling ASC 842 compliance across 50 or more clients.

Beneficial Ownership Reporting: What CPAs Must Do for Clients in 2026

Most articles on FinCEN BOI filing stop at deadline dates. This guide goes deeper — showing CPAs exactly how to identify which clients are affected, build a scalable filing workflow, document advisory liability, and price BOI services as a standalone or bundled engagement in 2026.

Cost Segregation Studies: How CPAs Unlock Hidden Depreciation for Clients

Cost segregation studies are one of the most powerful accelerated depreciation strategies available to real estate clients — yet most CPAs leave them on the table. This guide walks through how to identify qualifying properties, coordinate with engineers, and document results on the return, all without adding headcount.

Returns Relating to Sales or Exchanges of Certain Partnership Interests: What CPAs Must Do Now

The IRS published final regulations on May 20, 2026 modifying information reporting obligations for sales or exchanges of certain partnership interests — specifically those holding inventory or unrealized receivables. CPA firms with partnership clients need to review engagement scope, update intake workflows, and flag affected returns before the next filing deadline.

Passive Activity Rules: What CPAs Must Know to Protect Client Deductions

IRC Section 469 passive activity rules are among the most commonly misapplied provisions in individual and business tax returns — especially for real estate investors, limited partners, and multi-entity business owners. This guide walks CPAs through the seven material participation tests, real estate professional status requirements, passive loss carryforward mechanics, and the AI-assisted validation workflows that catch costly errors before they reach the IRS.

IRS Penalty Abatement: How CPAs Request Relief for Clients

IRS penalty abatement is one of the highest-ROI services a CPA firm can offer — yet most practices treat it as one-off firefighting rather than a systematized revenue line. This guide walks through first-time abatement, reasonable cause relief, and CP2000 responses, then shows how to build workflows that flag eligible clients automatically and store every piece of abatement correspondence in one place.

IRS Audit Representation: How CPAs Defend Clients and Win

Most audit rep content is written for taxpayers — not for CPAs building a repeatable service line. This guide covers everything from engagement letter language and Form 2848 workflows to AI-assisted document staging and IRS agent communication protocols, so your firm can deliver audit defense efficiently at scale.

Retirement Plan Options for Self-Employed CPAs: SEP-IRA vs Solo 401k

Most retirement planning content for CPAs focuses on advising clients — not on the CPA as a business owner with variable income and no employer match. This guide breaks down SEP-IRA vs Solo 401k vs SIMPLE IRA contribution limits, tax deduction mechanics, and how solo and small-firm owners can align retirement contributions with estimated tax cycles to maximize savings without cash-flow surprises.

Tax Resolution Software CPAs Use to Auto-Handle IRS Notices

IRS notices don't pause for busy season — but most CPA firms are still managing them manually. This guide breaks down how AI-native tax resolution software automates the entire notice-to-response pipeline. Learn what separates legacy tools from platforms built to actually work the notices, not just track them.

IRS Tax Deadlines 2026: What Every CPA Must Know

The 2026 IRS deadline calendar isn't just a list of dates — it's a series of operational triggers your firm needs to act on. This practitioner-facing guide maps every key cutoff to the workflow actions that keep your pipeline moving. Stop reacting to missed deadlines and start building a firm that runs ahead of them.

Cybersecurity for CPA Firms: Protect Client Tax Data

Cybersecurity for CPA firms isn't optional in 2026 — it's a federal compliance obligation with serious legal exposure. From Written Information Security Plans to phishing prevention, the stakes have never been higher for accounting practices. This compliance-first guide covers exactly what US-based CPA firms need to protect client data and satisfy IRS requirements.

How AI Helps CPAs File Taxes More Accurately

AI is reshaping every stage of the US tax filing workflow—from document extraction to IRS research. For CPAs, the question is no longer whether to adopt AI, but how to use it strategically while maintaining the professional judgment that clients depend on. Here's a practical look at what AI actually does, where it adds the most value, and what TaxScout brings to the table.