IRS Compliance

IRS deadlines, requirements, forms, and the operational implications for tax professionals — covers updates from IRS.gov and treasury.

29 articles on this topic.

blog

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.

14 min
blog

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.

14 min
news

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.

10 min
blog

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.

16 min
blog

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.

13 min
news

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.

8 min
news

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.

10 min
blog

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.

16 min
blog

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.

16 min
blog

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.

14 min
blog

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.

13 min
blog

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.

18 min
blog

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.

15 min
blog

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.

12 min
blog

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.

11 min
blog

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.

17 min
blog

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.

14 min
blog

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.

16 min
blog

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.

12 min
blog

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.

15 min
news

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.

9 min
blog

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.

17 min
blog

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.

16 min
blog

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.

14 min
blog

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.

13 min
blog

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.

15 min
news

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.

13 min
blog

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.

14 min
guide

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.

11 min