Executive Summary for the Taxpayer IRS penalties, including those for failure to file and failure to pay, accrue at statutory rates that can quickly exceed 25% of the underlying tax liability. Utilizing professional representation by an Enrolled Agent allows for the strategic application of First-Time Abatement or Reasonable Cause relief to mitigate these financial assessments.…

Executive Summary for the Taxpayer Taxpayers facing delinquent liabilities or IRS inquiries have the statutory right to professional representation, which allows them to avoid direct communication with federal agents. By executing a Power of Attorney (Form 2848), an Enrolled Agent (EA) manages all correspondence, negotiations, and procedural defenses on the taxpayer’s behalf. The Right to…

Executive Summary for the TaxpayerMissing a federal tax deadline triggers immediate statutory penalties under IRC § 6651, with the failure-to-file penalty accruing at ten times the rate of the failure-to-pay penalty. Immediate filing stops the 5% monthly accrual, and taxpayers may qualify for administrative relief through the First-Time Abate program or reasonable cause exceptions. The…

Executive Summary for the Taxpayer Information return compliance breaks down long before January 31 if the payer fails to collect Forms W-9, misreads the $2,000 thresholds, duplicates payment reporting, or ignores backup withholding duties under IRC §§ 6041, 6041A, 6050W, and 3406. This guide isolates the exact failure points that produce CP2100 B-Notices, mismatch notices,…

Executive Summary for the Taxpayer The One Big Beautiful Bill Act of 2025 (OBBBA) permanently restored 100% bonus depreciation for qualifying assets acquired after January 19, 2025. Real estate investors must use cost segregation to reclassify building components into shorter recovery periods to unlock these massive year-one deductions. The Return of the 100-Percent Write-Off The…

Executive Summary for the Taxpayer The Overcoming Burdens by Balancing Benefits Act (OBBBA) of 2026 introduces a significant federal income tax deduction for qualified overtime premiums under IRC § 64. This provision allows eligible employees to deduct the 0.5x "premium" portion of their time-and-a-half pay, subject to annual caps and income phase-outs. The landscape of…

Executive Summary for the Taxpayer The One Big Beautiful Bill Act (OBBBA) reintroduces a federal deduction for personal car loan interest up to $10,000 per year for tax years 2025–2028. To qualify, the vehicle must be new, assembled in the United States, and secured by a first-lien loan started after December 31, 2024. The Great…

Executive Summary for the Taxpayer: Most national tax resolution firms misrepresent the Offer in Compromise (OIC) program as a universal debt-forgiveness tool, leading to a high rejection rate for unprepared taxpayers. This guide outlines the technical requirements for IRS debt settlement and how an Enrolled Agent uses the Internal Revenue Manual to protect your assets.…

Executive Summary for the Taxpayer: Recent legislative shifts under the One Big Beautiful Bill Act (OBBBA) have altered 1099-NEC reporting thresholds to $2,000, but automated IRS matching systems remain aggressive in identifying unreported income. Failure to maintain precise documentation or execute required backup withholding can result in statutory penalties and automated enforcement actions. The $2,000…

Executive Summary for the Taxpayer The One Big, Beautiful Bill Act (OBBBA) has established a specific list of 71 Treasury Tipped Occupation Codes (TTOC) that qualify for the "no tax on tips" federal deduction starting in 2026. Employers must utilize these specific three-digit codes in Box 14b of Form W-2 to ensure compliance with new…

Executive Summary for the Taxpayer New Jersey Assembly Bill A4995 proposes a state gross income tax credit of up to $900 for dog and cat owners to offset rising care costs. If enacted, taxpayers would qualify for a $300 credit for everyday supplies and a $600 credit for veterinary services, provided they maintain rigorous financial…

Executive Summary for the Taxpayer New Jersey Assembly Bill A4995 proposes a state gross income tax credit of up to $900 for dog and cat owners to offset rising care costs. If enacted, taxpayers would qualify for a $300 credit for everyday supplies and a $600 credit for veterinary services, provided they maintain rigorous financial…

Executive Summary for the Taxpayer The IRS reporting threshold for Form 1099-K is transitioning to $600, causing significant confusion regarding which digital payments are taxable. This guide identifies how to distinguish business revenue from personal reimbursements to ensure you do not overpay taxes on non-taxable events. The Internal Revenue Service (IRS) continues to refine the…

Executive Summary for the Taxpayer: Filing an overdue return immediately halts the 5% monthly "Failure to File" penalty, which is ten times more expensive than the "Failure to Pay" penalty. Proactive filing allows a taxpayer to pursue administrative relief such as First-Time Abate (FTA) and formal payment agreements before the IRS initiates enforced collection actions.…

Executive Summary for the Taxpayer The One Big Beautiful Bill Act (OBBBA) increases the State and Local Tax (SALT) deduction cap to $40,000 for taxpayers with a Modified Adjusted Gross Income (MAGI) under $500,000. This shift makes itemizing on Schedule A significantly more beneficial than the standard deduction for most homeowners in high-tax states like…

If you live and work in New York, you already know that the cost of living isn’t exactly "budget-friendly." From the price of a gallon of milk to the ever-climbing utility bills, New Yorkers have been feeling the squeeze for a while now. But as we dive into the 2026 tax season, there is a…

You check the mailbox, flip through the usual junk, and then, record scratch, there it is. A letter from the Internal Revenue Service. Your heart rate spikes. Your palms get a little sweaty. You're already mentally calculating how much ramen you'll be eating for the next decade. Deep breath. An IRS letter doesn't automatically mean…

So you've got a side hustle. Maybe you're driving for a rideshare app, freelancing on weekends, selling crafts online, or picking up consulting gigs after your 9-to-5. Nice work! But here's a question that trips up a lot of side hustlers: should you be getting paid as a W-2 employee or a 1099 contractor? The…

Congratulations , you're officially a landlord! Whether you just closed on your first rental property or you've had tenants for a few months now, there's one thing that catches most new landlords off guard: the taxes. Don't worry. Rental property taxes aren't as scary as they seem. In fact, once you understand the basics, you'll…

So you've joined the gig economy. Maybe you're driving for rideshare apps, freelancing on the side, or running your own small business. Congrats! You're your own boss now. But here's the not-so-fun part: you're also your own payroll department, accountant, and tax preparer. And if you're like most 1099 workers we see at Brick Taxes,…