Sweetenburg's Accounting & Tax Services

09/17/2026

SWEET'S TAX TIPS!!!

APPLIED KNOWLEDGE IS POWER!!!

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IRS Nonfilers Face Penalties and Lost Refunds

The IRS is increasing its focus on nonfilers as the number of taxpayers with potentially unfiled tax returns continues to grow. A recent Treasury Inspector General for Tax Administration (TIGTA) report found that potential individual nonfilers increased from 8.8 million for tax year 2015 to 14.7 million for 2022. Nonfilers accounted for an estimated $63 billion, or 9%, of the projected $696 billion gross tax gap for 2022.

In 2024, the IRS began actively pursuing high-income nonfilers, but TIGTA found nearly 33,700 taxpayers remained in first notice status as of June 30, 2025, delaying further collection action. TIGTA estimated that advancing certain cases could result in approximately $321 million in potential additional tax due and made additional recommendations to the IRS to improve enforcement. Another 11,000 cases are awaiting further collection assignment, representing an estimated $90.8 million in potential additional tax.

Failing to file can have lasting consequences. The failure-to-file penalty is typically 5% of unpaid tax for each month or part of a month the return is late, up to 25%. More importantly, when you never file a required return, the normal three-year IRS assessment period doesn’t begin. There is no statute of limitations, which means the IRS can assess tax for the unfiled year at any time. The IRS plans to use analytics and artificial intelligence to identify potential nonfilers earlier while expanding outreach to encourage voluntary compliance.

TIGTA also reported that more than 1.3 million taxpayers did not claim an estimated $1.2 billion in refunds for the 2022 tax year. The deadline to claim a refund for the 2022 tax year was April 15, 2026.

09/10/2026

SWEET'S TAX TIPS!!!!

APPLIED KNOWLEDGE IS POWER!!!

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The following information is new for tax year 2026; it applies to taxpayers who do not itemize!!!!!

Question: In November 2026, Jordan, a single taxpayer who will claim the standard deduction, makes a $1,400 contribution by check directly to a local food bank. The food bank is a qualified public charity described in §170(b)(1)(A) and is not a supporting organization. Jordan receives a contemporaneous written acknowledgment stating the food bank provided no goods or services in exchange for the contribution. Jordan has no other charitable contributions for the year. What charitable contribution deduction may Jordan claim for 2026?

Answer: Jordan may deduct $1,000. Section 170(p) allows an individual who does not itemize to deduct qualifying cash contributions up to $1,000, or $2,000 for a joint return. For taxpayers who do not itemize, §63(b)(4) allows the §170(p) charitable contribution deduction in computing taxable income, in addition to the standard deduction allowed under §63(b)(1).

Because Jordan is single, will not itemize and made a qualifying $1,400 cash contribution, the 2026 charitable contribution deduction is limited to $1,000. The 0.5% floor that applies to itemized charitable contributions beginning in 2026 does not reduce this deduction because §170(p) applies without regard to §170(b)(1)(I).

08/07/2026

KNOW YOUR HISTORY!!!!

08/07/2026

SWEET'S TAX TIPS:

APPLIED KNOWLEGE IS POWER!!!

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If you’re age 50 or older, a great way to enhance your retirement nest egg is to make “catch-up” contributions to your 401(k), 403(b), 457 plan, SIMPLE or IRA. And workers age 60 to 63 can potentially boost their 401(k) or other employer-sponsored retirement plan up to 150% of the regular catch-up limit. For 2026, this means an extra contribution of $11,250 ($5,250 for SIMPLEs).

CREDIT FOR THIS SPECIFIC POST GOES TO PLANT TAX ADVISORS!!! See less

07/11/2026

TRUTH!!! AMEN!!!

05/25/2026

SWEET'S TAX TIPS!!!

APPLIED KNOWLEDGE IS POWER!!!

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05/22/2026

SWEET'S TAX TIPS!!!

APPLIED KNOWLEDGE IS POWER!!!

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Deductible house-related expenses

Taxpayers must itemize their deductions to deduct homeownership expenses. Most home buyers take out a mortgage to buy their home, and their mortgage lender may bundle other home-related costs.

The costs the homeowner can deduct are:

1. State and local real estate taxes, subject to a $40,000 limit or $20,000 if married filing separately
2. Home mortgage interest, within the allowed limits

Homeowners can't deduct any of the following items:
1. Insurance including fire and comprehensive coverage and title insurance.
2. The amount applied to reduce the principal of the mortgage.
3. Wages paid to domestic help
4. Depreciation
5. The cost of utilities, such as gas, electricity or water
6. Most settlement or closing costs
7. Forfeited deposits, down payments or earnest money
8. Internet or Wi-Fi system or service
9. Homeowners’ association fees, condominium association fees or common charges.
10. Home repairs
11. Mortgage Interest Credit
12. The Mortgage Interest Credit helps people with lower income afford homeownership. Those who qualify can claim the credit each year for part of the home mortgage interest paid. A homeowner may be eligible for the credit if they were issued a qualified
13. Mortgage Credit Certificate from their state or local government.

Ministers and military housing allowance:

Ministers and members of the uniformed services who receive a nontaxable housing allowance can still deduct their real estate taxes and home mortgage interest. They don't have to reduce their deductions based on the allowance.

05/15/2026

SWEET'S TAX TIPS!!!

APPLIED KNOWLEDGE IS POWER!!!

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QUESTION: Why do Tax Professionals all ask for previous year tax returns?

ANSWER: Tax preparers need prior year returns to verify AGI, check for carryovers, and ensure accuracy in current year filings.

Some software need prior year AGI for new clients in order to e-file their current year return. We need to known of any business depreciations, and to determine current year underpayment penalties.

To identify information that is beneficial to you that you may have forgotten to share with us in the current year.

05/07/2026

Know your history!!!

This video tells the story of Joseph H. Smith, who in 1897 invented the rotary head sprinkler, forever changing "lawn care". Before his invention, "watering ...

05/06/2026

SWEET'S TAX TIPS!!!!

APPLIED KNOWLEDGE IS POWER!!!

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Here is my response to Tax Professionals, Bookkeepers, & Accountant only put numbers on forms and in various program software!!!

Please understand that while the end product is a filed form, the true value lies in the expertise, interpretation of tax law, risk management, and strategic planning that occurs before those numbers are entered.

Actually, the numbers are just the final step. My real work is interpreting the complex, constantly changing tax code to ensure you don’t pay a penny more than necessary, identifying missed deductions, and planning for your future tax liability.

Yes!!! Anyone can put numbers in boxes, but I ensure those numbers won't trigger an audit or penalties. I verify compliance, substantiate deductions, and handle the risks so you have peace of mind that a simple input error won't cost you thousands later
With the tax code changing annually, I focus on applying those updates to your specific financial situation. My role is to recognize how your investments, business, or life changes translate into tax-saving strategies, not just data entry.

I am very sure you are aware that if the IRS sends a notice, they don't look at the software; they look at the signature of the professional who prepared it. My value is standing behind those numbers, protecting you, and representing you in disputes.

Here are the key points to keep in mind and be cognitive of :

• Time Savings: On average, a professional saves clients significant time, with complex returns taking around 20 hours to complete on their own.

• Maximizing Returns: Professionals frequently identify deductions and credits missed by self-filers.

• Preventing Penalty/Audit: A professional ensures accuracy to avoid negligent disregard of tax regulations.

• Strategic Planning: Advising on tax-saving decisions throughout the year, not just in April.

I am here to use my knowledge, education, skills, abilities and God given talents to assist you for your legal and financial benefits as they relate to your taxes and business success without hookups.