#irs-requirements
Irs Requirements
Meet IRS requirements for business tax compliance
Fix Your Own 401(k) Mistakes: A Small Business Guide to IRS Self-Correction
EPCRS gives small business 401(k) sponsors three ways to fix plan mistakes — self-correction with no fee, no filing, and no IRS contact through the third plan year for significant errors, a voluntary filing with IRS approval, or a negotiated closing agreement on audit — with standard fixes for late deferral deposits, missed eligible employees, plan loan failures, and missed RMDs.
The IRS Just Added Three Features to Business Tax Account — Here's Why Small Business Owners Should Care
The IRS's summer 2026 Business Tax Account update adds a digital notices library, self-service EIN verification letter (CP575) downloads, and online Offer in Compromise payments. Here's who qualifies, how setup works, and why disciplined bookkeeping makes these tools actually useful.
The Enrolled Agent Exam's 2026 Overhaul: PSI Replaces Prometric, and the Total Cost Rises to $317 Per Part
The IRS cut its Enrolled Agent exam fee from $99 to $66 per part in 2026, but new vendor PSI charges $251 versus Prometric's $168 — raising the total to $317 per part. The switch also brings a March–June testing blackout, a 200–800 scoring scale, and first-time remote proctoring for U.S. candidates.
How to Get the IRS to Answer You in Writing: Private Letter Rulings and Determination Letters for Small Businesses
Oral advice from the IRS is not binding — a private letter ruling is. Under Revenue Procedure 2026-1, 9100 relief for a missed tax election generally costs about $14,500, with reduced tiers near $3,450 and $9,775 for smaller organizations, and the IRS must make contact within 21 days of a complete request. Here's when a ruling is worth the fee, what the request must contain, and the no-fee alternatives — Form SS-8, Form 3115, and Rev. Proc. 2013-30 — that cover most common cases.
Safe Harbor 401(k) Plans in 2026: How Small Businesses Skip Nondiscrimination Testing
A safe harbor 401(k) automatically passes IRS ADP/ACP nondiscrimination testing in exchange for a fixed employer contribution — a 3% nonelective or a match of up to 4%. Here's how the three formulas compare in cost, the December 1 retroactive adoption deadline, and the 2026 limits ($24,500 deferral, $72,000 total additions, mandatory Roth catch-ups for high earners).
Owner's Draw vs. Salary: How S-Corp Owners Set Reasonable Compensation
The "60/40 rule" for splitting S-corp salary and distributions has never appeared in any IRS regulation. What the IRS actually applies is a facts-and-circumstances test — the one that reclassified a CPA's $24,000 salary to $91,044 and cost him $23,000 in back payroll taxes. Here's how to set a defensible number.
Form 8275 Disclosure Statement: Defeating the 20% Section 6662 Accuracy-Related Penalty
Form 8275 lets taxpayers disclose debatable tax positions with the IRS to defeat the 20% Section 6662 accuracy-related penalty when a position has at least a reasonable basis. Covers when to use Form 8275 versus Form 8275-R, what counts as adequate disclosure, timing rules, and Section 6694 preparer-penalty protection.
After ERC Voluntary Disclosure Program 2.0: How Small Businesses Can Still Fix Improper Claims in 2026
With the second ERC Voluntary Disclosure Program closed since November 2024, small businesses with overstated Employee Retention Credit claims still have three remedies in 2026: claim withdrawal, self-amendment via Form 941-X, or responding to an IRS recapture letter. The IRS has a six-year audit window open through April 15, 2027 for Q3 and Q4 2021 claims, plus a 20% accuracy-related penalty for erroneous refunds.
Section 531 Accumulated Earnings Tax: Justifying C-Corp Retained Earnings Above the $250,000 Bright Line
Section 531 imposes a 20% accumulated earnings tax on C-corps that retain profits beyond a $250,000 credit ($150,000 for personal service firms) without specific, feasible plans. This guide explains the Bardahl working-capital formula, the Section 534 burden-of-proof statement, and the contemporaneous documentation that defends an accumulation in IRS audit.
Form 2553 Late S-Corp Election: How Rev. Proc. 2013-30 Cures Missed Deadlines Without PLR Fees
A practical walkthrough of how Revenue Procedure 2013-30 lets businesses cure a missed Form 2553 S-corp election within three years and 75 days — no $3,500+ private letter ruling fee, no negotiation, just a checklist and a well-written statement.
Real Estate Professional Status: How High Earners Use Section 469(c)(7) to Turn Rental Losses Into Tax Savings
A practical guide to Section 469(c)(7) Real Estate Professional Status — the 750-hour and more-than-half tests, the spousal rule, material participation and the grouping election, common audit failures, and how 100% bonus depreciation in 2026 makes REPS worth the documentation cost.
Section 7872 and the AFR Trap: How an Informal Family Loan Triggers Imputed Interest and Gift Tax
Below-market loans under IRC Section 7872 generate imputed interest at the Applicable Federal Rate, recharacterized as gifts, wages, or dividends depending on the relationship — here's how the $10,000 floor, the $100,000 cap for gift loans, and a written note at AFR keep intra-family, employer-employee, and shareholder loans out of the tax trap.