Top 10 Q&As from our last 2 years

"On the 0.5% charitable donation floor, is there an AGI limit, or does this impact every taxpayer?"

For individuals who itemize, the planning point is that the new floor applies before the itemized charitable deduction produces a benefit. The attendee answer framed it simply: compute 0.5% of AGI, then only the charitable giving above that amount is potentially deductible, subject to the other charitable contribution limits.

The practical client conversation is not "give or do not give." It is whether ordinary annual gifts should be bunched, whether a donor-advised fund fits the facts, and whether an IRA owner who is at least age 70 1/2 should consider qualified charitable distributions instead of taking a taxable IRA distribution and then writing a check.

• Good FAQ angle: small recurring gifts can still be valuable personally, but may not create the same federal itemized deduction result.
• Good CPE angle: charitable planning now belongs in the year-end projection, not only in Schedule A preparation.
• Recent IRS Updates: IRC Section 170 charitable deduction rules were modified for 2026 itemized deduction planning, including the 0.5% AGI floor. Confirm final 2026 Schedule A instructions and IRS Publication 526 before applying the rule.

"Could taxpayers use a check stub as proof of overtime if the year-end form does not break it out clearly?"

The speaker answer was practical: when formal reporting is incomplete during a transition year, the taxpayer and preparer need a reasonable record. Pay stubs, payroll reports, employer statements, and contemporaneous records are more useful than a year-end guess.

The key distinction is that the deduction is tied to qualified overtime compensation, not every dollar on a paycheck. A preparer should separate regular pay from the overtime premium and retain the workpapers that show how the deduction was calculated.

• Good FAQ angle: a pay stub may help, but the file should show the calculation.
• Good CPE angle: new deductions often create reporting lag before forms and payroll systems catch up.
• Recent IRS Updates: IRS Notice 2025-69 provided transition guidance for taxpayers with qualified tips or qualified overtime compensation in 2025. The key update is that only qualifying overtime compensation is relevant, so preparers should check current Form W-2, Form 1099, and Form 1040 instructions.

"Do qualified charitable distributions reduce AGI for the amount paid for Medicare premiums based on income?"

A QCD is generally excluded from taxable income when the IRA distribution is paid directly to a qualified charity and the taxpayer meets the age and other requirements. Because the distribution is excluded rather than deducted on Schedule A, it can keep AGI and modified AGI lower than taking a taxable distribution and claiming an itemized charitable contribution.

That is why QCDs came up repeatedly in the same conversations as Medicare IRMAA, charitable floors, and RMDs. The planning value is often not just the charitable tax benefit. It is the effect on AGI-driven calculations.

• Good FAQ angle: the transfer must be direct from the IRA trustee to the charity.
• Good CPE angle: charitable planning, retirement distributions, and Medicare income thresholds intersect.
• Recent IRS Updates: IRC Section 408(d)(8) continues to govern QCD treatment, while SECURE 2.0 indexed the annual QCD limit and added limited one-time split-interest entity options. Confirm the current annual limit in IRS Publication 590-B.

"If a partnership return is missing income or expenses, do we amend the return?"

The answer depends on whether the partnership is subject to the centralized partnership audit regime. For many post-2017 partnership years, the correction path is an Administrative Adjustment Request, often discussed as an AAR, rather than a traditional amended return process.

The practical takeaway is to identify the partnership regime first, then choose the correction workflow. A non-BBA partnership may have a different route than a BBA partnership, and state filings may not follow the federal process cleanly.

• Good FAQ angle: do not assume "amended return" means the same thing for every entity.
• Good CPE angle: tax procedure rules can matter as much as the technical correction.
• Recent IRS Updates: BBA partnership audit rules under IRC Sections 6221-6241 remain the starting point for many post-2017 partnership corrections. Confirm current Form 1065 and Form 8082 instructions before choosing between an amended return and an AAR.

"If an S corporation is closing and a shareholder keeps an asset that is fully depreciated, does it still have value when distributed?"

Yes, tax basis and fair market value are separate questions. A fully depreciated asset may have zero adjusted basis but still have fair market value. If appreciated property is distributed by an S corporation, the corporation generally recognizes gain as if the property had been sold at fair market value, and that gain flows through to shareholders.

For the client, this is a closing-year planning issue: value the property, model the gain, check shareholder basis, and document the distribution. "Fully depreciated" does not mean "tax-free to remove from the corporation."

• Good FAQ angle: zero basis does not mean zero value.
• Good CPE angle: entity wind-downs require both tax and documentation discipline.
• Recent IRS Updates: No broad post-session change was noted for the core S corporation distribution rule. Continue checking IRC Sections 311(b), 336, 1366, 1367, and 1371, along with current Form 1120-S and Form 7203 instructions.

"If a partnership and the partners have several old unfiled years, will the IRS go after all years or mainly the most recent six?"

The speaker answer focused on practical resolution: the IRS often wants the last six years to bring a taxpayer back into filing compliance, but facts matter. Fraud indicators, unreported income, notices, substitute returns, state issues, or a specific IRS request can change the scope.

From a preparer standpoint, this is not only a tax calculation. It is an engagement-scope conversation. Identify missing years, assess income exposure, review notices/transcripts, document the cleanup plan, and decide whether counsel should be involved.

• Good FAQ angle: "six years" is a common compliance framework, not a universal statute of limitations answer.
• Good CPE angle: old nonfiler work requires process, not just form preparation.
• Recent IRS Updates: No single new Code section replaced the nonfiler analysis. The practical update is to check current IRS transcripts, notices, and the latest Collection IRM guidance before deciding which years to prepare.

"Can we use DocuSign for 2848/8821? I had one rejected because it was not a wet signature."

The practical answer is to follow the IRS signature rules for the submission channel being used. If a CAF unit rejects a signature, the fastest fix is usually a properly signed replacement rather than debating the rejected copy.

This question is popular because it sits at the intersection of tax authority, client convenience, and IRS processing. For firms, the useful internal control is a checklist: form version, taxpayer identity, representative information, tax matters, signature/date, and submission method.

• Good FAQ angle: not every commercial e-signature workflow is accepted for every IRS authorization process.
• Good CPE angle: administrative friction can delay resolution as much as a technical tax issue.
• Recent IRS Updates: IRS online authorization tools and submission options continue to evolve separately from generic commercial e-signature workflows. Confirm current Form 2848, Form 8821, Tax Pro Account, and CAF submission instructions before relying on an electronic signature process.

"For prior-year amended returns, how do we get refunds directly deposited when a bank account changed?"

The answer was cautious because IRS procedures depend on tax year, filing method, and current form instructions. For amended returns, the practical first step is to confirm whether the return was e-filed or paper-filed and then use IRS refund tracking tools and transcripts to monitor status.

The client-service takeaway is to set expectations early. Amended return refunds can be slower than original-return refunds, and changed bank information can create extra friction. Keep proof of filing, refund elections, notices, and transcript checks in the file.

• Good FAQ angle: tracking tools help, but they do not guarantee a fast amended refund.
• Good CPE angle: refund logistics are part of the engagement outcome from the attendee's point of view.
• Recent IRS Updates: Form 1040-X e-filing and amended-return direct deposit options have expanded, but availability depends on tax year, software, and current instructions. Check the latest Form 1040-X instructions and Where's My Amended Return guidance.

"Where is the poll question? I do not see it on my screen."

Webinar polls may appear in a separate window, hide behind another open window, or replace part of the browser presentation screen. If a polling question does not appear, or if you have trouble submitting an answer, first check for hidden webinar windows and return to the browser/app tab.

As noted at the beginning of each live session, please submit a Q&A message as soon as possible if you miss a polling question or experience a platform issue. That message creates a time-stamped record of the problem, alerts CPE Hours during the session, and allows your account to be reviewed appropriately for attendance and CPE documentation.

This deserves a place on the page because it is one of the most practical questions attendees ask. It also reinforces that CPE credit is tied to active participation, not just having the video open.

• Good FAQ angle: report the issue during the session, while staff can still see attendance and polling records.
• Good CPE angle: technical session management affects the attendee experience and credit confidence.
• Recent IRS Updates: No tax-law Code update applies to this attendee-support item. For IRS continuing education credit, follow the current course instructions and participation requirements for live online programs.

"The handout links on your website are helpful, but one IRS regulation link no longer works. Can it be updated?"

This is exactly the kind of course-support detail readers care about: official links move, break, or get replaced. When attendees flag a broken source, CPE Hours can research the replacement and update the resource where possible.

For a reader, this question signals that course value continues after the live hour. Handouts, updated links, Q&A pages, and recap pages help turn a live CPE session into a working reference library.

• Good FAQ angle: if a link is broken, report it with the course name and the affected resource.
• Good CPE angle: maintained resource pages make recurring courses more useful over time.
• Recent IRS Updates: IRS forms, publications, FAQs, and regulation links are revised or moved periodically. Use the current IRS forms and publications pages when an older course link points to a superseded or relocated source.