Questions & answers · Reviewed September 2026
Questions about using tax resources
Direct answers to common questions, with links to the relevant program details or primary guidance.
What online resources are useful for accountants and tax preparers?
Use IRS forms, instructions and publications for federal tax authority; your state revenue department and accountancy board for state rules; and the Basics & Beyond resource library, newsletters and session calendar for supporting materials and education. For digital-asset returns, start with the current IRS Form 8949 instructions and digital-asset guidance. Confirm the tax year of every downloaded form and handout.
Does continuing education count as a tax deduction, and where do I report it?
Qualifying work-related education can be deductible for a self-employed person when it maintains or improves existing work skills or meets a requirement to retain the present work. Education qualifying you for a new trade or meeting minimum entry requirements does not qualify under that rule. A sole proprietor generally reports eligible business education on Schedule C. Most employees cannot claim an itemized deduction for unreimbursed job-related education; limited exceptions and separate education-credit rules apply. Keep receipts, course descriptions and reimbursement records.
What does UPE mean on a tax return?
UPE means unreimbursed partnership expenses. A partner may be able to deduct ordinary and necessary expenses paid on the partnership’s behalf when the partnership agreement requires the partner to pay them. The Schedule E instructions explain the separate reporting and passive-activity treatment. It is not a general deduction for any unreimbursed personal or S corporation expense.
What is an exempt payee on Form W-9?
An exempt payee is a recipient whose qualifying payments are exempt from backup withholding under the applicable rules. The exemption depends on the payee type and payment type; it does not mean all of the recipient’s income is tax-free. Use the W-9 exempt-payee code instructions and check exceptions rather than claiming an exemption merely because the recipient operates a business.
What is the maximum penalty under IRC section 6501(a)?
Section 6501(a) sets the general period for assessing tax; it does not specify a maximum penalty. The usual rule is a three-year assessment period, with important exceptions and timing rules. A penalty amount depends on the separate provision imposing that penalty and the facts of the case.
Does Tax Topic 151 tell me when my refund will arrive?
No. Tax Topic 151 concerns appeal rights and does not promise a refund date. Read the actual IRS notice to identify the issue, response deadline and available appeal procedure. The notice and your account status—not the topic number alone—determine the next step.
Where can I find Arizona ITP 16-2 on bonus depreciation?
Arizona’s Department of Revenue publishes ITP 16-2, the 2016 procedure for individuals claiming federal and/or Arizona bonus depreciation, at the source linked below. It superseded ITP 15-1. Match the procedure to the asset’s placed-in-service year and the applicable return instructions; a historical procedure should not be assumed to establish current-year federal or Arizona conformity.
Can I get a second opinion on my taxes or an unexpected balance due?
Yes. An independent CPA, enrolled agent or tax attorney can review the return and source documents. Bring the filed return, relevant notices, income records and the questions you want checked. A balance due can result from insufficient withholding or estimated payments, additional income or changes in credits; it does not by itself establish an error. A review also does not suspend a notice, appeal or payment deadline.
When is Form 7203 required, and how is it completed?
Form 7203 tracks an S corporation shareholder’s stock and debt basis and limitations on loss deductions. Filing is generally required when claiming a loss deduction, receiving a nondividend distribution, disposing of stock or receiving loan repayment. Start with supported opening basis, record increases and reductions in the required order, and complete the applicable stock-basis, debt-basis and loss sections. The form was introduced for 2021 returns; the obligation to substantiate basis predates it.
What does “stock block” mean on Form 7203?
A stock block identifies shares acquired in the same transaction. Separately acquired blocks may have different bases and holding periods. Use the applicable Form 7203 instructions and acquisition records when separate tracking is required; the stock-block entry is not a dollar amount or a substitute for the basis computation.
How do I calculate Social Security PIA, and is there one maximum amount?
The primary insurance amount (PIA) starts with average indexed monthly earnings and applies the formula for the worker’s eligibility year. For 2026 eligibility, the formula uses 90% of the first $1,286, 32% from $1,286 through $7,749, and 15% above $7,749, then the specified rounding. A “maximum” depends on earnings history and the applicable year; it is not the same as the highest payment from claiming at a later age. Use SSA’s current calculation guidance with the worker’s record.
Does everyone filing Form 1040 need Schedule 1?
No. Schedule 1 is used when you need to report additional income or adjustments that cannot be entered directly on Form 1040, 1040-SR or 1040-NR, or another applicable Schedule 1 reporting item. Examples include business income and certain deductions such as eligible educator expenses. Follow the instructions for your tax year. Schedule 1-A is a separate schedule for additional deductions; an archived draft of Schedule 1-A is not a substitute for Schedule 1.
What is Hawaii’s penalty for underpaying estimated income tax?
The amount depends on the taxpayer, year, installment shortfall and payment dates; it is not a single flat fee. Individuals, estates and trusts use Hawaii Form N-210 and its instructions. For 2025, the general required-payment test compares timely withholding and estimates with the smaller of 60% of 2025 tax or 100% of 2024 tax, subject to the form’s conditions and exceptions. The penalty is calculated separately for each required payment.
An electing pass-through entity follows separate PTE rules. The archived partnership handout discusses historical Hawaii PTE requirements, so it should not be used as the individual underpayment calculator. Choose the official instructions for the entity type and year before calculating a dollar amount.
