Author: yd4jx

Understanding the Collection Statute Expiration Date to Protect Your Taxes
Key Takeaways

The collection statute expiration date (CSED) is the deadline for how long the IRS can legally collect a tax debt, typically 10 years from the assessment date, not the filing date.

The 10-year rule can be extended or paused by events like bankruptcy, Offers in Compromise, or appeals, which can significantly delay your actual CSED.

Each tax year has its own CSED, meaning multiple tax debts can expire at different times and require separate strategies.

Once the CSED expires, the IRS can no longer enforce collection, and the remaining balance becomes legally uncollectible, though not formally forgiven.

Understanding your CSED is critical for tax planning, as it can influence whether you pursue settlement options, payment plans, or other relief strategies.

Missteps, like miscalculating your timeline or taking actions that extend the statute, can cost you more, making professional guidance valuable for maximizing tax relief.
If you owe back taxes, one of the most important, but often misunderstood concepts is the collection statute expiration date (CSED). This date determines how long the IRS has to legally collect your tax debt. While many taxpayers focus on how much they owe, far fewer understand how long the IRS can pursue that balance. Yet, this timeline can be just as important as the amount itself.

Why the Collection Statute Expiration Date Matters

The IRS does not have unlimited time to collect unpaid taxes. In most cases, it has a 10-year window to pursue collection after a tax is assessed. Understanding where you fall within that window can influence whether you pursue a settlement, enter into a payment plan, or take a more strategic approach. For some taxpayers, knowing their collection statute expiration date can mean the difference between paying a large balance in full or resolving it for significantly less.

What Is the Collection Statute Expiration Date (CSED)?

The collection statute expiration date (CSED) is the legal deadline by which the IRS must stop its collection efforts on a specific tax debt. Once this date passes, the IRS generally loses its authority to enforce collection, and the remaining balance becomes uncollectible.

Understanding the 10-Year Collection Rule

The foundation of the CSED is the IRS’s 10-year statute of limitations on collections. This means the IRS typically has 10 years from the date a tax liability is officially assessed to collect the debt. This rule exists to provide a clear endpoint and prevent indefinite collection activity.

However, the simplicity of the “10-year rule” can be misleading. The actual timeline is often more complex due to pauses, extensions, and multiple overlapping tax years. As a result, the true collection statute expiration date may be later than expected.

Assessment Date vs. Filing Date

A common misconception is that the clock starts when you file your tax return. In reality, the timeline begins on the assessment date, which is when the IRS formally records the tax liability in its system. This distinction is critical because delays in processing, audits, or amended returns can shift the start of the collection period.

For instance, if you file a return in April but the IRS does not assess additional tax until several months later due to a review, the collection statute expiration date will be based on that later assessment date—not the original filing date.

How the IRS 10-Year Collection Period Works

Understanding how the 10-year collection period operates in practice is essential for making informed decisions about your tax situation.

Timeline Breakdown

Once a tax is assessed, the IRS begins its collection efforts, and the 10-year clock starts running. During this time, the IRS can use a range of enforcement tools to recover the debt. As the years pass, penalties and interest continue to accrue, increasing the total amount owed. When the collection statute expiration date is reached, the IRS must stop collection activity on that specific liability.

Example of the 10-Year Rule in Action

Consider a taxpayer who owes taxes for multiple years. If their 2018 tax liability was assessed in 2019, the IRS has until 2029 to collect that debt. If their 2019 liability was assessed in 2020, that debt would expire in 2030. Each tax year operates independently, meaning the taxpayer may be dealing with several different collection statute expiration dates at once.

This staggered timeline creates both challenges and opportunities. A taxpayer may choose to focus on resolving newer debts while older ones are closer to expiring, or they may pursue strategies that take advantage of the remaining time on the statute.

Multiple Debts, Multiple Deadlines

Because each assessment carries its own statute, it is possible for some debts to expire while others remain active. This makes it especially important to track each liability individually. Without careful attention, a taxpayer might inadvertently prioritize paying off a debt that is close to expiring while neglecting one with a longer collection window.

Why the CSED Matters for Taxpayers

The collection statute expiration date is more than just a technical detail—it is a powerful factor in determining how you approach your tax debt.

Protection Against Endless Collection

The existence of a defined collection period ensures that taxpayers are not subject to indefinite enforcement. Once the statute expires, the IRS must stop initiating new collection actions, including new wage garnishments, bank levies, and other enforcement measures. It is important to note, however, that levies placed on fixed rights to future income — such as pension payments or Social Security benefits — before the CSED expired may continue beyond that date. Once the CSED passes, the IRS cannot initiate new collection actions, and the remaining balance is considered legally uncollectible.

Influence on Tax Relief Programs

Many IRS resolution options are directly influenced by how much time remains before the collection statute expiration date. For example, the IRS evaluates your ability to pay when considering an Offer in Compromise, and that evaluation is partially based on how long the IRS has left to collect. A shorter remaining timeframe may result in a lower settlement amount.

Similarly, if you are considering an installment agreement, the length of time remaining on your statute may determine whether the IRS expects full repayment or is willing to accept a reduced amount over time.

Strategic Financial Planning

When you understand your collection statute expiration date, you gain leverage. You can evaluate whether it makes sense to aggressively pay down your debt, negotiate a settlement, or adopt a more conservative approach. Without this knowledge, you may end up overpaying or missing opportunities for relief.

How to Find Your CSED

Determining your collection statute expiration date is not always straightforward, but it is a critical step in managing your tax liability.

Using IRS Transcripts

Your IRS Account Transcript is one of the most reliable ways to identify your CSED. The transcript contains detailed information about your tax account, including assessment dates, payments, and collection activity. The CSED itself typically appears as a transaction code with a corresponding date. Because multiple tolling events can shift this date, reviewing your transcript carefully — or working with a tax professional — is the best way to confirm your accurate deadline.

Working with Tax Professionals

Tax professionals often have the experience and tools needed to interpret IRS records accurately. This is particularly important if your account includes multiple tax years, prior collection actions, or events that may have paused or extended the statute.

Estimating Your Timeline

If you are calculating your collection statute expiration date on your own, you must start with the assessment date and add 10 years. From there, you need to account for any events that may have suspended or extended the timeline. Even small miscalculations can lead to significant errors, so precision is essential.

What Actions Can Extend or Pause the CSED?

Although the IRS generally has 10 years to collect, that period is not always continuous. Certain actions can pause or extend the collection statute expiration date, effectively giving the IRS more time.

Common Events That Suspend the Collection Clock

Several common situations can temporarily halt the running of the statute. If a taxpayer files for bankruptcy, the IRS is generally prohibited from collecting during the proceeding, which suspends the CSED. When the bankruptcy case concludes — whether through discharge, dismissal, or closure — the CSED is extended by an additional six months. Similarly, submitting an Offer in Compromise suspends collection activity while the IRS reviews the application. It’s worth noting that if the IRS rejects an Offer in Compromise, the CSED remains suspended for an additional 30 days — and if the taxpayer appeals that rejection, the suspension continues throughout the appeals process. This means that pursuing an OIC that is unlikely to be accepted could significantly extend the IRS’s collection window.

Requesting a Collection Due Process hearing also stops the clock, as the IRS must wait for the outcome before continuing collection efforts. Additionally, living outside the United States for an extended period can delay the statute, as the IRS may have limited ability to enforce collection during that time.

Additional Factors That Affect the Timeline

Other administrative processes can also impact the collection statute expiration date. For instance, when a taxpayer requests an installment agreement, the review period may temporarily suspend the statute. Appeals and ongoing disputes can have a similar effect, as the IRS pauses collection while resolving the issue.

Why These Delays Matter

Each time the statute is paused, the collection period is extended by the length of the suspension. Over time, these extensions can significantly push back the collection statute expiration date, sometimes by months or even years. This is why it is essential to understand how your actions may affect your timeline before making decisions.

Can You Voluntarily Extend the CSED?

In certain situations, taxpayers may agree to extend the collection statute expiration date as part of a broader resolution strategy.

When Extensions Are Considered

In limited circumstances, a taxpayer may agree to extend the CSED as part of a broader resolution. However, voluntary extensions are generally only permitted in connection with installment agreements or the release of a levy. Outside of these specific situations, the IRS and a taxpayer cannot simply agree to extend the collection period. Any decision to extend the statute should be made carefully, with a full understanding of the potential consequences, including additional time for penalties and interest to accrue.

Evaluating the Trade-Offs

Extending the statute gives the IRS more time to collect, which can increase your overall financial exposure. However, it may also allow you to qualify for programs that reduce your total liability or provide manageable payment terms. The decision should be made carefully, with a full understanding of the potential consequences.

How the IRS Collects During the CSED Period

During the active collection period, the IRS has significant authority to recover unpaid taxes.

Enforcement Tools Used by the IRS

The IRS can file a federal tax lien, which creates a legal claim against your property and can affect your credit and ability to sell assets. It can also levy your bank account, seizing funds directly, or garnish your wages, requiring your employer to send a portion of your paycheck to the government.

In addition, the IRS can apply any future tax refunds to your outstanding balance, a process known as a refund offset. These tools allow the IRS to collect aggressively during the statute period.

The Cost of Delayed Action

Even if enforcement actions are not immediately taken, penalties and interest continue to accumulate. Over time, this can substantially increase the amount you owe, making it more difficult to resolve the debt later.

What Happens When the CSED Expires?

Reaching the collection statute expiration date marks a significant turning point in your tax situation. Once the statute expires, the IRS must stop all active collection efforts, including wage garnishments, bank levies, and other enforcement actions. At this point, the debt is considered legally uncollectible, meaning the IRS no longer has the authority to pursue payment.

Any federal tax lien associated with the expired debt is generally self-releasing — meaning it releases automatically once the CSED passes. This can significantly improve your financial standing, making it easier to sell property, obtain credit, or move forward without the burden of an active IRS claim against your assets.

While the remaining balance is effectively written off, it is important to understand that this is not the same as formal forgiveness. Instead, it reflects the expiration of the IRS’s legal window to collect the debt. The obligation no longer carries enforcement risk, but it reached that outcome due to the statute of limitations rather than a negotiated resolution.

Strategies to Manage Tax Debt Before the CSED Expires

A clear understanding of your collection statute expiration date allows you to approach your tax debt strategically.

Timing Your Approach

If your statute is nearing expiration, you may choose to minimize payments and avoid actions that could extend the timeline. Conversely, if you have many years remaining, it may be more beneficial to pursue a structured resolution.

Evaluating Settlement Options

Programs like an Offer in Compromise can be particularly effective when the remaining collection period is short, as the IRS may accept a lower amount based on limited time to collect.

Balancing Risk and Action

While waiting out the statute may be appealing, it carries risks, including potential enforcement actions and growing penalties. A balanced approach that considers both timing and risk is often the most effective strategy.

Common Mistakes to Avoid with the Collection Statute Expiration Date

Misunderstanding the collection statute expiration date can lead to costly missteps that extend your liability, increase what you owe, or trigger avoidable IRS enforcement actions. Because the rules surrounding the CSED are nuanced and highly dependent on timing, even small errors in judgment can have long-term financial consequences.

Misinterpreting the CSED Timeline

One of the most common mistakes taxpayers make is assuming the 10-year collection window is fixed and straightforward. In reality, the timeline is often affected by tolling events that pause or extend the statute. Actions such as submitting an Offer in Compromise, requesting a Collection Due Process hearing, or filing for bankruptcy can all suspend the clock. If these events are not properly accounted for, a taxpayer may incorrectly believe their collection statute expiration date is sooner than it actually is. This can lead to poor decisions, such as delaying action under the assumption that the debt will expire soon when, in fact, the IRS still has years left to collect.

Treating All Tax Debt as One Balance

Another frequent issue is failing to recognize that each tax year has its own collection statute expiration date. Many taxpayers view their IRS debt as a single total balance, but in reality, each liability is tied to its own assessment date and expiration timeline. This misunderstanding can lead to inefficient strategies. For example, paying off a debt that is close to expiring—while ignoring a newer liability with a longer collection window—can result in unnecessary financial loss. A more strategic approach requires evaluating each tax year individually and prioritizing based on timing.

Ignoring IRS Notices and Deadlines

Failing to respond to IRS communication is another serious mistake that can quickly escalate a manageable situation. IRS notices often include critical information about your rights, deadlines to respond, and warnings of impending enforcement actions. Ignoring these notices can lead to wage garnishments, bank levies, or federal tax liens. In addition, missing key deadlines may limit your ability to appeal or qualify for certain tax relief options, ultimately reducing your flexibility in managing your collection statute expiration date.

Taking Actions That Unintentionally Extend the Statute

Some taxpayers unknowingly take steps that extend the collection statute expiration date without realizing the consequences. Certain applications, agreements, or requests can pause the clock, giving the IRS additional time to collect. While these actions may be beneficial in the right context, they should always be evaluated strategically. Entering into an agreement without understanding its impact on your timeline can result in a longer repayment period and higher overall costs due to continued penalties and interest.

Relying on Estimates Instead of Verified Records

Another critical mistake is relying on rough estimates rather than confirmed IRS data. The collection statute expiration date is based on precise assessment dates and adjusted by any tolling events. Attempting to calculate this without reviewing official IRS transcripts increases the likelihood of error. Even a small miscalculation can significantly alter your strategy. Accurate information is essential, and reviewing your account transcripts—or working with a qualified professional—can help ensure you are making decisions based on reliable data.

Failing to Align Strategy with the CSED

Finally, many taxpayers fail to incorporate their collection statute expiration date into their overall tax strategy. Without considering how much time remains, it is difficult to determine whether to pursue aggressive repayment, negotiate a settlement, or take a more conservative approach. The CSED should be a central factor in any decision involving IRS debt, as it directly impacts the options available and the potential outcomes.

Avoiding these common mistakes requires a clear understanding of how the collection statute expiration date works, careful attention to your individual tax liabilities, and a strategic approach to dealing with the IRS. With the right planning, you can prevent unnecessary extensions, minimize what you owe, and make informed decisions that protect your financial future.

How Optima Tax Relief Can Help

The collection statute expiration date (CSED) can create unexpected tax challenges for taxpayers who do not fully understand how it works. While it may seem like a straightforward 10-year deadline, the reality is often more complicated due to tolling events that pause or extend the timeline. Miscalculating your CSED or taking actions that unintentionally extend it can result in the IRS having more time to collect than anticipated. This can lead to prolonged financial strain, increased penalties and interest, and greater exposure to enforcement actions such as liens, levies, or wage garnishments. Without a clear understanding of your CSED, it becomes difficult to make informed decisions about whether to pursue a settlement, enter into a payment plan, or take a more strategic approach to resolving your tax debt.

Optima Tax Relief helps taxpayers navigate these complexities by providing expert guidance and tailored tax relief solutions. By thoroughly analyzing your IRS account, including assessment dates and any events that may have impacted your timeline, professionals can accurately determine your collection statute expiration date and build a strategy around it. Whether it’s pursuing an Offer in Compromise, establishing an installment agreement, or leveraging other relief options, Optima works to align your resolution plan with your financial situation and remaining collection window. This strategic approach helps minimize what you owe, avoid costly mistakes, and ultimately move toward resolving your tax debt with greater confidence and clarity.

Frequently Asked Questions

Does the IRS forgive tax debt after 10 years?

The IRS does not technically forgive the debt, but once the collection statute expiration date passes, it can no longer legally collect the balance.

Can the IRS restart the 10-year clock?

The IRS generally cannot restart the clock, but a new assessment—such as from an audit—can create a new collection period for that specific liability.

Is the CSED the same for all tax debts?

Each tax year and liability has its own collection statute expiration date, which must be evaluated separately.

What happens if I enter a payment plan?

Entering a payment plan does not usually restart the statute, but certain actions during the process may pause it temporarily.

Tax Help for People Who Owe

The collection statute expiration date is a critical element of IRS tax debt that every taxpayer should understand. It defines the window of time the IRS has to collect and plays a central role in determining your best course of action.

By learning how the statute works, identifying your timeline, and avoiding actions that could extend it unnecessarily, you can take control of your tax situation and make informed decisions that protect your financial future. Optima Tax Relief is the nation’s leading tax resolution firm with over $3 billion in resolved tax liabilities.

If You Need Tax Help, Contact Us Today for a Free Consultation.
March 23, 2026
What is Form 8854, Initial & Annual Expatriation Tax Statement
Form 8854

Form 8854 and Expatriation

One of the most common questions our international tax lawyers receive each year when U.S. Taxpayers get ready to renounce their U.S. citizenship or terminate their Lawful Permanent Resident status is whether or not they will have to pay an exit tax when they leave the United States. It is important to note, that not all individuals who expatriate from the United States will owe an exit tax.
- First, there are two categories of individuals who may be subject to an exit tax — U.S. Citizens and Long Term Lawful Permanent Residents.
  
  If a Taxpayer falls into one of these two categories, he must first determine whether or not he is considered to be a covered expatriate to determine if he may even become subject to exit taxes.
  
  If the Taxpayer is a covered expatriate, then he may have an exit tax — but it is important to note that the exit tax is not a wealth tax. Rather, it is a U.S. tax based on whether income or gains have accumulated while the Taxpayer was a U.S. person but has not been recognized/realized yet.
*For all examples, please note that the Taxpayers are U.S. persons for tax purposes who have not made any treaty elections to be treated as a Non-Resident Alien (NRA). Also, these examples are for illustrative purposes only and Taxpayers should consult with a Board-Certified Tax Law Specialist if they have specific questions about their reporting requirements and not rely on this article for legal advice.

Form 8854 is Not Only For Covered Expatriates

One of the biggest misconceptions about IRS Form 8854 is that it is only required for covered expatriates, but that is inaccurate. An initial Form 8854 is required by U.S. citizens or Long-Term Lawful Permanent Residents whether or not they are covered expatriates. Some Taxpayers who may otherwise be covered expatriates or subject to exit tax may qualify for an exception or an exclusion — but that does not negate them having to file Form 8854.

IRS Form 8854 is Due When the Tax Return is Filed

Form 8854 is due with the final tax return following the expatriating act. For example, if a Taxpayer submits Form I-407 in the current year, then he will file Form 8854 in the subsequent year when he files his tax return. Some Taxpayers are being misguided into filing Form 8854 in the same actual year that they expatriate, which leads to the Taxpayer filing the incorrect form and increasing the chance of an audit.

Before Filing Form 8854 You Need 5 Years of Tax Compliance

Some Taxpayers are only deemed covered expatriates because they cannot certify under penalty of perjury that they have been tax-compliant for the past five years. To avoid this outcome, the Taxpayer must be in tax compliance before starting the immigration expatriation process (which precedes the expatriation tax filing process) such as renouncing U.S. citizenship or filing Form I-407 to terminate their U.S. person status.

As provided by the IRS:
- Date of relinquishment of U.S. citizenship.
  
  You are considered to have relinquished your U.S. citizenship (and consequently, have an expatriation date) on the earliest of the following dates.
  
  The date you renounced your U.S. citizenship before a diplomatic or consular officer of the United States (provided that the voluntary renouncement was later confirmed by the issuance of a certificate of loss of nationality).
  
  The date you furnished to the State Department a signed statement of your voluntary relinquishment of a U.S. nationality confirming the performance of an expatriating act (provided that the voluntary relinquishment was later confirmed by the issuance of a certificate of loss of nationality).
Annual Reporting for Deferred Compensation Owners

Even after Form 8854 is filed in the year of expatriation, some Taxpayers may have an ongoing Form 8854 filing requirement if they still maintain certain deferred compensation such as a 401K. To avoid this nuisance, some Taxpayers may withdraw their deferred compensation at the time they expatriate and pay U.S. taxes at the time.

Failure to File Form 8854 Leads to Additional 1040 Returns

Until a person files IRS Form 8854, the IRS is unaware that the Taxpayer has formally expatriated. That is because expatriation is a two-pronged process that includes immigration and tax. Unless the Taxpayer files Form 8854, the IRS is not aware that the Taxpayer has already completed the immigration portion. If Form 8854 was not filed, the Taxpayer may become subject to additional Form 1040 returns and still have to pay U.S. taxes on their worldwide income.

Net Worth vs Exit Tax

It is very important to note that when a Taxpayer is covered, it does not mean that they will have an exit tax when they leave the United States — even if they have a high net worth. There generally has to be some type of unrealized income such as mark-to-market gain with stock (or other equities), ineligible deferred compensation that accrued while the taxpayer was a U.S. Person and is deemed distributed at exit, etc. Let’s look at two different examples to illustrate the concept:
- Example 1: Michelle is a U.S. Citizen who owns stock worth $4M. She acquired the stock for $1M. When Michelle expatriates from the United States, she may have an exit tax based on the mark to market gain in the stock.
  
  Example 2: Dylan is a U.S. Citizen who has $50M in cash. While Dylan will be considered a covered expatriate, he would not have any immediate exit tax because his assets are all cash.
Mark-to-Market Gains

The most common type of exit tax is based on mark-to-market gains. In an all-too-common situation, the Taxpayer may have purchased stock while they were a U.S. person, and that stock value has gone up significantly so that if the stock was sold on the day before the person expatriated there would be a gain. Noting, that there is an exit tax exclusion which may eliminate MTM exit taxes for some Taxpayers (currently, it is $821,000 and adjusts each year for inflation).
- Example 1: Peter is a U.S. Citizen who purchased stock worth $600,000 several years ago and now the stock is worth $1.3M. If this is the only mark-to-market asset that Peter has, then the exclusion amount should cover any gain so that there would not be any exit tax when Peter expatriates.
  
  Example 2: Daniel is a U.S. citizen who purchased stock worth $600,000 seven years ago and now the stock is worth $3.8M. Even if Daniel applies the exclusion amount, he will still have to pay a significant exit tax on the Long Term Capital Gain for the difference between the fair market value on the day before he expatriates and the adjusted basis.
  
  Example 3: Michelle is a Lawful Permanent Resident who purchased stock before she became a Lawful Permanent Resident for $300,000. On the day she became a Lawful Permanent Resident the stock was worth $800,000 and on the day before she expatriates, it is worth $1.2M. Due to the step-up value that Michelle would receive on the day which became a Lawful Permanent Resident, if this is the only mark to market asset Michelle has she may be able to avoid MTM exit taxes on this particular asset.
Eligible Deferred Compensation

When it comes to Eligible Deferred Compensation (such as 401K), Taxpayers generally do not have to pay any exit tax at the time they expatriate. In the future, if they were covered, they may have to pay tax on the distributions. While no exit tax may be due when they expatriate, they may have to irrevocably waive the right to treaty benefits when they receive distributions.

Ineligible Deferred Compensation

When a person is covered and has ineligible deferred compensation, they may be required to pay an exit tax on the ineligible deferred compensation as if it had been distributed. This type of exit tax is especially unfair, especially in light of the fact that oftentimes ineligible deferred compensation is just a foreign retirement plan that receives tax-deferred treatment in the foreign country where the pension plan is situated — similar to a 401K in the United States. If the taxpayer has a step up, it may serve to reduce any exit taxes.
- Example 1: Mindy is a Long Term Lawful Permanent Resident who previously earned pension while living overseas as a green card holder. She is a covered expatriate and has a $1.5M pension (with no U.S. tax basis), all of it which was received while she was a U.S. person. No taxes have been paid on the pension and therefore the full amount of the pension may become subject to exit tax.
  
  Example 2: William is a U.S. Citizen who has been on different assignments throughout the globe for many years but always maintains an international pension plan overseas that is not considered qualified in the United States. It is now worth $3.2M dollars and no taxes have been paid. The full amount of the pension plan may become taxable.
  
  Example 3: Jennifer is a Long-Term Resident who has $2M in foreign pension. She is a covered expatriate, but she only became a green card holder nine years ago. Before she became a green card holder from marriage, she did not have any U.S. person status. When she first came to the United States and became a green card holder the foreign pension was worth $1.6M. Therefore, Jennifer may be able to take the position that only ~$4M of the amount of pension may be taxable because of the step-up.
Specified Tax Deferred Accounts

Another common category of exit tax is specified tax-deferred accounts. A common example of a specified tax-deferred account may be a traditional IRA — which may be impacted based on whether the IRA is an employment IRA or an investment IRA. In general, the IRS takes the position that the IRA loses its tax-deferred status and becomes deemed distributed at the time of expatriation. However, if it is a Roth IRA and if the Taxpayer meets the requirements for longevity and age of the taxpayer, it may avoid exit tax.
- Example 1: Frank is a U.S. citizen who has $700,000 in his IRA. It is a non-employment traditional IRA which has no tax basis since it is all pre-tax dollars. Therefore, since Frank is a covered expatriate, when he expatriates he may have to pay exit tax on that $700,000.
  
  Example 2: Denise is a U.S. citizen who has $500,000 in a Roth IRA and she is also a covered expatriate. Denise is 71 years old and has had her Roth IRA for more than 20 years. Therefore, Denise may be able to avoid exit taxes on her Roth IRA.
The Tip of the Iceberg

This article aims to help clarify some of the basics of exit taxes. Being tax compliant when a person expatriates is very important and exit taxes in general can be very complicated, especially when it involves additional items such as foreign life insurance policies, foreign corporations, foreign partnerships, and transactions between U.S. persons and foreign companies. Taxpayers should try to stay in compliance if they are already in compliance or should consider getting into compliance if they have not properly filed the necessary reporting forms if for no other reason than the fact that the IRS has made offshore compliance a key enforcement priority and has been issuing fines and penalties for non-compliance.

Late Filing Penalties May be Reduced or Avoided

For Taxpayers who did not timely file their FBAR and/or other international information-related reporting forms, the IRS has developed many different offshore amnesty programs to assist Taxpayers with safely getting into compliance. These programs may reduce or even eliminate international reporting penalties.

Current Year vs. Prior Year Non-Compliance

Once a Taxpayer missed the tax and reporting (such as FBAR and FATCA) requirements for prior years, they will want to be careful before submitting their information to the IRS in the current year. That is because they may risk making a quiet disclosure if they just begin filing forward in the current year and/or mass filing previous year forms without doing so under one of the approved IRS offshore submission procedures. Before filing prior untimely foreign reporting forms, Taxpayers should consider speaking with a Board-Certified Tax Law Specialist who specializes exclusively in these types of offshore disclosure matters.

Avoid False Offshore Disclosure Submissions (Willful vs Non-Willful)

In recent years, the IRS has increased the level of scrutiny for certain streamlined procedure submissions. When a person is non-willful, they have an excellent chance of making a successful submission to Streamlined Procedures. If they are willful, they would submit to the IRS Voluntary Disclosure Program instead. But, if a willful Taxpayer submits an intentionally false narrative under the Streamlined Procedures (and gets caught), they may become subject to significant fines and penalties.

Need Help Finding an Experienced Offshore Tax Attorney?

When it comes to hiring an experienced international tax attorney to represent you for unreported foreign and offshore account reporting, it can become overwhelming for Taxpayers trying to trek through all the false information and nonsense they will find in their online research. There are only a handful of attorneys worldwide who are Board-Certified Tax Specialists and who specialize exclusively in offshore disclosure and international tax amnesty reporting. *This resource may help Taxpayers seeking to hire offshore tax counsel: How to Hire an Offshore Disclosure Lawyer.

Golding & Golding: About Our International Tax Law Firm

Golding & Golding specializes exclusively in international tax, specifically IRS offshore disclosure.

Contact our firm today for assistance.
March 23, 2026
Maridea Adds LPL Team, Waverly Buys in Washington

Maridea Expands in Phoenix With LPL Team

Maridea Wealth Management acquired Chichester Financial Group, a Phoenix-based advisory firm that had been with LPL Financial.

The move expands acquisitive Maridea’s presence in the region to two offices, following the establishment of its initial Phoenix location in September 2025.

John Chichester Jr., founder of CFG, will join Maridea as a senior financial planner with a specialty in tax-focused financial planning. He is joined by Stephanie Bawolek, director of financial planning, and three other staff members.

“Maridea’s high-growth trajectory, entrepreneurial culture, and long-term vision were key factors that attracted my team and me to this partnership,” Chichester said in a statement.

CFG brings retirement plan expertise, including 401(k) plan design for business owners, participant education and tax-efficient retirement strategies.

The Brooklyn-based Maridea has grown to about $1 billion in assets under management, seven offices, and 40 staff since launching in 2023. In May of 2025, it sold a minority stake to 119th Street Capital and Pelican Capital to fund acquisitions and partnerships.

Related:$5.8B Wealth Unit Spins Out from Baker Tilly

Waverly Advisors Snags $181M RIA in Washington

Waverly Advisors acquired McBride Financial Advisors, a Seahurst, Wash.-based firm with $181M in AUM.

Founded by Michael McBride, the firm offers financial, retirement and estate and trust planning, with options to implement tax and philanthropic strategies. McBride will join Waverly as a wealth advisor.

The deal is Waverly’s second Pacific Northwest transaction this year, and the Birmingham, Ala.-based RIA’s 31st acquisition since selling a minority stake to Wealth Partners Capital Group and HGGC’s Aspire Holdings platform in December 2021.

Waverly oversees about $30.6 billion in client assets out of 46 offices. Its advisors are focused on high-net-worth individuals, corporate retirement plans and institutional clients.

Carson Group Adds Agrillo Financial Group on Long Island

Carson Group continues its active 2026 with the acquisition of Agrillo Financial Group, a Bethpage, N.Y.-based practice serving approximately $160 million in advisory and retirement plan assets, as a new independent office. Agrillo had been a partner of the Pinnacle Financial Group.

Theodore “Ted” Agrillo III leads the practice as a wealth advisor, while his mother, Katherine “Dee” Agrillo, who founded the firm in the mid-1990s, continues to work there. The practice primarily serves individuals, families and small business owners, with a focus on women, widows and pre-retirees.

Related:$34B Allworth Launches Women’s Initiative

“As we reached capacity with our existing tools, it became clear that if we wanted to continue serving clients at the level they deserve and grow the right way, we needed a partner that has the right technology, investment platform and operational support already in place,” Agrillo said in a statement.

The firm plans to expand the team over time, including adding junior advisors and support staff.

Overland Park, Kan.-based Carson Group manages over $57 billion in AUM and has a minority investment from Bain Capital.

The Finance Couple Leaves LPL for Osaic’s Innovative Financial Group

The Finance Couple, a Greenville, S.C.-based advisory firm founded by husband-and-wife team Tim Curran and Wynne Curran, has joined independent broker/dealer Osaic through its office of supervisory jurisdiction, Innovative Financial Group. The couple brings $204 million in client assets from its former IBD, LPL Financial.

The firm specializes in financial planning and asset management for couples and women approaching or in retirement.

They evaluated several firms before choosing Osaic, according to the announcement.

“Our focus has always been on comprehensive financial planning combined with common-sense asset management for the betterment of our clients; Innovative Financial Group and Osaic stood out as true partners who will provide the technology and support we need to grow, while helping us maintain our strict focus on our clients,” Tim Curran said in a statement.

Related:Younger, Affluent Self-Directed Investors Are Warming Up to Working with Advisors

RBC Wealth Acquires $360M Team from Morgan Stanley

RBC Wealth Management added the Turnock Bonacci Group to its Annapolis, Md., branch, bringing nearly $360 million in client assets from Morgan Stanley.

The team includes Kevin Turnock, managing director and financial advisor; Anthony Bonacci, senior vice president and financial advisor; Michael Norris, senior business associate; and Julia Harrison, investment associate. The group specializes in wealth planning for ultra-high-net-worth clients.

The team addresses complex wealth challenges, from multi-generational strategy and business transitions to portfolio management.

RBC Wealth CEO Neil McLaughlin recently outlined to Wealth Management the firm’s growth strategy, which includes doubling the U.S. wealth business over the medium term and adding 600 advisors by 2029.

March 23, 2026
What Do Tax Attorneys Do?
Key Takeaways

Tax attorneys are legal professionals who specialize in tax law, providing advice, representation, and defense in complex tax matters.

They represent clients before the IRS during audits, appeals, and disputes, helping protect taxpayer rights and avoid costly mistakes.

Tax attorneys help resolve tax debt through strategies like Offer in Compromise, installment agreements, and penalty abatement.

Unlike CPAs, tax attorneys can provide legal counsel, represent clients in tax court, and offer attorney-client privilege.

You may need a tax attorney if you’re facing IRS action, large tax debt, fraud allegations, or complex financial decisions.

In high-stakes situations, tax attorneys provide both legal protection and strategic guidance to minimize risk and financial impact.
Understanding what tax attorneys do is essential if you’re facing tax issues, planning for the future, or simply trying to stay compliant with complex tax laws. While many people associate taxes with accountants or software, tax attorneys play a very different—and often critical—role. They provide legal guidance, represent clients in disputes, and help navigate high-stakes tax situations that go far beyond filing a return.

In this guide, we’ll break down exactly what tax attorneys do, when you might need one, and how they differ from other tax professionals.

What Is a Tax Attorney?

Before diving into their responsibilities, it’s important to understand what a tax attorney is and how their role differs from other financial professionals.

A tax attorney is a licensed lawyer who specializes in tax law. They are trained to interpret and apply federal, state, and local tax regulations, and they provide legal advice and representation related to tax matters. Unlike tax preparers, tax attorneys are equipped to provide confidential legal counsel protected by attorney-client privilege, defend clients in court, and represent clients before the IRS. It’s worth noting that CPAs and enrolled agents also hold full IRS representation rights — what sets tax attorneys apart is their ability to navigate the legal dimensions of tax issues, including tax litigation and criminal defense.

Tax attorneys often work with individuals facing IRS issues, business owners managing complex tax structures, high-net-worth individuals planning estates, and anyone dealing with legal risks tied to taxes. Their work sits at the intersection of law and finance, making them uniquely qualified for situations where taxes become a legal issue—not just a financial one.

What Do Tax Attorneys Do? Key Responsibilities

To fully answer the question what do tax attorneys do, you need to look at the wide range of services they provide. Their responsibilities go far beyond simple tax advice and often involve high-level strategy and legal defense.

Provide Legal Advice on Tax Matters

Tax attorneys help clients understand and comply with tax laws, which are constantly evolving and highly complex. They interpret regulations and provide guidance tailored to each client’s specific situation.

For example, a tax attorney may advise a business owner on the tax implications of forming an LLC versus a corporation or help an individual understand reporting requirements for foreign income. They also guide clients through major financial decisions, such as selling property or receiving a large inheritance. In each case, the goal is to ensure compliance while minimizing legal risk.

Represent Clients Before the IRS

One of the most important answers to what do tax attorneys do is that they act as legal representatives when dealing with the IRS. This representation can be critical in protecting a taxpayer’s rights and ensuring proper communication.

Tax attorneys handle direct communication with the IRS, represent clients during audits, and manage appeals when there is a disagreement with IRS findings. For instance, if you receive an audit notice, a tax attorney can step in immediately, organize your documentation, and speak on your behalf to prevent missteps that could negatively impact your case.

Help Resolve Tax Debt Issues

If you owe back taxes, a tax attorney can help you explore resolution options and determine the best path forward based on your financial situation. These cases often require both legal knowledge and negotiation skills.

Common solutions include negotiating an Offer in Compromise, which allows taxpayers to settle their debt for less than the full amount owed, setting up installment agreements to make payments more manageable, or pursuing penalty abatement to reduce or eliminate fines. For example, a taxpayer who owes tens of thousands of dollars may be able to significantly reduce their liability with the help of a tax attorney who understands how to properly present their case to the IRS.

Defend Against Tax Litigation

When tax issues escalate into legal disputes, tax attorneys play a critical role in defense. This is one of the clearest examples of what tax attorneys do that other tax professionals cannot.

They represent clients in tax court, handle disputes involving audits that have progressed to litigation, and defend against allegations of tax fraud or evasion. For example, if the IRS believes a taxpayer intentionally underreported income, a tax attorney will build a defense strategy, negotiate with authorities, and represent the client throughout the legal process.

Assist with Tax Planning and Strategy

In addition to resolving issues, tax attorneys also help prevent them through proactive planning. This aspect of their work is especially valuable for individuals and businesses with complex financial situations.

They assist with structuring business transactions to reduce tax liability, planning for estate taxes, and advising on major financial decisions such as mergers or investments. For instance, a real estate investor may work with a tax attorney to structure transactions in a way that minimizes capital gains taxes while remaining fully compliant with tax laws.

Areas of Tax Law a Tax Attorney May Specialize In

Tax law is broad, and many tax attorneys choose to specialize in specific areas. Understanding these specialties provides deeper insight into what tax attorneys do across different scenarios.

Some attorneys focus on IRS disputes and collections, helping clients manage audits, liens, levies, and wage garnishments. Others specialize in business and corporate tax law, advising companies on compliance and structuring. Estate and gift tax attorneys help individuals transfer wealth efficiently, while international tax attorneys handle cross-border issues and reporting requirements. There are also tax attorneys who focus specifically on criminal tax defense, representing clients facing serious legal allegations.

Selecting an attorney with the right area of expertise can significantly improve the outcome of your case.

Education and Qualifications of a Tax Attorney

To understand what tax attorneys do, it’s helpful to consider the level of education and training required to enter the field. Tax attorneys undergo extensive legal education and often pursue additional specialization.

They must earn a Juris Doctor (J.D.) degree from an accredited law school and pass the state bar exam to become licensed. Many also focus their studies on tax law or pursue an advanced degree such as a Master of Laws (LL.M.) in Taxation, which provides deeper expertise in complex tax issues.

Attorneys Who Are Also CPAs

Some tax attorneys also hold a Certified Public Accountant (CPA) license, which allows them to combine legal and financial expertise. This dual qualification can be especially beneficial in complex cases that require both detailed accounting knowledge and legal strategy. While not all tax attorneys are CPAs, those who are can offer a more comprehensive approach to tax planning and problem-solving.

Tax Attorney vs. CPA: What’s the Difference?

Many taxpayers are unsure whether they need a CPA or a tax attorney. Understanding the difference between the two helps clarify what tax attorneys do and when their services are necessary.

What Does a CPA Do?

A CPA primarily focuses on financial matters such as preparing and filing tax returns, maintaining financial records, and providing accounting and tax advice. CPAs also have full representation rights before the IRS, meaning they can represent clients in audits, collections, and appeals. However, they are not licensed attorneys and cannot provide legal counsel, represent clients in tax court, or offer the protection of attorney-client privilege.

What Does a Tax Attorney Do Differently?

A tax attorney, on the other hand, provides legal services that go beyond accounting. They offer legal advice, represent clients in disputes, and interpret complex tax laws. One key advantage is attorney-client privilege, which ensures that communications remain confidential—even in legal proceedings. This level of protection is particularly important in high-risk situations.

When Should You Hire a CPA vs. a Tax Attorney?

The decision between hiring a CPA or a tax attorney depends largely on the complexity of your situation. A CPA is typically sufficient for straightforward tax filing and financial planning. However, if you are dealing with legal issues, significant tax debt, or an IRS investigation, a tax attorney is the better choice. In many cases, working with both professionals provides the most comprehensive support.

When Do You Need a Tax Attorney?

Knowing what tax attorneys do becomes especially important when you’re trying to determine whether you need one. While not everyone requires legal representation, certain situations make hiring a tax attorney essential.

You may need a tax attorney if you are facing an IRS audit or investigation, owe a substantial amount of tax debt, or have received notices of liens or levies. They are also critical if you are accused of tax fraud or evasion, starting or restructuring a business, or managing estate planning and inheritance matters. For example, if the IRS places a lien on your property, a tax attorney can work to resolve the underlying issue and potentially have the lien removed.

How a Tax Attorney Protects Your Rights

A key part of what tax attorneys do is ensuring that their clients are treated fairly and lawfully. This protection can make a significant difference in the outcome of a case.

Tax attorneys ensure that the IRS follows proper procedures and does not overstep its authority. They help prevent clients from unintentionally providing information that could be used against them and develop strategies to reduce penalties and liabilities. Additionally, attorney-client privilege ensures that all communications remain confidential, providing peace of mind during stressful situations.

Benefits of Hiring a Tax Attorney

Understanding the benefits of hiring a tax attorney helps reinforce what tax attorneys do and why their services are so valuable in complex situations.

Tax attorneys bring a deep understanding of tax law that allows them to identify opportunities and risks that others may overlook. They provide legal representation in disputes and court cases, negotiate with the IRS to reduce liabilities, and offer strategic guidance that can save both time and money. Perhaps most importantly, they provide peace of mind by handling complicated and high-stakes issues on your behalf.

How to Find a Qualified Tax Attorney Near You

If you’ve determined that you need a tax attorney, the next step is finding the right one. Choosing a qualified professional can significantly impact your outcome.

Start by researching attorneys through state bar associations, trusted referrals, or reputable online directories. Look for professionals with experience handling cases similar to yours, as well as strong credentials and a proven track record. It’s also important to find someone who communicates clearly and is transparent about their process and fees.

Questions to Ask Before Hiring

Before making a decision, it’s important to ask the right questions. You should inquire about their experience with cases like yours, their fee structure, and what outcomes you can realistically expect. Taking the time to evaluate your options can help ensure you choose the best representation for your needs.

How Optima Tax Relief Can Help

Tax issues can arise for many reasons—unpaid tax debt, unexpected IRS notices, audits, or even simple filing mistakes that escalate over time. When these situations become more complex or involve legal risk, understanding what tax attorneys do becomes especially important.

If you find yourself in need of a tax attorney, Optima Tax Relief can help. Their team of experienced tax professionals, including tax attorneys, works to resolve IRS issues by negotiating settlements, setting up payment plans, and protecting your rights throughout the process. By handling communication with the IRS and developing a tailored resolution strategy, Optima helps take the stress off your shoulders and puts you on a path toward financial relief.

Frequently Asked Questions

Can a tax attorney help with IRS debt?

Yes, tax attorneys frequently help clients resolve IRS debt by negotiating settlements, setting up payment plans, and seeking penalty relief based on individual circumstances.

Are tax attorneys expensive?

Costs vary depending on the complexity of the case, but in many situations, the savings and protection they provide outweigh the expense.

Do tax attorneys prepare tax returns?

In most cases, tax attorneys do not focus on preparing standard tax returns. That role is typically handled by CPAs or tax preparers, although attorneys may assist in more complex scenarios.

Is hiring a tax attorney worth it?

If you are dealing with significant tax issues, legal risks, or disputes with the IRS, hiring a tax attorney can be a valuable investment that helps protect your financial future.

Tax Help for People Who Owe

So, what do tax attorneys do? They provide the legal expertise needed to navigate complex tax laws, resolve disputes, and protect clients from serious financial and legal consequences. From representing taxpayers before the IRS to defending against litigation and developing proactive tax strategies, their role extends far beyond basic tax assistance.

While not everyone needs a tax attorney, their importance becomes clear in situations involving high stakes, legal exposure, or complicated financial matters. By understanding their responsibilities and knowing when to seek their help, you can make more informed decisions and avoid costly mistakes.

If you find yourself facing a challenging tax situation, working with a qualified tax attorney can provide the guidance and protection you need to move forward with confidence. Optima Tax Relief is the nation’s leading tax resolution firm with over a decade of experience helping taxpayers.

If You Need Tax Help, Contact Us Today for a Free Consultation
March 23, 2026
energy conservation and efficiency. Targeted subsidies don’t always reach underdog alternatives, known and unknown. A carbon tax would.”

A broad, briskly rising tax on climate pollution would claw back the implicit subsidy that fossil fuels now enjoy, seeing as their pollutants are dumped freely. It would simultaneously provide across-the-board incentives for climate-friendly energy, spurring the lowest-carbon alternatives: energy conservation and efficiency. Targeted subsidies don’t always reach underdog alternatives, known and unknown. A carbon tax would.”

March 23, 2026
Staffing Defines DC Advisory Firm Success
The defining challenge for DC specialists and hybrid advisory firms today is not product innovation or market volatility. It is people. Fee compression continues to place pressure on advisory businesses, and client expectations expand. Thus, staffing, scalability, and succession planning have moved from operational concerns to strategic imperatives.

The economics of the retirement plan advisory business make the case. Firms with the strongest emphasis on retirement plan growth operate with the largest average teams but report lower average gross margins (41%) than wealth-focused practices, which typically maintain smaller teams, enjoy higher margins (51%) and place far less emphasis on growing their retirement practices. The message is clear: growth in the retirement advisory business is staffing-intensive, and scale requires infrastructure.

Scalability Is a Strategic Choice

Further, DC advisor margins compress as plan size increases. Smaller plans generate margins near 55% to 60%, while plans over $100 million are considerably lower. Larger mandates drive revenue, but they demand more service and tighter execution. Attempting to grow without expanding internal capacity leads to service strain and stalled momentum.

Related:401(k) Real Talk Episode 184: March 18, 2026

Scale is therefore not solely about accumulating more plans. It is about building organizational depth.

Nearly half of DC-focused advisors (46%) report adding staff, and 50% are investing in technology to enhance efficiency. Technology improves workflows, but people create leverage. Relationship managers, investment specialists and participant engagement advisors allow lead advisors to focus on business development rather than administration. Without adequate staffing, even the strongest growth pipeline erodes margins.

Hybrid firms face the most complex challenge. They are scaling retirement plans while expanding wealth management capabilities. Convergence offers economic upside, but without disciplined hiring and role clarity, it can overwhelm the organization.

Diversification Strengthens the Model

Firms that combine retirement advisory with wealth management tend to outperform retirement-only practices. Diversification helps offset fee pressure in the defined contribution market while creating more stable and durable revenue streams. But convergence also raises the bar for advisory capabilities.

Scalable firms must convert plan sponsor relationships into participant-level wealth opportunities while simultaneously delivering sophisticated financial planning, insurance guidance and ongoing advice. At the same time, they must maintain fiduciary discipline and technical expertise in retirement plan consulting.

Related:How the 401(k) Industry Needs to Adjust to Phased Retirement

These capabilities rarely reside in a single advisor. They are most effectively delivered through a coordinated team.

Hiring younger advisors, therefore, is not solely about preparing for ownership transition. It is about expanding the firm’s capabilities. Early-career professionals can be trained across both retirement and wealth disciplines, creating a talent pipeline that supports firm growth and ensures continuity across the client lifecycle.

Succession planning, in this context, becomes an organizational process rather than a transaction. Effective firms approach succession as a multi-year effort that includes gradual client handoffs, shared meeting leadership, structured mentoring and processes that institutionalize client knowledge.

Firms that delay this work risk more than leadership disruption. Without a deliberate succession strategy, both retirement consulting relationships and participant-level wealth opportunities can become vulnerable during periods of transition.

Three Strategic Actions

To build a scalable, succession-ready practice, advisors should focus on three priorities:

Related:401(k) Real Talk Episode 183: March 11, 2026
Aligning hiring with long-term strategy. If DC expansion is the objective, build service and investment depth. If convergence is the goal, recruit planners capable of capturing participant wealth relationships. Every hire should align with a growth time horizon.

Building capacity before strain appears. As plan sizes grow and margins compress, operational stress compounds quickly. Investing early in team structure and workflow clarity protects service quality and profitability.

Formalizing generational transition. Introduce next-generation advisors into key relationships now. Define clear pathways for responsibility transfer and leadership development. Treat succession as an ongoing discipline, not a liquidity event.
The firms that will outperform in the coming decade will not simply be those with the largest books. They will be those that have built scalable organizations, diversified capabilities, and institutionalized succession built on the foundation of the next generation of advisors, well-prepared to serve their clients.
March 23, 2026
Suspended Broker K Money Pleads Guilty to Fraud

A FINRA-suspended broker known as “K Money” pleaded guilty this week to investment advisor fraud. Kenneth Thom of Westfield, N.J., was arrested in August and charged with defrauding social media followers of more than $800,000. He’ll be sentenced on June 25 and could face up to five years in prison, according to the Justice Department.

“Kenneth Thom pretended online to be a successful investor and advisor when in fact he was a suspended broker and grifter,” said U.S. Attorney Jay Clayton, in a statement. “He recruited social media followers, convinced them to invest with him, and then stole their money. Our office will continue to work with our law enforcement partners to protect investors from fraud, no matter where they seek their investment advice.”

Thom first registered in 2006, with brief stints at Joseph Stevens & Company, National Securities Corporation and Next Financial Group. In 2011, FINRA suspended him for failing to pay an arbitration penalty.

Related:LPL Sues Former Advisor to Secure Arbitration Award

When Thom was suspended, he reinvented himself as a successful trader on Facebook, calling himself “K$” or “K Money,” and touting his (false) bona fides as a “Wall Street veteran,” a “luminary,” and a “beacon of knowledge,” the DOJ claimed.

According to the indictment, Thom offered subscriptions for trading lessons and daily trade suggestions, managing a Facebook group called the “K$ Trading Group.” Starting in 2023, he began managing client funds, posting in the group about a subscription with a “10K buy-in” and quickly began accepting client deposits.

But from January through August 2024, Thom received about $786,234 from 67 clients, sending about $350,000 to brokerage accounts, which was less than half the total sum he had promised to trade. Of the $46,234 he didn’t trade, he returned about $51,478 to nine clients, with his bank returning a further $10,000.

Thom used the remaining funds for dining at restaurants, travel, luxury goods, cash withdrawals and transfers to other accounts (the expenses included $6,026 for Airbnb and $5,883 for an all-business-class airline flight between New Jersey and Paris). According to the indictment, Thom spent $6,982 on a single purchase at the Haneda Airport in Tokyo.

Of the money he invested, Thom lost more than 73% between March 2024 and 2025. He allegedly falsified performance updates for clients showing gains.

In January 2025, he changed the Facebook group name to “AYABABTU” (an acronym for the meme “All Your Base Are Belong to Us,” which comes from a bad translation of a Japanese video game). Hundreds of members were removed from the group. Thom allegedly told some investors that someone else had taken over his Facebook account, and he then stopped responding to clients entirely.

Related:Trump DOL Scraps Fiduciary Rule With No Plans For Replacement

Thom’s attorney did not respond to a request for comment prior to publication.

March 23, 2026
How Your Taxes Will Change In 2026 |
In 2026, your tax bill won’t just “shift a little.” It can swing by thousands based on timing, and that’s exactly why 2026 tax planning matters.

I’m going to break this down in plain English, especially for people who own property, run businesses, or plan to make money moves. This is 2026 tax planning for real estate investors and business owners who want predictable outcomes, not surprises.

If you care about practical business and real estate tax strategies, pay attention to what’s changing:
- New SALT deduction rules
- How charitable donations are treated starting in 2026
- Major 2026 HSA upgrades that expand how you can use pre-tax dollars
But the real landmines come from timing:
- Roth conversion timing
- Asset sales tax planning
- Income spikes that can wipe out the 2026 senior standard deduction and phase out benefits you assumed you’d keep
On the upside, we also get stability from:
- Permanent QBI deductions
- The return of bonus depreciation in 2026
- A much larger 2026 estate tax exemption
If you want the full breakdown directly from me, watch the original video here.

Next, I’ll cover the changes that matter most and the timing strategies that can protect your tax breaks.

Request a free consultation with an Anderson Advisor

At Anderson Business Advisors, we’ve helped thousands of real estate investors avoid costly mistakes and navigate the complexities of asset protection, estate planning, and tax planning. In a free 45-minute consultation, our experts will provide personalized guidance to help you protect your assets, minimize risks, and maximize your financial benefits. ($750 Value)

What Is the $40,000 SALT Deduction Window?

From 2025–2029, the state and local tax (SALT) deduction rises to $40,000—but only if you itemize.

This is significant for:
- Real estate investors
- Landlords in high-tax states
- Homeowners with large property taxes
Income limits apply. The benefit phases out between $500,000 and $600,000 of modified adjusted gross income (AGI).

One large event, such as a business sale or long-term capital gains from asset sales, can eliminate the deduction.

How to Preserve the SALT Deduction

If you’re near the phaseout:
- Split income across two tax years
- Harvest gains strategically
- Pay assessed property taxes before year-end
- Accelerate fourth-quarter state estimates
For business owners, the most powerful move is the pass-through entity workaround.

If you operate an S-Corp or partnership:
- Pay state income tax at the entity level
- Deduct it there
- Avoid the $40,000 personal cap
For properly structured real estate investments, this can materially reduce exposure to SALT income limits.

How Are Charitable Donation Rules Changing in 2026?

Charitable giving becomes more complex under the new tax rules.

If You Don’t Itemize

You may deduct:
- $1,000 (single)
- $2,000 (married couple filing jointly)
Donations must go to operating public charities, not donor-advised funds.

If You Itemize

Two changes matter:
- A 0.5% AGI floor before deductions apply
- A 35% cap on the value of deductions for top-bracket taxpayers
Smart move? Consider bunching charitable donations into 2025 before the new limits fully apply.

Use a Donor-Advised Fund
- Contribute multiple years of giving at once
- Lock in a larger deduction amount
- Distribute funds over time
A more tax-efficient approach is to donate appreciated assets.
- Stock
- Crypto
- Real estate held more than one year
You avoid long-term capital gains tax and deduct the full fair market value.

That’s advanced tax planning for entrepreneurs and investors who want maximum tax benefits.

How Do HSA Changes Impact 2026 Tax Planning?

Health Savings Accounts (HSA) remain one of the strongest tax tools available.

HSAs offer:
- Deductible contributions before employment tax
- Tax-free growth
- Tax-free withdrawals for medical expenses
2026 Contribution Limits (Annual Limits)
- $4,400 individual
- $8,750 family
- +$1,000 catch-up if 55+
New in 2026:

You may use:
- $150/month (single)
- $300/month (family)
For:
- Direct primary care memberships
- Concierge medical services
- Telehealth before the deductible
If eligible, this is a powerful way to reduce your taxable income while funding costly healthcare expenses.

How Does the Senior Standard Deduction Change in 2026?

If you’re 65+, you receive an expanded deduction.

Effective under the new provisions:
- $6,000 additional deduction per taxpayer age 65+
- Applies whether or not you itemize
- Stacks on top of the regular senior increase
For a married couple filing jointly, both over 65:

$32,200 standard deduction
- $1,650 senior bump per spouse
- $6,000 per spouse
That produces roughly a $47,500 deduction amount before phaseouts apply.

Income Limits Matter

Phaseouts begin at:
- $150,000 AGI (married)
- $75,000 AGI (single)
They disappear entirely at:
- $250,000 (married)
- $175,000 (single)
Triggers include:
- Large Roth conversions into Roth IRA’s
- IRA withdrawals
- Significant long-term capital gains
- Selling multiple properties in one year
Instead of converting $200,000 in one year, split it:
- $100,000 in December
- $100,000 in January
This approach preserves the deduction while keeping the overall strategy intact.

What Happens to QBI, Bonus Depreciation, and Tax Rates?

The 20% Qualified Business Income (QBI) deduction becomes permanent.

If your rental or business activity rises to the level of a trade or business, you may qualify.

Watch:
- Income limits
- W-2 wage thresholds
- Reasonable compensation for S-Corps
Properly tracking and classifying business expenses can also protect your QBI outcome by keeping taxable income and reporting clean.

This option remains one of the strongest tax strategies for landlords and small business owners.

100% Bonus Depreciation Is Back

You may deduct 100% of eligible property placed in service in 2026.

This applies to:
- Equipment
- Furnishings
- Leasehold improvements
- Cost segregation components of real estate
Assets under 20-year life can be fully deducted in the year placed in service.

Remember, work with qualified tax advisors and use formal cost segregation studies. Bottom line: Documentation protects the deduction if ever challenged.

How Does the Estate Tax Exemption Change?

Beginning in 2026:
- $15 million per person
- $30 million married
- Indexed for inflation
High-net-worth families should work with experienced tax advisors to review their estate documents, confirm portability elections, and account for state estate tax thresholds.

Remember, some states impose estate tax at much lower levels. Federal changes do not override state rules.

What Mistakes Should You Avoid?

The biggest errors I see:
- Stacking Roth conversions into one year
- Selling appreciated property in a single tax year
- Ignoring SALT income limits
- Missing charitable cap changes
- Taking bonus depreciation without documentation
- Overlooking QBI phaseouts
Each of these has a timing solution you should consider carefully.

Why Should Your 2026 Planning Start Now?

The United States One Big Beautiful Bill Act (OBBA) reshaped the tax code in ways that reward proactive decisions. That’s why tax planning for business owners and investors must begin before year-end, because once you recognize income, most planning options disappear.

What Should You Do Next?

Tax planning for entrepreneurs, investors, and property owners in 2026 comes down to one thing: Aligning your income and deductions with the new rules before the year is over.

If you want a personalized plan for how these changes affect your business, real estate investments, or retirement strategy, schedule a free 45-minute Strategy Session with a Senior Advisor at Anderson Advisors. We evaluate your structure, uncover risks and overlooked opportunities, and design your next strategic tax moves for 2026.

Unlock the Secrets of Top Real Estate Investors — Save Your Free Spot Today!

Join our FREE Virtual Tax & Asset Protection Workshop to discover how to slash your taxes, shield your assets, and secure your financial future.

Live Q&A with Experts | Real Strategies You Can Use Immediately
March 23, 2026
I request that President Trump, in addition to erasing the scientific finding that climate change endangers the environment, erase the laws of gravity. They interfere with my freedom of movement. Thank you for your attention to this matter.”

I request that President Trump, in addition to erasing the scientific finding that climate change endangers the environment, erase the laws of gravity. They interfere with my freedom of movement. Thank you for your attention to this matter.”

Brooklyn resident Ellen R. Goldman, in a letter published in the NY Times on Feb. 17 under the heading, “Repeal Gravity.”

March 23, 2026
Home office deduction: Do you qualify, and how does it work?
Key takeaways
- The home office deduction is available to many self-employed filers who regularly and exclusively use part of their home for business.
- You don’t need a perfect office to qualify, but the space must be used consistently and only for business.
- Skipping a deduction you qualify for could mean paying more in taxes than necessary.
I didn’t skip the home office deduction last year because I didn’t qualify. I skipped it because I was nervous.

No accountant. No tax department. Just me, my laptop, and my best friend, Google, late one April evening.

If you’re self-employed and doing your own taxes, you probably know the feeling. Every deduction can feel like a judgment call. Every box you check can feel bigger than it should. And somewhere along the way, you may have heard that claiming a home office deduction is “asking for trouble.

So you skip it. You move on. You leave money on the table.

Why fear feels bigger when you’re filing solo

When you don’t have an accountant handling your taxes, everything can feel more exposed. You’re not just filing. You’re translating IRS language, doing the math, and trying not to miss something important.

And when a deduction feels even slightly intimidating, it’s easy to default to the “safe” option: don’t claim it.

But the home office deduction exists for people who run their business from home, including:
- Freelancers
- Consultants
- Online sellers
- Coaches
- Contractors
If your home is where you run your business, the IRS recognizes that space costs you something.

What actually qualifies as a deduction

You don’t need a Pinterest-perfect office to qualify. You need two things. Understanding these requirements is the key to claiming the deduction correctly.
- Regular use: You use the space consistently for business.
- Exclusive use: The area is dedicated to business activity only.
- Principal place of business: The space is where you manage or conduct your work.
That’s it. No loopholes. Just documented business use.

Why skipping it can cost you

If part of your home is used for business, you may be able to deduct a portion of eligible expenses, such as:
- Rent or mortgage interest
- Utilities
- Internet
- Certain home-related expenses
Keeping clear records of these expenses can help ensure your deduction is accurate if questions ever come up.

There’s also a simplified option that uses a set rate per square foot, which can simplify the calculation.

Either way, the deduction reduces your taxable income. And when you’re self-employed, lowering taxable income can affect both income tax and self-employment tax. Even a modest deduction can make a meaningful difference.

The real risk isn’t the deduction

For many people, the bigger issue isn’t claiming the home office deduction. It’s paying more than necessary year after year because it feels easier to skip it than to sort through the details.

If you’re eligible and you keep reasonable records of your business use, claiming the deduction is simply acknowledging the real costs of running a business from home. Your business has overhead, even if your office is down the hall from your kitchen.

The bottom line

If you’ve been skipping the home office deduction because it makes you nervous, you’re not alone. But claiming a legitimate deduction doesn’t automatically create problems.

If you regularly and exclusively use part of your home for business, you may qualify. The bigger miss is leaving money on the table.
See what you may be able to claim with the Self-Employed Tax Deductions Calculator.
March 23, 2026