Reliable Income Tax Service Inc.

IRS Offer in Compromise Program – Did You Know?

People who cannot pay their tax bills in full may have options to resolve the situation. One of these options is the Offer in Compromise (OIC) program, which allows eligible taxpayers to settle their debts with the IRS for less than the full amount owed.

Anyone considering an OIC should first check whether they qualify using the IRS Pre-Qualifier tool online (link below). Eligible taxpayers may then submit an application. In most cases, the application must be accompanied by a $205 fee and an initial payment toward the tax debt, although these requirements may be waived for lower-income applicants.

An OIC application requires detailed financial information and must be carefully prepared. Beware of aggressive ads promising to settle tax debts quickly for a small fraction of the amount owed. Companies behind these ads, often referred to as OIC mills, may charge substantial fees while submitting applications for people who have little chance of qualifying. A trusted tax professional can help ensure that an OIC application is complete, accurate, and has a reasonable chance of acceptance.

OIC Pre-Qualifier Online Tool: https://irs.treasury.gov/oic_pre_qualifier/

Summer Activities and Taxes – Did You Know?

Summer is a time to relax and have fun, but some seasonal activities may have tax consequences. Being aware of them now may save you time and hassle later.

If your child attends a day camp so you can work or look for work, some of the cost may qualify for the Child and Dependent Care Credit. Be sure to keep records and obtain the camp's tax identification information.

Students with summer jobs may be entitled to tax refunds if income tax is withheld from their pay. Adults earning income from seasonal, part-time, or gig work may need additional withholding or quarterly estimated tax payments.

Summer is also a popular wedding season. If you change your name after marriage, update your records with the Social Security Administration. If you move, update your address with the IRS and submit a new Form W-4 to your employer so your withholding reflects your current tax situation.

National 529 Day – Did You Know?

If you put money into a 529 education savings plan, earnings may be withdrawn federal income tax-free when used for qualified education expenses. Qualified expenses can include tuition, fees, books, supplies, computers, and for students enrolled at least half-time, certain room and board costs.

While 529 contributions are not deductible for federal income tax purposes, many states offer a full or partial state income tax deduction or credit for contributions. Some states and plan sponsors may also offer special incentives around National 529 Day.

Recent law changes expanded the use of 529 plans. In 2026, up to $20,000 per year, per student, may be used for qualified K–12 education expenses at public, private, or religious schools. Prior years were generally limited to $10,000 annually.

Updated Withholding Estimator Available for 2026

Having the right amount of tax withheld from your pay protects you against unpleasant spring surprises, while ensuring that you do not unnecessarily sacrifice take-home pay. The IRS recently made important updates to its Withholding Estimator tool (link below), to account for tax law changes enacted in 2025. Those changes include the "No Tax on Tips" and "No Tax on Overtime" deductions, the car loan interest deduction and special deduction for seniors, and the new deduction rules for charitable donations.

Verifying the accuracy of your withholding a couple of times a year is especially important if you and your spouse both work, or if you owed tax this spring, work multiple jobs, or have self-employment or investment income. It is also a good idea to complete a withholding checkup anytime you experience a major life change like marriage, or the birth or adoption of a child. Using the Withholding Estimator typically takes 25 minutes or less, and you do not have to log in or provide any personally identifying information. If an adjustment to your withholding is needed, the tool can help you complete a new W-4 form to submit to your employer.

IRS Withholding Estimator Tool: https://www.irs.gov/individuals/tax-withholding-estimator

IRS Impersonation Scams – Did You Know?

Criminals continue to use IRS impersonation scams to steal money and personal information. Understanding how the IRS actually communicates can help you recognize and avoid these schemes.

The IRS generally initiates contact by sending a letter through the mail on official letterhead. If you have an IRS online account, you can log in to verify whether a notice is legitimate. If you are unsure, you can contact the IRS directly at 800-829-1040.

Scammers, however, often pose as the IRS in several ways:

By mail: Fake letters may look official but include incorrect contact details or suspicious language such as “in relation to your unclaimed refund.”

By email or text: The IRS does not initiate contact this way. Messages promising refunds, credits or urgent fixes often contain links to fraudulent websites designed to steal your information.

By phone: Scammers may leave threatening messages or demand immediate payment using gift cards or other unusual methods—tactics the IRS does not use.

In person: Unannounced visits are extremely rare. Most legitimate IRS appointments are scheduled in advance by letter.

If you suspect a scam, do not respond, click links or share information. Instead, contact the IRS using an official phone number to verify the situation.

IRS Online Business Accounts Now Available to Partnerships & Tax-Exempt Entities

The IRS has expanded its Business Tax Account (BTA) service, which enables businesses to handle many federal tax matters online. Previously, only sole proprietors, S corporations and C corporations could use the BTA platform. Now, partnerships (including LLCs that file taxes as partnerships), along with many tax-exempt organizations, can benefit from the convenience of a BTA as well.

Tasks that can be readily completed through the BTA system include checking tax balances, making payments, viewing payment histories and downloading digital IRS notices. In addition, BTA users can access payroll and income tax return transcripts, seek help with compliance concerns, or verify the accuracy of a business name or address on file with the IRS.

Many government entities, including tribal governments, also qualify to use the expanded BTA service.

IRS Business Tax Account: https://www.irs.gov/businesses/business-tax-account