Tax guides
Plain-English guides to filing, audits, planning and record-keeping from the Tally Tax team. Written for people with better things to do.
Can’t pay what you owe? IRS payment plans and penalty relief
Owing more than you can pay is common and fixable. Here’s how IRS payment plans work, what they cost, how to get penalties removed, and what happens if you do nothing.
Sep 28, 2026 · 7 min readThe 20% QBI deduction: who gets it, and why high earners often don’t
The pass-through deduction is now permanent, with wider phase-ins for 2026. Here’s how it works, where physicians and consultants lose it, and how S corp salary fits in.
Sep 28, 2026 · 6 min readMixing business and personal money: why it costs you, and how to untangle it
Commingled accounts cost you deductions, weaken your liability protection, and make audits harder. Here's how to separate them and clean up past years.
Sep 28, 2026 · 7 min readHaven’t filed in years? How to catch up without making it worse
How far back the IRS usually expects you to go, what the penalties really cost, which refunds you can still claim, and the order to do things in.
Sep 28, 2026 · 7 min readThe year-end tax planning checklist for business owners
What to do before December 31 — retirement deadlines, equipment purchases, fourth-quarter estimates, S corp payroll and 2026’s new charitable rules — and what can still wait until next year.
Sep 28, 2026 · 7 min readHiring your first employee: the payroll taxes and filings you just signed up for
Your first W-2 hire brings registrations, withholding, deposits and a calendar of federal and state filings. What’s required for 2026, what it costs, and where first-year penalties come from.
Sep 28, 2026 · 8 min readThe five layers of a tax-ready financial setup
Forget tool lists. Think in layers: how money flows in, gets recorded, gets documented, goes out, and gets planned for taxes.
Sep 24, 2026 · 7 min readWhat actually triggers an IRS audit — and what doesn’t
Most audits start with a mismatch or a statistical outlier, not bad luck. Here’s what raises the odds, and the myths you can stop worrying about.
Sep 20, 2026 · 6 min readQuarterly estimated taxes for high earners: the safe harbor, explained
If withholding doesn’t cover your income, the safe harbor rules tell you how much to pay each quarter to avoid an underpayment penalty — even in a year your income jumps.
Sep 16, 2026 · 6 min readThe S corp election: when it pays, and when it doesn’t
An S corp can cut self-employment tax on profit above a fair salary, but it adds payroll, filings, and cost. Here’s how to tell if it pays.
Sep 12, 2026 · 6 min readGot a letter from the IRS? A calm, step-by-step response plan
Most IRS letters are routine and fixable. Here’s how to read one, confirm it’s real, decode the notice number, and respond on time without making things worse.
Sep 8, 2026 · 6 min readThe 1099 season checklist for businesses that pay contractors
Collect W-9s early, track payments all year, and know the new $2,000 threshold. A practical checklist for the first 1099 season under the 2026 rules.
Sep 4, 2026 · 6 min readThe audit-ready file: what to keep, and for how long
Good records turn an audit into a short exchange of documents. Here's what belongs in your file and the retention periods that actually matter.
Aug 31, 2026 · 6 min readPaid on a 1099? Self-employment tax without the April surprise
Self-employment tax covers Social Security and Medicare when no employer withholds for you. How it’s calculated for 2026, worked examples, and how to avoid a surprise bill.
Aug 27, 2026 · 6 min readWorking across state lines: multi-state filing for professionals
Resident, nonresident, and the credit that keeps you from paying twice: how to think about income earned in more than one state, with a worked example.
Aug 23, 2026 · 6 min readReasonable salary for S corp owners: how to set it and defend it
The IRS expects S corp owners who work in the business to pay themselves fairly. Here’s how to pick a number you can support if asked.
Aug 19, 2026 · 6 min readA 60-minute monthly close for owner-operators
A repeatable one-hour routine that keeps your books current, your taxes predictable, and year-end uneventful.
Aug 15, 2026 · 6 min readThe home office deduction, without the red flags
Who qualifies, the two ways to calculate it (with numbers), what happens when you sell, and the records that make the deduction hold up if anyone asks.
Aug 11, 2026 · 6 min readCorrespondence, office, and field audits: what to expect from each
Not all audits look alike. Here’s how the three main types work, what the IRS will ask for, how each one ends, and how to handle it well.
Aug 7, 2026 · 6 min readEmployee or contractor? Getting worker classification right
Whether someone is an employee or a contractor depends on the working relationship, not the label in the contract. How the IRS, the Labor Department and states decide, and what a mistake costs.
Aug 3, 2026 · 6 min readVehicle expenses: standard mileage vs. actual costs, and the log you need
How the two methods work, the 2026 mileage rates, why your first-year choice matters, and what a mileage log has to show to hold up.
Jul 30, 2026 · 6 min readShould you form an LLC? What it does — and doesn’t — do for your taxes
An LLC can help protect your personal assets, but on its own it doesn’t lower your taxes. Here’s what it changes and what it doesn’t.
Jul 26, 2026 · 6 min readSEP-IRA or Solo 401(k)? Retirement plans for the self-employed
Both let you save far more than a regular IRA. Here’s how the 2026 limits work, what each plan lets you contribute at different income levels, and the deadlines that matter.
Jul 22, 2026 · 6 min readFiling an extension: what it buys you, and the payment it doesn’t delay
An extension gives you more time to file your return, not more time to pay. Here’s how to use one well, what the penalties actually cost, and what to do as the October deadline nears.
Jul 18, 2026 · 6 min read