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    <title type="text">Law Office of Williams &amp; Associates, P.C.</title>
    <subtitle type="text">Sacramento Tax Attorney &#124; Tax Litigation California</subtitle>

    <updated>2026-07-08T22:53:40Z</updated>

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        <entry>
            <author>
									                    <name>by Betty  Williams</name>
				            </author>
            <title type="html"><![CDATA[IRS Phases Out First Time Abatement and Automatically Removes Penalties With No Action by Taxpayers]]></title>
            <link rel="alternate" type="text/html" href="https://www.williamslawassociates.com/blog/2026/07/irs-phases-out-first-time-abatement-and-automatically-removes-penalties-with-no-action-by-taxpayers/" />
            <id>https://www.williamslawassociates.com/?p=51291</id>
            <updated>2026-07-08T22:53:40Z</updated>
            <published>2026-07-08T22:53:40Z</published>
					<taxo:topics><![CDATA[IRS, Penalty relief, Taxpayer]]></taxo:topics>
            <summary type="html"><![CDATA[Beginning with tax returns due on or after January 1, 2027, the IRS will now automatically abate penalties for the failure to file, failure to pay, or failure to make tax deposits for annual and quarterly tax filings whenever a taxpayer has three prior years (or 12 consecutive quarters for quarterly returns) of consistently filing tax returns on time, and…]]></summary>
			                <content type="html" xml:base="https://www.williamslawassociates.com/blog/2026/07/irs-phases-out-first-time-abatement-and-automatically-removes-penalties-with-no-action-by-taxpayers/"><![CDATA[Beginning with tax returns due on or after January 1, 2027, the IRS will now automatically abate penalties for the failure to file, failure to pay, or failure to make tax deposits for annual and quarterly tax filings whenever a taxpayer has three prior years (or 12 consecutive quarters for quarterly returns) of consistently filing tax returns on time, and paying tax on time (or depositing tax payments on time). The new program is called the Automatic Exemption from Penalty, or AEP.

This is consistent with the IRS’ First Time Abatement Program which will cease to exist in 2027. This relief is only for the first year (or quarter) of penalties.  If a taxpayer has three years or three quarters of penalties, the IRS may now remove penalties for the first year under AEP, but the taxpayer will still have to request penalty relief for the second and third years if the taxpayer believes the penalties should be abated.

While this will be excellent news for some taxpayers, others may not benefit from penalty relief applied in this manner.  Consider a taxpayer who has an excellent filing and payment record, but for some reason incurs a penalty of $150 in 2027.  The IRS reviews the taxpayer’s file and sees that the taxpayer was in full compliance in 2024, 2025, and 2026, so the IRS automatically abates the $150 penalty.  Now imagine the same taxpayer completely forgets to file his tax returns in 2028, but this time, the penalty is $15,000. The taxpayer may want to request penalty abatement under AEP, but because of the relief in 2027, the taxpayer will be precluded and can only rely on reasonable cause to abate penalties.

To read the full release, <a href="https://www.irs.gov/newsroom/irs-simplifies-penalty-relief-introduces-automatic-process-for-eligible-taxpayers" data-wpel-link="external" target="_blank" rel="noopener noreferrer">click here.</a>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>by Betty  Williams</name>
				            </author>
            <title type="html"><![CDATA[Taxpayers Can Now Submit Trump Account Elections Online]]></title>
            <link rel="alternate" type="text/html" href="https://www.williamslawassociates.com/blog/2026/06/taxpayers-can-now-submit-trump-account-elections-online/" />
            <id>https://www.williamslawassociates.com/?p=51290</id>
            <updated>2026-06-03T19:47:42Z</updated>
            <published>2026-06-03T19:47:42Z</published>
					<taxo:topics><![CDATA[Funds, IRS, Taxpayer]]></taxo:topics>
            <summary type="html"><![CDATA[The Internal Revenue Service announced recently that taxpayers can now log into their online individual accounts to view or submit Trump Account elections. This will make it easier for people to invest in the accounts, and provide a tool to invest, manage, and transact the funds, and also help set up a new generation of children who have already invested…]]></summary>
			                <content type="html" xml:base="https://www.williamslawassociates.com/blog/2026/06/taxpayers-can-now-submit-trump-account-elections-online/"><![CDATA[The Internal Revenue Service announced recently that taxpayers can now log into their online individual accounts to view or submit Trump Account elections. This will make it easier for people to invest in the accounts, and provide a tool to invest, manage, and transact the funds, and also help set up a new generation of children who have already invested in their futures!

For more information,<a href="https://www.irs.gov/newsroom/taxpayers-can-now-view-and-submit-trump-account-elections-in-their-irs-individual-account" data-wpel-link="external" target="_blank" rel="noopener noreferrer"> click here. </a>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>by Betty  Williams</name>
				            </author>
            <title type="html"><![CDATA[The IRS Wants YOU! To Blow the Whistle!]]></title>
            <link rel="alternate" type="text/html" href="https://www.williamslawassociates.com/blog/2026/05/the-irs-wants-you-to-blow-the-whistle/" />
            <id>https://www.williamslawassociates.com/?p=51289</id>
            <updated>2026-05-01T22:43:32Z</updated>
            <published>2026-05-01T22:43:32Z</published>
					<taxo:topics><![CDATA[IRS, tax fraud, Taxes, whistleblower]]></taxo:topics>
            <summary type="html"><![CDATA[If you are aware of an individual, business, or tax-exempt organization that is cheating on its taxes, you can now report the person or business on the IRS’ website, anonymously to the offender, and receive up to 30% of proceeds collected by the IRS.  It will be important to report what you actually know, versus what you suspect, and to…]]></summary>
			                <content type="html" xml:base="https://www.williamslawassociates.com/blog/2026/05/the-irs-wants-you-to-blow-the-whistle/"><![CDATA[If you are aware of an individual, business, or tax-exempt organization that is cheating on its taxes, you can now report the person or business on the IRS’ website, anonymously to the offender, and receive up to 30% of proceeds collected by the IRS.  It will be important to report what you actually know, versus what you suspect, and to be specific with the details when you provide timely and credible information.  For more details, <a href="https://www.irs.gov/newsroom/irs-issues-whistleblower-alert-expands-efforts-to-uncover-fraud" data-wpel-link="external" target="_blank" rel="noopener noreferrer">click here. </a>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>by Betty  Williams</name>
				            </author>
            <title type="html"><![CDATA[New IRS Tool For Taxpayers With IRS Debt]]></title>
            <link rel="alternate" type="text/html" href="https://www.williamslawassociates.com/blog/2026/04/new-irs-tool-for-taxpayers-with-irs-debt/" />
            <id>https://www.williamslawassociates.com/?p=51287</id>
            <updated>2026-04-24T22:49:22Z</updated>
            <published>2026-04-24T22:49:22Z</published>
					<taxo:topics><![CDATA[Debt, IRS, Taxpayer]]></taxo:topics>
            <summary type="html"><![CDATA[The IRS now has an online tool with a series of questions for individuals and business owners who may need temporary relief from paying the IRS, or may need a payment plan.  The tool is easy to use and will provide all available options to taxpayers.  For more information, click here.]]></summary>
			                <content type="html" xml:base="https://www.williamslawassociates.com/blog/2026/04/new-irs-tool-for-taxpayers-with-irs-debt/"><![CDATA[The IRS now has an online tool with a series of questions for individuals and business owners who may need temporary relief from paying the IRS, or may need a payment plan.  The tool is easy to use and will provide all available options to taxpayers.  For more information, <a href="https://www.irs.gov/newsroom/irs-launches-new-online-tool-to-help-taxpayers-resolve-tax-debt" data-wpel-link="external" target="_blank" rel="noopener noreferrer">click here.</a>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>by Betty  Williams</name>
				            </author>
            <title type="html"><![CDATA[More than a Tip on Non-Taxable Tips]]></title>
            <link rel="alternate" type="text/html" href="https://www.williamslawassociates.com/blog/2026/04/more-than-a-tip-on-non-taxable-tips/" />
            <id>https://www.williamslawassociates.com/?p=51286</id>
            <updated>2026-04-13T18:08:16Z</updated>
            <published>2026-04-13T18:08:16Z</published>
					<taxo:topics><![CDATA[IRS, Non-Taxable Tips, tips]]></taxo:topics>
            <summary type="html"><![CDATA[The IRS issued final regulations today identifying the type of workers who receive tips that may deduct those tips from income, under the One, Big, Beautiful Bill. The tips must be qualified by meeting certain requirements, including that they be made voluntarily by the customer, and reported by an employer on Form W-2, Form 1099-NEC, Form 1099-MISC, Form 1099-K, or…]]></summary>
			                <content type="html" xml:base="https://www.williamslawassociates.com/blog/2026/04/more-than-a-tip-on-non-taxable-tips/"><![CDATA[The IRS issued final regulations today identifying the type of workers who receive tips that may deduct those tips from income, under the One, Big, Beautiful Bill. The tips must be qualified by meeting certain requirements, including that they be made voluntarily by the customer, and reported by an employer on Form W-2, Form 1099-NEC, Form 1099-MISC, Form 1099-K, or reported by the worker on Form 4137.

The IRS identified 70 types of workers that fall into one of eight categories:

Beverage and Food Service

Entertainment and Events

Hospitality and Guest Services

Home Services

Personal Services

Personal Appearance and Wellness

Recreation and Instruction

Transportation and Delivery

To read more, <a href="https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-listing-occupations-where-workers-customarily-and-regularly-receive-tips-under-the-one-big-beautiful-bill" data-wpel-link="external" target="_blank" rel="noopener noreferrer">click here.</a>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>by Betty  Williams</name>
				            </author>
            <title type="html"><![CDATA[Four Million Children Enroll for Tax-Favored Trump Accounts]]></title>
            <link rel="alternate" type="text/html" href="https://www.williamslawassociates.com/blog/2026/04/four-million-children-enroll-for-tax-favored-trump-accounts/" />
            <id>https://www.williamslawassociates.com/?p=51285</id>
            <updated>2026-04-06T16:32:49Z</updated>
            <published>2026-04-06T16:32:49Z</published>
					<taxo:topics><![CDATA[IRS, Taxes, Taxpayer]]></taxo:topics>
            <summary type="html"><![CDATA[Thanks to President Trump and the One, Big, Beautiful Bill, four million children born after January 1, 2025, have signed up to receive a tax-favored account of $1,000.  Beginning July 4, 2026, the parents, relatives, friends, philanthropic organizations and others may further contribute to these accounts, setting the children up for a financially successful future. To read more about it,…]]></summary>
			                <content type="html" xml:base="https://www.williamslawassociates.com/blog/2026/04/four-million-children-enroll-for-tax-favored-trump-accounts/"><![CDATA[Thanks to President Trump and the One, Big, Beautiful Bill, four million children born after January 1, 2025, have signed up to receive a tax-favored account of $1,000.  Beginning July 4, 2026, the parents, relatives, friends, philanthropic organizations and others may further contribute to these accounts, setting the children up for a financially successful future. To read more about it, <a href="https://www.irs.gov/newsroom/4-million-children-have-been-signed-up-for-trump-accounts-with-1-million-claiming-the-1000-pilot-program-contribution" data-wpel-link="external" target="_blank" rel="noopener noreferrer">click here.</a>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>by Betty  Williams</name>
				            </author>
            <title type="html"><![CDATA[The IRS is Tightening its Belt]]></title>
            <link rel="alternate" type="text/html" href="https://www.williamslawassociates.com/blog/2026/04/the-irs-is-tightening-its-belt/" />
            <id>https://www.williamslawassociates.com/?p=51284</id>
            <updated>2026-04-01T21:58:47Z</updated>
            <published>2026-04-01T21:58:47Z</published>
					<taxo:topics><![CDATA[Contracts, IRS, Taxpayer]]></taxo:topics>
            <summary type="html"><![CDATA[The IRS may be saving hundreds of millions of dollars by cancelling certain contracts, although the effect on service to taxpayers is not yet known.  In early 2025, the IRS reviewed more than 3,000 contracts and identified 334 contracts to cancel, with a potential cost savings of approximately $645 million. The following services are the five largest categories measured by…]]></summary>
			                <content type="html" xml:base="https://www.williamslawassociates.com/blog/2026/04/the-irs-is-tightening-its-belt/"><![CDATA[The IRS may be saving hundreds of millions of dollars by cancelling certain contracts, although the effect on service to taxpayers is not yet known.  In early 2025, the IRS reviewed more than 3,000 contracts and identified 334 contracts to cancel, with a potential cost savings of approximately $645 million. The following services are the five largest categories measured by potential savings; the services expected to be impacted are these: E-file Updates, Information Returns Updates, Taxpayer 180 Support Services, Taxpayer First Act Initiative Support, and 85 contracts with Expert Witness Testimony impact. To read the complete report, <a href="https://www.oversight.gov/sites/default/files/documents/reports/2026-03/20261S0015fr.pdf" data-wpel-link="external" target="_blank" rel="noopener noreferrer">click here.</a>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>by Betty  Williams</name>
				            </author>
            <title type="html"><![CDATA[2026 Dirty Dozen Tax Scams]]></title>
            <link rel="alternate" type="text/html" href="https://www.williamslawassociates.com/blog/2026/03/2026-dirty-dozen-tax-scams/" />
            <id>https://www.williamslawassociates.com/?p=51283</id>
            <updated>2026-03-16T21:23:19Z</updated>
            <published>2026-03-16T21:23:19Z</published>
					<taxo:topics><![CDATA[fraud, IRS, scam]]></taxo:topics>
            <summary type="html"><![CDATA[Criminals seem to never sleep, constantly on the lookout for another way to scam individuals, businesses, and even tax professionals.  Each year, the IRS publishes a list of the top 12 scams that threaten the tax and financial information of taxpayers. At the top of the list are phony telephone calls, fake emails and texts that appear to be from…]]></summary>
			                <content type="html" xml:base="https://www.williamslawassociates.com/blog/2026/03/2026-dirty-dozen-tax-scams/"><![CDATA[Criminals seem to never sleep, constantly on the lookout for another way to scam individuals, businesses, and even tax professionals.  Each year, the IRS publishes a list of the top 12 scams that threaten the tax and financial information of taxpayers.

At the top of the list are phony telephone calls, fake emails and texts that appear to be from the IRS with alarming messages and a link or QR code that directs the recipient to a fake IRS website where personal identification information is requested.  Never click on these links or QR codes, and don’t answer personal information over the phone.  The IRS will always contact the taxpayer by mail first, and will never leave urgent or threatening messages.

Fake charities is also high on the list. While you may feel sympathetic when funds are requested for something, especially during natural disasters, always verify the company before donating money. You can let the requesting party know you will do your due diligence and make a donation online. The IRS advises all taxpayers to remain cautious year-round, as criminals will always be on the lookout for new ways to obtain money, personal identifiable information, and data. To learn more, <a href="https://www.irs.gov/newsroom/dirty-dozen-tax-scams-for-2026-irs-reminds-taxpayers-to-watch-out-for-dangerous-threats" data-wpel-link="external" target="_blank" rel="noopener noreferrer">click here.</a>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>by Betty  Williams</name>
				            </author>
            <title type="html"><![CDATA[New Confidential IRS Website to Report Fraud and Possibly Receive Monetary Award]]></title>
            <link rel="alternate" type="text/html" href="https://www.williamslawassociates.com/blog/2026/03/new-confidential-irs-website-to-report-fraud-and-possibly-receive-monetary-award/" />
            <id>https://www.williamslawassociates.com/?p=51282</id>
            <updated>2026-03-13T15:56:43Z</updated>
            <published>2026-03-13T15:56:43Z</published>
					<taxo:topics><![CDATA[IRS, tax fraud, Taxes, Taxpayer]]></taxo:topics>
            <summary type="html"><![CDATA[The IRS announced the launch of a new web page that allows taxpayers who suspect tax fraud, scams, evasion, or other tax-related illegal activities to confidentially report that information to the IRS online. This will enhance how referrals are used to stop illegal activity. By reporting suspected tax fraud or scams, taxpayers play an important role in uncovering fraud and…]]></summary>
			                <content type="html" xml:base="https://www.williamslawassociates.com/blog/2026/03/new-confidential-irs-website-to-report-fraud-and-possibly-receive-monetary-award/"><![CDATA[The IRS announced the launch of a new web page that allows taxpayers who suspect tax fraud, scams, evasion, or other tax-related illegal activities to confidentially report that information to the IRS online. This will enhance how referrals are used to stop illegal activity. By reporting suspected tax fraud or scams, taxpayers play an important role in uncovering fraud and supporting the integrity of the nation’s tax system, and they may receive a monetary award if qualified. The new web page is only an initial improvement to the IRS’ fraud reporting process, that will address historic challenges the IRS has faced in using referrals. To read more, <a href="https://www.irs.gov/newsroom/irs-launches-new-web-page-to-streamline-tax-fraud-and-scam-reporting" data-wpel-link="external" target="_blank" rel="noopener noreferrer">click here.</a>]]></content>
						        </entry>
	        <entry>
            <author>
									                    <name>by Betty  Williams</name>
				            </author>
            <title type="html"><![CDATA[Death and Taxes – Make Sure They Go Together]]></title>
            <link rel="alternate" type="text/html" href="https://www.williamslawassociates.com/blog/2026/03/death-and-taxes-make-sure-they-go-together/" />
            <id>https://www.williamslawassociates.com/?p=51281</id>
            <updated>2026-03-02T23:02:57Z</updated>
            <published>2026-03-02T23:02:57Z</published>
					<taxo:topics><![CDATA[IRS, tax returns, Taxes, Taxpayer, TIGTA]]></taxo:topics>
            <summary type="html"><![CDATA[The Treasury Inspector General for Tax Administration (TIGTA) conducted an inquiry and reported in August 2023, that more than 20,000 taxpayer accounts were locked in error due to human and computer problems at the IRS, preventing these taxpayers from accessing their IRS accounts because the IRS had deemed them deceased.  TIGTA made recommendations to improve the processes and did a…]]></summary>
			                <content type="html" xml:base="https://www.williamslawassociates.com/blog/2026/03/death-and-taxes-make-sure-they-go-together/"><![CDATA[The Treasury Inspector General for Tax Administration (TIGTA) conducted an inquiry and reported in August 2023, that more than 20,000 taxpayer accounts were locked in error due to human and computer problems at the IRS, preventing these taxpayers from accessing their IRS accounts because the IRS had deemed them deceased.  TIGTA made recommendations to improve the processes and did a follow up report recently noting that nearly all of the 69 million taxpayers with a deceased lock on their accounts were accurate.  In fact, only .2 percent were locked in error, yet that still represents 13,500 taxpayers.

It is important that accounts are locked following the death of a taxpayer, to protect them from fraud and from someone assuming their identity. So, while burdensome to get a locked account unlocked, the larger concern is having someone file tax returns on behalf of a deceased taxpayer and claim unlawful refunds in future years. To read the full report, <a href="https://www.tigta.gov/sites/default/files/reports/2026-02/2026400004fr.pdf" data-wpel-link="external" target="_blank" rel="noopener noreferrer">click here.</a>]]></content>
						        </entry>
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