Caudell CPA, PC

If your business uses the accrual method of accounting and received advance payments in 2025, you may be able to defer reporting some or all of that income until 2026 for federal tax purposes. An advance payment is one received by a business before it provides whatever is being paid for. Examples of advance payments that may be eligible for this favorable tax treatment include payments for services, the sale of goods, gift cards, the use of intellectual property, the sale or use of computer software, warranty contracts and subscriptions. But complicated rules apply. Contact us for help determining if your business is eligible to defer 2025 advance payments.

Trump Account Contribution Programs (TACPs) allow employers to help fund Trump Accounts for eligible under-age-18 employees and employees’ eligible dependents. Recent IRS guidance (Notice 2025-68) clarifies some key points. For example, TACPs can’t start until July 4, 2026, when accounts may first be established and funded. Also, excludable employer contributions are capped at $2,500 per employee per year, regardless of the number of dependents. That limit will be indexed for inflation after 2027. Employers may offer TACPs through a cafeteria plan, but certain restrictions apply. Contact us for help exploring the feasibility of a TACP for your organization.