Delia Law P.C. - Federal Tax Law Firm

05/21/2026

We often speak with families who assume that when a loved one passes away, their IRS issues end too. In reality, tax filing obligations and IRS collection issues can continue long after death.

A recent Forbes article, “After Death, Income Tax Filing And IRS Debts Live On,” discusses the many tax responsibilities that can remain after a taxpayer passes away, including filing a final Form 1040, handling estate or trust income tax returns on Form 1041, addressing retirement account distributions, resolving IRS debts and liens, and understanding potential executor liability.

The article also highlights a common misconception that simply notifying the IRS someone is deceased resolves the matter. In many situations, estates, surviving spouses, trustees, or executors may still need to address unfiled returns, tax balances, inherited assets, and ongoing filing requirements.

As a tax law firm, we regularly see families overwhelmed by the tax and administrative issues that arise after the loss of a loved one, especially where there are unresolved IRS balances, trusts, retirement accounts, or years of unfiled returns involved. These matters can become significantly more complicated when they are ignored early on.

From a tax practitioner’s perspective, post death tax matters require careful coordination between legal, tax, and financial planning. Understanding filing obligations, deadlines, estate reporting requirements, and potential fiduciary liability is critical to protecting both the estate and surviving family members.

Source: Forbes, “After Death, Income Tax Filing And IRS Debts Live On” by Kelly Phillips Erb

The final 1040 could be just the beginning. What estate executors and survivors need to know about retirement accounts, refunds, back taxes, liens and Form 1041.

05/13/2026

Delia Law Managing Tax Attorney Dawn Delia was recently quoted in a Money.com article discussing how the IRS is beginning to use artificial intelligence and advanced analytics to assist with tax enforcement and audit selection.

The article, written by Pete Grieve, examines how the IRS is increasing its use of AI tools as staffing levels decline and enforcement strategies evolve. According to the report, the IRS is using technology to identify patterns, flag potential noncompliance, and prioritize cases for review. While human employees still make final audit decisions, AI assisted systems are increasingly being used to generate risk scores and identify returns that warrant closer attention.

In the article, Ms. Delia noted that despite all the discussion surrounding AI, the core audit triggers remain largely the same, including high income, complex returns, aggressive credits, unusually high deductions, and significant Schedule C activity. Ms. Delia also shared that while audit activity will likely increase as these systems develop, there has not yet been a major shift in the actual types of audits being conducted.

As a tax law firm, Delia Law continues to closely monitor how evolving IRS technology and enforcement strategies impact taxpayers, business owners, and cryptocurrency reporting. Accurate reporting, strong documentation, and proactive tax planning remain more important than ever as the IRS expands its use of advanced analytics and automated review systems.

Money.com article: “The IRS Is Testing AI Tools to Decide Who Gets Audited”

https://money.com/irs-ai-audits/

"Imagine an IRS employee sitting down to play chess against a potential tax evader, and now suddenly you have IBM Watson on your side telling you exactly how to play the chess game," former IRS Commissioner Danny Werfel tells Money. "That's what AI does."

05/12/2026

The IRS is becoming far more aggressive with enforcement, and we are seeing it firsthand with small business owners, gig workers, and taxpayers involved in cryptocurrency transactions.

A recent Forbes article highlighted the IRS’s increased enforcement focus following expanded funding and staffing initiatives. According to the report, the agency is concentrating on areas including large partnerships, high income taxpayers, offshore activity, digital asset transactions, and gig economy income reported through platforms like Venmo, PayPal, and crypto exchanges. The rollout of Forms 1099 DA and continued 1099 K reporting gives the IRS significantly more ability to cross check information against filed tax returns.

The article also notes that Schedule C filings for small business owners remain one of the highest scrutiny areas, particularly where income and deductions appear inconsistent with third party reporting.

As a tax law firm, we are seeing more taxpayers receive notices simply because the IRS now has access to better reporting and more sophisticated data matching tools. In many situations, taxpayers are not intentionally doing anything wrong, but incomplete reporting, poor recordkeeping, or misunderstanding crypto and payment app reporting rules can create major issues quickly.

From a tax practitioner’s perspective, this is the time for taxpayers to tighten up documentation, reconcile reporting forms carefully, and address gaps before the IRS does it for them. The cost of being proactive is almost always far less than dealing with an audit or collection issue later.

Source: Forbes, “The IRS Is Watching More Closely Now, Here’s The Checklist You Need” by Jason Kirsch

https://apple.news/AtH6Li1JFR_y9iBnFvc-0LQ

the risk of getting audited by the IRS is increasing

05/01/2026

Do you own a second home in New York City, a new proposed tax could significantly change what you owe each year.

A recent analysis from the New York City Comptroller’s office shows that the proposed pied à terre tax on high value second homes could generate around $500 million annually, but that number is far from certain. The report explains that while initial estimates reach roughly $510 million, actual collections could drop closer to $340 million to $380 million depending on how the rules are written, how many properties are rented, and how owners respond to the tax . Key uncertainties include how properties held in LLCs or trusts are treated, how market value is determined for condos and co ops, and whether owners change behavior by renting, selling, or converting properties to primary residences.

As a tax law firm licensed in New York, I see how often high value real estate is structured through entities and layered ownership, and those details will matter here. The difference between a primary residence, a rental, and a second home is not always straightforward, and that is exactly where exposure or planning opportunities can arise.

From a tax practitioner’s perspective, this is a reminder that the headline number is rarely the full story. With state and local tax changes, the real impact comes down to definitions, enforcement, and how taxpayers adapt once the rules are in place.

Source: https://lnkd.in/gMZ5JnAc

This link will take you to a page that’s not on LinkedIn

04/28/2026

If your ERC claim was denied and the clock is running out, the IRS just created a way to buy more time before you are forced into court.

The IRS announced a new, more streamlined process for certain taxpayers to request additional time after receiving a disallowance of an Employee Retention Credit claim. When the IRS issues a Letter 105 C or 106 C, taxpayers generally have two years to either resolve the matter administratively or file a refund suit. That deadline does not pause simply because you are working with Appeals. Under this new option, taxpayers with six months or less remaining can request an extension by submitting Form 907 through the IRS Document Upload Tool, giving both the IRS and the taxpayer more time to resolve the claim without immediate litigation.

As a tax law firm, we are seeing many ERC cases where taxpayers are still waiting on responses while their deadlines quietly approach. That creates real risk, because once the deadline passes, the ability to recover the refund can be lost entirely.

From a tax practitioner’s perspective, this is a practical and welcome change. It gives taxpayers a chance to preserve their rights without rushing into a lawsuit, but it still requires careful attention to timing and eligibility.

IR-2026-58, April 27, 2026 — The Internal Revenue Service today announced a new, streamlined way for taxpayers to extend the period of time for the IRS and the IRS Independent Office of Appeals to review a taxpayer’s response to a disallowance of an Employee Retention Credit (ERC) claim to avoid...

04/24/2026

We often hear from clients right after they file that they are relieved it is done, but that filing can reveal missed opportunities and shape your tax strategy going forward.

Recent tax law changes affecting 2025 returns filed in 2026 introduced new deductions for tip income, overtime compensation, certain car loan interest, and enhanced deductions for seniors. If any of these were overlooked, taxpayers may be able to recover overpaid taxes by filing an amended return using Form 1040 X within the applicable time limits. These provisions are temporary and currently set to expire in 2028, making it important to identify and act on any missed opportunities.

As a tax law firm, we often see taxpayers treat filing as the finish line, when it is really one of the most useful points to step back and evaluate what can be improved. A careful review can uncover deductions that were missed and provide a clearer path for planning ahead.

From a tax attorney's perspective, what you do after filing is just as important as the filing itself. Reviewing your return, adjusting withholding, and organizing documentation now can make a meaningful difference in both your current tax position and your next filing season.

04/22/2026

Many taxpayers contact me asking one question, has my IRS tax debt expired.

The IRS generally has ten years from the date a tax is assessed to collect that liability, known as the Collection Statute Expiration Date or CSED. However, each tax year and each assessment can have its own timeline, and that timeline is often affected by events such as installment agreements, offers in compromise, bankruptcy filings, or appeals, all of which can pause or extend the collection period.

Taxpayers can review their IRS account transcripts to identify potential expiration dates, but interpreting those dates is not always straightforward. The IRS provides guidance on how the collection period works here:

https://www.irs.gov/filing/time-irs-can-collect-tax

As a tax attorney, I regularly review transcripts for clients who believe their tax debt may have expired, and in many cases, the timeline is more complex than expected due to prior actions that extended the collection period.

From a tax practitioner’s perspective, determining whether a tax debt is truly no longer collectible requires a careful analysis of the account history. Relying on assumptions without a proper review can lead to missed opportunities or unexpected IRS enforcement.

Understand the time limit IRS can collect tax, penalties and interests.

04/17/2026

We have many clients reach out right after Tax Day saying they did not file their return or request an extension, and they are not sure what to do next.

If you missed the April 15 deadline, the most important step is to take action as soon as possible. Filing your return now, even if late, helps limit penalties and interest. If you owe taxes and cannot pay in full, paying what you can and setting up a payment plan is still far better than waiting. On the other hand, if you are due a refund, there is no penalty for filing late, but you must file to receive it.

As a tax law firm, we regularly see how a short delay can quickly turn into a much larger problem when taxpayers avoid filing altogether. In many cases, the situation is far more manageable when addressed early.

04/15/2026

It’s Tax Day, and April 15 is the deadline to file your federal tax return, request an extension, and pay any tax due.

The IRS is reminding taxpayers that if they cannot get their return filed by today, they should request a six-month extension. But the important point is this: an extension gives you more time to file, not more time to pay. Any tax due is still due today.

As a tax attorney, one of the most common issues I see is taxpayers delaying action because they cannot do everything at once. That is usually a mistake. If you cannot fully pay, you should still file on time or request an extension on time, and pay as much as you can. Taking those steps can help reduce additional penalties and keep more options open.

Tax compliance does not have to be all or nothing. The most important thing today is to take the best step available and avoid making the situation more complex than it needs to be.

04/13/2026

Already filed your tax return and realized something might be wrong, not every mistake needs to be fixed, and in some cases, rushing to amend can actually delay your refund.

According to a recent article by Chrissy Paradis for Kiplinger, the IRS will automatically correct certain errors such as simple math mistakes or minor discrepancies that do not affect the final tax outcome. However, more significant issues, such as unreported income, missed deductions, or eligibility for credits, typically require filing an amended return using Form 1040-X. The article also highlights that some decisions, such as filing status elections, may become difficult or impossible to change after the filing deadline. Importantly, amended returns can take 16 to 20 weeks to process, and filing unnecessarily can move your return into a slower review queue.

As a tax attorney, I often see taxpayers rush to amend their returns out of concern, when in reality the issue may not impact their tax liability at all. In those cases, filing an amendment can create unnecessary delays without any financial benefit.

From a tax practitioner’s perspective, the key question is whether the change actually affects the amount owed or the refund. If it does, it is usually worth addressing. If it does not, leaving the return as filed may be the better strategy to avoid prolonged IRS processing times.

Caught an error or missed a tax deduction after hitting submit? Before you rush to file an amendment, see which mistakes the IRS fixes for you and which ones require a Form 1040-X to save your refund.

04/09/2026

Not ready to file your taxes by April 15, I am seeing this come up a lot right now, and it is important to understand what an extension actually does, and what it does not.

The IRS recently reminded taxpayers that you can request an extension to file until October 15, 2026. However, the extension only applies to filing, not payment. Any taxes owed are still due by April 15, and interest and penalties begin accruing if they are not paid. Taxpayers can request an extension by paying online and selecting extension, using IRS Free File, or submitting Form 4868. If you cannot pay in full, paying what you can and setting up a payment plan is still the better approach.

As a tax attorney, I have these conversations every filing season. Many people assume an extension gives them more time across the board, and they are understandably frustrated when they later receive notices with penalties and interest.

From my perspective, the goal is not perfection by April 15, it is taking the right steps. File the extension if you need it, pay what you can, and put a plan in place. That alone can prevent a much bigger issue later.

Tax Tip 2026-30 April 9, 2026 — The April 15 deadline to file federal income tax returns is coming up fast.