The IRS and U.S. Postal Service (USPS) Rule

A finalized U.S. Postal Service (USPS) rule, effective Dec. 24, 2025, clarifies how postmark dates are applied, and the change has real consequences for tax filings that rely on timely mailing.

This isn’t a change to tax law. Section 7502 still governs timely mailing and timely filing. What’s changed is how the USPS defines the date that appears on many envelopes. This operational shift increases the risk of late postmarks, even when a document is dropped off before its deadline.

What the USPS rule actually changed

The USPS adopted a final rule adding §608.11, “Postmarks and Postal Possession,” to the Domestic Mail Manual. Under this rule, most machine-applied postmarks now reflect the date of the first automated processing operation at a USPS processing facility, not the date the mail was dropped off or accepted at a retail counter.

Because mail is often transported to processing facilities after acceptance, the postmark date can be later than the mailing date. In some cases, postmarking can cross calendar days, especially under current USPS logistics and transportation practices.

The rule also clarifies that not all mail receives a postmark, and the absence of a postmark doesn’t mean USPS never accepted the item. From a tax perspective, that clarification offers little comfort when a deadline is at stake.

Why this matters for tax filings

Under §7502, as interpreted by Treasury regulations, the postmark date controls whether a mailed return, payment or other tax document is treated as timely filed when it’s not physically received by the IRS by the due date. If the USPS postmark is dated after the deadline, the filing is late, regardless of when the taxpayer dropped it in the mail.

The law hasn’t changed, but the reliability of machine-applied postmarks as evidence of timely mailing has weakened.

How these mail changes appear in practice

A taxpayer drops an extension payment in a USPS mailbox on April 15, assuming it will be postmarked that day. The envelope isn’t processed until the following evening, when it reaches a regional processing facility, where a machine-applied postmark dated April 16 is applied. Under §7502, the IRS treats the payment as late, even though the taxpayer mailed it on time. Without a manual postmark, receipt or other proof of acceptance on April 15, the taxpayer has no reliable way to establish timely filing.

How taxpayers can protect themselves now

The USPS rule itself points to the solution. If the mailing date matters, the taxpayer must take an affirmative step to document it.

Best practices now include:

• Requesting a manual (local) postmark at a USPS retail counter.

• Obtaining a postage validation imprint when paying for postage at the counter.

• Using Certified Mail or Registered Mail, which provides a receipt and, under §7502(c), is treated as evidence of timely mailing unless the IRS can prove otherwise.

• Purchasing a Certificate of Mailing to document the date the item was presented to USPS.

• Using an approved private delivery service when appropriate.

Relying solely on mailbox drop-offs near deadlines is no longer defensible risk management.

Information on 2025 Tax Year

It is that time again when we all must prepare to have our Federal Income Taxes filed.

• Deadlines for tax information to be in our office is March 17, 2026 for Individual Returns.

• For Corporations, LLC’s or Partnerships, the due date for information to be in our office is February 20, 2026.

• If a new automobile (year model 2025 or 2026) was purchased during 2025, a copy of the Bill of Sale containing the VIN number will be needed.

• If you received overtime pay during the year, a copy of your LAST paystub reflecting overtime will be needed.

ALL Clients must COMPLETE the 2025 Required Client Information Packet (click here) to ensure all information is up to date. This is for YOUR benefit and to help make the process as flawless as possible.  This includes bank account information. (Bank Name, Routing Number and Account Number)

• We do not keep bank account information in our system for security purposes.

• Dependents names, dates of birth and sex at birth must be listed on your Information Packet. If they have been on your previously filed tax returns we will have their Social Security Number.

• The information that we ask for is all necessary for the accuracy of your return. Please take the time to answer ALL questions . It can and will save time and possibly money in the long run.

IRS Payment Information
Please note that the U.S. Treasury has discontinued issuing paper refund checks effective September 30, 2025. To avoid delays in receiving your refund, be sure our office has a correct bank account on file BEFORE your return is filed. If banking information is not provided, you may be required to contact the IRS directly for refund processing. While electronic payments to the IRS are not currently required, they are strongly encouraged for faster, more reliable processing.

Please bring all information at one time.  We understand that brokerage and investment statements can run late into March before you receive them and we will do our best to accommodate. Bringing additional information after you have informed us that your return is ready to be completed will result in additional fees if your return must be revised.

• If you need an extension of time filed, contact our office by email (doris@rabcpa.com). This MUST be done by email. Remember that this only extends the time requirement for returns but does not extend the time to pay any tax liabilities. In the event additional taxes are due and remitted after April 15, you will be subject to late payment penalties and interest.

• You will need to inform us of the amount you intend to send with your extension request.

Other Information:

After bringing your COMPLETED forms and tax information to our office, it is placed in the order it was received. It is logged into our tracking system and the information is sorted as needed. Returns are processed as quickly as possible but the emphasis is on accuracy.

When the return is complete and ready for review our office staff will contact the client via phone, email or text. After review, the clients signature(s) is required before it can be transmitted to the IRS. After being transmitted to the IRS, our office will receive a confirmation that it was accepted or rejected. If rejected, our office staff will determine what issues are causing the rejection and will contact the client for further information as necessary. The return will be corrected and transmitted again.

Quickbooks User Notice

It has been brought to our attention that once again QuickBooks is being deceptive with

their marketing and promotion of services. We have been recently made aware

QuickBooks on-line is informing clients of the following “Your accountant invited you to

Quickbook Payments”

WE HAVE NOT INVITED YOU TO JOIN THIS AND DO NOT RECOMMEND THIS OR

ENDORSE IT IN ANY WAY. Please be aware and do not sign up for this service unless

YOU are interested.

One Big Beautiful Bill

 Legislative Summary: The “One Big Beautiful Bill” (OBBB) or The Bill– Tax Reform Overview

On July 4, 2025, President Donald J. Trump enacted H.R. 1 of the 119th Congress, formally titled the One Big Beautiful Bill (OBBB). This expansive legislative package builds upon the Tax Cuts and Jobs Act (TCJA) of 2017 and introduces numerous permanent and temporarychanges affecting individual taxpayers, business entities, and international transactions. At 870 pages in length, the OBBB represents a comprehensive and transformative revision of the Internal Revenue Code.

This memorandum provides an executive-level summary of important tax provisions and their potential implications for U.S. taxpayers. It is intended to assist in evaluating planning strategies in light of this significant legislative development but in no way is it a complete analysis.

I. Individual Tax Provisions

Permanent Extensions and Modifications to TCJA Provisions:

 Individual Income Tax Rates: The Bill makes permanent the TCJA’s marginal income tax brackets, maintaining rates between 10% and 37%. Long-term capital gains remain taxed between 10% and 20%, with the 3.8% Net Investment Income Tax continuing to apply.

 Standard Deduction: Codifies increased deduction levels: $15,750 for single filers,$31,500 for joint filers, and $23,625 for heads of household. Indexed annually for inflation.

 Charitable Contributions (Standard Deduction Filers): Allows an additional

deduction of $1,000 (single) or $2,000 (joint) for qualified charitable contributions.

 Personal Exemptions: Permanently repealed.

 Itemized Deductions Adjustments:

• State and Local Tax (SALT) Deduction: Increased to $40,000 with a phased reduction commencing at $500,000 AGI. The original $10,000 cap is reinstated in2030.

• Mortgage Interest Deduction: The $750,000 loan cap under TCJA is retained permanently.

• Charitable Contributions: Deductibility limited to amounts exceeding 0.5% of AGI.

• Miscellaneous Deductions and Casualty Losses: Permanently disallowed except for federally declared disaster losses.

Child-Related Tax Credits:

• Child Tax Credit: Increased to $2,200 per qualifying child, with $1,700 refundable.Requires a valid SSN for each child.

• Child and Dependent Care Credit: Enhanced to 50% of eligible expenses, subject to income-based phaseouts.

• Estate and Gift Tax:

• Increases the exemption amount to $15 million per individual as of 2026, indexed for inflation thereafter.

• Alternative Minimum Tax (AMT):

• Permanently increases the exemption to $500,000 (single) and $1,000,000 (joint), indexed for inflation. Prior issues related to “bracket creep” have been largely resolved.

  ____________________________________________________________

II. Temporary Provisions Applicable to Individuals (2025–2028)

• Overtime Pay Deduction: Deductible up to $12,500 (single) or $25,000 (joint) above standard wages; phased out above $150,000/$300,000 AGI.

• Tip Income Deduction: Deductible up to $25,000 for workers in customary tipping industries; subject to the same phaseout thresholds.

• Auto Loan Interest Deduction: Up to $10,000 for interest on new, U.S.-assembled passenger vehicles. Phaseouts begin at $100,000/$200,000 AGI.

• Senior Deduction: Additional $6,000 deduction for taxpayers aged 65 and over; phased out at $75,000/$150,000 AGI.

III. Investment and Savings Incentives

• Qualified Small Business Stock (QSBS): Enhances capital gain exclusions under §1202. Depending on the holding period (3 to 5 years), exclusions range from 50% to100%.

• Opportunity Zones: Program is made permanent. However, current designations expire in 2026. New zones to be designated thereafter.

• Trump Accounts for Minors: Tax-advantaged savings vehicle for minors, with up to $5,000 in annual contributions and a $1,000 credit for eligible accounts opened between 2025–2028.

• Clean Energy Tax Incentives: Many credits (e.g., EVs, energy-efficient buildings) are phased out by mid-2026.

IV. Business Tax Provisions

• Qualified Business Income Deduction: The 20% pass-through income deduction under §199A is made permanent.

• Business Interest Expense Deduction: EBITDA-based formula restored for determining deductibility of interest, effective for tax years beginning after 2024.

• Bonus Depreciation: 100% bonus depreciation reinstated for property placed in service post-January 19, 2025.

• Qualified Production Property (QPP): Additional elective 100% depreciation through 2030 for eligible U.S. manufacturing and refining property.

• R&D Expenses: Immediate deduction of domestic R&D expenditures allowed beginning in 2025. Small businesses may apply changes retroactively to 2022.

V. Conclusion and Action Items

The Bill represents a substantial revision to federal tax policy with both simplifying and complexifying effects. Many provisions require immediate attention for planning purposes, particularly those with short-term applicability or income-based limitations.

Contact Information

For further discussion regarding how the OBBB may impact your individual or business tax posture, please contact:

Royce A. Belcher, CPA, CEPA Royce@rabcpa.com

Danny Kasic Danny@rabcpa.com

Doris Jessie Doris@rabcpa.com

This memorandum is provided for informational purposes only and does not constitute legal or tax advice. Clients should consult with qualified advisors prior to taking any action based on the contents herein as each situation is unique and requires detailed analysis.

Cut off dates for 2024 Tax filing Extension for Tennessee Residents

Even though there was a filing and payment extension granted by the Internal Revenue Service for residents of the State of Tennessee, we still require your tax information to be in our office in sufficient time to complete the return and not put unnecessary strain on office staff and recourses.

This means that your complete tax information {including the client information worksheet that is required for all clients} is due IN OUR OFFICE before 9/1/2025 for businesses (Partnerships, S-corps, c-corps) and for individuals before 9/15/2025.

****Please note that the 2024 Client Information Worksheet must be completed by ALL clients (new and returning) and returns will not be filed unless this form is completed in its entirety including bank account information. We must have this information including routing and account numbers to be able to complete your return.

All of Tennessee qualifies for disaster tax relief, Various deadlines postponed to November 3, 2025.

Per IR-2025-47 April 14, 2025

The IRS announced today tax relief for individuals and businesses for the entire state of TN affected by

severe storms, straight line winds and flooding that began on April 2, 2025. Per this disaster relief, various deadlines have been postponed until November 3, 2025.

This means, for example, that the Nov. 3, 2025, deadline will now apply to:

• Individual income tax returns and payments normally due on April 15, 2025.

• 2024 contributions to IRAs and health savings accounts for eligible taxpayers.

• Quarterly estimated tax payments normally due on April 15, June 16 and Sept. 15, 2025.

• Quarterly payroll and excise tax returns normally due on April 30, July 31 and Oct. 31, 2025.

• Calendar year corporation and fiduciary returns and payments normally due on April 15, 2025.

• Calendar year tax-exempt organization returns normally due on May 15, 2025.

If you have given us payment: 2024 1040-V, 2025 1040-ES or a payment to go with an extension to be sent with our certified mailing and you wish to pick up any of these payments and hold them until extended deadline please notify our office by 8 a.m. on April 15th otherwise the payment will be taken to the post office for certified mailing.