📅 2026 Update: Key Changes in Accounting and Auditing

Since the original article was published, there have been several important changes affecting accounting and auditing practices, especially regarding tax laws. Updates have been made to standard deductions, tax rates, and deductions for gig economy workers. These changes are crucial for taxpayers and those involved in accounting and auditing.

The content below outlines these updates in detail, while the earlier article continues further down the page, providing foundational information on accounting auditing.

📈 Standard Deduction Changes

The One, Big, Beautiful Bill Act (OBBBA) was enacted on July 4, 2025. It made the temporary standard deduction increases permanent.

  • 📊 For tax years starting after December 31, 2024, the new standard deduction amounts are:
  • $15,750 for single filers and married individuals filing separately.
  • $23,625 for heads of household.
  • $31,500 for married individuals filing jointly and surviving spouses.

🏷️ Tax Rate Permanency

The OBBBA also made the existing tax rate tables permanent.

  • 📅 These rates, effective for taxable years after December 31, 2017, and before January 1, 2026, include seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

💼 Gig Economy Worker Deductions

New benefits for gig economy workers were introduced under the Working Families Tax Cuts law, signed on July 4, 2025.

  • 💰 Eligible workers can now deduct up to $25,000 in qualified tips from their taxable income for the years 2025 through 2028. This change is significant for those in non-traditional employment.

⏳ Processing Times for Forms

The IRS has streamlined the processing times for certain forms.

  • 🗓️ For applications submitted on or before February 24, 2026, 80% of Form 1023-EZ determinations are made within 22 days.
  • 📜 For Form 1023, submitted by January 12, 2026, the processing time is about 191 days.

📌 Summary of Key Points

  • 🔹 Standard deductions have increased and are now permanent.
  • 🔹 Tax rates remain consistent through 2026.
  • 🔹 Gig economy workers can deduct significant amounts in tips.
  • 🔹 IRS processing times for certain forms have improved.

💡 Tips for Managing Your Taxes

Review the details of your specific situation with your attorney. Understanding your tax obligations is crucial for compliance.

📝 Understand Your Standard Deductions

Knowing the updated standard deduction amounts can help you determine your taxable income. The new figures for 2026 can lead to lower taxes owed.

📅 Stay Aware of Tax Rate Changes

Be familiar with the current tax rates to ensure accurate filing. The rates are now permanent until further notice, which can simplify your tax planning.

💸 Utilize Gig Worker Deductions

If you are a gig economy worker, take advantage of the new deduction for qualified tips. This can provide significant tax savings if you meet the eligibility criteria.

⏲️ File Forms Promptly

Make sure to submit any necessary forms within the given deadlines. Timely filing can help avoid penalties and ensure compliance with IRS regulations.

👥 Seek Help from Taxpayer Advocate Service

If you encounter issues with the IRS, consider reaching out to the Taxpayer Advocate Service. They can assist with resolving problems and provide guidance on your rights.

🏆 Top Services Ranked by User Reviews (2026)

This section provides information on services related to tax preparation and audit representation, important for anyone navigating the complexities of accounting and auditing. The order of services reflects Trustpilot data from October 2026, and while star ratings are informative, it is essential to consider the full range of customer experiences.

🥇 1. Expatfile - US Expat Taxes Made Simple

Expatfile has been rated 4.8. The service is known for its focus on tax preparation for expatriates and offers tax consultation services.

However, some reviewers mention that pricing can be higher compared to competitors, which may affect decision-making for potential users.

🥈 2. TaxAudit

TaxAudit holds a score of 4.7. This service is recognized for providing IRS audit representation and tax debt relief assistance.

While many users report positive experiences, some have noted slower response times, which could impact customer satisfaction.

🥉 3. Tax Hive

Tax Hive has earned a score of 4.8. It specializes in tax planning for entrepreneurs and offers various tax strategy services.

However, limited information on customer service responsiveness could be a concern for potential clients seeking timely assistance.

🆓 Free Government Help

Taxpayers can access support from the Taxpayer Advocate Service. This independent organization within the IRS helps resolve issues and recommends changes to prevent future problems.

Additionally, taxpayers can use the IRS Online Account to check their tax records and make payments.

🔎 Factors to Compare When Choosing a Service

  • 📊 Customer ratings and reviews.
  • 💼 Types of services offered.
  • 💰 Pricing and fees.
  • 📞 Customer service responsiveness.

❓ Frequently Asked Questions

❓ What is the new standard deduction amount for 2026?

The standard deduction amounts for 2026 are $15,750 for single filers, $23,625 for heads of household, and $31,500 for married couples filing jointly.

📅 How can I file my taxes on time?

To avoid penalties, ensure that you file your taxes by the IRS deadlines. The IRS generally has three years to assess additional tax after you file.

💸 Are gig economy workers eligible for tax deductions?

Yes, gig economy workers can deduct up to $25,000 in qualified tips on their taxes for the years 2025 through 2028.

⏳ How long does it take to process tax forms?

For certain forms, like Form 1023, the IRS can take up to 191 days to process applications submitted before January 12, 2026.

🏷️ What is the Taxpayer Advocate Service?

The Taxpayer Advocate Service is an independent organization within the IRS that assists taxpayers in resolving problems with the IRS and provides recommendations for improvements.

🔍 What should I do if I have tax issues?

If you encounter issues or disputes with the IRS, consider reaching out to the Taxpayer Advocate Service for assistance. They can help you navigate the process and resolve your concerns.

⚖️ Recent Court Cases in Accounting and Auditing

Recent court rulings have impacted accounting and auditing practices, particularly regarding tax regulations and taxpayer rights.

For more recent rulings, you can browse more rulings on the news page.

End of October 2026 Update





The Facts on Accounting Auditing

Accounting auditing is a crucial element of modern business practices. It is defined as the evaluation of a company's financial statements by an independent auditor for accuracy, completeness, and compliance with accounting standards. In this article, we will discuss the various facts related to accounting auditing.

What is accounting auditing?


As mentioned earlier, accounting auditing is an evaluation of a company's financial statements for their accuracy, completeness, and compliance with accounting standards. The auditor is an independent professional who assesses the financial records and reports of a company to ensure that they provide a true and fair view of the company's financial position.

Why is accounting auditing necessary?


Accounting auditing is necessary for several reasons. Firstly, it ensures that financial statements are accurate and complete, which helps to build trust and confidence in the company's financial information among stakeholders such as investors, lenders, and regulators. Secondly, accounting auditing helps to identify areas of financial weakness or fraud, which can be addressed to improve the company's financial health. Lastly, auditing is a legal requirement for many companies, particularly those that are publicly listed or operate in regulated industries.

Types of accounting audits


There are three main types of accounting audits – external, internal, and government audits.

External audits are conducted by independent auditors who are not employees of the company being audited. These are usually carried out annually and are an essential requirement for publicly traded companies. External audits provide an unbiased evaluation of a company's finances and ensure that it is complying with relevant accounting standards.

Internal audits are carried out by employees of the company being audited. The purpose is to identify areas of financial and operational weakness, and to recommend corrective actions to improve the company's finances and operations.

Government audits are conducted by government agencies to ensure that businesses comply with laws and regulations. For example, the Internal Revenue Service (IRS) conducts tax audits to ensure that companies are paying the correct amount of taxes.

The auditing process


The auditing process typically involves five stages – planning, fieldwork, reporting, follow-up, and consultancy.

During the planning stage, the auditor determines the scope and objectives of the audit, identifies key risk areas, and establishes the audit timetable.

In the fieldwork stage, the auditor conducts tests to verify the accuracy and completeness of financial statements. This usually involves examining documents, interviewing employees, and testing financial transactions.

In the reporting stage, the auditor prepares a report on their findings and presents it to relevant stakeholders.

The follow-up stage involves addressing any deficiencies identified during the audit, and making recommendations for corrective actions.

Lastly, in the consultancy stage, the auditor may provide advice and assistance on financial and accounting matters to help the company improve its financial performance.

Conclusion


Accounting auditing is essential for businesses to maintain their financial credibility and comply with legal requirements. It provides a rigorous evaluation of a company's financial statements, identifies areas of financial weakness or fraud, and recommends corrective actions to improve a company's financial health. There are different types of auditing, and the process typically involves planning, fieldwork, reporting, follow-up, and consultancy. Overall, accounting auditing is a crucial element of modern business practices that ensures transparency, accuracy, and accountability in financial reporting.

Auditing is done to understand a company or an individual’s tax return. Auditing can provide information of a company’s internal management as well as the truthfulness of the company. Auditing allows for a company or an individual to clearly justify their tax returns and state their opinion about the situation.

Often, auditing is done to help determine where money has been spent, if it has been spent, or if it is being hidden. Since a large part of auditing has to deal with money, accounting plays a large role in the auditing process. Financial audits look at financial statements to determine if they are both fair and true.

Originally, most audits were financial based and were always looking towards the accounting department to determine if in fact all monies could be accounted for. Financial audits require a person to complete the audit who will remain fair to the company’s financial statements. Often accountants will conduct the audit and create the audit report.

When a company is undergoing in an cost audit a verification of the costs of the company is taking place. Cost accounting will thoroughly look at the cost of manufacturing, materials, labor, offices supplies, and so on, to determine if the company is using the money that was claimed in the correct areas.

Although there are many different type of auditing, and some focus more on facts and documentation as opposed to money and accounting, auditing can be especially detailed and stressful. Regardless of the reasons a company or an individual is being audited, it may be beneficial to seek help and advice from an individual familiar with the auditing process or has a background in accounting.