📅 2026 Update: Key Changes in U.S. Tax Laws

Since the original article was written, several important changes have occurred in U.S. tax laws that affect both individual taxpayers and those in the gig economy. These updates include increases in standard deductions and new deductions for gig workers. The information presented here is current as of October 2026 and is crucial for understanding the evolving tax landscape.

💰 Standard Deduction Increases

The One, Big, Beautiful Bill Act (OBBBA), passed on July 4, 2025, made significant changes to the standard deduction amounts. Starting with tax years after December 31, 2024, the new standard deductions are:

  • - $15,750 for single filers and married individuals filing separately
  • - $23,625 for heads of household
  • - $31,500 for married couples filing jointly and surviving spouses

📊 Tax Rate Permanency

The OBBBA also ensured that the existing seven tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%) will remain in effect for individual taxpayers. This change stabilizes the tax rate structure that has been in place since 2017.

🚀 Gig Economy Worker Deductions

A new deduction for gig economy workers was 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 tax years 2025 through 2028. This aims to provide greater financial relief for those in the gig economy.

⏳ Processing Times for Forms

The IRS has updated its processing times for various forms. For example:

  • Form 1023-EZ applications submitted by February 24, 2026, will have 80% processed within 22 days.
  • Form 1023 will see 80% processed within 191 days for applications submitted by January 12, 2026.

📌 Summary of Key Points

  • - Standard deductions have increased significantly since 2024.
  • - Tax rates have been made permanent, providing stability.
  • - New deductions for gig economy workers can benefit many.
  • - The IRS has improved processing times for key forms.

💡 Tips for Navigating U.S. Taxes

Review your specific tax situation with an attorney to ensure you understand your obligations and opportunities.

📅 Know Your Deductions

Stay informed about the increased standard deduction amounts. These can significantly lower your taxable income and reduce your tax bill.

📈 Track Your Business Expenses

If you're a gig economy worker, keep detailed records of your qualified tips. You can deduct up to $25,000, which can greatly affect your taxable income.

⏰ File on Time

Be aware of deadlines. The IRS generally has three years from the filing date to assess additional tax. Staying on schedule can prevent future complications.

🏢 Use IRS Online Services

Consider accessing your IRS online account. This allows you to view your tax records, make payments, and check the status of your return, making tax management easier.

🆓 Explore Free Assistance

If you're having trouble with your taxes, the Taxpayer Advocate Service (TAS) offers help for resolving issues with the IRS. They provide independent support and recommend changes to improve taxpayer experiences.

🏆 Top Tax Services Ranked by User Reviews (2026)

In this section, we look at tax services that can assist with various tax-related needs, such as audits, filing, and consultations. The rankings are based on Trustpilot data as of October 2026. Remember that star ratings are not the only measure of quality, as unhappy clients often leave more reviews.

🥇 1. Expatfile - US Expat Taxes Made Simple

Expatfile has been rated 4.8. This service is known for its tax preparation and consultation for expatriates. Clients appreciate its focus on the unique challenges faced by U.S. citizens living abroad.

However, some users note that it may be priced higher compared to competitors.

🥈 2. TaxAudit

TaxAudit holds a score of 4.7. This company specializes in IRS audit representation and tax debt relief assistance. Reviewers mention that they are knowledgeable and helpful during audits, but some customers report slow response times, which can be frustrating.

🥉 3. Tax Hive

Tax Hive averages 4.8. It is known for tax planning services aimed at entrepreneurs. Clients find their tax strategy services beneficial for growing businesses.

However, there is limited information on how responsive their customer service is, which could be a concern for some users.

🆓 Free Tax Assistance Options

The IRS offers free resources, including the Taxpayer Advocate Service. This independent organization helps taxpayers resolve issues with the IRS and advocates for improvements in the system. Utilizing these services can enhance understanding and compliance with tax obligations.

🔎 What to Compare When Choosing a Tax Service

  • - ⭐ Service ratings and reviews from users
  • - 💵 Pricing structure and potential additional fees
  • - 📞 Responsiveness and customer support quality
  • - 🛠️ Range of services offered, including audit support

❓ Frequently Asked Questions

❓ What is the Assessment Statute Expiration Date (ASED)?

The ASED is generally three years from the date a tax return is filed. This is the period during which the IRS can assess additional tax for that year.

💼 How does the new gig economy deduction work?

Eligible gig economy workers can now deduct up to $25,000 in qualified tips from their taxable income for tax years 2025 through 2028, thanks to new legislation.

🏢 What assistance can I get from the Taxpayer Advocate Service?

The Taxpayer Advocate Service is an independent organization within the IRS that helps resolve problems taxpayers face with the IRS. They also recommend changes to improve the tax system.

⏰ What are the current processing times for IRS forms?

As of now, Form 1023-EZ applications submitted by February 24, 2026, will have 80% processed within 22 days, while Form 1023 applications will be processed within 191 days.

🔍 How can I access my IRS online account?

You can access your IRS online account to view tax records, make payments, and check the status of your tax return. This can streamline your tax management process.

🗓️ What are the rights of taxpayers during an audit?

Taxpayers have the right to finality when working with the IRS, including knowing when an audit is complete. This helps ensure clarity and closure in the process.

⚖️ Recent Court Cases Impacting Tax Laws

Recent court rulings have influenced various aspects of tax law, affecting how taxpayers approach their obligations. These decisions may impact individual rights, deductions, and compliance.

For more information, feel free to browse more rulings on the news page.

End of October 2026 Update





Internal Audit Overview: A Comprehensive Guide


Internal audit is an essential process in any organization that aims to ensure effective operations and financial compliance. Internal audit focuses on reviewing and testing internal controls, risk management, and compliance with regulatory policies and procedures. The internal audit function provides independent assurance to the Board of Directors that the organization's activities are conducted in a responsible and ethical manner, and the internal controls are in place to mitigate financial, operational, and reputational risks.

In this article, we will provide an overview of internal audit by discussing its objectives, key components, audit scope, and process. We will also discuss various types of audits along with the benefits, challenges, and regulations governing internal audit.

Objectives of Internal Audit


The primary objective of internal audit is to provide independent and objective assurance to the organization's stakeholders on the adequacy and effectiveness of its internal controls. Additional objectives of internal audit include:

1. Review and test compliance with laws, regulations, and policies.

2. Evaluate the effectiveness of the organization's risk management processes.

3. Assess the overall effectiveness and efficiency of the organization's operations.

4. Ensure the accuracy, completeness, and reliability of financial and operational reports.

Components of Internal Audit


Internal audit has three main components:

1. Risk Assessment: The first component of internal audit is assessing the organization’s risk. This process involves identifying potential risks, evaluating their impact, and determining how the risks will be mitigated. Identifying risks is important because it will guide the internal auditors on what processes and controls to review during the audit.

2. Control Assessment: The second component of internal audit is to review and test the adequacy and effectiveness of the internal controls established by the organization to mitigate risks. This involves assessing the design and operating effectiveness of controls that impact the organization's operations, financial reporting, and compliance functions.

3. Audit Reporting: The third component of internal audit is the communication of audit results in a written report to management. The report includes the audit's scope, objectives, positive findings, and recommendations for improvements, if any. This report is critical in helping organizations improve internal controls and achieve compliance with regulatory policies and procedures.

Audit Scope


The audit scope refers to the extent and depth of the audit. The audit scope can be defined by the organization, regulatory policies, or the internal audit team. The scope of the audit is based on the organization's needs, such as regulatory compliance, financial reporting, operational effectiveness, or risk management.

Types of Audits


There are different types of audits that internal auditors can carry out. These include financial audits, operational audits, compliance audits, and IT audits.

Financial Audits: Financial audits focus on reviewing an organization's financial transactions and records, including the bank statements, income statements, balance sheets, and cash flow statements. The aim is to ensure that the financial records are accurate, reliable, and complete.

Operational Audits: Operational audits focus on evaluating an organization's processes and operations. These audits are essential in identifying issues that may impact the organization's productivity, efficiency, and effectiveness.

Compliance Audits: Compliance audits focus on reviewing the organization's adherence to regulatory policies and procedures. These audits are vital in ensuring that the organization complies with local, state, and federal laws concerning employee safety, data privacy, and information security, among others.

IT Audits: IT audits focus on reviewing the organization's IT systems and processes. These audits are essential in ensuring the security and integrity of an organization's IT infrastructure.

Benefits of Internal Audit


There are many benefits of internal audit, including:

1. Risk Management: Internal audit plays a critical role in the organization's risk management efforts by identifying and mitigating risks that may impact the organization's performance.

2. Improved Efficiency: Internal audit identifies weaknesses in the organization's processes, procedures, and controls, providing recommendations to improve the organization's operations.

3. Financial Integrity: Internal audit detects and prevents fraud and financial mismanagement, ensuring the accuracy and reliability of the organization's financial reports.

4. Compliance: Internal audit ensures the organization complies with regulatory policies and procedures, avoiding legal and financial penalties that may result from violations.

Challenges of Internal Audit


Internal audit faces several challenges, including:

1. Staffing: Finding and retaining qualified personnel capable of conducting internal audits can be challenging.

2. Budget Constraints: Internal audit requires resources, such as staff, technology, and training, which can be costly.

3. Resistance to Change: Implementing changes recommended by internal audit can be challenging, especially when the changes involve altering established work procedures or policies.

4. Audit Fatigue: Frequent audits and reviews can be exhaustive and counterproductive, causing employees to view internal audit negatively.

Regulatory Framework Governing Internal Audit


Internal audit is governed by various regulatory frameworks, including the Sarbanes-Oxley Act of 2002 (SOX), the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and the International Professional Practices Framework (IPPF) of the Institute of Internal Auditors (IIA).

SOX: SOX is a United States federal law that mandates that all publicly traded companies maintain an effective system of internal controls and financial reporting. SOX applies to audit firms and public companies and requires them to establish an internal audit function that is independent of the organization's management.

COSO: COSO is a private sector initiative that provides a framework for evaluating internal controls to ensure the reliability of an organization's financial reporting. COSO's framework consists of five components: control environment, risk assessment, control activities, information, and communication and monitoring.

IPPF: IPPF is a framework developed by the IIA to guide the development and implementation of internal audit activities. The IPPF provides a comprehensive set of guidance and standards for conducting internal audits, including a code of ethics.

In conclusion, internal audit plays a vital role in ensuring that an organization is operating ethically, effectively, and efficiently. Internal audit's objectives, components, audit scope, and process, types of audits, benefits, challenges, and regulations governing internal audit have been discussed. It is vital that organizations embrace a strong internal audit function to mitigate operational, financial, and reputational risks.

An internal audit job analyzes business practices to ensure that practices, processes, and procedures are being met to full capacity. Internal audit work strives to highlight any issues and offers suggestions to the head of management to better these issues. Internal audit work measures compliance with the businesses policies and procedures.

To perform the job effectively, an internal audit work must work independently from the business that they are working with. Internal audit work focuses on improving the control of the business that the auditor is working with. To do so, an internal auditor may look at the following: the effectiveness and efficiency of operations, the reliability of financial reporting, and the compliance with laws.

Internal audit work also sees the management as the one who is responsible for all control over the business. Therefore should there be any notions or acts to be improved it would be the managements sole responsibility to take action.

Internal audit jobs work with risk management processes to set objectives as well as identify those that cannot be met and analyze why and how they can fix them. Internal audit work also is affected by corporate governance.

When being audited, the auditor is automatically part of the corporate governance, meaning whatever the internal auditor suggests or recommends for the company to do, holds just as much importance and relevance as the founder or CEO of the company.