The Friday Lowdown ⬇️

If you're new around here, every day or so I share the 4-5 best accounting insights I saw in the past 24 hours.

I scroll. so you don't have to.

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🤯 WTF of the Day

The IRS Admitted Tips Reporting Is Broken

The IRS basically shrugged and said yeah, this is messy.

Because the new tip and overtime deductions were passed halfway through 2025, a lot of employers never set up their payroll systems to track them properly. So for this year only, the IRS is letting workers estimate. If your W-2 does not clearly show qualified tips or overtime, you can use what you reported to your employer or do simple math based on your hours and pay.

Employers will not get penalized for bad reporting in 2025, but workers still need some proof and must be in jobs that normally earn tips.

🍿 What’s poppin in accounting

House Passes Two Bills That Rein In the IRS

The House just passed two bipartisan bills that quietly give taxpayers more protection when dealing with the IRS and Tax Court.

One bill says IRS agents must get written approval from their actual direct boss before hitting someone with penalties. No more shopping around the agency for a yes.

The other modernizes Tax Court rules by allowing deadline extensions during emergencies, giving judges more flexibility, and making the court work more like other federal courts.

Both bills passed with overwhelming support, which is rare these days. Now they head to the Senate.

Source: Thomson Reuters

🕵️‍♂️ The Audit

Are you an outlier or the industry standard? Vote in our new weekly pulse check, and we’ll share the results next issue.

Last poll results:

43% of you are physically here, but mentally in Cabo. I love this data. It’s the most honest thing I’ve seen all week.

New Poll ⬇️

 📊 Weekly Trend Chart

Americans Love to Hate Horror Movies

Everyone says they hate scary movies. Then they keep buying tickets.

Horror is having a huge year. Black Phone 2 opened to 27 million dollars. The latest Conjuring movie is near 500 million worldwide. Horror now makes up over 17 percent of US box office sales which is the highest share ever.

Horror is also the most hated movie genre in America according to surveys. Critics trash it. Audiences don’t care. They keep showing up, screaming, and buying tickets.

#😂 Meme of the Day

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