Information and resources for clients, including wealth management services available through an outside firm and timely tax and legal updates.
We recognize that many clients need coordinated guidance involving legal, tax, retirement, and investment planning. Wealth management services are provided through an outside financial services firm, Kuttin Wealth Management, and are not offered directly by Jay L. Dollinger & Associates, P.C.
Learn More About Kuttin Wealth ManagementJuly 11, 2026
July 2026
The IRS has announced a new program that will automatically provide relief from certain penalties to taxpayers who have a history of filing their returns and paying their taxes on time.
The new program, called the Automatic Exemption from Penalty, will gradually replace the IRS’s existing First Time Abate program.
Generally, a taxpayer may qualify if the taxpayer timely filed the applicable return and paid any tax due during the prior three years. For quarterly returns, the IRS will generally review the prior 12 consecutive quarters.
For eligible taxpayers, the IRS may automatically prevent the assessment of penalties for:
Taxpayers will not ordinarily have to submit a separate request. If relief is granted, the IRS is expected to issue a notice confirming that the penalty relief was applied.
The relief does not eliminate the underlying tax or any interest due. Taxpayers must still pay:
Certain returns are generally excluded, including information returns and returns filed for occasional transactions, such as federal estate tax returns and gift tax returns.
The IRS is beginning the transition during the summer of 2026. Some taxpayers may still receive penalty notices during the transition. A taxpayer who appears to qualify should not assume that the notice is correct or ignore it. The taxpayer may still need to contact the IRS and request relief.
Taxpayers who do not qualify for automatic relief may still be able to obtain penalty abatement by establishing reasonable cause.
Taxpayers who make quarterly estimated tax payments should remember that the next federal and New York estimated tax payment is generally due September 15, 2026.
Taxpayers who obtained an automatic extension to file their 2025 individual income tax returns generally must file by October 15, 2026. An extension to file does not extend the deadline for paying tax. Interest and, in some cases, penalties continue to accrue on unpaid balances.
Beginning in 2026, New York is simplifying the transition from Basic STAR to Enhanced STAR. When at least one resident owner reaches age 65 and the household otherwise qualifies, New York generally will make the upgrade automatically.
Homeowners should nevertheless review their STAR information through the New York State Homeowner Benefit Portal to confirm that ownership, residency and income information is current.
Please contact our office before responding to an IRS or New York State tax notice or if you would like us to review your estimated tax payments.
This update is intended for general informational purposes only. Tax rules depend upon each taxpayer’s individual circumstances and are subject to change.
Julyy 11, 2026
July 2026
New York has significantly expanded its principal consumer-protection law. The new FAIR Business Practices Act gives the New York Attorney General broader authority to challenge unfair, deceptive and abusive practices by businesses and service providers.
Previously, New York General Business Law § 349 primarily prohibited deceptive business practices. The amended law now expressly prohibits conduct that is unfair or abusive, even when the conduct may not involve a specific false statement.
A practice may be considered unfair when it causes, or is likely to cause, substantial harm that:
A customer could not reasonably avoid; and
Is not outweighed by benefits to consumers or competition.
Examples may include hidden charges, unfair billing practices, unauthorized products or services and contract provisions that impose substantial costs without a legitimate justification.
A practice may be considered abusive when it materially interferes with a person’s ability to understand an important term or condition of a product or service.
The law may also apply when a business takes unreasonable advantage of:
A customer’s lack of understanding of the risks, costs or conditions of a transaction;
A customer’s inability to protect his or her own interests; or
A customer’s reasonable reliance upon the business to act in the customer’s interests.
The expanded law may apply to a wide range of transactions, including:
Automobile sales and financing;
Mortgage and student-loan servicing;
Debt collection;
Health care and health insurance billing;
Banking and consumer lending;
Subscription services and automatic renewals;
Undisclosed or misleading fees; and
Transactions involving seniors or individuals with limited English proficiency.
For example, the Attorney General has identified potentially problematic practices such as charging for automobile warranties that were not purchased, steering borrowers into unnecessarily expensive loans, collecting protected Social Security benefits and presenting inaccurate lists of participating health care providers.
The law is not limited to transactions involving individual consumers. The Attorney General’s expanded enforcement authority may also protect small businesses and nonprofit organizations that are subjected to unfair, deceptive or abusive commercial practices.
The Attorney General may seek an injunction to stop unlawful conduct and may obtain restitution of money or property acquired through the prohibited practice.
An individual who is injured by a deceptive practice may continue to bring a private lawsuit under General Business Law § 349. Available remedies may include actual damages, limited enhanced damages and, in appropriate cases, reasonable attorney’s fees.
The expanded statutory language does not necessarily give an individual a private lawsuit based solely upon conduct alleged to be unfair or abusive. Those portions of the law principally expand the Attorney General’s enforcement authority.
Consumers should carefully review contracts, invoices, financing documents and automatic-renewal terms before agreeing to a transaction. Copies of advertisements, emails, text messages, receipts and payment records should be retained.
Businesses should review their contracts, disclosures, billing practices and customer-service procedures. Important prices and conditions should be stated clearly, and customers should not be charged for products or services they did not knowingly authorize.
Anyone who believes that a business has imposed unauthorized charges, concealed important terms or taken unfair advantage of a customer should preserve all relevant records and seek legal advice promptly.
This update is provided for general informational purposes only and does not constitute legal advice. The application of New York law depends upon the particular facts and circumstances of each matter.
July 11, 2026
Important Tax Deadline
The third installment of federal and New York estimated income tax for the 2026 tax year is generally due on Tuesday, September 15, 2026.
Estimated tax payments may be required for individuals who receive income that is not subject to sufficient withholding, including:
Self-employed individuals and independent contractors;
Partners and S corporation shareholders;
Landlords;
Investors receiving substantial interest, dividends or capital gains;
Retirees who do not have enough tax withheld from retirement distributions; and
Employees whose wage withholding may not be sufficient to cover their total tax liability.
Individuals generally may be required to make federal estimated tax payments when they expect to owe at least $1,000 after subtracting withholding and available tax credits.
Federal estimated tax payments may be made electronically through an IRS online account, IRS Direct Pay or the Electronic Federal Tax Payment System.
New York estimated tax payments may be made through the taxpayer’s New York State Online Services account or with Form IT-2105.
Taxpayers should separately confirm whether estimated payments are also required for New York City or Yonkers income taxes.
A taxpayer may be subject to an underpayment penalty even when the entire balance is paid with the income tax return.
Depending upon the taxpayer’s circumstances, penalties may generally be avoided by paying sufficient tax during the year through withholding and timely estimated payments. The required payment may be based upon the taxpayer’s current-year tax liability or prior-year tax liability.
Taxpayers whose income varies significantly during the year may benefit from calculating their payments under the annualized income installment method rather than making four equal payments.
Estimated tax payments should be reviewed when there has been a significant change in:
Business or self-employment income;
Wages or withholding;
Investment gains;
Retirement distributions;
Rental income;
Itemized deductions;
Tax credits; or
Filing status or household circumstances.
Please provide our office with updated income, withholding and payment information sufficiently in advance of the deadline if you would like us to calculate or revise your September estimated tax payments.
This notice is provided for general informational purposes only. Estimated tax requirements depend upon each taxpayer’s individual circumstances.