April is a key month for staying organized as tax time reaches its busiest stretch, while still keeping your broader financial plan moving forward. Our team is here to help you stay focused on the right priorities, reduce risk, and keep steady progress throughout the year.

This month we’ll cover how to protect your business from employee bookkeeping fraud and how to navigate new tax laws while maximizing the impact of your gifts—clear takeaways you can put to work immediately.

We are days away from the filing deadline! As April 15th approaches, we want to ensure that you are well-prepared and aware of key considerations to avoid penalties and maximise your financial outcomes.  Our team is here to assist with tax preparation, extension filings, payment planning, and strategic tax advice.  If you have experienced major life changes - such as starting a business, purchasing property, or changes in income - additional planning may be beneficial.  

Our team took a brief moment to recharge and celebrate St. Patrick's Day together, enjoying some delicious homemade treats and beverages.  It was a welcome pause following the March filing deadline!  With that milestone behind us, we quickly shifted our focus back to what's ahead - preparing for the April 15 tax deadline.  As always, our team remains committed to keeping everything on track and ensuring our clients are well-supported during this critical time.

Don't forget we do PAYROLL: Payroll with Davidson Fox

And remember, our services extend to your colleagues, family, and friends. Should they require assistance, we're just a phone call away. We remain committed to identifying every opportunity to ensure our client's prosperity. Your kind reviews and referrals are invaluable to us.

• Filing due date
• Balance due payments
• Contributions to a Roth or traditional IRA
• Individual refund claims for tax year 2022
• Filing extension
• Foreign Bank and Financial Accounts Report (FBAR)
• Estimated tax payments for the first quarter of 2026

Just a reminder to those who have not yet filed their 2025 federal tax return that the filing due date, April 15, 2026, is the due date to either file your return and pay any taxes owed, or file for the automatic extension and pay the tax you estimate to be due for 2025.

In addition, the April 15, 2026, deadline also applies to the following:

• Tax year 2025 balance-due payments – Taxpayers that are filing extensions are cautioned that the filing extension is an extension to file, NOT an extension to pay a balance due. Late payment penalties and interest will be assessed on any balance due, even for returns on extension. Taxpayers anticipating a balance due will need to estimate this amount and include their payment with the extension request.
  
  
• Tax year 2025 contributions to a Roth or traditional IRA – April 15 is the last day contributions for 2025 can be made to either a Roth or traditional IRA, even if an extension is filed.
  
  
• Individual refund claims for tax year 2022 – The regular three-year statute of limitations expires on April 15 for the 2022 tax return. Thus, no refund will be granted for a 2022 original or amended return that is filed after April 15, 2026.
  
  
• Filing Extension - A tax return extension provides taxpayers with additional time to file their federal income tax return, shifting the due date from April 15 to October 15. To secure this extension, Form 4868, the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, must be filed by the original April 15 deadline. Taxpayers are required to estimate and pay any expected balance due by April 15 to avoid interest and penalties. Failure to pay the full estimated amount can result in late payment penalties, even if an extension has been granted for the filing itself. Therefore, accurate estimation and timely payment are essential to ensure the extension is valid and to minimize potential additional charges.
  
  
• Foreign Bank and Financial Accounts Report (FBAR) – For the tax year 2025, the FBAR is due on April 15, 2026, aligning with the standard federal income tax filing deadline. The FBAR is required for taxpayers with $10,000 or more in a foreign account at any time during 2025. If you fail to meet the initial April 15 deadline, an automatic extension is granted, extending the deadline to October 15 of 2026. It's important to ensure that the FBAR is filed by this extended deadline to avoid draconian penalties.
  
  
• Individual estimated tax payments for the first quarter of 2026 – The deadline for the first installment of the 2026 estimated tax payments is also April 15, 2026. In many cases the amount of estimated tax payments required for 2026 is predicated on the tax determined for 2025. So, although the filing deadline of your individual return for 2025 may be October 15 if you filed for an extension, it may be necessary to estimate your 2026 tax liability prior to April 15 to determine your first 2026 quarterly estimated payment due April 15.  

Missing information – If this office is holding up the completion of your returns because of missing information, please forward that information as quickly as possible to meet the deadlines.  Keep in mind that the ending days of tax season are very hectic, and your returns may not be completed if you wait until the last minute.  If it is apparent that the information will not be available in time for the April 15 deadline, then let the office know right away so that an extension request, and 2026 estimated tax vouchers if needed, may be prepared.

Is your return completed but you are unable to pay your tax liability? Please call to discuss your options.

If your returns have not yet been completed, please call right away so that we can schedule an appointment and/or file an extension if necessary.

But payroll tax debt?

That’s different.

If your business is behind on payroll taxes, you’re in one of the most aggressively enforced areas of IRS collections. And the longer it goes unresolved, the more personal it can become.

Let’s break down why — and what to do before it escalates.

When your business owes income tax, that’s your company’s liability.

When you owe payroll taxes, part of that money was never yours to begin with.

Every time you run payroll, you withhold:

• Federal income tax
  
  
• Employee Social Security tax
  
  
• Employee Medicare tax

These withheld amounts are legally considered “trust fund taxes.” Under federal law, they are held in trust for the United States until deposited with the IRS.

That legal distinction changes everything.

The IRS views unpaid trust fund taxes as money collected from employees that was never turned over to the government.

That’s why enforcement is faster.
That’s why penalties escalate quickly.
And that’s why personal liability becomes a possibility.

Trust fund taxes include:

• Federal income tax withheld from wages
  
  
• The employee portion of Social Security
  
  
• The employee portion of Medicare

They do not include the employer’s matching share, but employers are still responsible for paying that portion as well.

Payroll tax deposits must be made on a strict schedule — typically monthly or semiweekly, depending on the employer’s prior tax liability. These deposits are reported quarterly on Form 941 (or annually on Form 944 for certain small employers).

When deposits are late:

• Failure-to-deposit penalties range from 2% to 15% depending on how late the payment is.
  
  
• Interest accrues daily.
  
  
• IRS systems flag the account quickly.

This is not a “catch up next quarter” situation. Delays compound.

If trust fund taxes remain unpaid, the IRS may assess the Trust Fund Recovery Penalty (TFRP) under Internal Revenue Code § 6672.

The penalty equals:

100% of the unpaid trust fund portion (the employee-withheld taxes).

And it can be assessed personally.

That means:

• An LLC or corporation does not automatically shield you.
  
  
• The IRS can pursue responsible individuals directly.
  
  
• Personal bank accounts and assets may be at risk if the matter is not resolved.

Trust fund penalties are also generally not dischargeable in bankruptcy.

This is why payroll tax debt is often the most dangerous tax problem a business can face.

The IRS does not look only at job titles. It looks at authority and control.

A “responsible person” is anyone who had the authority to:

• Decide which bills were paid
  
  
• Sign checks
  
  
• Control payroll or tax deposits
  
  
• Direct financial decisions

That can include:

• Owners
  
  
• Corporate officers
  
  
• Managing members
  
  
• CFOs or controllers
  
  
• Payroll managers
  
  
• Others with significant financial authority

More than one person can be assessed. Liability is joint and several, meaning the IRS can pursue each responsible person for the full trust fund amount.

The legal standard includes willfulness — generally meaning a responsible person knew (or should have known) payroll taxes were due and chose to pay other creditors instead.

If someone is aware that taxes are unpaid and other bills continue to be paid, the IRS may view that as willful failure to remit.

Payroll tax cases typically move faster than other IRS matters.

A common progression looks like this:

1. Missed deposit
   
   
2. Automated IRS notices
   
   
3. Assignment to a Revenue Officer
   
   
4. Federal tax lien filing
   
   
5. Trust Fund Recovery investigation (Form 4180 interviews)
   
   
6. Proposed assessment via Letter 1153

After Letter 1153 is issued, you generally have 60 days to file a formal appeal before the penalty is assessed. If the Letter 1153 is addressed to you outside the United States, the window increases to 75 days.

Once assessed, collection actions can move forward against responsible individuals.

Timing matters. Early intervention creates options. Delay narrows them.

If any of these apply, it’s time to act:

• Using withheld payroll taxes to manage cash flow
  
  
• Skipping payroll tax deposits
  
  
• Filing Form 941 but not making required deposits
  
  
• Receiving IRS CP notices about unpaid employment taxes
  
  
• Avoiding certified IRS correspondence

Payroll tax problems rarely stay contained. They grow.

Even serious payroll tax situations can often be addressed strategically.

Potential options may include:

• Installment agreements
  
  
• In-business trust fund payment arrangements
  
  
• Appeals of proposed TFRP assessments
  
  
• Partial payment agreements
  
  
• Offer in Compromise (in limited qualifying circumstances)
  
  
• Penalty abatement when facts support it

But once personal liability is assessed, flexibility decreases.

The earlier the strategy begins, the more leverage you typically have.

Most business owners don’t fall behind intentionally.

It starts with:

A tight month.
A temporary cash flow squeeze.
A belief that next quarter will fix it.

But payroll tax debt doesn’t behave like vendor debt or even income tax debt.

It escalates.
It personalizes.
And it does not disappear.

If you’re behind on payroll tax deposits — or even unsure where your business stands — contact our office before the situation escalates.

The earlier we get involved:

• The more options we can preserve
  
  
• The more control you retain
  
  
• The greater the opportunity to protect both your business and personal assets

Silence increases risk.
Action restores strategy.

This article is for informational purposes only and does not constitute legal advice. Every situation is unique. Consult a qualified tax professional or attorney regarding your specific circumstances.

• Charitable Giving for Non-Itemizers
• New AGI Floor for Itemizers
• Cash Contribution AGI Limitation Made Permanent
• Phaseout of Itemized Deductions
• Strategic Charitable Giving in 2026
• Charitable Giving Documentation: What You Need to Know in 2026
  o   Documentation for Cash Contributions
  o   Documentation for Non-Cash Contributions
• Common Pitfalls to Avoid

As the landscape of charitable giving continues to evolve, 2026 ushers in significant changes in the tax treatment of donations. For both itemizers and non-itemizers, understanding the new rules is crucial to maximizing the benefits of charitable contributions and ensuring compliance with tax obligations. Among the key changes are new guidelines for non-itemizers wishing to claim deductions for cash donations, an adjusted gross income (AGI) floor for itemizers, and a phaseout of itemized deductions for high-income taxpayers. This article aims to provide an in-depth look at these developments and offer guidance for donors navigating the 2026 charitable giving landscape.

New Charitable Giving for Non-Itemizers: For most past years, taxpayers claiming the standard deduction have been unable to get a tax benefit for the charitable donations they made, as federal tax law typically has reserved this benefit for those who itemize deductions on their tax returns. However, changes in 2026 carve out a notable exception for cash donations.

Under the new provisions, non-itemizers can now claim a deduction for cash contributions, though it requires meeting a set of documentation standards. Non-itemizers must maintain bank records or written communication from the eligible charitable organizations to substantiate their donations. This requirement ensures that only legitimate contributions are deducted and underscores the importance of meticulous record-keeping. Examples of qualifying charities include churches, nonprofit educational and medical institutions, and public charities. Contributions to donor advised funds or supporting organizations do not qualify

One critical distinction for non-itemizers is the cash donation limitation. Unlike itemizers, who can potentially deduct a substantial percentage of their income, non-itemizers face more restrictive caps on their deductible contributions. For joint filers, the deduction limit is $2,000, and for other individuals the cap is $1,000. Donors should be aware that these limitations might influence their giving strategies.

New AGI Floor for Itemizers: For itemizers, the tax landscape is changing with the introduction of an AGI floor for charitable contributions. Starting in 2026, the One Big Beautiful Bill Act (OBBBA) imposes a 0.5% AGI floor for itemized deductions on charitable contributions. This new threshold means that only contributions exceeding 0.5% of a taxpayer's AGI will be deductible. The rationale behind this change is to encourage substantial giving and ensure that deductions primarily benefit those with significant charitable activities.

Example: Consider a taxpayer with an AGI of $200,000. Under the new rule, only the amount contributed exceeding $1,000 (0.5% of AGI) will qualify for a deduction. This change emphasizes the need for strategic planning, as smaller donations might no longer provide the same tax incentives, potentially impacting the charitable strategies of many itemizing taxpayers.

The effect can be more profound for higher income taxpayers. For instance, a taxpayer with an AGI of $500,000, will be unable to get any tax benefit from the first $2,500 of charitable contributions.

Cash Contribution AGI Limitation Made Permanent: In 2026, the 60% of AGI limitation for cash contributions was made permanent, offering a reliable option for taxpayers looking to maximize their charitable deductions. This means that donors can deduct cash contributions up to 60% of their AGI, which can be particularly advantageous for those inclined to give in cash rather than assets.

By comparison, other types of contributions, such as non-cash gifts, have different AGI limitations. Non-cash contributions face a 50% AGI cap, while contributions to most other organizations, like fraternal societies, are limited to 30% of AGI. When donating capital gain property, the limit is even tighter at 20% of AGI for gifts to qualified organizations. These variations highlight the flexibility cash donations offer to those looking to benefit maximally from their philanthropic efforts.

Phaseout of Itemized Deductions: Another significant change in 2026 involves the reintroduction of a phaseout for itemized deductions, reminiscent of the former Pease limitation. Targeted at high-income taxpayers, this phaseout reduces the allowable amount of itemized deductions, including charitable contributions, once income exceeds a certain threshold. The 2026 phaseout threshold for joint filers is roughly $769,000 (one-half that if married and filing separately), and $641,000 for others.

Example: A taxpayer with an income significantly above the threshold will see a reduction in the total itemized deductions they can claim. This phaseout operates as a percentage of the excess income, capping the amount that high earners can deduct from their total taxable income. It applies not only to charitable giving but also to other itemized deductions, creating a more complex landscape for planning and executing tax-efficient charitable strategies.

This phaseout could have a profound impact on how high-income individuals approach their charitable giving. For example, a philanthropist accustomed to donating substantial amounts may have to adjust their timing or contribution method to align with the phaseout rules, possibly increasing their focus on maximizing deductions through cash or other high-limit contributions.

Strategic Charitable Giving in 2026: As donors look to navigate these changes, strategic planning becomes essential. Here are some tips for maximizing charitable impact while ensuring tax efficiency:

1. Diversify Donation Methods: Consider mixing cash and non-cash contributions to take full advantage of varying AGI limitations and potentially broaden the scope of tax benefits.
   
   
2. Document Meticulously: Ensure comprehensive documentation for cash donations, even for non-itemizers, to safeguard deductions and avoid possible IRS challenges.
   
   
3. Plan High-Impact Donations: For substantial donations, focus on giving strategies that exceed the AGI floor, enabling full deduction potential while supporting causes aligned with personal and philanthropic values.
   
   
4. Consider Multi-Year Planning: For those affected by the phaseout, spread out contributions over several years or make use of donor-advised funds to manage deductions more effectively and mitigate the impact of the phaseout.
   
   
5. Engage with Financial Advisors: Collaborate with tax professionals to explore opportunities and develop a tailored approach that aligns with the latest laws and maximizes benefits.

Charitable Giving Documentation – What You Need to Know in 2026: In the ever-evolving landscape of tax regulations, it's reassuring to note that there has been no change in the documentation requirements for proving charitable giving under OBBBA. However, understanding and adhering to these requirements remains crucial for taxpayers wishing to claim deductions on their cash and non-cash charitable contributions. This article provides a comprehensive guide to the documentation you need to ensure your charitable giving is not only effective but also compliant with IRS standards.

1. Contributions Under $250: For cash contributions under $250, taxpayers must keep a reliable bank record such as a canceled check, bank statement, or credit card statement. Alternatively, a written communication from the charitable organization stating the amount and date of the contribution is also acceptable. This documentation must clearly identify the recipient organization to validate the donation.
   
   
2. Contributions of $250 or More: For cash donations of $250 or more, a contemporaneous written acknowledgment from the receiving charitable organization is essential. This written acknowledgment must include:
   
   o The amount of cash contributed.
   
   o A statement as to whether the organization provided any goods or services in exchange for the donation, and if so, a description and estimate of the value of those goods or services.
   
   o If only intangible religious benefits (such as admission to a worship service) were received, the acknowledgment must indicate this without needing to estimate their value.
   
   
3. Payroll Deductions: For contributions made via payroll deductions, employees must retain a pay stub, Form W-2, or other documents furnished by the employer indicating the amount donated. Additionally, a pledge card or other document from the recipient organization is needed, detailing the intended allocation. 

1. Contributions Less Than $250: A receipt from the charitable organization is required for non-cash contributions valued at less than $250. The receipt must include:
   
   o The organization's name.
   
   o The date and location of the contribution.
   
   o A reasonably detailed description of the donated property.
   
   
2. Contributions Between $250 and $500: Non-cash donations in this range necessitate an acknowledgment from the organization with the following elements:
   
   o The name and address of the charitable organization.
   
   o A description of the donated property
   
   o An affirmation from the charity regarding any goods or services provided in return, including their value or the nature of any intangible religious benefits received.
   
   
3. Contributions Over $500 and up to $5,000: Taxpayers must provide the same acknowledgement as for donations between $250 and $500. Additionally, they should document:
   
   o How the taxpayer acquired the property (purchase, gift, inheritance, etc.).
   
   o The approximate acquisition date.
   
   o The property’s cost basis, especially if available.
   
   
4. Contributions Over $5,000: For these substantial non-cash contributions, a qualified appraisal is mandatory unless the property is publicly traded securities. The appraisal must be produced by a qualified appraiser who meets IRS regulations, and the taxpayer must complete Form 8283, detailing the contribution and attaching it to their tax return.

Common Pitfalls to Avoid: While assembling documentation for charitable contributions, taxpayers should avoid common errors that could lead to denied deductions:

• Incomplete Acknowledgments: Ensure every statement includes all the required elements, particularly for donations of $250 or more. Missing information such as the "no goods or services were provided" statement can invalidate a deduction.
  
  
• Delayed Acknowledgments: Obtain documentation contemporaneously, ideally before filing your tax return or the due date, including any extensions.
  
  
• Overstating Fair Market Value Estimates: For non-cash donations, especially in-kind goods or used items, accurately determine and document their fair market value.

Conclusion: Charitable giving in 2026 presents new challenges and opportunities for taxpayers. Whether dealing with the fresh AGI floor, the permanency of the 60% cash contribution limit, or the re-emergence of itemized deduction phaseouts, donors need to understand and adapt to these changes.

By staying informed and engaging in strategic planning, taxpayers can continue to make impactful charitable contributions while optimizing their tax benefits.

Contact this office with questions.  

It also brings scammers.

Every year, phishing attempts spike during filing season because criminals know people are expecting financial communication. Refund notices. Payroll updates. Signature requests. Client documents.

The timing makes the message feel legitimate.

And in 2026, the tactics are more sophisticated than ever.

Scammers rely on a tactic known as social engineering.

They do not hack systems first. They manipulate behavior.

Tax deadlines such as April 15 create pressure. Pressure increases cognitive load. And when people feel rushed, they are more likely to click before thinking.

That is the opening.

A message arrives that says:

“Immediate action required.”
“Verify before your refund is delayed.”
“Payroll must be updated today.”

You are busy. The deadline is real. The request feels plausible.

That is exactly why it works.

Phishing remains one of the most common entry points for business compromise, and financial themes are among the most effective lures during tax season.

Phishing used to be obvious.

Poor grammar. Strange formatting. Unprofessional tone.

Today’s attacks often use AI tools to:

• Generate polished language
  
  
• Personalize emails
  
  
• Reference real companies
  
  
• Mimic professional tone

Some criminals are even using AI voice cloning to impersonate executives or vendors in phone calls requesting urgent fund transfers.

The result is simple: suspicious no longer looks suspicious.

That is why process matters more than instinct.

Here are the patterns we see most frequently during filing season.

Emails or texts claiming to be from the IRS asking you to verify identity, confirm a refund, or pay a balance immediately.

The IRS does not initiate contact through unsolicited email, text, or social media about tax bills or refunds. If you receive one, it is not legitimate.

An email appears to come from someone you know. A client. A vendor. A payroll provider.

The message requests updated banking information or urgent payment processing.

Often, the only difference is a slightly altered domain name or a subtle shift in tone.

An employee email asks to update direct deposit details before the next payroll run.

These scams are especially common during busy seasons when payroll adjustments feel routine.

One unchecked change can redirect an entire paycheck.

Even sophisticated phishing attempts rely on familiar triggers:

• Pressure to act immediately
  
  
• Slight variations in sender email domains
  
  
• Unexpected attachments or links
  
  
• Requests involving money movement or credential verification

The biggest red flag is urgency.

Scammers want speed.

Protection requires pause.

You do not need complicated systems to reduce risk. You need consistent procedures.

Enable multi-factor authentication for email, banking, payroll platforms, and financial software.

App-based or hardware-based authentication methods are stronger than SMS-based codes, which can sometimes be intercepted through SIM swapping attacks.

MFA is one of the most effective defenses available today.

If you receive a request to:

• Change banking instructions
  
  
• Update payroll information
  
  
• Send a wire transfer
  
  
• Modify vendor payment details

Confirm it verbally using a known phone number already on file. Do not rely on the contact information provided in the email.

This single control prevents a significant number of fraud attempts.

Sensitive documents should move through encrypted portals, not email attachments.

Email is convenient. It is not secure.

Your team is your first line of defense.

Short reminders during high-risk seasons can prevent costly mistakes. The goal is not fear. The goal is awareness.

Teach your staff to slow down before acting on financial requests.

Scammers rely on urgency.

Your defense is procedure.

When a financial request arrives unexpectedly, stop. Verify. Confirm through a separate channel.

That habit alone dramatically reduces risk.

Protecting your finances is not just about compliance and planning. It is also about safeguarding the systems that move your money.

If you have concerns about suspicious emails, payroll requests, or your internal financial safeguards, reach out. We can review your current procedures and help you strengthen your protections.

Because in today’s environment, security is not optional. It is part of protecting everything you have built.

• If You Can’t Pay
• Automatic Extension in Federally Declared Disaster Areas
• Family Loans
• Home Equity Loans and HELOCs
• Credit Card
• Short-term Payment Plan
• IRS Installment Agreement
• Tap a Retirement Account
• Offer-in-Compromise
• Filing Extensions
• If the Taxes Cannot Be Paid Timely

About 3 out of 4 American taxpayers receive a refund each year when they file their income tax returns, but there are those who, for one reason or another, end up owing. Of those who owe Uncle Sam, many don’t have the means to pay what they owe by the return due date (usually mid-April).

NOTE: If you live in a federally declared disaster area, the due date for filing your return and paying the tax owed may have been automatically extended. The extension will apply if you reside in the disaster area, and you need not be directly affected by the disaster to qualify. Check the IRS website at Tax Disaster Relief Situations for areas that have disaster filing relief extensions. Call this office to confirm you qualify and for information related to state disaster relief due date postponements.

Generally, tax due occurs when a wage earner has under-withheld on his or her payroll or a self-employed individual failed to make adequate estimated tax payments during the year. In some cases, a transaction may have occurred during the year that created a large capital gain, and the taxpayer didn’t adjust their withholding or estimated payments to cover the extra tax, resulting in a large tax bill at filing time. This can be a huge problem for those who are unable to pay their liability.

It is generally in your best interest to make other arrangements to obtain the funds for paying your 2025 taxes rather than be subjected to the government’s penalties and interest for payments made after April 15, 2026. Here are a few options to consider.

• Family Loan – Obtaining a loan from a relative or friend may be the best bet because this type of loan is generally the least costly in terms of interest.
  
  
• Home Equity Loans and HELOCs - Use the equity in your home—that is, the difference between your home’s value and your mortgage balance—as collateral. As the loans are secured against the equity value of your home, home equity loans offer extremely competitive interest rates—usually close to those of first mortgages. Compared with unsecured borrowing sources, such as credit cards, you’ll be paying less in financing fees for the same loan amount. Unfortunately, obtaining these loans takes time, so if you anticipate that you’ll need funds from such a loan to pay your taxes that are due in April, you should get the application process started as soon as possible before the due date.
  
  Also be aware that the interest paid on equity loans (HELOCs) is not tax deductible.
  
  
• Credit Card – Another option is to pay by credit card with one of the service providers that work with the IRS. However, since the IRS will not pay a credit card discount fee (the fee charged by the credit card company), you will have to pay the fees due and pay the higher credit card interest rates. The IRS has two service providers: Pay1040 and ACI Payments Inc. High-dollar payments must be coordinated with the service provider.
  
  Credit card interest rates are generally higher than those for secured loans, such as home equity loans. Therefore, while using a credit card can be a convenient way to pay taxes, it may result in higher financing costs if the balance is not paid off promptly.
  
  
• Short-Term Payment Plan – If you can fully pay the tax owed within 180 days and owe less than $100,000 including tax, penalties, and interest, you can apply for a short-term payment plan online at the IRS web site. This process is typically straightforward and does not require extensive documentation. You won’t be charged a set-up fee but will still have to pay penalties and interest until the balance owed is fully paid. However, set-up fees will be charged if you apply for a payment plan by phone, mail, or in person instead of online. Payments can be made via direct debit, check, money order, or credit card. However, using a credit card may incur additional fees from the card issuer. Entering a short-term payment plan does not directly affect your credit score.
  
  
• IRS Installment Agreement – If you owe the IRS $50,000 or less, you may qualify for a streamlined installment agreement where you can make monthly payments for up to six years (72 months). You will still be subject to the late payment penalty, but it will be reduced by half from 0.5% to 0.25%. Interest will also be charged at the current rate, which recently has been reduced from 7% to 6% annually.
  
  o    Fees: There is a user fee to set up the payment plan. When making payments via electronic debit payments the set-up fee is $22. However, the IRS generally waives the fee for low-income taxpayers who agree to make electronic debit payments. If the amount owed is greater than $25,000 electronic debit payments are required. The set-up fee when the payment is not by direct debit is $69.
  
  o    Requirements: When a taxpayer requests an installment agreement with the IRS, they agree to several terms:
  
  §  Timely Payments: The taxpayer must ensure that installment payments are made in full and on time.
  
  §  Filing Future Tax Returns: All future tax returns must be filed on time.
  
  §  Adequate Withholding or Estimated Payments: The taxpayer must have enough withholding or estimated tax payments so that no tax is due with timely filed future returns.
  
  §  Refunds Applied to Debt: Any refund due to the taxpayer in a future year will be applied against the amount owed.
  
  §  Statute of Limitations: The 10-year statute of limitations for collections continues to run while an installment agreement is in effect and not in dispute.
  
  §  Documentation: If you seek an installment agreement exceeding $50,000, you will have to validate your financial condition and the need for an installment agreement by providing the IRS with a Collection Information Statement (financial statements). You may also pay down your balance due to $50,000 or less to take advantage of the streamlined option.
  
  
• Tap a Retirement Account – This is possibly the worst option for obtaining funds to pay your taxes because you are jeopardizing your retirement lifestyle and the distributions are generally taxable at your highest tax bracket, which adds more taxes to your existing problem. In addition, if you are underage 59½, the withdrawal is also subject to a 10% early withdrawal penalty that compounds the problem even further.
  
  
• Offer in Compromise - An offer in compromise is a program offered by the IRS that allows taxpayers to settle their tax debt for less than the full amount owed. This option is typically considered when taxpayers are unable to pay their full tax liability or if doing so would create a financial hardship. An offer in compromise might apply in situations where:
  
  o   The taxpayer cannot pay the full tax debt without causing financial hardship.
  
  o   There is doubt as to the collectability of the debt, meaning the IRS believes it is unlikely that the taxpayer can pay the full amount.
  
  o   There is doubt as to the liability, meaning there is a legitimate dispute over the amount owed.
  
  To qualify for an offer in compromise, taxpayers must meet certain criteria:
  
  o   All required tax returns must be filed.
  
  o   All required estimated tax payments for the current year must be made.
  
  o   The taxpayer must not be in an open bankruptcy proceeding.
  
  o   If the taxpayer is an employer, they must have made tax deposits for the current and past two quarters before applying.
  
  Taxpayers must apply to the IRS, along with a detailed financial statement to provide a comprehensive view of their financial situation. A nonrefundable application fee of $205 is generally required, unless the taxpayer qualifies for a low-income exception.
  
  If the offer is accepted, the taxpayer can pay the agreed amount either as a lump sum or through periodic payments. If the offer is rejected, the taxpayer has 30 days to appeal the decision.
  
  Offers in Compromise are rather complicated, and taxpayers are encouraged to contact this office to navigate the complexities of the offer in compromise process.

Filing Extensions – Don’t mistake the ability to apply for an extension of time to file your tax return as also being an extension to pay any tax liability. It is not and does not grant you an extension of time to pay. The penalties and interest on the amount due will continue to apply as of the original due date of the return.

Actions if Taxes Go Unpaid – What happens if none of the above payment options are feasible for you? If the taxes cannot be paid timely, and the IRS is not notified why the taxes cannot be paid, the law requires that enforcement action be taken, which could include the following:

• Issuing a Notice of Levy on salary and other income, bank accounts or property (IRS can legally seize property to satisfy the tax debt).
  
  
• Assessing a Trust Fund Recovery Penalty for certain unpaid employment taxes.
  
  
• Issuing a Summons to you or third parties to secure information to prepare unfiled tax returns or determine your ability to pay.

If you have questions about the payment options, please contact this office for assistance. Don’t just ignore your tax liability because that is the worst thing you can do.

Expense suggestions.
Cash flow forecasts.
Tax projections.
"Smart" insights.

It feels powerful.

And in many ways, it is.

But here's the uncomfortable truth:

AI doesn't fix messy books.
It analyzes them.

And if the data is wrong — or incomplete — the advice will be wrong. Just faster.

Modern platforms like QuickBooks and others are layering artificial intelligence into almost every feature.

They can:

• Suggest transaction categories
  
  
• Flag unusual activity
  
  
• Predict cash flow
  
  
• Estimate taxes
  
  
• Surface trends

That's impressive.

But AI does not independently audit your books.
It does not reconcile your bank accounts.
It does not understand your accounting policies.

It assumes the data it analyzes reflects reality.

And that assumption is where risk lives.

Today's accounting AI can identify patterns and even flag transactions that look unusual.

But it cannot interpret context.

For example:

You purchase equipment at Best Buy.

The AI may suggest "Office Supplies" based on prior history.

But it has no way of knowing:

• Whether the item exceeds your capitalization threshold
  
  
• Whether you've made a de minimis safe harbor election
  
  
• Whether it should be recorded as a fixed asset and depreciated

AI can recognize patterns.

It cannot apply professional judgment.

It cannot understand tax elections.

And it cannot override inconsistent bookkeeping habits.

There's a long-standing rule in technology:

Garbage in, garbage out.

AI doesn't eliminate that rule.

In fact, it can make it more dangerous, because the output looks polished and confident.

A sleek dashboard creates certainty.

But if the underlying numbers are flawed, the insights are flawed.

And most DIY bookkeeping?

It's rarely as clean as business owners believe.

We see it every week.

Advertising coded as meals.
Equipment expensed instead of capitalized.
Inconsistent contractor treatment.

Those errors change profitability.
They change tax exposure.
They change planning decisions.

AI analyzes the pattern — not the mistake.

If your bank and credit cards aren't reconciled monthly, your numbers are already unreliable.

Duplicate transactions.
Missing deposits.
Timing differences.

Forecasting based on unreconciled books produces unreliable projections.

Many AI insights rely on transactions that have been reviewed and added from the bank feed into the general ledger.

If transactions are still sitting unreviewed:

• They may not appear in Profit & Loss reports
  
  
• They may not be included in forecasting tools
  
  
• They may distort performance metrics

The bank feed may "know" the cash moved.

But until someone reviews and posts the transaction properly, the financial statements may not reflect it accurately.

AI is limited by what the user has confirmed.

Subscriptions. Travel. Auto costs.

When personal spending lives inside business books, margins become distorted.

AI doesn't know what's personal unless someone corrects it.

If your books are updated sporadically, your "real-time insights" are built on lagging data.

AI can't create clarity from delay.

This isn't just about reports.

It's about decisions.

Misclassified or incomplete data can lead to incorrect tax estimates.

You may:

• Underpay and face penalties
  
  
• Overpay and restrict cash flow
  
  
• Miss legitimate planning opportunities

If receivables are inaccurate...
If expenses are posted incorrectly...
If transactions haven't been reviewed...

Cash flow projections become misleading.

Confidence increases. Accuracy may not.

AI forecasting models rely on historical patterns.

If historical data is flawed, projections will be flawed.

The chart looks sophisticated.

The foundation may not be.

AI inside accounting software is powerful.

When paired with clean, reconciled, professionally reviewed books, it becomes a strategic advantage.

It can:

• Surface trends faster
  
  
• Improve advisory conversations
  
  
• Support stronger planning
  
  
• Help business owners move decisively

But AI does not replace professional oversight.

It enhances it — when the data is right.

AI + Clean Books = Powerful.
AI + Messy or Incomplete Books = Risky.

Technology doesn't remove responsibility.

It increases it.

If you're using AI-powered accounting tools, that's a forward-thinking move.

But before making important decisions based on automated forecasts or tax projections, make sure the numbers underneath are accurate.

Are your accounts reconciled?
Are transactions reviewed and properly posted?
Are expenses classified correctly?
Are your financials current?

If you're unsure, that's the first place to start.

Before relying on automated insights, contact our office to review and clean up your books. When the data is accurate, the technology becomes far more powerful — and far safer.

• The refund statute expires on April 15, 2026, for unfiled 2022 returns.
• Unfiled returns will lose out on refundable credits.
• Refunds may be offset by unpaid child support, past due student loans, and back taxes.

If you have not yet filed your 2022 tax return and have a refund coming, time to claim that refund is running out! The IRS annually estimates that more than a million taxpayers have not filed their tax returns for 3 years prior with approximately $1.5 billion of unclaimed refunds available for these delinquent taxpayers. If you fall in this category, you need to act quickly because the return must be filed by April 15, 2026, to claim a refund for 2022. Otherwise, the money becomes the property of the U.S. Treasury.

People stand to lose more than a refund of taxes withheld or paid during 2022 by failing to file a return. For example, many low- and moderate-income workers who haven’t filed for 2022 may qualify to claim the Earned Income Tax Credit (EITC). The EITC is a refundable credit that provides financial assistance to individuals and families with incomes below certain thresholds. In addition, taxpayers may also qualify for the refundable portion of the child and education credits.

When filing a 2022 return, the law requires that the return be properly addressed, mailed, and postmarked by April 15, 2026. There is no penalty for filing a late return that qualifies for a refund. If you’ll be filing your 2022 return soon, don’t just drop the return in your corner USPS mailbox on April 15, 2026, as it may not be postmarked by that date. Instead, either mail it a few days ahead or take it to the post office to be officially stamped by the 15th. Your late 2022 return cannot be e-filed.

As a reminder, taxpayers seeking a 2022 refund should know that their refunds will be held if they have not filed tax returns for 2020 and 2021. In addition, the refund will be applied to any amounts still owed to the IRS and may be used to offset unpaid child support or past due federal debts, such as student loans.

Please give this office a call as soon as possible if you have not filed your 2022 return. Sufficient time is needed to prepare and print the return and for you to take it to the post office to send with proof of mailing.

And most of the time, that trust is well placed.

But trust without controls?

That’s exposure.

In a recent case in California, a bookkeeper was sentenced for embezzling more than $550,000 from her employer. In another nearby case, a longtime employee quietly stole over $527,000 by manipulating payroll and hiding the activity in the company’s records.

These weren’t massive corporations.

They were small businesses.

Fraud doesn’t require a criminal mastermind.

It requires access.
It requires opportunity.
It requires weak oversight.

Large companies have layers of review.

Small businesses often don’t.

One person may:

• Enter transactions
  
  
• Reconcile accounts
  
  
• Process payroll
  
  
• Approve payments
  
  
• Manage online banking

That’s efficient.

But it concentrates control.

And when one person controls the entire financial process, detection becomes harder.

Not because owners are careless.

Because they’re busy.

Understanding how fraud happens is the first step toward preventing it.

Unauthorized checks written to personal accounts or disguised as vendor payments.

Fake receipts. Inflated reimbursements. Duplicate submissions.

Fake employees added to payroll — or inflated compensation hidden inside payroll systems.

Cash received but never recorded.

In today’s digital environment, online banking access without dual controls can allow unauthorized ACH or wire transfers — sometimes approved through fake emails or AI-generated voice impersonations.

The schemes aren’t complicated.

They’re usually simple — repeated quietly over time.

Fraud rarely starts big.

It starts small.

Watch for:

• An employee who refuses to take vacation
  
  
• Defensive behavior when asked about financial records
  
  
• Lifestyle changes that don’t match compensation
  
  
• Bank reconciliations that are delayed month after month
  
  
• Corrections that seem to happen “just in time” before reports are finalized

Patterns matter.

Small inconsistencies add up.

Fraud prevention is not about distrust.

It’s about structure.

Here are safeguards that dramatically reduce risk.

No single person should control every step of a financial process.

Split responsibilities:

• One person enters transactions
  
  
• Another reviews
  
  
• A different person approves payments

When duties are separated, concealment becomes harder.

Bank and credit card accounts should be reconciled monthly.

Not quarterly.
Not “when we get to it.”

Timely reconciliation catches discrepancies before they snowball.

One of the most effective low-tech safeguards:

Have the original bank statement — paper or digital PDF — sent directly to you as the owner before anyone else reviews it.

Why?

Because the bank statement shows:

• Cleared checks
  
  
• Wire transfers
  
  
• ACH payments
  
  
• Actual payees

Before transactions are coded or adjusted in your accounting software.

Even a five-minute scan each month can reveal unusual vendors or payments that don’t belong.

This simple step alone prevents countless fraud schemes.

If your business issues paper checks, ask your bank about Positive Pay.

This service requires you to submit a list of issued checks.

If a check is presented that doesn’t match the amount, number, or payee, the bank flags it before clearing.

It’s a modern safeguard against check tampering.

And many small businesses don’t even realize it exists.

Wire transfers are fast — and often irreversible.

Require:

• Two approvals for outbound wires
  
  
• Verbal confirmation using known phone numbers
  
  
• Alerts for transfers above a set threshold

Technology is powerful.

But verification protects you.

An outside financial professional reviewing your books periodically adds an independent layer of oversight.

Fresh eyes spot patterns internal teams may miss.

It’s about protecting what you’ve built.

Internal controls protect:

• Your business
  
  
• Your employees
  
  
• Your reputation
  
  
• Your cash flow

Systems remove temptation.

And they protect good employees from suspicion.

Trust is important.

Structure makes trust sustainable.

If you’re unsure whether your current bookkeeping processes include the right safeguards, we can help.

A simple review of your internal controls can identify gaps, recommend improvements, and strengthen your financial protection.

You don’t need to overhaul everything.

You just need the right systems in place.

Reach out if you’d like us to evaluate your current setup and help you implement practical safeguards that fit your business.

• Employees
• Self-Employed Individuals
• Periodic Payments
• Underpayment Penalty
• Safe Harbor Payments

Unlike employees, who have income, Social Security, and Medicare taxes withheld from their wages, self-employed individuals must prepay their taxes by making periodic estimated tax payments. These are referred to as estimated tax payments because the self-employed individual must estimate his or her net earnings for the year and pay taxes per an IRS schedule according to that estimate. Failure to do so will result in interest penalties.

The self-employed are not the only ones who are subject to estimated tax payment requirements; anyone who has income on which no income tax has been withheld, and even those whose taxes are not sufficiently withheld, should be making estimated tax payments. Thus, if you have income from stock sales, property sales, investments, taxable alimony, partnerships, S-corporations, inherited pension plans, or other sources that are not subject to withholding, you may also be required to pay either estimated taxes or an underpayment penalty. Others subject to making estimated payments are individuals who must pay special taxes such as the 3.8% tax on net investment income or the employment tax on household employees.

Although these payments are often termed "quarterly" estimates, the periods they cover do not usually coincide with a calendar quarter. 

An underestimate penalty does not apply if the tax due on a return (after withholding and refundable credits) is less than $1,000; this is the "de minimis amount due" exception. When the tax due is $1,000 or more, underpayment penalties are assessed.

These underpayment penalties are determined per the periods as shown in the above table, so an underpayment in an earlier period cannot be made up for in a later period; however, an overpayment in an earlier period is applied to the following period.

The amount of an estimated payment is determined by estimating one fourth of the taxpayer's tax for the entire year; the projected tax is paid in four installments. When the income is seasonal, sporadic, or the result of a windfall, the IRS provides a special form, and the underpayment penalty is based on actual income for the period.

For individuals who do not want to take the time to estimate their tax for the current year but who still want to avoid the underpayment penalty, Uncle Sam also provides safe-harbor estimates. However, even these can be tricky. Generally, a taxpayer can avoid an underpayment penalty if his or her withholding and estimated payments are equal to or greater than

• 90% of the current year's tax liability or
  
  
• 100% of the prior year's tax liability.

However, these safe harbors do not apply if the prior year's adjusted gross income is over $150,000, in which case, the safe harbors are

• 90% of the current year's tax liability or
  
  
• 110% of the prior year's tax liability.

Sometimes, individuals who have withholding on some (but not all) of their sources of income will increase that withholding to compensate for the additional income sources that have no withholding. Although this may work, withholding adjustments are not as precise as the per-period payments and should be used with caution.

This office can assist you in estimating payments, adjusting withholding, and setting up safe-harbor payments. Please call for assistance.

Here's what many don't realize: Spring is actually one of the most important times of the year to clean up QuickBooks.

Why? Because small bookkeeping issues that look harmless now often turn into expensive problems later, from missed deductions to cash flow surprises to tax-time headaches.

Here's why March and April are the perfect checkpoints and what business owners should focus on right now.

Why QuickBooks Issues Show Up in the Spring

The first two months of the year are usually reactive. Businesses are:

• Closing the prior year
  
  
• Gathering documents for tax prep
  
  
• Reconciling year-end accounts
  
  
• Issuing 1099s

By springtime, the dust from the past year settles, and this year's patterns begin to show.

That's when issues often become visible:

• Expenses landing in the wrong categories
  
  
• Duplicate or missing transactions
  
  
• Uncleared balances lingering for months
  
  
• Reports that don't match reality

March is early enough to fix problems before they snowball, but late enough to see where they exist.

The Most Common QuickBooks Problems We See in Spring

This account is meant to be temporary. But many businesses leave transactions there indefinitely.

The risk: Important expenses may not be deducted correctly, and financial reports may be inaccurate.

March is the time to clear it out.

2. Bank Feeds Aren't Fully Reviewed

Automation is helpful, until it's not.

Many businesses rely on bank feeds without reviewing every transaction. That can lead to:

• Misclassified expenses
  
  
• Personal transactions in business books
  
  
• Duplicate income entries

Even one bad habit repeated for months can distort financial reports.

3. Reconciliations Fell Behind

Some business owners reconcile accounts only at year-end (or skip it entirely).

That can leave:

• Missing deposits
  
  
• Duplicate charges
  
  
• Incorrect balances

Monthly reconciliation is still the gold standard, and March and April are the perfect time to reset the routine.

4. Balance Sheets That Don't Make Sense

Many owners review their Profit & Loss statement but ignore the balance sheet.

Common issues include:

• Negative asset balances
  
  
• Loans recorded incorrectly
  
  
• Uncategorized equity entries

If the balance sheet doesn't make sense, neither does the P&L.

Why Fixing It Now Saves Money Later

Waiting until year-end creates bigger problems:

• Cleanup work becomes more expensive
  
  
• Missed deductions may go unclaimed
  
  
• Tax planning opportunities shrink
  
  
• Cash flow decisions become guesswork

March offers a rare advantage: time to course-correct while the year is still young.

What Business Owners Should Do Right Now

If you use QuickBooks, spring is a great time to:

• Review financial reports for accuracy
  
  
• Reconcile every account through February
  
  
• Clean up uncategorized transactions
  
  
• Separate personal and business activity
  
  
• Meet with this office for a Q1 review

Even one focused cleanup session can prevent hours of stress later.

QuickBooks Is a Tool, Not a Strategy

QuickBooks is excellent at tracking numbers. But it doesn't evaluate them.

It won't tell you:

• If your margins are slipping
  
  
• If you're underpaying estimated taxes
  
  
• If you're overspending in key areas
  
  
• If your pricing needs adjustment

That's where professional guidance makes the difference. The spring season brings one of the best opportunities all year to get ahead financially.

Fixing QuickBooks now helps ensure:

• Accurate reporting
  
  
• Smarter decisions
  
  
• Fewer surprises
  
  
• Lower stress at tax time

The earlier problems are caught, the easier and less costly they are to fix.

Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 8 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.

April 15 - Taxpayers with Foreign Financial Interests

A U.S. citizen or resident, or a person doing business in the United States, who has a financial interest in or signature or other authority over any foreign financial accounts (bank, securities or other types of financial accounts), in a foreign country, is required to file Form FinCEN 114. The form must be filed electronically; paper forms are not allowed. The form must be filed with the Treasury Department (not the IRS) no later than April 15, 2026 for 2025. An extension of time to file of up to 6 months is automatically allowed. This filing requirement applies only if the aggregate value of these financial accounts exceeds $10,000 at any time during 2025. Contact our office for additional information and assistance filing the form. 

File a 2025 income tax return (Form 1040 or 1040-SR) and pay any tax due. If you want an automatic six-month extension of time to file the return, please call this office.

Caution: The extension gives you until October 15, 2026 to file your 2025 1040 or 1040-SR return without being liable for the late filing penalty. However, it does not avoid the late payment penalty; thus, if you owe money, the late payment penalty can be severe, so you are encouraged to file as soon as possible to minimize that penalty. Also, you will owe interest, figured from the original due date until the tax is paid. If you have a refund, there is no penalty; however, you are giving the government a free loan, since they will only pay interest starting 45 days after the return is filed. Please call this office to discuss your individual situation if you are unable to file by the April 15 due date.

April 15 - Household Employer Return Due 

If you paid cash wages of $2,800 or more in 2025 to a household employee, you must file Schedule H. If you are required to file a federal income tax return (Form 1040 or 1040-SR), file Schedule H with the return and report any household employment taxes. Report any federal unemployment (FUTA) tax on Schedule H if you paid total cash wages of $1,000 or more in any calendar quarter of 2024 or 2025 to household employees. Also, report any income tax that was withheld for your household employees. For more information, please call this office.

April 15 - Estimated Tax Payment Due (Individuals)

It’s time to make your first quarter estimated tax installment payment for tax year 2026. Our tax system is a “pay-as-you-earn” system. To facilitate that concept, the government has provided several means of assisting taxpayers in meeting the “pay-as-you-earn” requirement. These include:

• Payroll withholding for employees;
  
  
• Pension withholding for retirees; and
  
  
• Estimated tax payments for self-employed individuals and those with other sources of income not covered by withholding.

When a taxpayer fails to prepay a safe harbor (minimum) amount, they can be subject to the underpayment penalty. This penalty is equal to the federal short-term rate plus 3 percentage points, and the penalty is computed on a quarter-by-quarter basis.

Federal tax law does provide ways to avoid the underpayment penalty. If the underpayment is less than $1,000 (the “de minimis amount”), no penalty is assessed. In addition, the law provides "safe harbor" prepayments. There are two safe harbors:

• The first safe harbor is based on the tax owed in the current year. If your payments equal or exceed 90% of what is owed in the current year, you can escape a penalty.
  
  
• The second safe harbor is based on the tax owed in the immediately preceding tax year. This safe harbor is generally 100% of the prior year’s tax liability. However, for taxpayers whose AGI exceeds $150,000 ($75,000 for married taxpayers filing separately), the prior year’s safe harbor is 110%.

Example: Suppose your tax for the year is $10,000 and your prepayments total $5,600. The result is that you owe an additional $4,400 on your tax return. To find out if you owe a penalty, see if you meet the first safe harbor exception. Since 90% of $10,000 is $9,000, your prepayments fell short of the mark. You can't avoid the penalty under this exception.

However, in the above example, the safe harbor may still apply. Assume your prior year’s tax was $5,000. Since you prepaid $5,600, which is greater than 110% of the prior year’s tax (110% = $5,500), you qualify for this safe harbor and can escape the penalty.

This example underscores the importance of making sure your prepayments are adequate, especially if you have a large increase in income. This is common when there is a large gain from the sale of stocks, sale of property, when large bonuses are paid, when a taxpayer retires, etc. Timely payment of each required estimated tax installment is also a requirement to meet the safe harbor exception to the penalty. If you have questions regarding your safe harbor estimates, please call this office as soon as possible.

CAUTION: Some state de minimis amounts, safe harbor estimate rules, and the dates estimate payments are due are different than those for the Federal estimates. Please call this office for particular state safe harbor rules.

April 15 - Last Day to Establish a Keogh Account for 2025

If you are self-employed, April 15, 2026, is the last day to establish a Keogh Retirement Account if you plan to contribute for 2025. However, the last day can be extended until October 15, 2026, with a valid six-month extension of time to file your individual 2025 tax return. 

April 15 - Last Day to Make Contributions

Last day to make contributions to Traditional and Roth IRAs for tax year 2025.

Weekends & Holidays:

If a due date falls on a Saturday, Sunday or legal holiday, the due date is automatically extended until the next business day that is not itself a legal holiday

Disaster Area Extensions

Please note that when a geographical area is designated as a disaster area, due dates will be extended. For more information whether an area has been designated a disaster area and the filing extension dates visit the following websites:

File a 2025 calendar year income tax return (Form 1120) and pay any tax due. If you need an automatic 6-month extension of time to file the return, file Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information and Other Returns, and deposit what you estimate you owe. Filing this extension protects you from late filing penalties but not late payment penalties, so it is important that you estimate your liability and deposit it using the instructions on Form 7004.

April 15 - Social Security, Medicare and Withheld Income Tax

If the monthly deposit rule applies, deposit the tax for payments in March.

April 15 - Non-Payroll Withholding

If the monthly deposit rule applies, deposit the tax for payments in March.

April 15 - C-Corporations

The first installment of 2026 estimated tax of a calendar year corporation is due.

April 15 - Fiduciary Returns

Last day to timely file a 2025 calendar year fiduciary return (Form 1041, U.S. Income Tax Return of Estates and Trusts) or file an extension.   

April 30 - Social Security, Medicare and Withheld Income Tax

File Form 941 for the first quarter of 2026. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter in full and on time, you have until May 11 to file the return.

April 30 - Federal Unemployment Tax

Deposit the tax owed through March if it is more than $500.

Weekends & Holidays:

If a due date falls on a Saturday, Sunday or legal holiday, the due date is automatically extended until the next business day that is not itself a legal holiday

Disaster Area Extensions

Please note that when a geographical area is designated as a disaster area, due dates will be extended. For more information whether an area has been designated a disaster area and the filing extension dates visit the following websites:

FEMA: https://www.fema.gov/disaster/declarations
IRS: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations