​Can you believe it’s already December? I suppose it’s been a year that has felt turbulent for many in our realm as we entered a new presidential administration, found our way around new tariffs, saw inflation kick up again, and had large legislation passed that could end up affecting the tax returns of many.

How people feel about this can depend upon many things, from your political leanings to your personal financial situation. Unfortunately, a lot of things like this can’t really be handled until they happen, so preparation could only go so far, but we are heading into the tax season that will begin its fallout and are confident that an overwhelming majority of our clients will weather the season with minimal issue.

But there are some things that you can prepare for, and they don’t even have to be very specific. Maybe there are things speaking out to you now during the holiday season. Would a better savings plan have made the purchases you want to make now easier? This may not be something you’re looking to implement immediately (you have to finish making those purchases first, after all), but you do not need to wait until the turn of a new year to start putting a new plan together, even if it will not go into play until then.

Or are there other financial goals that you did not accomplish this year? A big step toward this can actually be to start taking small steps. Then even if you don’t make it fully to where you had hoped you could get over the next three, six, 12 months, etc., you will still be making progress.

Of course, things may just be going well for you, in which case, congratulations. As you approach the end of the year, it’s still going to be nice to take stock of your situation, make sure it’s still where you want it to be, and carry on into the future. No matter where you stand, spending a little time to take that look can help give you confidence about where you are even in a time when things haven’t always felt settled.

Warmly,

Josh Bousquet
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Some years go by in our TSBAS world when little changes. It’s not as if there is less work, it’s not as if the work is less important, it’s just that the work remains very similar to how it was done the year before.

Sometimes things change in big ways, though, and we are in one of those more turbulent times now.

When the One Big Beautiful Bill Act was passed over the summer, the largest headlines may not have been about tax implications, but they definitely existed just beneath them. This will lead to many people having new questions when it comes time to start filing 2025 tax returns in just a couple of months. But in the spirt of this week – we are grateful for this.

Yes, let this be a little note to the people we work with that we are grateful that you continue to put your trust in us with such an important and personal part of your life and/or business. We do not take for granted that you place such faith in us and commit ourselves to giving you a level of service that earns it. So then even when times are a little more turbulent, when you aren’t always sure what the answers will be, we can remain confident together that we will reach the best possible endpoint.

But before we begin that journey, first have a Happy Thanksgiving!

Warmly,

Josh Bousquet
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When the One, Big, Beautiful Bill was passed, one of the biggest headlines involved not paying taxes on tips and overtime. This is reasonable since so many people do earn pay in tips or overtime that it was bound to catch their attention. At the same time, you don’t want to then tell them the bad news that it may be a little complicated for the first year since things weren’t set up to record this information in a way to easily report it on a tax return. This could especially weigh heavy on employers who did not properly delineate all prior pay for the year.

But now, let’s celebrate some really good news – This is OK!!!!!

Yes, this was a potential problem that was looming, but the IRS released a notice last week that it is granting one year of penalty relief if this reporting isn’t perfect for 2025.

From the Notice:

Specifically, employers and other payors will not face penalties for failing to provide a separate accounting of any amounts reasonably designated as cash tips or the occupation of the person receiving such tips. In addition, employers and other payors will also not face penalties for failing to separately provide the total amount of qualified overtime compensation. The relief is limited to returns and statements filed and provided for tax year 2025 and applies only to the extent that the person required to make the return or statement otherwise files and provides a complete and correct return or statement. 

Note that this only applies to the one specific year, so once we turn the calendar into 2026 (and can you believe how quickly that is coming up?) you will be expected to have things fully in order and correct.

Since 2026 is coming up so quickly, this is one of those things that you are going to want to get a hold on soon. There may not always be a lot you can do to get ready for taxes before the calendar turns, but when there is, you can get that jump that can make everything feel better when we do hit the next year. Employees should see that everything is being properly reported and employers should ensure they have a way to properly reflect this in paychecks.

Warmly,

Josh Bousquet
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​As the government shutdown continues on, I thought it could be helpful to look at what it means from a tax perspective.

First, remember that this is only a federal government shutdown. So if you have any state or local tax questions, start with knowing nothing has changed there.

Next, even as we will see that the IRS is not actively doing all the work that the agency is tasked with, it still expects all taxpayers to come through with their obligations. If you owe any taxes, are late on any filings, are on a payment plan, need to make quarterly estimates, etc., then these are still expected to be completed on time.

Unsurprisingly, there’s not a lot of good news during this time. In fact, the only small bit is that in a recent advisory the IRS said, “For taxpayers filing a Form 1040, refunds will continue to be paid on electronically filed, error-free tax returns that can be automatically processed and direct deposited.” This is nice for some people who just needed a little extra time to get their latest tax return in and did so on the extended deadline earlier this month, but most people filing recently aren’t of that simple 1040 variety so will be waiting for the processing of their return and any payment they expect to receive.

Beyond that, a lot of dealing with the IRS will be even more of a burden than it usually is. Most automated toll-free telephone applications will remain operational but live telephone customer assistance will be limited (after it can already feel limited even in the best of times).

All the agency’s walk-in Taxpayer Assistance Centers will be closed. All appointments at the TAC will be canceled until the government reopens.

Also, all appointments related to the Independent Office of Appeals or Taxpayer Advocate Service cases are canceled while the government is shut down. The IRS will reschedule the meetings when the government reopens.
​Warmly,

Josh Bousquet
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One of the themes I often enjoy exploring in this space are the unexpected consequences of actions when it comes to finances. And this isn’t done to point any fingers at people making mistakes. It is more about how things can happen outside of our control that can affect our personal situations and make some changes necessary.

This hit me again recently when reading a CNN article about how AI could be making electricity bills higher – and how this is a trend that could continue into the future. It’s not as if this is a giant surprise, as there are enough stories out there about how new technologies, like AI and cryptocurrency, are using huge amounts of energy. This may not have been something you ever imagined could reach into your household and affect your personal finances, though.

​We shouldn’t forget the across-the-board inflation that came with the COVID pandemic, as well. This still isn’t a situation where we can point and convict any one culprit of the crime, but many forces happening far away from anyone personally combined into something that changed how many had to handle household budgets.

Things like this feel so big, because there is little we can do to combat it. To a large degree, the amount of your electric bill is just the amount of your electric bill. Granted, there are programs that can help those in need with those bills and there can be budget programs that can even out your payments to help combat higher payments in critical months. But even with those, if your bill is going up, it is going up.

With that inflation season, as well, we felt it each time we went to the grocery store. And of course you could alter what you were buying to try to get to a budget-friendly final number, but it’s not as if you could stop feeding your family.

With this, I wanted to give the advice to be sure you have wiggle room when planning any budgets. Without it, you can find yourself falling into a spot where there is little you can do because of something you couldn’t do anything about. If you’ve budgeted things down to the penny, you have no extra pennies. This is where the importance of savings can come in. It’s not only good for the future but also gives you a shield against a changing world.

Warmly,

Josh Bousquet
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