April & May 2025 News & Notes

Hours and Appointments

  • After Tax Season Hours:
    Monday through Thursday: 9:00am - 4:00pm
    Friday: 9:00am - 2:00pm

  • Other hours available by appointment. Appointments available in person, by zoom or by phone.


Thank You for Your Referrals and Yelp Reviews!  

  • Beginning in 2025 we will be holding a monthly raffle.   You are automatically entered for leaving a positive Yelp review or when a referral sets up an appointment with us.   
     

Other Services Available 

  • Bookkeeping and business advisory services

  • Preparation of other tax forms such as 1099s, Sales Taxes, Statement of Stock, Statement of Information and payroll taxes

  • Investment management & retirement planning services through Balancing Life Financial Planning.  Visit www.balancinglifefp.com for more details!

Greed or Goodwill: Your Motive Makes a Scam Loss Deductible

Greed is good. At least that’s what the IRS says when it comes to taking a theft loss deduction for losses arising from scams. Losses resulting from scams that rely on the victim’s greed can be deductible.

Losses resulting from scams that rely on the victim’s desire for love or to help others are not deductible. Sound crazy? That’s the world we’re living in.

  • What Is a Theft Loss?

    • A theft loss results from the illegal taking of money or property, including robbery, embezzlement, larceny, or fraud.

    • The theft must have been illegal under state or federal law and been done with criminal intent. But a conviction for theft is not required - it’s not even necessary for anyone to be charged with a crime.

    • The victim’s records should show all the following:

      • That the victim was the owner of the property

      • That the victim’s property was stolen

      • When the victim discovered that the property was missing

      • Whether a claim for reimbursement exists for which there is a reasonable expectation of recovery

    • The victim should report the theft to the police. But the victim is not required to obtain the identification of the scammer if it’s otherwise unknown. Nor does the victim have to bring a legal action if the evidence is insufficient to sustain a conviction.

Excess Business Loss Disallowance Rule

The Tax Cuts and Jobs Act (TCJA) and later legislation imposed additional restrictions on the ability of an individual taxpayer to deduct business losses. Here’s what you need to know:

Before the TCJA, an individual taxpayer could often fully deduct business losses in the tax year when they arose. That was the result unless some tax-law provision such as the passive activity loss (PAL) rules prevented that favorable outcome, or the business loss exceeded your taxable income from other sources, in which case it could contribute to a net operating loss (NOL) for the year.

Before the TCJA, you could carry back an NOL to the two preceding tax years or carry it forward to the following 20 years. For 2018-2028, the TCJA and later legislation imposed new limitations on your current ability to deduct business losses.

Is Your Credit Card Statement Naked?

How about your checkbook?

If your credit card statement or checkbook lacks supporting receipts, the IRS considers it “naked” - and that can be a problem when you’re claiming tax deductions.

Protect Your Deductions - Go Digital

IRS audits aren’t rare, and missing receipts are the most common reason taxpayers lose deductions. Even if you keep perfect accounting records, they aren’t enough. You need proof of what you bought and why.

  • Receipts show what you bought and business purpose

  • Statements show what you paid

  • Together, they prove your deduction

But here’s the catch: paper receipts fade and disappear.

The Smart Fix? Go Digital

You don’t need a bulky scanner anymore. With just your smartphone and an app like Shoeboxed, Expensify, or Zoho Expense, you can:

  • Instantly digitize your receipts after a business meal or purchase

  • Safely store and organize receipts online

  • Add notes to record business purpose and relationships

  • Sync data directly to your accounting software

Safeguard your deductions with ease.

2025-26 Calendar

2025

April

4/30

  • Quarterly sales tax reports due

June

6/16

  • 2023 Estimate #2 due to federal and state

September

9/15

  • 2023 Estimate #3 due to the IRS. No estimated payment due to California
  • S Corporations and partnerships on extension due

October

10/15

  • FINAL Due date for all individual and C Corporation returns on extension

December

12/31

  • 2023 Estimate #4 due to the IRS




2026

January

1/17

  • Due date for the fourth quarter 2022 estimated payment

1/31

  • Fourth quarter 2022 sales tax due
  • Year end payroll taxes due
  • Quarterly payroll taxes due
  • Forms 1096 and 1099 due
  • Be sure to check for any city business licenses and statement of stock due dates for 2023

March

3/15

  • S corporations and partnerships due

April

4/17

  • Individual and C Corporation tax returns are due
  • Payment due if an extension is filed
  • 2023 Estimate #1 for federal and state due
  • 2023 estimate #1 to the FTB for S Corporation’s due

4/30

  • Quarterly sales tax reports due

Post Tax Season Information

  1. Be sure to read your transmittal and take note of due dates and payment options.

  2. If on extension, S-Corps and Partnerships are due 9/15. Information needs to be provided by August 25th.

  3. If personal tax returns are on extension, the due date is 10/15. Information must be provided by September 25th.

  4. Copies of tax returns (PDF or Paper) are provided at the time of completion. Additional copies of tax returns will incur fees.

  5. Additional services will be billed throughout the year, rather than with the next year’s tax preparation.

  6. Fees are due upon completion unless other arrangements are made. Late fees will be charged for unpaid invoices.