Knecht Income Tax Service, LLC

08/30/2026

Last week I posted about FIRSTS. This week I thought I would post about LASTs. For the most part no one can ever know when their last day on earth will be. It is good to be prepared.

I have ben called more than 20 times this year by surviving spouses or relatives that are taking care of the taxes for their loved ones that have passed. Some calls have come on the same day as the passing. Although I am honoured and sad to get the call, I appreciate they want to make sure they know what to do.

A lot of things need to be done before passing. Make sure you are signatory on your loved ones accounts; make sure you know where their Trust and Will are; make sure you have access to their online accounts and bills; do you have keys to the safe mty deposit box or know the combination to the safe; do you know where the title for the cars or house are; what life insurance policies are written; do you know who their financial advisor is; who is the attorney who prepared their will and trust; who prepares their taxes; do you have a POA for medical and fidicuary items. The list can go on.

Here are some items you need to consider. This is NOT an exhaustive list.

MaKe sure SSA (if not done by the Mortuary) is notified;
Make sure you get a CMA or BPO for the value of their house;
Contact the lawyer;
Contact their tax preprer;
Contact their Financial Advisor;
Contact their bank.

This list can go on as well..

Some items you might delay depending on what authorizations you have.

All people that were involved in the life of the deceased are happy to help, or should be, during the time of passing. Use them as they aemre aware of your loved ones past.

08/22/2026

Life is full of Firsts.
First Child born.
First Steps
First Words
First Team Sporting event
First Day of School
First Crush
First Day at Work

First Tax Return

All of these, and many more, FIRSTs are important in one degree or another.

I got home for the weekend and to work a couple of days remotely. Today I went to the FIRST Football (Soccer) game of our eldest grandson. ( #4).

He was excited. His parents, His MorMor and MorFar (Mom's Mom & Mom's Dad) and his friend who is on the same team.

Axel's mom talked with him in the weeks leading up to the game. I got to talk with him last night. His coaches talked with him (and the rest of the team) this AM.

Who is your Tax Coach?

When we get new filers (usually from generational referrals) we take the time to talk with them. Why are they paying? Do they need to withhold until they are making more money? Tax savings (IRA and other tax saving mechanisms). It is a great teaching experience for them. I really appreciate it when their parents are present as well as they smile because they have talked with their kids in the same manner but since it is coming from a Tax Professional then it is a differnet chat.

We appreciate our young and old and everyone in between clients.

07/19/2026

IRS Announced a great change late last week.

Many of you have heard of and benefited from a "First Time Abatement" or FTA. This is the process wherein you have been assessed Penalties (Failure to Pay or Failure to File for most people and for businesses Failure to Deposit). This was a process that a taxpayer had to REQUEST relief, either via a form or on the phone.

IRS Announced a new program, phasing in now, called "Automatic Exemption from Penalty" or AEP. With this program neither you, the taxpayer, nor the tax preparer has to do anything. The AEP is being phased in and applies to Individual (1040s) filed in 2025 and will be used for Businesses in the 2026 calendar year.

This new program is supposed to be in place completely for the 2026 filings (due in 2027). Here is a link to the IRS press release.

For those that have submitted an FTA (843) let it process but know that this program will allow for easier processing (our hope - wink wink).

https://www.irs.gov/payments/administrative-penalty-relief

As with the FTA there are conditions that apply.

Individuals have to have filed a timely return for the same type of return (for example, a 1040 form), if required to do so

and

either no IRS penalties were assessed against you (other than an estimated tax penalty), or any penalties against you were waived for reasonable cause or an IRS mistake.

For Businesses facing a failure-to-deposit penalty, AEP relief will only be granted if the:

IRS's didn't waive a failure-to-deposit penalty four or more times during the previous three years (or 12 consecutive quarters) or

penalty being waived wasn't for Electronic Federal Tax Payment System avoidance.

Have a great rest of the Month!!!

Learn about penalty relief and if you qualify for relief from a penalty by administrative waiver.

07/11/2026

Awesome News!!! No longer will there be a need for a FTA. The IRS will, starting this Summer phase out the FTA and be able to process penalty abatements without a request from the taxpayer.

IR-2026-83, July 8, 2026 — The Internal Revenue Service today announced a new automatic process to provide penalty relief for taxpayers with a history of filing and paying on time, reducing the need for them to request assistance.

01/30/2026

Talk about fast....we filed for a client on Monday AM and they got their refund today - 4 DAYS!!!

HOLY COW!!!!!!!!!

01/21/2026

Two Important Items for ALL to be aware of.

(1) An Executive Order (14247) was signed and this requires that REFUNDS from the IRS now are direct deposit ONLY. I can lend you my account if you don't have one, but I keep the money :)

Amounts your owe will be implemented soon, so you should be prepared for that as well. I won't lend you my account for the payment, however :)

(2) The USPS has CHANGED how the process mail. The Post Office you drop your mail or the box in which you drop the mail will most likely NOT BE the one that CANCELS your MAIL. As such, the date that your payment to the IRS or FTB or other agency might be CONSIDERED LATE. For example....Paradise PO sends the mail to SAC RA TA MATO to be processed. As such SACTO is the one that stamps the mail based on the PROCESSING DATE.

The FTB has issued a warning today to make sure (1) You mail your payments before the due date or (2) You have Direct Debit when your return is filed or (3) You Pay On-line electronically.

FTB is alerting taxpayers and tax professionals to recent updates to the USPS transportation procedures that may affect postmark dates on mailed tax returns, payments, and other time-sensitive correspondence.

01/09/2026

Are you ready????

We are!!!!

IR-2026-02, Jan. 8, 2026 — The Internal Revenue Service announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season. This year, several new tax law provisions of the One, Big, Beautiful Bill become effective, which could impact federal taxes, credits and deductions.

12/02/2025

Hope you all enjoyed your Thanksgiving.
Electronic Organizers have been sent.

11/13/2025

We encourage you all to go update your withholding.

Public Law 119-21, commonly known as the One, Big, Beautiful Bill Act (OBBBA), contains several new or enhanced deductions that individuals can claim. Many of these deductions are available beginning in 2025. If you are an employee and want to account for these deductions in the income tax withheld....

11/02/2025

Remember the IRS does not communicate this way.

https://m.facebook.com/story.php?story_fbid=1233038558869864&id=100064911930482&mibextid=Nif5oz

Watch out for a scam email that may read, ‘Notification of IRS Audit & Investigation.’ The email may direct you to download a “secure” file (in some cases via sites like Cognito Forms) and submit documentation, but in fact the link leads to a fraudulent site that may steal your data or install malware. For more info on phishing scams, go to www.IRS.gov/phishing