Louisa L. Russell, CPA

09/11/2025

As a reminder, beginning Sept. 30, 2025, the federal government will no longer issue paper checks, including those for tax refunds, Social Security benefits and more. Also, certain federal agencies, such as the Dept. of Labor (DOL) will stop ACCEPTING payments by paper check. This is part of a program to modernize payments, “improve efficiency in processing payments and reduce administrative burdens,” the DOL said. Historically, the government stated that checks issued by the Dept. of the Treasury are more likely to be lost, stolen or subject to other forms of fraud. Taxpayers who don’t already have a bank or credit union account should act now to open one. Contact us with questions.

09/10/2025

The U.S. Treasury Dept. has released a draft list of occupations it proposes to be eligible for a federal tax break on tips. The list contains 68 jobs, broken into eight categories: 1) beverage/food service, 2) entertainment/events, 3) hospitality / guest services, 4) home services, 5) personal services, 6) personal appearance / wellness, 7) recreation/instruction and 8) transportation/delivery. Job titles include wait staff, hotel maids, musicians, babysitters, golf caddies, delivery people, rideshare drivers, plumbers, home movers and digital content creators. For 2025 through 2028, eligible taxpayers can deduct tips up to an annual maximum of $25,000, even if they don’t itemize.

09/09/2025

If you’re a taxpayer who must make quarterly estimated tax payments, don’t let the next due date sneak up on you. The third estimated payment for 2025 is due Sept. 15. Generally, you’ll need to make estimated payments if you earn taxable income that isn’t subject to withholding or if you expect to owe at least $1,000 when you file. These payments cover not just income tax, but also self-employment tax and more. With the growth of the gig economy, many workers, such as rideshare drivers, are now required to make estimated payments to avoid penalties. Contact us if you’d like more information, or click here: https://bit.ly/4oQadyE

09/09/2025

When your business hires independent contractors, you’re generally not responsible for withholding tax from their compensation. But there are circumstances in which you should withhold a certain percentage of tax (backup withholding) to help ensure the IRS receives it. The most common reason is that a contractor has failed to provide a valid Taxpayer Identification Number, such as a Social Security number. In such cases, you should withhold 24% of the payment and deposit that amount with the IRS using Form 945. At the end of the year, provide the contractor with a Form 1099 that reports the amount you paid and the amount you withheld.

09/05/2025

09/04/2025

Don't forget the coffee and doughnuts tomorrow!

09/04/2025

As summer gives way to fall, many businesses begin their annual budget-setting processes. Here are five ways to improve this often-difficult task: 1) Optimize data to eliminate confusing or conflicting information that could hamper budget performance. 2) Involve the entire organization to gain insights from each department’s knowledge base. 3) “Sell” your budget to staff, clearly explaining its rationale and objectives. 4) Once the budget is in place, monitor cash flow carefully and create a plan for shortfalls. 5) Get an objective opinion on your budgeting process. We can show you how to better analyze historical financial data, identify cost-saving opportunities and more.