C & C Tax and Accounting Inc.

10/27/2026

The High Price of Silence: Calculating the $10,000 Ghost Penalty

Is your fear of an IRS bill actually costing you more than the tax itself?

It is a common paradox in the world of tax debt. You realize you are behind, you worry about the total, and so you wait. You figure that if you do not alert the IRS to your presence, you are somehow saving money. In reality, the cost of doing nothing is a quantifiable financial leak that grows every single month. Let’s break down the math of silence so you can see exactly what staying off the radar is costing you.

Imagine you owe the IRS $10,000 from a year where you simply did not file. You might think, "I’ll just wait until I have the full $10,000 before I come forward." That logic is a trap. The IRS applies a Failure to File penalty of 5% of the unpaid taxes for each month or part of a month that a tax return is late. This penalty caps at 25%.

On a $10,000 debt, that is an extra $500 per month just for not sending in the paperwork. Within five months, your $10,000 debt has ballooned to $12,500. This does not even account for the Failure to Pay penalty or the daily compounded interest. By the time you finally "feel ready" to face the music a year later, that original $10,000 could easily be $14,000 or more. You are effectively paying a 40% premium for the "luxury" of staying hidden.

The benefit of filing now, even if you cannot pay a single dime of the $10,000, is immediate. Filing stops that 5% monthly penalty in its tracks. You immediately lower your long-term cost by thousands of dollars just by signing your name to a return.

Furthermore, when you don't file, the IRS may eventually file for you. This is called a Substitute for Return (SFR). The IRS calculation for an SFR is never in your favor; they do not look for your deductions, business expenses, or credits. If your actual tax liability was $6,000, but the IRS SFR assessment says you owe $10,000, you are losing $4,000 simply because you let a computer do your accounting.

There is a path out of this cycle. Once you are in "tax compliance"—meaning your returns are filed—the IRS is surprisingly willing to negotiate. We can explore options like an Installment Agreement to pay over time, or an Offer in Compromise to settle the debt for less than you owe. We can even request a penalty abatement to potentially wipe away those extra charges if you have a reasonable cause.

Stop the financial bleeding today. If you have unfiled returns, the cost of waiting is higher than the cost of resolving. Contact our firm for a confidential consultation, and let us help you stop the clock on those penalties.

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Contact us today for a confidential consultation:

Carl Timmerman
C & C Tax and Accounting
[email protected]
3604487009

10/27/2026

Accurate W-2 Reporting Is Required to Deduct 2026 Overtime – Did You Know?

Eligible taxpayers may deduct up to $12,500 of qualified overtime compensation ($25,000 for joint filers) on their 2026 federal income tax returns without itemizing. The deduction begins phasing out when modified adjusted gross income exceeds $150,000 ($300,000 for joint filers). Married taxpayers generally must file jointly. Qualified overtime generally means the “half” portion of time-and-a-half pay required under the Fair Labor Standards Act. Social Security and Medicare taxes still generally apply.

For 2026, employers must report qualified overtime on Form W-2 in box 12 using code “TT.” If the amount is missing or incorrect, contact your employer and keep supporting pay stubs handy. Be sure to obtain a corrected Form W-2c (Corrected Wage and Tax Statement) if your employer omitted or incorrectly reported your qualified overtime pay.

10/20/2026

https://youtu.be/vk5YOJDlL7c

10/19/2026

Educators Have New Options to Deduct 2026 Classroom Expenses – Did You Know?

If you work as a K–12 teacher, instructor, counselor, principal or aide for at least 900 hours during the school year at a qualifying school, you may be able to deduct qualifying unreimbursed classroom expenses on your tax return.

For 2026, eligible educators may deduct up to $350 of qualifying expenses as an above-the-line deduction without itemizing, or up to $700 for a married couple filing jointly if both qualify, with a limit of $350 each.

Additionally, a new itemized deduction is available beginning in 2026 for educator expenses, with no separate dollar cap. You must itemize deductions to claim this additional deduction. It is also available to interscholastic sports administrators and coaches who meet the K–12 school and 900-hour requirements, and may cover additional expenses.

Eligible educators may claim both deductions, as long as the expenses used to figure each deduction do not overlap. A tax professional can help you determine whether you qualify and which deduction strategy yields the greatest possible tax savings.

10/16/2026

Tax season has Henrietta’s feathers ruffled!

Join Henrietta the chicken as she tackles her tax return with reading glasses, a calculator, and a mountain of receipts. If tax paperwork has ever made you want to squawk, this one’s for you.

Enjoy a little tax-season humor from C & C Tax and Accounting, Inc.

Visit us: https://www.candctaxes.com

For entertainment only. This video does not provide tax or legal advice.

10/12/2026

October 15 Filing Extension Deadlines

Taxpayers who timely requested an extension to file their 2025 federal income tax returns generally must file by Thursday, October 15, 2026. The same deadline generally applies to calendar-year C corporations that received an extension to file their 2025 corporate returns (Form 1120).

In addition, U.S. persons with a financial interest in or signature authority over foreign financial accounts whose combined value exceeded $10,000 at any time during 2025, and who are required to file a Report of Foreign Bank and Financial Accounts (FBAR), generally must file by October 15, 2026. The FBAR extension is automatic; no extension request is necessary.

10/09/2026

Uber & Lyft Drivers: Taxes You Need to Know | C&C Tax and Accounting

10/05/2026

Up to $5,120 of the Adoption Tax Credit Is Refundable for 2026 – Did You Know?

The Adoption Tax Credit helps eligible families manage qualified costs such as adoption fees, travel, legal services and home studies. In recent years, the credit was nonrefundable: it could reduce a person's federal income tax, but any unused amount generally had to be carried forward.

Under rules that took effect in 2025, part of the credit is now refundable. For tax year 2026, up to $5,120 per eligible child may be refundable, even if the taxpayer owes no federal income tax. Any unused nonrefundable portion may be carried forward for up to five years, but a carryforward cannot become refundable in a later year.

The Adoption Tax Credit is subject to income limits and other restrictions, and the timing of a claim depends on the circumstances of the adoption. A tax professional can help determine whether you qualify and how much credit you may claim.

10/05/2026

09/29/2026

Enhanced Tax Credit Can Help Cover 2026 Childcare Costs – Did You Know? (2/2)

If you pay for care for your child under 13 years of age, or for your spouse or other dependent who requires help with basic self-care, then you may qualify for a federal tax credit. The Child and Dependent Care Tax Credit (CDCTC) can help reduce your federal income tax based on care expenses that you pay in order to work or seek work.

The CDCTC is calculated as a percentage of eligible care expenses. As in the past, the credit is subject to phase-down ranges, meaning that the maximum credit amount may decrease based on a person's adjusted gross income (AGI). However, new rules that took effect this year have significantly increased the maximum credit amount for people with AGIs both below and within the phase-down ranges.

For example, a married couple filing a joint return with an AGI of $75,000-$150,000 may qualify for a credit of up to 35% of eligible care costs, up from 20% in 2025. Meanwhile, a single filer with an AGI of $15,000 or less may be entitled to a credit equaling 50% of qualifying expenses. Above $15,000, the rate gradually declines, reaching 35% once AGI exceeds $43,000. A tax professional can help you determine whether you qualify for the CDCTC, and if so, what percentage you may use to figure your credit amount.