The Tax Elite

Everyone worries about their refund in April, but the biggest tax savings happen long before then.

Good tax planning isn’t about finding deductions at the last minute, it’s about making the right decisions throughout the year.

If you own a business or have a more complicated tax situation, now is the time to start planning.

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🚨 Good news from the IRS! 🚨

The IRS is making life a little easier for taxpayers who have a good track record.

Starting this summer, if you've filed and paid your taxes on time for the past 3 years, the IRS may automatically waive certain penalties if you make a mistake on a 2025 or future tax return.

No phone calls. No forms to request relief. No more asking for "First Time Abate" in many cases.

Instead, the IRS will automatically apply what's called Automatic Exemption from Penalty (AEP) if you qualify.

A few things to keep in mind:

• This does NOT erase taxes or interest owed, only certain penalties.

• If you don't qualify for AEP, you may still be eligible for penalty relief based on reasonable cause.

• During the transition, some taxpayers may still receive penalty notices and need to request relief manually.

This is a welcome change that should save taxpayers time and make the process much more straightforward.

If you receive an IRS penalty notice, don't automatically pay it. It may be worth having a tax professional review it first, you could qualify for relief.

Hi Everyone,

I will be out of the office for the next 48 hours celebrating my oldest daughter’s Quinceañera.💃🏽

During this time, I’ll be performing critical dad operations such as hosting in-laws, managing timelines, and coming to terms with the fact that my once tiny dependent is now fully depreciated… emotionally, at least.

I’ll still be checking emails and texts, but responses may be delayed until Sunday. Thanks for your patience while I enjoy this once in a lifetime milestone with my family.

I’ll be back soon, reconciled, and ready to roll.

-Eddie

Thinking of making that S-Corp Election?

Contact us today to get started!

☎️ 704-800-4410

STUDENT LOANS 🥊

EASY OVERTIME TAX EXAMPLE

Example:
• You were paid $3,000 in overtime during 2025
• Your job pays overtime at time-and-a-half

Step 1:
Take the overtime amount ($3,000) and multiply it by 1/3

Step 2:
$3,000 × 1/3 = $1,000

What this means:
• ✅ $1,000 is the part of your overtime that can be used as a tax deduction (the portion that is not taxed)
• ❌ The full $3,000 does NOT qualify only the extra overtime portion does

The announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season. You will have until Wednesday, April 15, 2026, to file your 2025 tax returns and pay any tax due. Don’t forget that IRS.gov has online tools and resources you can use before, during and after filing your federal tax return. For a list of filing season tools, reminders and resources, read: https://ow.ly/1yqq50XTweL