Ethan Aaron Tax Consultants

2026 TAX LAW CHANGES
One Big Beautiful Bill Act (OBBBA)
What You Need to Know

Beginning in 2026, several new tax provisions under the One Big Beautiful Bill Act (OBBBA) may impact your personal and business tax planning. Below is a summary of key changes and how they may affect you.

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Charitable Deduction for Non-Itemizers
Starting in 2026, taxpayers who take the standard deduction may also deduct charitable contributions up to:
• $1,000 (Single)
• $2,000 (Married Filing Jointly)

Who Benefits: Clients who give to churches, nonprofits, or community organizations but do not itemize deductions.

Planning Tip: Keep proper donation receipts even if you claim the standard deduction.

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Increased SALT Deduction Cap
The State and Local Tax (SALT) deduction cap has been increased for certain taxpayers.

Who Benefits: Homeowners and high-income earners in high-tax states.

Planning Tip: Itemizing may become more beneficial again depending on income level.

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Car Loan Interest Deduction
Interest paid on certain qualifying U.S.-assembled vehicle loans may be deductible up to a specified limit.

Who Benefits: Clients financing eligible vehicles.

Planning Tip: Save your loan statements and verify vehicle eligibility before purchase.

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Tip and Overtime Income Deduction
Certain tip income and overtime compensation may qualify for new deduction treatment.

Who Benefits: Service industry workers and hourly employees earning overtime.

Planning Tip: Maintain accurate employer documentation of qualified earnings.

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Additional Senior Deduction
Taxpayers age 65+ may qualify for expanded deduction opportunities.

Who Benefits: Retirees and clients approaching retirement age.

Planning Tip: Review Social Security taxation, IRA withdrawals, and income thresholds carefully.

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Retirement Planning Adjustments
Contribution limits for retirement accounts continue to adjust for inflation.

Who Benefits: Individuals contributing to IRAs, 401(k)s, SEP-IRAs, and similar accounts.

Planning Tip: Maximize contributions where possible to reduce taxable income.

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Why 2025 Is Important

2025 may be a strategic planning year before these provisions are fully implemented. Depending on your situation, it may be beneficial to:

• Evaluate income timing strategies
• Consider Roth conversions
• Review business structure and deductions
• Adjust charitable giving strategies
• Revisit estate and retirement planning

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If you would like to discuss how these changes may impact you or your business, please schedule a tax planning consultation.

Ethan Aaron Tax Consultants
Laruen Wilson, EA
Strategic. Accurate. Proactive.

To request help with a tax matter from the IRS Independent Office of Appeals, you typically need to follow these steps:

Attempt to Resolve the Issue Directly: Before reaching out to the Independent Office of Appeals, try to resolve the matter directly with the IRS. This might involve contacting the IRS agent assigned to your case or contacting the IRS helpline for assistance.
Prepare Your Case: Gather all relevant documents and information related to your tax issue. This may include tax returns, notices from the IRS, correspondence, and any other relevant documentation.
File a Protest: If you're unable to resolve the issue directly with the IRS, you can file a formal protest with the Independent Office of Appeals. You typically do this by submitting Form 12203, Request for Appeals Review, along with a detailed explanation of your case and why you believe the IRS's decision is incorrect.
Submit Your Request: You can submit your request for appeal by mail or, in some cases, electronically. Make sure to include all necessary documentation and information to support your case.
Wait for Response: Once your request is received, the Independent Office of Appeals will review your case and may request additional information if needed. They will then conduct an independent review of your case and provide a decision.
Review the Decision: If you disagree with the decision made by the Independent Office of Appeals, you may have further options for review, such as filing a petition in Tax Court.
Remember to be thorough and clear in your communication with the Independent Office of Appeals, and provide all necessary documentation to support your case. It's also a good idea to seek assistance from a tax professional or attorney if you're unsure about the process or need help preparing your case.

Best Regards,
Laruen M. Wilson, EA
Ethan Aaron Tax Consultants
[email protected]
(310)629-2694

If you haven't filed your tax return, it's essential to take action promptly. Here are the steps you should consider:
1. Gather Necessary Documents: Collect all the documents and information needed to complete your tax return, such as W-2 forms from your employer, 1099 forms for any income outside of employment, and records of deductions and credits.
2. File As Soon As Possible: The longer you wait, the more penalties and interest you may incur. Even if you can't pay the taxes owed, it's better to file the return and work out a payment plan with the IRS or your state tax agency.
3. File Electronically: E-filing is generally faster and more convenient than mailing a paper return. Many tax preparation software programs can help you through the process and may even offer options for payment plans if you owe taxes.
4. Pay Taxes Owed: If you owe taxes and can't pay the full amount, pay as much as you can to reduce penalties and interest. Consider setting up a payment plan with the IRS or your state tax agency to pay the remaining balance over time.
5. Penalties and Interest: Be aware that there may be penalties and interest for late filing and late payment. However, filing your return and paying as much as you can as soon as possible can help minimize these additional charges.
6. Seek Assistance if Needed: If you're unsure how to proceed or need help with your tax situation, consider seeking assistance from a tax professional or accountant. They can provide guidance and help ensure that you meet your tax obligations correctly.
Remember, while it's essential to address your overdue tax return promptly, it's never too late to file. Avoiding the issue will only lead to more significant problems down the line.

Best regards,
Laruen M. Wilson, EA
Ethan Aaron Tax Consultants
[email protected]

If you owe taxes but are unable to pay, here are some steps you can take:
1. File Your Tax Return: Make sure to file your tax return by the deadline, even if you can't pay the full amount owed. Failing to file can result in additional penalties.
2. Pay As Much As You Can: If possible, pay as much of the tax bill as you can to reduce interest and penalties. This shows good faith and may help minimize the consequences.
3. Contact the IRS or Tax Authority: Reach out to the IRS or your local tax authority as soon as possible to discuss your situation. They may be able to offer options such as an installment plan or an offer in compromise.
4. Apply for an Installment Plan: You can apply for an installment plan to pay off your taxes over time. The IRS offers various installment plan options based on your ability to pay.
5. Consider an Offer in Compromise: In some cases, you may qualify for an offer in compromise, which allows you to settle your tax debt for less than the full amount owed. However, this option is typically only available if you demonstrate significant financial hardship.
6. Explore Other Payment Options: Depending on your circumstances, you may also consider borrowing money, using savings, or selling assets to pay off your tax debt.
7. Stay in Compliance: Once you've arranged a payment plan or alternative solution with the tax authority, make sure to stay in compliance with the agreed-upon terms to avoid further penalties or legal action.
It's crucial to address tax debt promptly and proactively communicate with the relevant tax authorities to find a manageable solution.

Best regards,

Laruen Wilson, EA
Ethan Aaron Tax Consultants
(310)629-2694
[email protected]

If you're a rideshare driver or an independent contractor, you're likely subject to paying estimated taxes because taxes are not automatically withheld from your income. Estimated tax payments are typically made quarterly and are used to cover your income tax and self-employment tax liabilities.

Here's a general guide on how to estimate your quarterly tax payments:

Determine Your Expected Annual Income: Estimate your total income for the year. Consider factors such as your rideshare earnings, any other self-employment income, and other sources of income.

Calculate Your Self-Employment Tax: As a self-employed individual, you're responsible for both the employer and employee portions of Social Security and Medicare taxes, commonly known as self-employment tax. The self-employment tax rate is 15.3%. However, you can deduct the employer-equivalent portion when calculating your adjusted gross income.

Calculate Your Income Tax: Use the estimated taxable income to calculate your federal income tax. This will depend on your tax bracket, deductions, and credits.

Add Self-Employment Tax and Income Tax: Add the self-employment tax and income tax to get your total estimated tax liability for the year.

Divide by Four: Since estimated tax payments are made quarterly, divide your estimated annual tax liability by four to determine how much you should pay each quarter.

Consider State Taxes: Don't forget to account for state income taxes if applicable. The process for estimating and paying state taxes may vary depending on your state.

Account for Deductions and Credits: If you have eligible deductions and credits, take them into account to reduce your taxable income.

Use IRS Forms and Worksheets: The IRS provides Form 1040-ES along with worksheets to help you calculate your estimated tax liability. These forms can guide you through the process of estimating and paying your taxes.

Adjust as Needed: Your income and expenses may fluctuate throughout the year, so be prepared to adjust your estimated payments accordingly.

Best regards,
Laruen Wilson, EA
Ethan Aaron Tax Consultants
[email protected]
(310)629-2694

If your employer has not provided your W-2 by the due date, January 31, 2024 there are several steps you can take to address the situation. Here's a recommended course of action:

Contact Your Employer: Start by reaching out to your employer directly. Sometimes, delays happen due to administrative issues, and a simple inquiry can help resolve the situation. Politely ask when you can expect to receive your W-2.

Confirm Your Address: Make sure your employer has your correct address on file. If there's an error in your address, it might be the reason for the delay. Provide your correct address if necessary.

Check with Payroll or HR: If contacting your direct supervisor doesn't yield results, try reaching out to your company's payroll or human resources department. They may have more information or be able to expedite the process.

Request a Duplicate W-2: If a reasonable amount of time has passed and you still haven't received your W-2, ask your employer for a duplicate copy. Employers are required to provide you with a copy, and they should be willing to assist you in obtaining the necessary tax documents.

File an Extension if Necessary: If you're unable to get your W-2 before the tax filing deadline, you may need to file for an extension. This will give you additional time to gather the required documents and file your taxes without incurring penalties.

Contact the IRS: If all else fails, and you haven't received your W-2 by mid-February, you can contact the IRS for assistance. Call the IRS at 1-800-829-1040, provide them with your information, and they can guide you on the next steps.

Use Substitute Form: If you still haven't received your W-2 by the time you need to file your taxes, you can use Form 4852, Substitute for Form W-2, Wage, and Tax Statement. This form allows you to estimate your income and taxes withheld. Keep in mind that using this form may result in additional processing time for your tax return.

Best regards,
Laruen Wilson, EA
Ethan Aaron Tax Consultants
[email protected]
(310)629-2694

The term "IRS Dirty Dozen" refers to a list of tax scams that the Internal Revenue Service (IRS) compiles annually to alert taxpayers about potential threats and fraudulent activities. The list highlights common schemes, tactics, and scams that taxpayers may encounter. Please note that the specific details of the Dirty Dozen may change each year as new scams emerge.

Here's a condensed overview of the IRS Dirty Dozen:

Phishing:
Be cautious of unsolicited emails or fake websites trying to gather personal information.

Phone Scams:
Be wary of fake calls from individuals claiming to be IRS agents demanding immediate payment.

Identity Theft:
Safeguard personal information to prevent criminals from filing fraudulent tax returns.

Fake Charities:
Verify the legitimacy of charitable organizations before making donations to avoid scams.

Inflated Refund Claims:
Be cautious of preparers promising larger refunds than others without proper justification.

Social Media Scams:
Exercise caution on social media to avoid revealing sensitive personal or financial information.

EIP or Refund Theft:
Protect Economic Impact Payments (EIP) and refunds from theft or interception.

Senior Fraud:
Seniors should be vigilant against scams targeting their demographic.

Scams Targeting Non-English Speakers:
Fraudsters often exploit language barriers to deceive non-English-speaking taxpayers.

Unscrupulous Return Preparers:
Choose tax professionals wisely and be wary of those with dubious credentials.

Offer in Compromise Mills:
Be cautious of companies making unrealistic promises related to settling tax debts.

Micro-Captive Insurance Tax Shelter:
The IRS targets abusive tax shelters, including certain micro-captive insurance arrangements.

Always check the latest information from the IRS or reliable sources for the most current Dirty Dozen list and details on prevalent tax scams. Staying informed helps taxpayers protect themselves from falling victim to fraudulent activities.

Best regards,
Laruen Wilson, EA
Ethan Aaron Tax Consultants
(310)629-2694

Filing taxes is a yearly responsibility that many individuals may find daunting or, at times, overwhelming. Despite good intentions, some people may find themselves unable to meet the tax filing deadline. While filing taxes late is not ideal, it is essential to understand the consequences and take the necessary steps to rectify the situation.
Consequences of Late Filing:
1. Penalties and Interest: Filing taxes late often incur penalties and interest charges. The longer the delay, the higher the penalties may become. The Internal Revenue Service (IRS) typically charges a percentage of the unpaid taxes for each month the return is overdue.
2. Missed Refunds: Delaying the filing of your taxes means postponing any potential tax refunds. If you are owed a refund, it is in your best interest to file as soon as possible to receive the funds you are entitled to.
3. Impact on Financial Planning: Late tax filing can disrupt your financial planning and budgeting. It may lead to uncertainties regarding your tax liability, making it challenging to set aside funds for other financial goals.
4. Possible Audits: While not filing taxes does not guarantee an audit, it can increase the likelihood. The IRS may choose to investigate your financial situation more thoroughly if you consistently file late or fail to file altogether.
Steps to Take When Filing Late:
1. Gather All Necessary Documents: Collect all relevant financial documents, including W-2s, 1099s, and any other income-related paperwork. Having a comprehensive set of documents ensures accurate and complete tax filing.
2. Seek Professional Help: Seek the assistance of a tax professional. A tax professional can guide you through the process, ensuring that you meet all requirements and claim any eligible deductions.
3. File as Soon as Possible: Once you have all the necessary information, file your taxes promptly. This minimizes the accrual of additional penalties and interest and allows you to move forward with a clear understanding of your financial standing.
4. Set Up a Payment Plan (if necessary): If you owe taxes but cannot pay the full amount upfront, consider setting up a payment plan with the IRS. This can help you manage your financial obligations without incurring excessive penalties.
Conclusion:
While filing taxes late may come with its share of consequences, taking proactive steps to address the situation can mitigate the impact on your financial well-being. The key is to gather the necessary documents, file them as soon as possible, and, if needed, seek professional assistance to navigate the complexities of tax filing. Remember, addressing the issue promptly allows you to regain control over your financial affairs and avoid further complications.

Best regards,
Laruen Wilson, EA
Ethan Aaron Tax Consultants
(310)629-2694

As tax season approaches, we wanted to reach out and provide some important information to help ensure a smooth and efficient filing process. Here are a few key points to consider as you prepare for the upcoming tax season:

1. Gather Your Documents: Start collecting all necessary documents related to your income, expenses, and deductions. This may include W-2s, 1099s, receipts, and any other relevant financial statements. Having these documents organized will streamline the preparation of your tax return.

2. Update Personal Information: If there have been any changes to your personal information, such as a change of address, marital status, or dependents, please inform us promptly. Accurate information is crucial for filing an error-free tax return.

3. Review Tax Law Changes: Stay informed about any changes in tax laws or regulations that may affect your tax situation. We are here to help interpret these changes and provide guidance on how they may impact your specific circumstances.

4. Schedule a Planning Session: If you have experienced significant life changes or financial events during the past year, consider scheduling a planning session with us. This will allow us to assess any potential tax implications and develop strategies to optimize your tax position.

5. Explore Tax Credits and Deductions: Be aware of available tax credits and deductions that you may qualify for. This can help minimize your tax liability and maximize your potential refund. We can assist you in identifying and claiming all eligible credits and deductions.

6. Organize Business Records: For business owners, ensure that your business records are well-organized. This includes financial statements, business expenses, and other relevant documents. Organized records make it easier to prepare accurate business tax returns.

7. Plan Ahead for Estimated Payments: If you are required to make estimated tax payments, plan ahead to avoid any potential penalties. We can assist you in determining the appropriate amounts and due dates for these payments.

Remember that we are here to support you throughout the entire tax season. If you have any questions or concerns, please don't hesitate to reach out to us. Your cooperation and proactive approach will contribute to a successful and stress-free tax filing experience.

Thank you for entrusting us with your tax needs. We look forward to working with you to achieve the best possible outcome.

Best regards,

Laruen Wilson, EA
Ethan Aaron Tax Consultants
(310)629-2694

Are you ready to optimize your financial game? 🚀 We're here to help you navigate the complex world of taxes and maximize your returns! 💰

At Ethan Aaron Tax Consultants, we specialize in personalized tax solutions tailored to your unique needs. Whether you're an individual, business owner, or freelancer, our experienced team is dedicated to ensuring you get the most out of your tax situation.

Why choose us?
✅ Expertise: Our seasoned professionals stay up-to-date with the latest tax laws to provide you with accurate and reliable advice.
✅ Personalized Service: Your financial goals are our top priority. We work closely with you to understand your situation and develop a customized tax strategy.
✅ Stress-Free Filing: Say goodbye to tax season headaches! We handle the paperwork and guide you through the process, making it a breeze for you.

Ready to experience a seamless tax season? 🚀 Connect with us today to schedule a consultation and discover how we can help you save money and achieve your financial goals.

📞 (310)629 - 2694
📧 [email protected]

Let's make this tax season your most rewarding one yet! 💼💡