Bruce Downs CPA

Bruce Downs CPA We are a full-service accounting firm and Certified QuickBooks ProAdvisors. We specialize in the co

09/23/2026

Are You Leaving Money to Charity in Your Will?

If you have decided or are considering to leave money to a charity in your will, there may be a more tax-efficient way to accomplish your charitable goals.

If you have a traditional IRA or another retirement account containing pre-tax funds and a family member or friend is named as the beneficiary...consider whether it would make sense to name the charity as the IRA beneficiary instead... and leave the cash or other assets you intended for the charity to your family member or friend through your will.

Why consider this?

The charity generally does not pay income tax on the IRA funds it receives, while your individual beneficiaries may owe income tax when they receive distributions from a traditional IRA.

By coordinating your IRA beneficiary designations with your will, you may be able to accomplish the same charitable gift while potentially reducing or eliminating any tax liability for the people you care about.

This is an estate-planning strategy worth discussing with us and your estate-planning attorney before making any beneficiary changes.

08/17/2026

If you receive an IRS Notice CP14-432RA, please disregard it. This notice is a scam.

It refers to signing up for an IRS Digital Asset Compliance Portal (DACP). The IRS does not have such a portal.

This is also a good reminder of why we encourage every client to create an account directly at IRS.gov. Having an IRS online account allows you to verify notices and other information directly with the IRS if you ever receive something that seems suspicious.

When in doubt, please contact us before responding to any unexpected IRS notice or request.

07/13/2026

The IRS has announced a new mileage rate that starts on July 1, 2026. The rate for business driving is increasing from 72.5 cents per mile to 76 cents per mile.

Because of this change, when you fill out our 2026 Tax Organizer, you'll need to separate your business mileage into two time periods:

January 1, 2026 – June 30, 2026
July 1, 2026 – December 31, 2026

If your employer or business reimburses you for mileage, be sure to use the correct rate for each period of the year.

The IRS also increased the mileage rate for medical travel, from 20.5 cents to 23.5 cents per mile, effective July 1, 2026.

05/16/2026

Because IRA and HSA contributions for 2025 could be made by April 15, 2026 (just over a month ago), the custodian of those accounts may indicate to you that a Form 5498 for 2025 is now available to you.

Likely we received the information on that form from you previously, but still it is a good idea to forward us a copy or upload to your account in our LINK portal link.intuit.com .

04/15/2026

Today is the last day to make a Traditional or Roth IRA contribution and have it count toward 2025. For guidance on how you would benefit please contact us and/or your financial advisor... don't let this opportunity slip away. Be sure to designate the payment as for 2025.

In fact while you are it, if you have the funds available, you can make your 2026 contribution at the same time. Note that the maximum is now $7,500 for 2026 or $8,600 if you are 50 or older.

Finally, today is also the last day to make a contribution to a Health Savings Account and have it count toward 2025... in our opinion the best tax/retirement strategy available. Contact your company's Human Resource Department or directly to your health insurance carrier to find out if your insurance is HSA-eligible.

Feel free to contact us for more information about this "hidden" tax savings tool. And don't forget to pay taxes online today per the "Betty Crocker" instructions posted yesterday.

Also, for those of you in Alabama, you can pay state taxes online by 4:00 today and meet the deadline (The IRS lets you go until 11:59 pm tonight to pay Federal taxes.) Go to https://myalabamataxes.alabama.gov/tap/LogOff/?Ended=1 and click on Make a Payment. Have a copy of your 2024 Alabama tax return in front of you. To verify it is you, it will ask for your Alabama adjusted gross income which is on line 10.

04/14/2026

Both the balance due on your 2025 tax return and if applicable, the 2026 first quarter estimated payment are due tomorrow, April 15th. If you are extending your return, you should pay the amount of tax you are expected to owe.

Note that mail is now postmarked the day it is processed not necessarily the day that the post office receives it. To avoid costly penalties, we encourage all to make those payments online.

Here is how to make a payment of the Federal balance due on your 2025 tax return:

Go to https://directpay.irs.gov/directpay/payment?execution=e1s1 For Apply Payment to…choose Form 1040 – Income Tax from the dropdown menu. Then for Reason for Payment choose the top choice Balance Due. For Tax period for Payment type 2025 and then press CONTINUE.

On the next screen it first asks you for Tax Year for Verification, choose 2024 . Then enter your information as shown on the 2024 tax return (if married, enter info for the one listed first on the return). The remainder is just completing more of your information including bank account.

Here is how to make a payment of the 2026 Federal first quarter estimated tax payment:

Go to https://directpay.irs.gov/directpay/payment?execution=e1s1 For Apply Payment to…choose Form 1040 – Income Tax from the dropdown menu. Then for Reason for Payment choose Estimated Tax For Tax period for Payment type 2026 and then press CONTINUE.

On the next screen it first asks you for Tax Year for Verification, choose 2024 . Then enter your information as shown on the 2024 tax return (if married, enter info for the one listed first on the return). The remainder is just completing more of your information including bank account.

Finally, here is how to make a extension payment for your 2025 return:

Go to https://directpay.irs.gov/directpay/payment?execution=e1s1 – For Apply Payment to…choose Form 1040 – Income Tax from the dropdown menu. Then for Reason for Payment choose Extension. For Tax period for Payment type 2025 and you will be on your way.

On the next screen it first asks you for Tax Year for Verification, choose 2024 . Then enter your information as shown on the 2024 tax return (if married, enter info for the one listed first on the return). The remainder is just completing more of your information including bank account

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