Gina-Maria Magel CPA PLLC

For cash-based businesses, meticulous recordkeeping is essential. Because cash transactions are harder to verify, they increase the risk of underreporting income and attracting IRS scrutiny. The IRS closely monitors such businesses, using tools like cash flow analysis, bank deposit comparisons and lifestyle audits to estimate actual income. If discrepancies arise, the IRS may calculate your income based on estimates, potentially resulting in higher taxes than necessary. Contact us for help with your business at (480) 529-5001.

With major tax law changes taking effect this year and next, tax planning is more important than ever. Don’t wait to talk with us until it’s time to prepare your tax return! Let’s review your situation, find opportunities and boost your tax confidence now. Call us at (480) 529-5001.

Do you owe taxes you can’t pay? Don’t assume you’re out of options. We can negotiate with the IRS on your behalf to discuss the possibilities, such as a tax payment plan that works for you. Contact us at (480) 529-5001 for help.

The IRS has announced its annual inflation-adjusted income tax brackets and other amounts. For 2026, the highest rate (37%) will apply to taxable income over $640,600 for singles and heads of households ($768,700 for married couples filing jointly and $384,350 for married taxpayers filing separately). The standard deduction is increasing to $16,100 for singles and married taxpayers filing separately ($32,200 for married couples filing jointly and $24,150 for heads of households). Single filers age 65 or older will be eligible to take an additional deduction of $2,050 ($1,650 per spouse for married filers). Alternative minimum tax exemptions and adoption credits are among the other items that have been adjusted for 2026. Contact us at (480) 529-5001 if you have questions about the impact of inflation adjustments on your tax situation.

Tax penalties can feel like dragging a ball and chain. They may happen even when you’ve done your best to comply with tax law. Don’t panic. Penalty relief may be available. For example, if you suffered a serious illness, were a victim of a natural disaster, or relied on bad advice from the IRS, you may qualify for penalty abatement. A penalty may arise from actions such as filing late, making a late tax payment or missing a deposit. If you receive an IRS notice that you think is incorrect or unjust, you don’t have to tackle it alone. Contact us at (480) 529-5001 for help with this matter.

Sponsoring a qualified retirement plan is a tried-and-true way to help attract and retain employees. Among the most popular options is a 401(k). Your business’s contributions are tax deductible, and you may be able to use matching and a vesting schedule to encourage employees to stay with your company. But 401(k)s come in many varieties. Please contact us at (480) 529-5001 for help choosing the right one for your business (or another type of retirement plan).

It’s time to take control of your tax bill! As the year winds down, smart businesses ramp up tax planning. The 4th quarter is your chance to make moves to lower your 2025 tax bill. For example, buy qualifying equipment and put it into service before year-end to take advantage of depreciation deductions, which due to recent tax law changes are now even better. Accelerate or defer income depending on your projected tax bracket for this year and next. These are only a couple of the strategic steps you can take. Contact us at (480) 529-5001 to schedule a year-end tax planning session.

The IRS Business Tax Account (https://bit.ly/41olHi3) provides information to sole proprietors, partners of partnerships, and shareholders of S corps and C corps. Eligible business taxpayers who set up an account can use the hub to make electronic payments, schedule or cancel future payments and access other tools. They can also view their current balances, payment history and other business tax records, as well as digital copies of select IRS notices. A newly added Income Verification Express Service enables lenders to easily access the income records of a business borrower (if authorized by the taxpayer). Contact us at (480) 529-5001 with any tax questions.

Your business can claim a tax credit for qualified expenses paid or incurred when providing child care for employees. Beginning in 2026, the One Big Beautiful Bill Act increases the percentage of qualified expenses that can be taken into account for purposes of claiming the employer-provided child care credit. It also increases the maximum credit. Contact us at (480) 529-5001 with questions.

Thinking of buying equipment, vehicles or other fixed assets to claim recently expanded tax breaks? Deducting the full cost is smart for tax purposes, but different rules apply under accrual-basis accounting. Fixed assets generate revenue for many years, so they should be reported on your balance sheet and gradually depreciated over their useful lives. This matches depreciation (an expense) to the revenue it generates, resulting in consistent, reliable profits on your income statement. Contact us at (480) 529-5001 for help reporting these assets accurately.

Estate tax laws are complex, and failing to plan could mean leaving your loved ones with less than what you’d expected. Now is the time to take action by reviewing your estate plan, updating beneficiary designations, and exploring strategies such as gifting or establishing trusts that may help minimize tax exposure. Every situation is unique, and the right approach depends on your family’s needs, assets and long-term goals. Contact us at (480) 529-5001 to ensure that your estate is structured in the most tax-efficient way possible.

Have you recently changed jobs? You may want to roll over funds in your former employer’s 401(k) plan to an IRA. But there’s a tax trap for the unwary. You can avoid it by arranging for a direct trustee-to-trustee transfer from the plan to your IRA. Why a direct transfer? If you receive 401(k) funds in a check or electronic transfer that’s payable to you, your employer must withhold 20% of the taxable amount for federal tax. Then, you have 60 days to come up with the missing 20% and get it into your IRA. Otherwise, it’s not a tax-free rollover. In that case, you’ll owe income tax on the 20%, and if you’re under age 59½, you may also owe a 10% early withdrawal penalty. Questions? Contact us at (480) 529-5001.