Conner Ash P.C. - Certified Public Accountants and Business Consultants

10/16/2026

October is Cybersecurity Awareness Month, and the IRS is urging Americans to protect their personal data from hackers and other fraud perpetrators. Always use strong passwords, updated security software and multifactor authentication. Many security experts also advocate using “passkeys” when possible. The IRS says that tax identity theft remains a real threat. So individual and business taxpayers should employ IRS tools, such as the Identity Protection PIN, Online Account for Individuals and Business Tax Account. Also ignore any unexpected phone, email or text messages that claim to be from the IRS. If you receive a suspicious message, report it to IRS.gov/SubmitATip.

10/15/2026

In a Sept. 24, 2026, letter to the IRS and U.S. Treasury Dept., the American Institute of CPAs (AICPA) urged regulators to change how the 15% corporate alternative minimum tax (CAMT) applies to financially distressed companies. The AICPA says that forgiven debt should match regular income tax rules to reduce compliance burdens and prevent unexpected tax owed. It also recommends excluding bankruptcy-related income and certain gains to make the restructuring process easier and more likely to succeed. Further, the AICPA says companies emerging from bankruptcy shouldn’t be assessed the CAMT based on their pre-bankruptcy adjusted financial statement income.

10/15/2026

Business owners often have more complex tax situations that can trigger an IRS audit. The good news is that with proper preparation, detailed records and professional guidance, you can make the process far less stressful.

Some returns may be selected randomly, but the IRS also has some audit hot buttons. Examples include significant differences between current and prior-year returns, repeated business losses, profit margins and expenses that differ substantially from similar businesses, and mathematical errors.

If you receive an IRS notice, don’t panic; contact us immediately. We can help you understand the issues, gather the needed documents and respond to the inquiries effectively.

10/14/2026

Planning to sell appreciated investments before year end? Don’t overlook the net investment income tax (NIIT). A large capital gain could push your modified adjusted gross income (MAGI) above the NIIT threshold ($200,000 for single filers, $250,000 for married joint filers or $125,000 for married filing separately), potentially increasing your tax bill. The NIIT equals 3.8% of the lesser of net investment income or MAGI above the threshold. Net investment income generally includes taxable interest, dividends, capital gains, rents and royalties. Before selling highly appreciated investments, contact us. We can help assess your potential NIIT liability and discuss ways to limit your exposure.

10/14/2026

Voluntary wage and hour audits can help employers identify compliance problems before they lead to worker complaints and regulatory investigations. Under this process, your organization internally reviews key areas such as minimum wage and overtime practices, worker classification, timekeeping, payroll records, and wage deductions. An audit should also address off-the-clock work and applicable meal and rest break rules. Be sure to account for state and local requirements, which may be stricter than federal law. Contact us for help gathering the relevant payroll information, assessing the financial implications of any issues uncovered and coordinating with legal counsel as appropriate.

10/13/2026

The IRS has provided a safe harbor for certain exchange-traded digital asset trusts. Under Rev. Proc. 2026-20, qualifying trusts that hold cash and one type of digital asset on a permissionless proof-of-stake network can earn staking rewards without jeopardizing their status as investment trusts or grantor trusts for federal tax purposes. The safe harbor includes requirements for custodians, staking providers, liquidity management and reward distributions. Existing trusts have six months after Oct. 6, 2026, to comply. For investors, the guidance provides clearer rules for how qualifying trusts can earn and distribute staking rewards. Contact us with questions.

10/13/2026

When buying a business, financial due diligence is essential. Start by reviewing financial statements, tax returns and the accounting records behind the numbers. Receivables, inventory, bank reconciliations and related-party transactions may reveal risks that aren’t obvious at first glance. Adjustments may also be needed for expenses or financial arrangements that won’t continue after the sale. An independent quality of earnings (QoE) report can provide additional insight into whether reported earnings are sustainable. New U.S. Small Business Administration guidance requires QoE reports for certain change-in-ownership transactions. Contact us for help navigating the due diligence process.

10/12/2026

Selling an investment in a taxable account at a loss can help reduce your federal tax bill, but beware of the wash sale rule. If you sell securities at a loss and buy substantially identical securities within 30 days before the loss sale date or 30 days after that date, the IRS generally disallows the loss deduction. However, the loss isn’t necessarily gone forever. It’s typically added to the cost basis of the replacement securities, potentially reducing taxable gains or increasing your tax loss when you sell the replacement securities. Before harvesting investment losses, contact us to discuss strategies for avoiding costly tax surprises.

10/12/2026

10/12/2026

Retirement is far from most teenagers’ minds when they get their first jobs. But those early earnings create a significant tax-advantaged savings opportunity. Even modest IRA contributions now can substantially multiply over time. For example, just $2,000 contributed to an IRA earning 5% annually will grow to nearly $23,000 50 years later. A Roth IRA can be especially powerful because qualified distributions will be tax-free. For 2026, the annual contribution limit for IRAs is the lesser of taxable compensation or $7,500. 2026 contributions can be made until April 15, 2027, but the income to support them must be earned by Dec. 31, 2026. Contact us to discuss tax-smart planning for your teen.