C&C Tax Solutions, Inc.

08/29/2026

Don’t wait for April.

Tax season may still be months away, but many tax-planning decisions have to be made before the year is over. Once December 31 passes, some opportunities are simply gone.

If 2026 has brought a new business, a property sale, retirement, a large investment gain, or a significant change in income, now may be a good time to make sure your estimated payments are on track and see whether any year-end planning makes sense.

A little planning now can help prevent an unpleasant surprise later.

08/28/2026

One Tax Document People Often Forget About

Most people know to save their W-2s and 1099s.

One thing that often gets overlooked is the closing statement from a home purchase or sale.

Those documents can contain information that may matter years later, including certain costs connected with buying or selling the property, property tax adjustments, and other amounts that can affect the home’s tax basis or the gain when it is eventually sold.

The same goes for records of major improvements.

A new roof, remodeled kitchen, room addition, new windows, HVAC replacement, major landscaping, and similar improvements may not affect your tax return this year, but they could matter when the property is sold.

And that sale may be many years down the road, when tracking down old paperwork is much more difficult.

A simple solution is to keep a permanent house file. Save the purchase documents, add records for major improvements as you go, and keep the sale documents when the property is eventually sold.

Not every tax record needs to be kept forever.

Some records are worth holding onto.

08/21/2026

Sometimes the Best Way to Learn Something Is to Teach It

I recently ran across a name for something I have probably understood for years without realizing it had a name: the Feynman Technique.

The basic idea is simple. If you want to know whether you really understand something, try explaining it to someone else in plain language.

If you cannot explain it clearly, there is probably still a gap in your own understanding.

That brought back memories of college. I used to tutor other students. I am sure it helped them, but if I am being truthful, it probably helped me just as much. Having to explain a concept forced me to understand it beyond simply knowing how to get the right answer.

I was reminded of that recently while working through an unusually technical tax issue.

I had the instructions. I had the forms. I had the numbers. I had plenty of research.

But the issue did not really click until I found myself trying to explain, in simple terms, why one number was moving while another was not.

Once I could articulate the problem clearly, the answer started becoming much easier to see.

That is probably useful beyond taxes.

There is a big difference between recognizing an answer and understanding an answer. It is easy to read something and think, “Yes, that makes sense.” It is much harder to explain why it makes sense without leaning on somebody else's wording.

So the next time you are trying to learn something complicated, try teaching it, even if the only person you are teaching is yourself.

You may be surprised by what you discover you understand.

And perhaps more importantly, by what you discover you don't.

Feynman technique

08/12/2026

Skimming and Shimming: Two Scams Worth Knowing About

This isn’t a tax topic, but it is the kind of thing I think is worth passing along.

Most of us use a debit or credit card several times a week without giving the card reader much thought. Unfortunately, criminals count on that.

Skimming usually involves a device placed on or inside an ATM, gas pump or store card reader. The device captures information from the magnetic stripe on your card. In some cases, criminals also use a hidden camera or fake keypad to capture your PIN. The FBI says skimming costs consumers and financial institutions more than $1 billion each year.

Shimming is a little different. A “shimmer” is a very thin device placed inside a card reader, where it can interfere with or capture information from a chip-card transaction. Because it sits inside the machine, there may be little or nothing visible from the outside.

So what can you do?

Before using an ATM or card reader, take a quick look at it. If something looks loose, crooked, raised or out of place, use another machine. When entering a PIN, cover the keypad with your hand. If tap-to-pay is available, that can also reduce exposure to some common skimming methods. The FBI and Secret Service both recommend being cautious with outdoor or unattended terminals and using well-lit or indoor ATMs when possible.

It is also a good idea to turn on transaction alerts for your bank and credit-card accounts. A text or app notification may be the first sign that someone has your card information.

And if you see a transaction you do not recognize, do not wait. Contact the card issuer right away.

The technology behind these scams keeps changing, but the basic advice is pretty simple:

Take a few seconds to look at the machine before you use it, protect your PIN, and keep an eye on your accounts.

It may save you a much bigger headache later.

08/07/2026

A Small 2026 Tax Break That’s Worth Keeping Receipts For

One of the quieter tax changes for 2026 could help people who give to charity but do not itemize deductions.

Beginning in 2026, taxpayers who take the standard deduction may still be able to deduct certain cash contributions to qualified charitable organizations:

Up to $1,000 for single filers
Up to $2,000 for married couples filing jointly

That makes recordkeeping more important again, even for people who normally do not itemize.

If you make charitable contributions during the year, keep something that shows:

the name of the organization
the date of the contribution
the amount given
whether you received anything in return

For non-cash donations, keep a description of what was donated and information supporting its value.

Also, not every organization qualifies for a tax deduction, so it is always a good idea to make sure the charity is eligible before assuming the contribution will count.

The tax savings may not be huge, but if you are already giving to organizations you care about, there is no reason to miss a deduction simply because the paperwork was not kept.

A little recordkeeping now can save some frustration at tax time.

08/07/2026

A Big Refund Isn’t Always a Good Refund

An IRS Criminal Investigation case out of Kansas City is a good reminder that a tax return should be accurate first and impressive second.

According to the IRS, a paid preparer pleaded guilty to helping file false returns that included fraudulent sick and family leave credits, improper fuel tax credits, and inflated federal withholding. The preparer reportedly found clients through Facebook and charged anywhere from $500 to $14,840 per return.

The numbers were substantial. The IRS says 156 returns claimed more than $4 million in refunds, with nearly $690,000 actually paid out. The preparer was sentenced to 18 months in federal prison and ordered to pay more than $730,000 in restitution.

Most taxpayers are not trying to do anything wrong. But this is still worth paying attention to because refund promises can be tempting.

If someone tells you they can get you a much larger refund than anyone else, the important question is not simply, “How much?”

It is:

“Why am I entitled to it?”

You should be able to understand the basic reason a credit or deduction is being claimed on your return. Be especially cautious when a preparer promises unusually large refunds, invents credits you have never heard of, or seems more interested in the size of the refund than in asking questions and reviewing documentation.

A legitimate tax preparer should be willing to explain what is being claimed and why it applies to you.

There is nothing wrong with receiving every dollar the tax law allows.

There is a very big difference, however, between finding legitimate tax benefits and manufacturing a refund that was never yours to begin with.

May 14, 2026 — A Kansas City, MO, woman was sentenced in federal court for filing false tax returns for others.

07/30/2026

Stories like this are frustrating to those of us who take this work seriously.

There is legitimate tax planning, and then there is simply making up deductions, businesses and credits that do not exist. Those are two entirely different things.

Taxpayers should review their returns and ask questions about anything they do not recognize or understand. A preparer should make a good-faith effort to prepare the return correctly based on the information provided, but the return is ultimately filed under the taxpayer’s name.

June 4, 2026 — Oladapo Olagbemi, a longtime certified public accountant, pleaded guilty in federal court today, admitting that he filed thousands of false income tax returns on behalf of clients that resulted in more than $5 million in improper deductions and credits.

07/29/2026

This is an extreme case, but it is also a reminder of how much trust taxpayers place in the person preparing their returns.

A tax preparer is not merely entering numbers into software. We are often given access to Social Security numbers, banking information, business records and nearly every other aspect of a client’s financial life. That responsibility should never be taken lightly.

Federal prosecutions for fraud related to COVID-19 are still catching up to defendants, with the Department of Justice reporting a Castaic man has recently pleaded guilty to reporting false information on […]

07/28/2026

California’s Proposed “Billionaire Tax”

There is a proposed California ballot initiative being called the “Billionaire Tax.”

First, this is only a proposed initiative at this point. That does not necessarily mean it has qualified for the ballot.

Despite the name, it would not be an additional tax on a billionaire’s annual income. It would be a "one"-time tax based on net worth.

The proposal would apply to certain California residents and trusts with a net worth of at least $1 billion. The tax would phase in between $1 billion and $1.1 billion, reaching 5% at $1.1 billion.

To put that in perspective, a 5% tax on $1.1 billion would be $55 million.

The calculation would generally include assets such as stocks, business interests, investments, artwork and other valuable property, less certain allowable debts.

Directly owned real estate would generally not be included. Most retirement accounts would also be excluded, although Roth-type accounts exceeding $10 million could be partially included.

One of the more interesting parts of the proposal is the timing.

The tax would generally apply to someone who was a California resident on January 1, 2026. However, the person’s net worth would generally be measured on December 31, 2026.

In other words, moving out of California later in 2026 would not necessarily get someone out of the tax.

The tax could be paid with the taxpayer’s 2026 California return or spread over five years. However, the unpaid balance would be subject to a 7.5% annual charge that would not be deductible.

After administrative costs, 90% of the money would be directed toward health-care programs. The remaining 10% would go toward public education and food-assistance programs.

Supporters will argue that billionaires can accumulate tremendous wealth without paying income tax on the increase because appreciation is generally not taxed until an asset is sold.

Opponents will likely point to the difficulty of valuing privately owned companies, artwork and other assets that do not have a readily available market price. There will also almost certainly be questions regarding whether the tax is constitutional and whether it will encourage wealthy taxpayers to leave California.

This would represent a significant change in California tax policy. California currently taxes income. This proposal would also tax accumulated wealth, even when the assets have not been sold and the taxpayer has not received any cash from them.

That distinction is important.

Whatever happens I am sure that there will be some lawyers making some money on this one.

Here is the actual proposed initiative for anyone interested in reading it:

07/22/2026

IMPORTANT - California Changes the Tax Treatment of SPOUSAL SUPPORT Beginning in 2026

California is changing how spousal support is treated for state income tax purposes.

For divorce or separation agreements executed on or after January 1, 2026, spousal support payments will NO LONGER BE DEDUCTIBLE on the payer’s California return. The person receiving the support will also no longer report those payments as taxable California income.

This brings California’s treatment of newer agreements in line with the current federal rules.

For agreements entered into from 2019 through 2025, the federal and California treatment has generally been different:

For federal purposes, the payer does not receive a deduction and the recipient does not report the support as taxable income.

For California purposes, the payer generally receives a deduction and the recipient generally reports the payments as taxable income.

Beginning with qualifying agreements ENTERED INTO IN 2026, the federal and California treatment will generally be the same:

The payer receives no deduction, and the recipient does not report the support as taxable income.

What about older agreements?

The new rule generally does NOT change the treatment of agreements entered into BEFORE 2026.

For agreements executed before January 1, 2026 the payer will generally continue to receive the California deduction, while the recipient will generally continue to report the payments as California income.

A later modification does not automatically change the tax treatment. For the new rule to apply to a pre-2026 agreement, the modification generally must specifically state that the new California treatment applies.

Because of that, the date and wording of the agreement are important.

Why this matters

The change may affect the actual after-tax cost of spousal support.

For the paying spouse, losing the California deduction may increase the cost of the payments. For the receiving spouse, excluding the payments from California income may increase the amount retained after taxes.

It may also affect settlement negotiations, estimated tax payments, and tax planning.

Anyone paying or receiving spousal support should keep a copy of the original agreement, along with any later modifications. Your tax preparer may need to review those documents before determining how the payments should be reported.

Jeff