David Oase, CPA, 7802 E Escalante Road, Tucson, AZ (2026)

06/01/2026

𝗙𝗶𝘃𝗲 𝗥𝗲𝗮𝘀𝗼𝗻𝘀 𝗪𝗵𝘆 𝗧𝗵𝗲 𝗜𝗥𝗦 𝗪𝗶𝗹𝗹 𝗔𝘂𝗱𝗶𝘁 𝗬𝗼𝘂

Each year, the IRS audits over 1 million tax returns. With agency resources shrinking, the IRS is more selective when choosing which tax returns to audit. Knowing what the IRS is looking for can help you understand and reduce your audit risk. Here are five of the biggest reasons the IRS may choose to audit your return:

1. Your income is high or low. The reasoning is simple – higher earnings may lead to bigger errors and lower earnings may mean incorrect deductions. The adjusted gross income (AGI) range with the least audit risk is $25,000 to $200,000. As your income moves toward the extremes in either direction, the chance of an audit increases.

2. You fail to report all your income. The IRS's Automated Underreporter Program matches W-2 and 1099 information with the information you report on your tax return. When a mismatch occurs, expect to receive an automated CP2000 notice from the IRS notifying you of the discrepancy and the additional tax amount due. And remember even if you do not receive a 1099, if you have the income you are required to report it.

3. You own a business. Rules regarding business deductions are confusing and constantly changing. The IRS knows this. Incorrectly deducting personal expenses or having your business classified as a hobby, thereby eliminating deductions, can get you in trouble with the IRS. Cash heavy businesses are under increased scrutiny due to higher fraud rates. Solid tracking processes and good records are necessary for income and expense substantiation.

4. You make a math error. The IRS issued over 1 million math error notices in 2024, the most recent year for which statistics were available. The biggest culprits were tax liability and credit calculations. Math errors can create a two-fold problem for you – additional tax owed and more scrutiny applied to other parts of your tax return.

5. You claim the earned income tax credit. According to the IRS, up to 33 percent of EITC payments are paid in error. Numbers that large are sure to...Read more: https://tips.resourcesforclients.com/EcgyfLzfgSUz

www.tucsoncpa.com

05/29/2026

𝗕𝗟𝗢𝗚: 𝗧𝗵𝗲 𝗜𝗥𝗦 𝗪𝗮𝗻𝘁𝘀 𝗬𝗼𝘂 𝘁𝗼 𝗣𝗮𝘆 𝗘𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗰𝗮𝗹𝗹𝘆. 𝗚𝗿𝗲𝗮𝘁! 𝗡𝗼𝘄 𝗣𝗹𝗲𝗮𝘀𝗲 𝗠𝗮𝗸𝗲 𝗦𝘂𝗿𝗲 𝗧𝗵𝗲𝘆 𝗔𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗧𝗼𝗼𝗸 𝘁𝗵𝗲 𝗠𝗼𝗻𝗲𝘆

Estimated tax payments are one of the most common sources of errors on tax returns, even in a normal year.

And by “normal year,” I mean one where the IRS systems are merely confusing, inconsistent, and occasionally held together with duct tape and hope.

A lot of clients assume their accountant has some kind of private hotline to the IRS. Like we put on a robe, light a candle, call the IRS Commissioner directly, and ask, “Tell me, did Susan make her third quarter estimate?”

We do not.

We do not know when you paid your estimated tax payments unless you tell us. We don't know how much you paid unless you send us proof. We don't know why your neighbor got refund in seven days and your return is still “processing.” We do not know why the IRS suddenly wants you to verify your identity this year even though you have been filing tax returns since the Clinton administration.

We can help. We can investigate. We can respond to notices. But we don't have two-way radio communication with the IRS mothership.

And this year, estimated tax payments have become even messier.

𝗧𝗵𝗲 𝗜𝗥𝗦 𝗜𝘀 𝗠𝗼𝘃𝗶𝗻𝗴 𝗧𝗼𝘄𝗮𝗿𝗱 𝗘𝗹𝗲𝗰𝘁𝗿𝗼𝗻𝗶𝗰 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀

The IRS and Treasury have been moving federal payments toward electronic systems under Executive Order 14247, signed March 25, 2025. The IRS says the policy applies to payments going from the government, like refunds, and payments going to the government, like tax balances, penalties, and other remittances. The IRS began phasing out most individual paper refund checks after September 30, 2025, and says it's reducing reliance on paper payments while expanding electronic options.

Important clarification: as of the IRS’s current payment page, checks or money orders are still listed as payment options by mail, and IRS FAQ says checks and money orders are still accepted “for now.” So the practical advice is...Read more: https://tucsoncpa.com/the-irs-wants-you-to-pay-electronically-great-now-please-make-sure-they-actually-took-the-money/

520-790-2738 | [email protected] | www.tucsoncpa.com

05/27/2026

𝗟𝗼𝘄𝗲𝗿 𝗧𝗵𝗶𝘀 𝗬𝗲𝗮𝗿'𝘀 𝗧𝗮𝘅 𝗢𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻: 𝗔𝗰𝘁𝗶𝗼𝗻𝘀 𝗧𝗼 𝗧𝗮𝗸𝗲 𝗡𝗼𝘄

Now is a good time to assess your current situation and address lingering tax moves that may improve your tax picture for 2026. Here are five things to consider:

1. Check your withholdings. Review your taxable income and the amount of tax you’ve paid to Uncle Sam so far this year. How do the numbers compare to last year? Based on your analysis, you may have to adjust your paycheck withholdings or make estimated tax payments during balance of the year to avoid underpayment penalties or surprise tax bill. Remember to pay special attention if:

You have tip income
You have overtime income
Your or your spouse is eligible for the special senior deduction (over age 65).

2. Build up your retirement accounts. Increase your retirement savings during the remainder of year. Even better, setting aside more money for retirement can lower this year’s tax bill. For instance, if you have a 401(k) plan at work, you can defer up to $24,500 of salary in 2026, plus an extra $8,000 if you’re either age 50 to 59 or 64 and over ($11,250 for ages 60 to 63).

3. Identify potential taxable events. It’s easy to overlook one-time events that will have an impact on your 2026 tax liability. For instance, if you win prize at a church raffle, the prize is generally taxable to you. Perhaps you changed jobs, lost a child as a dependent, or got married. Each of these events can create change in your tax obligation. Review your records now to avoid unpleasant tax surprises later.

4. Consider business property needs. If you acquire business property, you can often choose to write off the cost during the first year the property is placed in service. If it makes sense, consider combining benefits of the Section 179 expensing deduction, up to a maximum of $2.56 million (indexed for inflation),with 100% bonus depreciation for both new and used property.

5. Account for gig taxes. Finally, workers in the gig economy (like Uber or Lyft drivers) should understand the basic tax rules.Generally, income from such jobs is fully taxable, but you may...Read more: https://tips.resourcesforclients.com/EcgyfLzfgSUz

www.tucsoncpa.com

05/23/2026

🥀𝐑𝐞𝐦𝐞𝐦𝐛𝐞𝐫, 𝐑𝐞𝐬𝐩𝐞𝐜𝐭, 𝐚𝐧𝐝 𝐑𝐞𝐟𝐥𝐞𝐜𝐭. 🪖

Our office will be CLOSED in observance of 𝙈𝙚𝙢𝙤𝙧𝙞𝙖𝙡 𝘿𝙖𝙮 on Monday, May 25th. We will resume normal business hours on Tuesday, May 26th.

𝘞𝘪𝘴𝘩𝘪𝘯𝘨 𝘺𝘰𝘶 𝘢 𝘮𝘦𝘢𝘯𝘪𝘯𝘨𝘧𝘶𝘭 𝘔𝘦𝘮𝘰𝘳𝘪𝘢𝘭 𝘋𝘢𝘺 𝘴𝘶𝘳𝘳𝘰𝘶𝘯𝘥𝘦𝘥 𝘣𝘺 𝘧𝘢𝘮𝘪𝘭𝘺 𝘢𝘯𝘥 𝘸𝘰𝘯𝘥𝘦𝘳𝘧𝘶𝘭 𝘤𝘰𝘭𝘭𝘦𝘢𝘨𝘶𝘦𝘴, 𝘢𝘴 𝘸𝘦 𝘤𝘰𝘮𝘮𝘦𝘮𝘰𝘳𝘢𝘵𝘦 𝘵𝘩𝘦 𝘨𝘳𝘦𝘢𝘵𝘯𝘦𝘴𝘴 𝘰𝘧 𝘰𝘶𝘳 𝘧𝘢𝘭𝘭𝘦𝘯 𝘤𝘰𝘮𝘳𝘢𝘥𝘦𝘴. 🇺🇸

05/18/2026

𝗙𝗿𝗲𝗲 𝗢𝗻𝗹𝗶𝗻𝗲 𝗟𝗲𝗴𝗮𝗹 𝗧𝗮𝗹𝗸𝘀

This free webinar is brought to you by 𝗔𝗭𝗖𝗼𝘂𝗿𝘁𝗛𝗲𝗹𝗽, a centralized discussion on your business and personal estate planning. As a client of 𝘿𝙖𝙫𝙞𝙙 𝙊𝙖𝙨𝙚, 𝘾𝙋𝘼, you are cordially invited to attend this online seminar to learn essential strategies to grow and safeguard your business the way it protects you and family's interests, as well as your personal estate's standing.

To be presented by 𝗟𝗶𝘇𝗮 𝗧𝗵𝗼𝗺𝗽𝘀𝗼𝗻 𝗳𝗿𝗼𝗺 𝗧𝗵𝗼𝗺𝗽𝘀𝗼𝗻 𝗟𝗮𝘄 𝗚𝗿𝗼𝘂𝗽, 𝗣𝗖
𝟮𝟭 𝗠𝗮𝘆 𝟮𝟬𝟮𝟲 | 𝟭𝟮𝗡𝗡 𝘃𝗶𝗮 𝗭𝗼𝗼𝗺 (Registration via link or QR Code below)

www.tucsoncpa.com

05/16/2026

𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗧𝗵𝗲 𝗚𝗶𝗳𝘁 𝗚𝗶𝘃𝗶𝗻𝗴 𝗧𝗮𝘅: 𝘌𝘹𝘤𝘦𝘴𝘴 𝘎𝘪𝘧𝘵 𝘎𝘪𝘷𝘪𝘯𝘨 𝘊𝘰𝘶𝘭𝘥 𝘊𝘢𝘶𝘴𝘦 𝘈 𝘛𝘢𝘹 𝘚𝘶𝘳𝘱𝘳𝘪𝘴𝘦

In an effort to keep taxpayers from transferring wealth from one generation to the next tax-free, there are specific limits to the amount of gifts one may give to any one person each year. Amounts in excess of this limit are subject to filing an annual gift tax form. For most of us, this is not something we need to worry about, but if handled incorrectly it can create quite a surprise when the tax bill is due.

𝗧𝗵𝗲 𝗚𝗶𝗳𝘁 𝗚𝗶𝘃𝗶𝗻𝗴 𝗥𝘂𝗹𝗲

You may give up to $19,000 to any individual (donee) within the calendar year 2026 and avoid any gift tax filing requirements. If married, you and your spouse may transfer up to $38,000 per donee. If you provide a gift to your spouse who is not a U.S. citizen, the annual exclusion amount is $175,000 for 2026.

𝗚𝗶𝗳𝘁 𝗧𝗮𝘅 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴

Amounts given in excess of this annual amount are subject to potential gift tax reporting. The amount of tax is currently unified with estate taxes with a maximum rate of 40%. The donor of the gift is responsible for paying any associated tax. When you exceed the annual gift giving amount, this triggers the need to file a gift tax form with your individual tax return. The excess gift amounts are netted against your lifetime unified credit. If your lifetime gifts do not exceed the credit you may not have additional taxes owed. Here are some instances when a gift tax problem may occur and ways to manage the problem:

𝗚𝗶𝗳𝘁𝘀 𝗳𝗼𝗿 𝗰𝗼𝗹𝗹𝗲𝗴𝗲. Grandparents like to help out with the tremendous expense of funding a college degree and amounts donated can quickly surpass the annual gift threshold. To avoid the gift tax problem consider making payments directly to the college as this form of payment can be excluded from the annual gift giving limit AS LONG AS the funds are not used to pay for books, room or board on behalf of the donee.

𝗕𝗲 𝗰𝗮𝗿𝗲𝗳𝘂𝗹 𝘄𝗶𝘁𝗵 𝟱𝟮𝟵 𝗽𝗹𝗮𝗻 𝗳𝘂𝗻𝗱𝗶𝗻𝗴. If your children are...Read more: https://tips.resourcesforclients.com/EcgyfLzfgSUz

05/11/2026

𝗕𝗟𝗢𝗚: 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗢𝘄𝗻𝗲𝗿𝘀: 𝗪𝗵𝗮𝘁 𝗧𝗼 𝗙𝗶𝘅 𝗡𝗼𝘄 𝗔𝗳𝘁𝗲𝗿 𝗧𝗮𝘅 𝗦𝗲𝗮𝘀𝗼𝗻 𝗘𝗻𝗱𝘀

Tax season may be over—but for business owners, this is actually one of the most important times of the year. Why?

Because now you have something most businesses ignore: clear, real financial data from the past year.

Instead of filing your taxes and moving on, this is the perfect time to fix what didn’t work, clean up what was messy, and set your business up for a stronger, more profitable year ahead.

Here’s where to focus:

𝟭. 𝗖𝗹𝗲𝗮𝗻 𝗨𝗽 𝗬𝗼𝘂𝗿 𝗕𝗼𝗼𝗸𝘀 (𝗣𝗿𝗼𝗽𝗲𝗿𝗹𝘆 𝗧𝗵𝗶𝘀 𝗧𝗶𝗺𝗲)
If tax season felt rushed, there’s a good chance your bookkeeping wasn’t as clean as it should be.

Common issues include:

Uncategorized transactions
Missing expenses
Misclassified income
Unreconciled accounts
Now is the time to:

Reconcile all accounts monthly going forward
Clean up chart of accounts
Separate personal and business expenses
Accurate books aren’t just for taxes—they’re for making better business decisions.

𝟮. 𝗥𝗲𝘃𝗶𝗲𝘄 𝗪𝗵𝗮𝘁 𝗬𝗼𝘂 𝗔𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗣𝗮𝗶𝗱 𝗶𝗻 𝗧𝗮𝘅𝗲𝘀
Most business owners look at their tax return once—and never again.

That’s a missed opportunity.

Take time to review:

Total tax paid
Effective tax rate
Self-employment taxes
Missed deductions or credits
Understanding where your money went is the first step toward reducing it next year.

𝟯. 𝗙𝗶𝘅 𝗬𝗼𝘂𝗿 𝗘𝘀𝘁𝗶𝗺𝗮𝘁𝗲𝗱 𝗧𝗮𝘅 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀
If you:

Owed more than expected
Overpaid and received a large refund
Received a notice related to payments-it’s a sign your estimated taxes need adjustment.

After tax season is the ideal time to:

Reset your quarterly payment amounts
Align payments with actual income trends
Avoid penalties and cash flow surprises

𝟰. 𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗲 𝗬𝗼𝘂𝗿 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲
If you’re still operating as a sole proprietor, it may be time to reconsider.

Depending on your income level, switching to an S corporation could:

Reduce self-employment taxes
Improve tax efficiency
Provide better income control
However, it’s not a...Read more: https://tucsoncpa.com/business-owners-what-to-fix-now-after-tax-season-ends/

05/09/2026

𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 𝗬𝗼𝘂𝗿 𝗖𝗵𝗶𝗹𝗱𝗿𝗲𝗻'𝘀 𝗟𝗼𝘄𝗲𝗿 𝗧𝗮𝘅 𝗥𝗮𝘁𝗲: 𝘖𝘯𝘦 𝘖𝘧 𝘛𝘩𝘦 𝘉𝘦𝘴𝘵 𝘗𝘭𝘢𝘤𝘦𝘴 𝘍𝘰𝘳 𝘗𝘢𝘳𝘦𝘯𝘵𝘴 𝘛𝘰 𝘓𝘰𝘰𝘬 𝘍𝘰𝘳 𝘛𝘢𝘹 𝘚𝘢𝘷𝘪𝘯𝘨𝘴

If you're a parent, your dependent children can be a source of tax savings. There are the well-known provisions in the tax code such as the Dependent Child Care Credit and the Child Tax Credit, but there's also an opportunity to shift some taxable income to your children.

Shifting income to your children works because the tax rate increases as your income rises. This provides an incentive to shift income to your lower-earning dependent children. Here's how to make it work:

𝗦𝗵𝗶𝗳𝘁𝗶𝗻𝗴 𝗜𝗻𝗰𝗼𝗺𝗲 𝗥𝘂𝗹𝗲𝘀

In 2026, the first $1,350 of unearned income for each child is not taxed, and the next $1,350 in unearned income is taxed at the child's normally very low tax rate. Any earnings above $2,700 are taxed at the parent's tax rate. Unearned income typically includes interest, dividends, royalties, and investment gains. As long as your child is under the age of 18 (24 if a full time student), these rules apply.

𝘛𝘪𝘱 1: Transfer enough income-producing assets to each child to approach the annual unearned income limits as closely as possible. Depending on your marginal tax rate, you could be saving as much as 37 percent in federal income taxes on the transferred amounts.

𝘛𝘪𝘱 2: In addition to the unearned income, consider purchasing investments that will have long-term appreciation. This may help manage the timing and rate of capital gains taxes when the investment is later sold.

𝘌𝘹𝘢𝘮𝘱𝘭𝘦: You transfer assets in the name of your child, and your child buys Amazon stock after the dot com bubble for less than $10 per share. At age 25 the shares are worth $100,000+, but her first job out of college doesn't pay much. So you sell a few shares of the appreciated stock and avoid capital gains tax all together, due to her lower income!

𝘛𝘪𝘱 3: Remember, excess investment income could be subject to an additional...Read more: https://tips.resourcesforclients.com/EcgyfLzfgSUz

05/06/2026

For those building something that lasts—a new chapter is beginning.
Red Alder is almost here.

www.tucsoncpa.com

05/04/2026

𝗡𝗼 𝗖𝗵𝗲𝗰𝗸! 𝗪𝗵𝗲𝗿𝗲'𝘀 𝗬𝗼𝘂𝗿 𝗣𝗿𝗼𝗼𝗳? 𝘞𝘩𝘢𝘵 𝘛𝘰 𝘋𝘰 𝘈𝘣𝘰𝘶𝘵 𝘠𝘰𝘶𝘳 𝘕𝘦𝘦𝘥 𝘍𝘰𝘳 𝘋𝘰𝘤𝘶𝘮𝘦𝘯𝘵𝘢𝘵𝘪𝘰𝘯

Prior to finalizing the filing of your tax return is a good time to ensure you have proper documentation to substantiate your tax deductions. This is important as many banks start deleting online documentation that is more than a year old.

𝗕𝗮𝗰𝗸𝗴𝗿𝗼𝘂𝗻𝗱

The use of paper checks is changing dramatically over the past ten years. This shift has greatly reduced ability to have canceled check as proof when the auditor comes calling. This is due to people using credit cards, digital currency, and the advent of online bill paying services. With online bill paying, your only receipt is often just entry in your checking account. And current laws allow banks to digitally capture checks and then destroy the paper copy without returning it to you. So what do you do if you need proof that you paid for tax deductible item?

𝗞𝗻𝗼𝘄 𝘄𝗵𝗮𝘁 𝘁𝗵𝗲 𝗜𝗥𝗦 𝗶𝘀 𝗹𝗼𝗼𝗸𝗶𝗻𝗴 𝗳𝗼𝗿

Proof of deduction typically requires two things:

An invoice or proof of the transaction. This comes from the organization your activity is related to like a church or charitable organization and is dated and detailed enough to show what the transaction entailed.

Proof of payment. This is where the check or detailed proof of payment is required.
Some Tips

Know your bank. Understand what your bank keeps and for how long. This includes digital statements and digital copies of checks. Understand if there are any fees charged if you need to request copies of payments.

Retain copies of all bank statements. Review your records to ensure you have copies of all monthly bank statements. This is often the starting point for an IRS agent that wants proof of payment, so it should be yours as well. These copies be in either paper or digital format. Download online copies of your statements and place them in password protected file.

Collect copies of tax-related proof of payment. Go through your statements and mark the payments that will, in all likelihood, be used as tax deduction. Make sure you...Read more: https://tips.resourcesforclients.com/EcgyfLzfgSUz

520-790-2738 | [email protected] | www.tucsoncpa.com

David Oase, CPA

06/01/2026

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