As important tax records start filling mailboxes, how can you make sure your tax preparation goes smoothly and efficiently this year? Here are some tips.
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We Do Books™ Blog
Michael DiSabatino of We Do Books™ shares expert insights to help you unlock your business's full potential by delivering proven strategies for maximizing tax savings, streamlining operations, and driving sustainable growth.
The information provided on this site is for general informational purposes only and should not be construed as professional financial, tax, or legal advice. For advice tailored to your specific situation, we recommend consulting with a qualified professional.
The information provided on this site is for general informational purposes only and should not be construed as professional financial, tax, or legal advice. For advice tailored to your specific situation, we recommend consulting with a qualified professional.
Hackers and data thieves target personally identifiable information or (PII). They also know their best score can be had by filing information using your tax ID and stealing your withholdings before you are the wiser. But by working together, we can mutually reduce the risk of this happening to you. Here are some tips:
Awareness Is Key
Your number one defense to becoming a victim is to be aware. So whenever you open an email, read a text, answer a phone, or go to a website, keep your awareness switch on high. This is especially true in this age of AI. Fake emails look more real than ever. Voice replication can duplicate a voice and texts come from valid looking vendors.
No Personal Data Over Open Lines
DO NOT send any tax records attached to an email. Only use safe, encrypted paths to do so or simply drop off the material in person. Copies of 1099s and W-2s are needed, but only if they are sent securely.
Three Safeguards: Physical, Technical, Administrative
Your security can be broken down into these three categories:
Physical: Keep your data physically safe. Be sure your records are in locked places and your digital data on your computer is password protected AND encrypted. Destroy old documents, shred the paper ones, and keep backups of your data.
Technical: Keep your software up to date, including antivirus software and computer/phone operating systems. Use secure passwords and turn on multi-factor authentication whenever possible.
Administrative: Keep yourself up-to-date on the newest threats. When you receive breach notices, take security action. And monitor your accounts, especially financial ones.
Use the IRS Identity Protection Program
If you have any concerns whatsoever, understand the IRS has an identity protection program that requires providing a unique ID when filing your tax return. The ID is required if you have had your tax information stolen, but its participation is otherwise voluntary. If you are in the program, understand your tax return CANNOT be filed without this security code.
Final Tips
- Never give private information when the initial contact comes from another source. Independently verify the source AND only use a separate, known way to communicate.
- Don't send PII over open lines
- Never use public Wi-Fi
- Check statements at least monthly
- Stay on top of the news and keep updated about breach notices
- Be alert for any 1099s or other tax forms you receive that do not make sense
If you are the least bit suspicious about a tax-related call or contact, reach out immediately. Help is but a call away.
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As part of your planning for next year, now is the time to review funding your retirement accounts in 2026. Recent cost of living calculations means much higher contribution limits for next year. So plan now to take full advantage of this tax benefit. Here are annual contribution limits for the more popular programs:
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Overview
Subject: The Hidden Benefits of Filing a Gift Tax Return (Form 709) in 2026
If you’ve made larger gifts to family or others, you may be required to file a federal gift tax return (Form 709), even if you don’t owe any actual gift tax.
Filing can feel like extra paperwork, but it also provides important protection and clarity for you and your estate.
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The IRS has issued 282 pages of proposed digital asset reporting regulations, along with official IRS explanation of the provisions, which cover a range of digital asset issues where there have been questions. Issues addressed include expansive definitions of brokers and a requirement that proceeds from the sale of digital assets be reported to the IRS starting in 2026, on new Form 1099-DA for transactions on, or after January 1, 2025.
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Big changes are coming to clean energy incentives — and sooner than many realize. A wide range of popular tax credits for electric vehicles, home energy upgrades, solar installations, commercial clean fleets, and even new energy-efficient construction are all set to phase out starting in late 2025. If you’ve been considering an EV purchase, home solar, or energy-efficient improvements, the window to benefit from these incentives is closing fast. Dive into our full breakdown to see which credits are disappearing, when they end, and how to make the most of them before they’re gone.
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As required by law, in every Form 1040 instruction booklet there's a section that shows where our federal government gets its money and where it is spent. As taxpayers it makes sense to know this information.
Here is the data for the government's fiscal year ending September 30, 2023, as reported by the IRS in the 2024 instruction booklet for Form 1040:
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Throughout the year, natural disasters can strike unexpectedly, from wildfires to hurricanes, and the aftermath often leaves communities in need of support. While the urge to help is strong, it’s important to ensure that the organizations you donate to are legitimate and not scams.
Additionally, while fewer taxpayers are itemizing deductions, those who do want to make sure their charitable contributions are legitimate for tax purposes. Here are some tips on how to research organizations before donating your funds, no matter the time of year.
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California has a weird hobby: taking normal business relationships and turning them into legal trivia contests with expensive prizes. If you hire independent contractors (ICs) in California, you’re operating in a world shaped by Dynamex and AB 5 (plus later amendments). The big takeaway is simple: California starts from suspicion, not trust. Your job is to structure the relationship so it can survive scrutiny.
This post is a practical, more generic overview of how California looks at ICs, what the main “tests” are, and how the carve-outs work in real life.
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The New Child Savings Plan Parents Need to Know (530A / “Invest America”)
Congress has officially blessed us with yet another account type. This one is built for children and is commonly being called a “Trump Account” (also referred to as a Section 530A / “Invest America” account). The elevator pitch: it’s a tax-advantaged, long-term investment account for a minor, seeded (in some cases) with government money, and designed to push families toward early investing.
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Recent tax legislation includes new provisions that allow for the establishment of new investment accounts for children ages 18 or younger. The goal of the account is to have funds available for them when they become adults. While not yet available to create, news out of the IRS in early December makes it important to stay up to date on the rules and benefits as they develop. Here is what you need to know.
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At the end of the year you will be inundated with commercials to donate a vehicle to charity. While it is one of the biggest contributions a taxpayer can make, if not done carefully, the tax deduction of a donated vehicle could be a lot lower than you think.
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Business owners love two things: making money and not giving more to the IRS than necessary. A properly structured “working vacation” can help with both.
If you plan it correctly, a personal trip that includes real business activity can qualify as business travel.
That means a significant portion of the cost can become tax-deductible under current 2026 rules.
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Each year there's typically an open enrollment for many benefit programs from your employer.
Here are some tips to consider.
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For years you have put away money from your pay into your employer-provided 401(k) retirement savings account. Your employer may have even matched 50% of your contributions or contributed 3% of your pay to the account as part of a safe harbor program. Now you want to take some of this money out in the form of a loan to help pay your bills or to buy a car. Before you take action, here are some things to consider.
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For years, the tax code trend was to reduce the amount of interest that may be deducted on your tax return.
Until recently, it really only allowed interest deductions as an itemized deduction on qualified residences and vacation property.
That is changing now with the passage of the OBBB Act and the introduction of a new car interest tax break.
Here is what you need to know:
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Your granddaughter needs a car, but cannot afford the payments. As a favor, you provide the $25,000 to purchase the car. You tell your granddaughter to pay you back when she can, but there is no loan document. The IRS sees this payment during an audit and asks where your interest income is for this loan. Should this happen, you will quickly understand the meaning of AFRs.
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Do you want to jump start your child's retirement with a million dollar tax-free account?
Consider this.
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The Social Security Administration announced a 2.8% boost to monthly Social Security and Supplemental Security Income (SSI) benefits for 2026, another rate drop versus last year's increase of 3.2%. The increase is based on the rise in the Consumer Price Index over the past 12 months ending in September 2025.
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Before taking action, talk to your tax adviser.
How many times have you seen this legal disclaimer?
Unfortunately, all too often taxpayers do not follow this advice and then must pay the price with an unnecessarily high tax bill.
Here are some of the most common situations that can save you money by seeking advice before you act:
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