Suntaxconsulting

Tax Planning Strategies Ideas for Year End.

Don't wait until tax season! Most tax strategies can be done only by the end of the tax year. So, only 2 months left.

✅ Business Tax Deductions — Take eligible expenses and tax benefits.

✅ 100% Bonus Depreciation — Take advantage of qualifying business equipment or vehicle purchases. 100% Bonus Depreciation is back in 2026!

✅ Retirement Planning — Reduce taxable income through eligible contributions. Some of the most popular Retirement Plans like 401k can only be established by the year end.

✅ Investment Strategies — Offset capital gains and minimize investment taxes.

✅ Family Tax Planning — Explore tax-saving opportunities involving your spouse, children or parents.

📊 At SunTax Consulting, we don't just prepare taxes — we help you plan ahead to legally minimize them!

📞 Contact us today for a personalized 2026 tax planning consultation.

🌐 www.suntaxconsulting.com

Check-the-box Effects Taxes for Foreign Owners

So called "Check-the-Box Election" allows eligible U.S. and foreign taxpayers to choose tax classification of their foreign owned LLC.

For example, a U.S. LLC with one owner is normally treated as a disregarded entity. However, a foreign owned LLC is normally treated as corporation for US tax purposes.

"Check-the-Box Election" may potentially help to:

✅ Reduce tax burden
✅ Simplify U.S. tax reporting
✅ Optimize international business structure
✅ Avoid costly tax mistakes

Choosing the wrong structure could result in unexpected U.S. taxes, especially for foreign business owners and investors.

The correct tax structure can make a difference!

IRS and Treasury regulations introduced major changes to the Premium Tax Credit (PTC), particularly for taxpayers receiving subsidized health insurance through the ACA Marketplace.

The most significant change for 2026 is the elimination of repayment caps on excess advance premium tax credits, meaning that taxpayers who receive more subsidies than they qualify for will have to repay the entire excess amount when filing their 2026 federal tax returns. Before 2026, the IRS limited how much taxpayers had to repay if they received more Advance Premium Tax Credits than they were entitled to.

Other proposed changes include stricter immigration-related eligibility rules, additional Marketplace verification requirements, and revisions to Form 1095-A reporting.

Please refer to the official website to understand eligibility to purchase Marketplace insurance and to receive government subsidies.: https://www.healthcare.gov/immigrants/immigration-status/

🚨 IRS CONFIRMS: AI MAY INFLUENCE TAX AUDIT SELECTION! 🤖

📢 Important IRS Update!

The IRS has updated its official Artificial Intelligence (AI) Governance Policy, explicitly addressing AI systems that influence:

🔎 Which taxpayers may be selected for an IRS audit

📋 Which specific items on tax returns may be examined

The IRS classifies these applications as presumed high-impact AI uses, requiring additional risk assessment and oversight.

⚠️ What does this mean for business owners?

AI-assisted audit selection makes accurate reporting and proactive tax compliance increasingly important.

For S-Corporation owners, reasonable compensation, shareholder distributions, and payroll tax compliance deserve particular attention.

💡 Is your business prepared for greater IRS scrutiny?

At SunTax Consulting, we specialize in proactive tax planning, S-Corporation tax strategies, and IRS compliance.

📩 Contact us to review your tax strategy before an IRS audit becomes a concern.

🌐 www.suntaxconsulting.com

📱 NEW IRS MOBILE APP IS HERE!

The IRS has launched its new official mobile app, replacing IRS2Go and giving taxpayers easier access to important tax information directly from their phones.

With the new IRS app, taxpayers can securely:
✅ Check refund and amended-return status
✅ View balances and payment history
✅ Make tax payments
✅ Access tax records and transcripts
✅ View selected IRS notices and letters
✅ Access an Identity Protection PIN (IP PIN)
✅ Manage certain account preferences

The app is free and available through the Apple App Store and Google Play. Existing IRS2Go users with automatic updates enabled should receive the new app automatically.

⚠️ Security reminder: Use only the official IRS app obtained through verified links at IRS.gov. Be cautious of look-alike apps or unsolicited messages requesting personal information.

SunTax Consulting
Tax • Accounting • Business Advisory

🚨 IRS PROPOSES NEW QUESTION ON FORM 1040

The IRS has released a draft 2026 Form 1040 that includes a new question about citizenship and U.S. work authorization.

Taxpayers — and spouses filing jointly — would be asked:

“At the time you file your return, are you … a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the U.S.?”

The taxpayer and spouse would each answer Yes or No.

⚠️ Important: This is currently a DRAFT and is not yet the final 2026 Form 1040. IRS draft forms are subject to change and OMB approval.

The change comes as Treasury and the IRS are also proposing new rules concerning immigration status and eligibility for certain refundable federal tax credits.

If finalized, the new question would affect 2026 tax returns filed in 2027.

📌 SunTax Consulting
Tax Planning • Tax Preparation • International & Cross-Border Taxation

⚠️ Some Immigrants May Lose Refundable Tax Credits

The IRS and Treasury have proposed new rules that could limit the refundable portion of certain tax credits for some non-citizens.

Affected credits may include:
• Child Tax Credit
• Earned Income Tax Credit
• American Opportunity Tax Credit
• Adoption Tax Credit

The rules are proposed and not yet final.

📞 SunTax Consulting
Tax Planning • Tax Preparation • International Tax

🚨 New IRS Rules Proposed for Trump Accounts

The IRS wants Trump Accounts to focus on low-cost, diversified U.S. stock index funds and ETFs during a child’s growth years.

✅ Fees generally capped at 0.10%
✅ Broad U.S. index funds, such as the S&P 500
✅ No leveraged investments
✅ Eligible children born 2025–2028 may receive a $1,000 federal contribution

💡 A new tax-advantaged way to start building long-term wealth for your child.

SunTax Consulting
Tax Planning • Financial Planning • Tax Preparation

🚨 IRS Introduces New Automatic Penalty Relief

Good news for taxpayers: the IRS has introduced a new Automatic Exemption from Penalty (AEP) process.

Starting with eligible 2025 tax-year returns and 2026 quarterly returns, certain taxpayers may receive penalty relief automatically — without calling the IRS or filing Form 843.

✅ May apply to:
• Failure-to-file penalties
• Failure-to-pay penalties
• Failure-to-deposit penalties

To qualify, taxpayers generally need a clean filing and penalty history for the prior 3 years.

This new system is designed to replace the traditional First Time Abate process for many eligible taxpayers.

⚠️ Not every penalty or tax return qualifies, and special rules apply during the 2026 transition period.

If you received an IRS penalty notice, don’t assume you have to pay it. You may qualify for penalty relief.

⚠️ Tax Preparers: S-Corp Salary Issues Can Become Your Problem Too

Tax attorney shared a real-world case involving a CPA who prepared returns for 13 S-corp clients taking little or no reasonable salary.

Even though the CPA did not handle payroll and had repeatedly advised the clients to pay themselves reasonable compensation, the IRS assessed $130,000 in preparer penalties under IRC §6694.

The case was ultimately settled, but the CPA still lost $34,500 in payments and legal fees.

📌 Key takeaway: If an S-corp owner refuses to take reasonable compensation, document your advice and the client’s refusal in writing. Simply telling the client verbally may not be enough to protect the preparer.

This was an anonymized real-world enforcement case, not a published court precedent—but it is an important warning for tax professionals.