Financial & Tax Updates

Two important deadlines that may not apply to you, please read them anyways:

1. R&D Tax Credit retroactive expensing. If you know about this, we have likely already discussed it. The OBBBA passed last year allows qualifying taxpayers to go back and AMEND prior year returns (2022-2024) to expense capitalized section 174 expenses. This must be done NO LATER THAN JULY 6TH 2026, so time is running out to submit those amendments. The other option was to accelerate the capitalized expenses into 2025/2026 tax year, which a majority of clients are opting to do.
2. COVID-ERA PENALTIES: this one is lesser known. Two recent federal rulings–Abdo v. Commissioner (2024) and Kwong v. United States (2025)–state that the IRS lacked the legal authority to assess certain penalties during the COVID-19 disaster period. The IRS has since refunded $1.2 billion to affected taxpayers. Relief can be requested, but this must be done by JULY 10TH 2026, so this is also on a time clock. There are third party service providers that have automated this process for a service fee which is likely a percentage of the recovered amount. One example is TaxBandits. Our firm is not taking a fee for this, you would work directly with the third party provider if automation and convenience are preferred. Given the short time period and the automated processes in place, we would recommend it. The alternative is scanning your IRS.gov accounts to review penalties issued from tax year 2020-2023. Also please note that the IRS is appealing these rulings and they could be overturned.

if this applies to you, please be sure to post your Q2 2026 estimated tax payments (federal and state where applicable). If you are unsure of the amounts to post, a common practice is to follow safe-harbor guidelines. If we prepared your 2025 tax returns, the client copy typically has the 2026 vouchers included when applicable. These vouchers include instructions for how to post applicable payments. Our recommendation is to make tax payments online directly with the applicable tax agency.

if your tax situation fluctuates or will be different this year, we can adjust the quarterly vouchers through tax planning. Please contact our office as needed.

CA business owner clients – reminder that 2026 PTET estimated payments are due by 6/15 to the CA Franchise Tax Board, with one major change starting this year: a late estimated payment no longer disqualifies you from making the election for that tax year, though any underpayment would result in some credit reduction or loss (so in summary, please still attempt to post the minimum estimated payment which is 50% of your prior year PTET liability). Reach out with any questions or to confirm amounts.

All business owner clients: Q2 review/planning is underway. If we do not have a meeting on the calendar, please book time with Brian. Our office will also be reaching out to coordinate.

The official Arrive rollout is being delayed until after Q1 2026. Please continue to use SmartVault for this tax season. If you do not have access to your folders in SmartVault, please reach out right away. Your organizers are already in the 2025 client source documents folder, use those as a guide. And as always, please send us a message when your files are ready (including business financials if we prepare entity returns for you).

If you already activated your Arrive portal, save that login for future use. We will provide updates with system guidance/walkthroughs when ready. If you received a docusign and it was voided, you may disregard. That was part of the Arrive onboarding process.

Thank you!

As we move to a brand new client portal, we thank you for your patience throughout the process. There have been a lot of questions (as to be expected), so here are some updates and frequently asked questions:

Q. when will the Arrive portal be fully active?

A. This week you should see a full rollout of the client portal/files as well as the individual tax organizer document request workflow and questionnaire.

Q. I received a docusign over the weekend, is action needed on my part?

A. Yes, we sent an initial engagement letter that you can sign which will trigger the tax-season workflow in our system. We apologize for any confusion as the fields were not pre-filled. Please use a signature block and execute those. For married couples, only the primary listed taxpayer received this. Again, think of it as an opt-in to start the tax season process with us. All parties will receive a final engagement letter as part of the tax return finalization process. If you do not see a signature option, close out the docusign and open it back up.

Q. Is SmartVault still an option?

A. YES! while we encourage you to use the new Arrive platform, we intentionally kept SmartVault active for anyone who prefers to use that system for this season. Organizers are already printed to SmartVault 2025 client source documents folders.

Q. Why are we moving to a new platform?

A. This is a new software solution, designed to streamline communication, improve secure file sharing, and enhance the client experience. Stay tuned for additional features including a business owner dashboard and performance reporting.

Q. How do I use the new Arrive platform?

A. First and foremost, ensure you have access (including any business entities you own) and that we have your preferred contact details on file. 2FA security settings will be active as well. Let us know right away if you cannot access the portal. You can also authorize additional users (your financial advisor, for example).

Q. Where do I find the organizer section in Arrive?

A. under “documents, individual tax returns” you will find a 2025 folder with a file titled “workpaper”. In that folder you will see upload links associated with tax forms we expect from you (based on prior years) along with a questionnaire and ability to upload any NEW 2025 items.

Q. Do I have to use the organizer or complete it?

A. We do not require clients to fill out the organizer. However, the questionnaire is important as you need to inform us of any relevant items or changes to your situation. The organizer is a guide, please review it for reference.

As always, please reach out with any questions. Thank you!

As a follow up to the last message regarding our new platform (Arrive), I wanted to provide some clarification on what to expect this tax season:

1. Client organizers have been printed to SmartVault (2025 client source documents folder). We are moving to the new Arrive platform, but you may continue using SmartVault if that is your preference for this season
2. New Portal (Arrive) – we will be sending the invites for the Arrive portal next week (should be on the 15th). This new system will streamline document requests and communication as well as engagement letters and billing. Your organizer will also post to this system and you will be able to use it to securely share tax documents with me directly.
3. As a reminder on timeline and due dates: Q4 2025 estimated tax payments are due 1/15. Please reach out with any questions. 2025 return due dates are as follows:
   • S-Corporations and Partnerships due 3/15/2026 (contact us to file an extension if needed)
   • Individual returns, C Corporations, Trusts/estate returns due 4/15 (contact us to file an extension)
   • Non-Profit returns typically due 5/15
   • As a general rule, we request to have all necessary documents and information 30 days prior to the deadline.