The latest news for you

October 2025

IRS Shutdown Update:

As of October 13, 2025, the IRS has furloughed thousands of employees and closed most operations due to the ongoing government shutdown. Only essential functions—such as filing season preparation, disaster relief transcript processing, and criminal investigations—will continue. Most taxpayer services, including audits and responses to taxpayer inquiries, are suspended, and the Taxpayer Advocate Service is also closed. Expect significant delays in IRS services and increased backlogs until the shutdown ends.

IRS is Discontinuing Paper Checks

Beginning September 30, 2025, the U.S. Department of the Treasury, working with the IRS and other federal agencies, will phase out the issuance of paper checks for most federal payments, including tax refund checks.

The move is driven by three main goals:

Security & Fraud Reduction: Paper checks are significantly more vulnerable to theft, loss, alteration, or being returned as undeliverable. The Treasury states that paper checks are over 16 times more likely to be compromised compared to electronic payments.
Speed & Efficiency: Electronic payments reduce delays from mail delivery, misrouting, and processing. Refunds via direct deposit can often be issued within about 21 days for returns filed electronically (and meeting conditions).
Cost Savings & Administrative Simplification: Maintaining check printing, postage, handling, and processing infrastructure is expensive and inefficient. Federal agencies expect to cut operational costs by migrating to digital payment systems

If you still receive paper checks for federal payments for federal refunds or federal benefits, you will need to:

Open a bank account if you don't have one.
Update/Confirm your banking information on the organizer that will come out in January.
Reach out to our office if you are unable to have direct deposit.

For taxpayers that do not provide banking information on their tax returns, the IRS will send letters to those individuals. Tax refunds will be held for no less than six weeks pending the taxpayer response. Once the IRS believes that no response is forthcoming, check refunds will be processed. This process will be lengthy and could hold up your refund.

In addition to not issuing paper checks, the IRS will begin phasing out the acceptance of paper checks as well. Taxpayers will be strongly encouraged to make all tax and estimate payments on the IRS website. Again, this is a safer and more efficient way of paying your tax bills. You have the choice to make a payment with your credit card (fees incurred) or from a bank account withdrawal (free). You can visit the IRS website payment page here:

IRS Payments

We strongly encourage clients to agree to direct deposit refunds. This will make transactions with the IRS faster, safer and more efficient. Reach out to the office if you have any questions or need to know how this will effect you.

New State of Michigan scam

Cybercriminals are up to new tricks with a new nationwide text message scam now circulating in Michigan that requests taxpayers’ personal banking information, according to the Michigan Department of Treasury.

In this latest scheme, scammers send urgent, unsolicited messages that appear to come from the Michigan Department of Treasury. The message falsely claims that a refund has been processed and that accurate payment information must be submitted by the taxpayer—or the refund will be forfeited.

The Michigan Department of Treasury never sends unsolicited text messages asking for personal data like banking information. Taxpayers who receive such messages should not reply or click on any links.

The Michigan Department of Treasury corresponds with taxpayers through official letters sent through the U.S. Postal Service.

Taxpayers who receive this unsolicited text message or have questions about their state individual income taxes should call Treasury’s Individual Income Tax Information Line at 517-636-4486. A customer service representative can log the scam and verify outstanding refunds, if available.

2026 Update: High Earners Must Make 401(k) Catch-Up Contributions as Roth

Starting in 2026, a new IRS rule will impact how high-income earners can make catch-up contributions to their 401(k) plans.

Under this rule, if you earn more than $145,000 in wages from a single employer in the previous year (i.e., in 2025 for the 2026 plan year), any catch-up contributions you make to a 401(k), 403(b), or governmental 457(b) plan must be made as Roth contributions — not pre-tax.

🔍 Key Details:

Who’s affected? Employees age 50 or older who earned over $145,000 in FICA wages from a single employer in the prior calendar year.
Contribution type: Must make catch-up contributions (up to the IRS limit) on a Roth basis, meaning after-tax dollars.
Regular deferrals: Regular (non-catch-up) contributions can still be made pre-tax or Roth, based on plan options.
Multi-employer exception: If you participate in multiple employer plans, this rule applies per employer.
If your employer’s plan does not offer the ROTH option, you will forfeit your ability to make a catch-up contribution.

Contact your employer with questions on how this will affect you in 2026 and beyond.

Should You Schedule a Tax Planning Session

A tax projection isn’t just about numbers—it’s about planning for your financial future. By running a tax projection, you can:

Avoid Surprises: See potential tax liabilities before year-end and plan accordingly.
Maximize Deductions & Credits: Identify opportunities to reduce your tax bill.
Improve Cash Flow: Budget for taxes throughout the year, avoiding last-minute stress.
Plan Major Life Changes: Buying a home, starting a business, or retirement? Tax projections help you understand the impact.
Make Informed Decisions: Timing income or expenses strategically can save thousands.

A proactive approach to taxes gives you peace of mind and puts you in control.

Schedule your tax projection today and stay one step ahead!

Congratulations To Tim

We are thrilled to announce that Tim has officially passed the CPA Exam! This achievement is a testament to his dedication, hard work, and commitment to excellence in the accounting profession.

Please join us in celebrating this incredible milestone and congratulating Tim on reaching this important career achievement. We are proud to have such talent on our team!

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