Dear Clients,
We hope you are enjoying the last few weeks of summer! We’d like to share a few key reminders and updates this month to help you stay informed.
2025 EXTENDED TAX RETURN DEADLINES
A friendly reminder for those who filed an extension for their 2025 tax return.
To help us prepare and file your return on time, please send us your complete 2025 tax documents and information by:
- August 14, 2026 — Form 1065 and Form 1120-S
- September 11, 2026 — Form 1040 and Form 1120
Documents received after these dates may not leave enough time for us to complete your return by the extended filing deadline:
- Partnerships (Form 1065) and S Corporations (Form 1120S) – September 15, 2026
- Individuals (Form 1040) and C Corporations (Form 1120) – October 15, 2026
- If your individual return includes FinCEN or FBAR reporting – October 15, 2026
You may securely upload your documents using your dedicated SafeSend Gather link that was previously sent to you. Please call our office if you need assistance.
BUSINESS UPDATES
July 2026 Excise Tax Return Reminder
This is a friendly reminder that the July 2026 WA State Department of Revenue Excise Tax Return is due soon. If you have not already provided your sales information, please send us your July sales information by Monday, August 17th to ensure timely filing.
Disaster Relief Resources Available for Wildfire-Impacted Businesses and Property Owners
https://dor.wa.gov/about/news-releases/2026/disaster-relief-resources-available-wildfire-impacted-businesses-and-individuals
If you or your business were affected by the recent wildfires in Spokane, you may qualify for tax relief or other assistance from the WA Dept of Revenue. Learn more about available disaster tax relief and how to apply from the WA DOR Website.
New Dept of Labor Guidance on When Commute is Paid Work
https://www.dol.gov/sites/dolgov/files/WHD/opinion-letters/FLSA/FLSA2026-10.pdf
The Dept of Labor clarifies when pre-shift calls and drive time count as compensable hours for mobile/traveling employees.
IRS Simplifies Penalty Relief with New Automatic Process
https://www.irs.gov/newsroom/irs-simplifies-penalty-relief-introduces-automatic-process-for-eligible-taxpayers
The IRS starts Automatic Exemption from Penalty (AEP) replacing First Time Abate. Business and individuals with a clean 3 year filing/payment history will now automatically avoid failure to file, failure to pay, and failure to deposit penalties with no action required.
INDIVIDUAL TAX UPDATES
Receiving Gifts from a Covered Expatriate
If a U.S. citizen or resident receives a gift or inheritance from a non-U.S. person, the general rule is still that the recipient does not pay gift tax, though gifts over $100,000 from a foreign person may need to be reported on Form 3520.
The important exception is Section 2801. If the donor is a covered expatriate—someone who gave up U.S. citizenship or long-term green-card status and met certain tax, net-worth, or compliance tests—the U.S. recipient may owe tax on the gift or inheritance.
For 2025 and 2026, the first $19,000 received from covered expatriates is excluded. Amounts above that are generally taxed at 40%, and the recipient files Form 708 to report and pay the tax. If the foreign gift exceeds $100,000, Form 3520 may also be required.
If you are expecting a large gift or inheritance from someone who previously gave up U.S. citizenship or a green card, confirm whether they are a covered expatriate. Planning before the transfer can make a significant difference in the tax outcome.
Charitable Deduction Even If You Don’t Itemize
https://www.irs.gov/taxtopics/tc506
Starting in 2026, taxpayers who don’t itemize deduction can still deduct upto $1,000 ($2,000MFJ) in cash contribution to qualified charities. The proper documentation is required by the IRS to claim it.
If you have any questions or need assistance, please don’t hesitate to contact us. We’re always happy to help.
Thank you for your continued trust in our team.
Warm regards,
Alisa Na CPAs and Advisors
