SBS CPA Group September 29th Update

Mike Sylvester • September 29, 2020

This email was sent to our clients on September 29 th , 2020 and was posted to our website via our blog.

2020 has been a difficult year due to Covid-19 and we hope you and yours are as happy and healthy as possible!

SBS CPA Group is hiring.   If you or anyone you know is interested in the following positions please let us know.

Administrative Assistant.   This person answers the phone, deals with the public, e-files income tax returns, works up front, files, and much more.  This person must be friendly and detail oriented.  This person works Tuesday – Friday from 8:30 AM – 5 PM with a 30 minute unpaid lunch break during our slow season which runs from April 16 th – December 31 st each year.  This person works 40 hours a week the 1 st two weeks of January (Monday – Friday), 45 hours a week the second two weeks of January (Monday – Friday), and from February 1st – April 15 th this person works 50 hours a week which includes four hours every Saturday.  Our Administrative Assistant gets 19 days paid off per year which start accruing on day one.

Staff Accountant.  This person will have a four year degree in Accounting and recent or even future graduates are welcome to apply.  This person will mostly deal with personal tax returns, business tax returns, payroll, and bookkeeping.  Our Staff Accountants work an average of 32 hours a week during our slow season and work four days per week in our slow season.  Our Staff Accountants work an average of 64 hours a week from January 15 th – April 15 th .  Our Staff Accountants get 21 paid days off per year which start accruing on day one.

We offer the following benefits to all of our employees after a 90 day trial period:  401K with up to a 4% match, health insurance with the company paying 100% of the employee cost, paid time off, and life insurance.

SBS CPA Group is looking for a renter for our 1,864 square foot unit in Dawsons Creek.   If you are interested or if you know someone who is interested please let us know!

PPP Loan forgiveness.    A majority of our business clients applied for and received a PPP loan.  It is critical that if you received a PPP loan that you ensure your CPA knows exactly how much money your business was loaned and the exact day this money was deposited in your business bank account.  There are complicated forms that will need to be filled out along with a large amount of supporting documentation and submitted to your bank.  There is legislation in Congress that would greatly simplify this process for those businesses who received $150,000 or less.   Most banks feel that this legislation will pass; however, in an election year we cannot be sure if it will pass or when it will pass.

At this point we recommend all of our clients wait for the simplification legislation to pass.  We expect to revisit this at the end of October or early November.  Remember all PPP loan recipients have ten months from the date they received funds to apply for loan forgiveness.  We each have a list of our clients who received PPP loans and we will reach out to you when appropriate.

Covid-19 sick pay.  Congress passed Covid-19 sick pay legislation and the rules are complicated.  Too make a long story short; if you have an employee that meets the below rules and the employer has 500 or fewer employees you must pay them for time spent away from work due to Covid-19 and the Federal Government will ultimately bear the cost of this sick pay and the related payroll taxes and make the employer whole.

The employer must pay up to two weeks of sick pay at full pay at the employee’s regular rate of pay where the employee is unable to work because the employee is quarantined (pursuant to Federal, State, or local government order or advice of a health care provider) and/or experiencing Covid-19 symptoms and seeking a medical diagnosis.

If you need more details about Covid-19 mandated sick pay please contact your CPA directly.

Now is the time to contact your CPA for 2020 tax planning.  Tax planning for 2020 and beyond is much more complicated right now due to the upcoming Presidential and Congressional Elections.  According to the oddsmakers there is a 50% chance or better that the Democrats will win the November 2020 election.  We are not taking a partisan position in this email; however, the Democratic platform calls for higher taxes on the upper middle class and the wealthy.  We have looked at the Democratic proposals and we feel that if the Democrats win the November 2020 election income taxes would likely increase on at least a fourth of our clients; we feel this would affect those clients with higher incomes.

Almost all states and local Governmental units are experiencing large revenue shortfalls.  States and localities cannot print more money like the Federal Government can and we expect most state and local governments to raise taxes over the next couple of years and this has already started in several states.  Indiana has already spent its 900 million dollar surplus in the Indiana Unemployment Fund and Indiana employers will see their unemployment tax rates increase across the board over the next couple of years similar to what happened back in 2010.

The upcoming tax season is going to be very challenging for many reasons.  Covid-19 seems likely to affect the next filing season.  The Internal Revenue Service currently has over five million pieces of unopened mail due to Covid-19 and has issued press releases telling the public they are in some cases 1-2 years behind.   The IRS is dangerously behind and there already has been a lot of legislation that has affected the 2020 tax filing season and more seems likely after the election.  Many experts expect the Democrats to roll back part of the Trump tax cuts if they win election; especially those favoring those with high incomes and that could have a major effect on tax forms and tax rates.

Please make sure that you save all documentation relating to your economic stimulus payment, we will have to have this information in order to prepare your 2020 personal income taxes.

For the last couple of years our Partners have tried to convince many of our clients to take advantage of the historically low income tax rates currently in place and pay tax on income now rather than aggressively defer it into the future.  Please realize it may not make sense to defer income if you defer this income into a future year with higher tax rates. 2020 may be a good year to recognize income and pay taxes at the current historically low income tax rates.

The truth of the matter is 2020 has been a difficult year for everyone and we truly hope that our clients are healthy and happy.

Please contact us with questions and you can reach us as follows:

You can call us at 260-407-5000 or you can email us at:

Thanks for listening!

Mike Sylvester, CPA

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Affordable Care Act Refunds 2026

By Brent Bracht • October 30, 2026
Affordable Care Act Refunds Did you get an unexpected treat this month? If you bought your healthcare through the Health Insurance Marketplace in 2026, you may be eligible for a $500 Affordable Care Act (ACA) refund. Checks and direct deposits were sent out starting in late September and will continue arriving in homes through November. Who is receiving the refunds? All refunds are going to people who live in one of the thirty states that use the federal marketplace (HealthCare.gov) rather than state marketplaces. Indiana is one of the qualifying states. About one million Americans who did not receive any premium assistance or subsidies in 2026 were deemed to have overpaid for their insurance coverage. The refunds are being sent out automatically to those who qualify. They will be sent for each person, so if you qualify and have other members of your household on your insurance coverage that qualify, they too will get a refund. How will you receive your refund? Refunds began being released in late September and will continue to arrive through early November. If you have your bank information on file with the exchange, you may receive a direct deposit. Otherwise, it will come as a check through the mail. Check your mail So, check that pile of junk mail for a letter from the US Treasury Department if you think you qualify. If you have not received a letter, and you think you qualify, check your bank transactions for a $500 deposit from the Treasury.  If you do not receive a payment by late November, check to make sure all your information was up to date on HealthCare.gov. If all of that information is correct, you can contact the US Treasury Department to report a missing payment.

Business Meals in 2026

By Brent Bracht • October 30, 2026
Business Meals in 2026: What Can You Deduct? Business meals can be a useful tax deduction, but there are a few rules to keep in mind. For 2026, the general rule is that 50% of a qualifying business meal is deductible. So, if you spend $100 taking a client to lunch, you would generally deduct $50. So, what qualifies? The meal needs to have a legitimate business purpose. This could be lunch with a client, a meeting with a prospective customer, or a meal while traveling for business. Your everyday lunch by yourself doesn't qualify just because you're working while you eat. The meal also can't be considered lavish or extravagant under the circumstances. What about entertainment? Entertainment expenses are generally not deductible. However, food and drinks purchased separately from the entertainment may still qualify for the 50% meal deduction. For example, if you take a client to a baseball game, the tickets generally aren't deductible, but separately purchased food may be. Don't forget your records  Keep the receipt, but also make a quick note about who you were with and the business purpose. Something as simple as “Lunch with ABC Company to discuss new contract” can make things much easier when it's time to prepare your tax return. Employee meals and company events can have different rules, so those expenses may need a closer look. The bottom line: 50% is the general rule, but not every meal is deductible. When in doubt, keep the receipt and let your tax professional determine how it should be treated. For more information about IRS record keeping visit: https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping

IndianaUnclaimed.com

By Brent Bracht • September 30, 2026
Do You Have Money Waiting for You? Do you like money? In a world where it seems everyone wants to take more and more of your money, there is one place that is doing the opposite: IndianaUnclaimed.gov . IndianaUnclaimed.gov is a government-run website designed to connect you with money or property that was either forgotten about-or that you may never have known was supposed to be yours in the first place. This year alone, over $85 million in money and property has been returned to its rightful owners. Best of all, filing a claim is free. To see if you have any missing funds available, visit IndianaUnclaimed.gov and click on the gold “Claim Yours” box. Enter your name to see if any unclaimed property is listed for you. Be sure to search for all variations of your name, including maiden names or former names. If you find something that belongs to you, you can submit a claim online. You will receive an email asking you to provide documentation proving that you really are the person entitled to the property. This can get a little complicated if you have moved or changed your name since the property became unclaimed. You will need to provide documentation connecting you to your former name or address. The email you receive will tell you specifically what documents are needed. If you cannot find the documents, provide them with a copy of your social security card. They can use it to try to verify former names and addresses. Don’t skip the search just because you no longer live in Indiana! If you lived in Indiana when the property became unclaimed, you will be listed on the website, and you can still claim your money. You can also search for friends and family members, too. If you find property belonging to someone you know, you can request the website send them an email alerting them that they may have unclaimed property waiting for them. You can also search for deceased family members. Their property is not lost. An heir or other person legally entitled to the deceased owner’s property is still able to file a claim. Don’t leave money on the table! Check IndianaUnclaimed.com today. If you have any questions, Indiana’s Unclaimed Property Division can be reached at 1-866-462-5246.

Indiana Tax Amnesty 2026

By Brent Bracht • July 31, 2026
Clear the Books: Indiana Announces 2026 Tax Amnesty Program If you are completely caught up on your Indiana tax payments and filings, you can safely disregard this notice. This program only applies to individuals and businesses with outstanding state liabilities or unfiled returns for tax periods ending prior to January 1, 2024 . Note: This is an Indiana state tax initiative only . It provides zero relief for federal IRS taxes, local property taxes, or state unemployment taxes. What You Need to Know From July 15 through September 9, 2026 , the Indiana Department of Revenue (DOR) is hosting Tax Amnesty 2026 . By settling your base state tax liability, the state will waive 100% of all penalties, interest, and collection fees . Scope & Exclusions: Covers state-administered taxes (Income, Sales, Withholding) ending before January 1, 2024. Anyone who utilized Indiana's 2005 or 2015 amnesty programs is disqualified. Filing Requirement: Your filing history must be current to qualify. Behind on prior-year returns? Call our office immediately to get caught up before the window closes. Notifications: The state only sends official notices via standard physical mail . If you have unfiled tax years, you will not receive a letter because your balance cannot be calculated yet. Check Your Status Use the state's public look-up tool to instantly check if your account is flagged. Watch our 2-minute Loom video to see exactly how: [➡️ WATCH VIDEO WALKTHROUGH HERE] Our firm can file your back-taxes electronically for the fastest processing. Mailing Paper Returns? Do not use the address printed on the form. For correct amnesty routing, mail returns to: P.O. Box 28, Indianapolis, IN 46206-0028 . Deadlines & Payment Options Lump Sum: Process your full payment before September 9, 2026 . Payment Plans: For eligible debts over $100 (individuals) or $500 (businesses), you must establish a plan by September 9, and pay the balance in full by June 7, 2027 . Warning: Defaulting on a payment plan retroactively reinstates all original penalties and interest.  If your account shows an active flag, contact us today so we can secure your savings.

Juneteenth - SBS CPA Group is Closed

By Brent Bracht • June 15, 2026
Juneteenth is June 19th and our office will be closed in observance of the federal holiday.

Income Tax Season is Almost Here

By Mike Sylvester • January 6, 2026
Income tax season is almost here! 2026 will be an amazing year at SBS CPA Group! If you have signed up for TaxDome we will send you an electronic tax planner on January 20th, 2026. This is the last year TaxDome/Online clients will be mailed a tax planner. If you do NOT have your tax planner by the end of the day January 23rd, 2026, please call Nikkie Reyes at 260-407-5000 or email her at Admin@sbscpagroup.com. Normally we mail you 6 pages; this year it is 10 pages due to all of the new tax laws and the complications the new laws bring. One nice feature of the TaxDome planner is as you answer questions, it hides irrelevant questions saving you time. We prefer everyone use TaxDome since it secure, efficient, and saves you trips back and forth to our office. The regular mail in our area has been just awful with mail lost and frequent delays. If you are not setup to use TaxDome, please call Nikkie Reyes at 260-407-5000 and she will ensure everything is setup. You are either a PAPER client or an online/TaxDome client for your income tax preparation, you CANNOT be both. It is EXTEMELY IMPORTANT that you do ONE of the following when you give us everything for your income tax preparation: Paper clients: You fill out the paper tax organizer completely and please wait until you have every single document we need to prepare your income tax returns before you give us any documents! Please do NOT drop anything off until you have everything we need. We must have it all at once; additional fees will be charged to anyone who does not follow this important rule. OR Online/TaxDome clients : You shred the paper tax planner we sent you and do not fill it out, please do not upload it to us as a pdf, etc. Instead, you start the process by filling out the online/TaxDome tax planner we send you via TaxDome on January 20th, 2026. You can upload source documents to TaxDome anytime; however, we prefer you upload them all at once immediately after you fill out the online/TaxDome tax planner. There will be a task you have in TaxDome to tell us that all of your documents are uploaded after you complete the organizer. We will not start your returns until you mark that task complete. For online/TaxDome clients there will be additional fees charged if you give us more documents after telling us we have everything. For all clients, we have always asked you to drop everything off at once; however, this last tax season most of our clients did not do this and it added several hundred hours to preparation time and all of this time will be charged to you moving forward. We cannot be efficient unless you give us everything at once. Please remember for income tax preparation, you are either a paper client or an online/TaxDome client and cannot be both. We look forward to another great tax season handling our clients' income tax returns efficiently and accurately!

SBS CPA Group is Hiring a Tax Manager

By Mike Sylvester • September 18, 2025
SBS CPA Group is hiring! Best Tax Manager position in Fort Wayne, Indiana. We are looking for an amazing Tax Manager! We are looking for our next rockstar employee! We have a lot to offer, and we want to hear from you quickly! We are looking for a CPA with five or more years of experience. The right person could quickly become a partner. The main item that sets us apart from other CPA firms is how few hours per year each of us works. We have an amazing work life balance, our employees work (NOT bill) 1904 hours per year. Note this includes training, CPE, etc. We have an extremely flexible work schedule and our employees all have either Mondays or Fridays off the last 37 weeks of the year. In fact, our employees work (NOT bill) an average of 27 hours per week for the last 37 weeks of the year. We do NOT have a second busy season. We pay overtime for all hours worked over 40 hours in a week to ensure no one is taken advantage of. We will encourage applicants to talk to all of our employees, our employees can verify the hours they work, the number of three-day weekends they take, and the fact that we do not have a second tax season. Our firm is very different than a typical CPA firm and we are proud of that fact. You can work a hybrid schedule with some days in the office and some days at home once training is completed. We have amazing benefits. You must be a CPA with experience in Public Accounting. Experience preparing individual and corporate income taxes is a must as is experience reviewing those returns. If you are tired of working crazy hours, please reach out to us today! Please reach out to Mike Sylvester at Mike@SBSCPAGroup.com with your resume! Mike Sylvester, CPA

SBS CPA Group is Hiring a Senior Staff Accountant

By Mike Sylvester • September 16, 2025
SBS CPA Group is hiring and looking for a great Senior Staff Accountant! Our full-time employees work 1904 hours per year. Our employees work significantly less than is typical at public accounting firms. We allow a hybrid work schedule after initial training is complete. Our pay is in the top 25%; our benefits are in the top 25%. We are looking to hire someone with a four-year degree who is a CPA or CPA eligible. The more experience the better! Experience preparing a wide variety of income tax returns is a must. The ability to use technology is a must. Please reach out to Mike Sylvester at Mike@SBSCPAGroup.com with your resume! Mike Sylvester, CPA

SBS Staffing Changes

By Mike Sylvester • September 11, 2025
Nathan Skinner, one of our four Senior Staff Accountants, is moving back home to Dayton, Ohio. Nathan has been with us for four years since he graduated college in 2021. We wish Nathan success in all of his future endeavors, and we will miss him greatly! His entire family is in Dayton, and we think this move will be great for his family. Nathan's last day at SBS will be either September 18 th or 19 th . If you normally work with Nathan, you will get an email from us letting you know who you will be working with moving forward! If you need something before you get the email; please call Nikkie Reyes at 260-407-5000 and she will connect you to the right person!  SBS CPA Group is hiring, and we will be posting our job opening on Indeed and on our company blog in the next few days. If you know someone looking for a great job in public accounting in Fort Wayne, Indiana, please reach out to Mike Sylvester at Mike@sbscpagroup.com!

New Gambling Loss Rules

By Mike Sylvester • August 27, 2025
The gambling rules for tax year 2026 have changed due to the new tax bill. One Big Beautiful Bill Act (OBBB), was signed into law on July 4, 2025 by President Trump. These changes will affect both casual gamblers and professionals beginning in the 2026 tax year. Those who gamble should understand the new rules. The Old Rule (Through 2025) Historically, the IRS has allowed taxpayers to deduct gambling losses—but only to the extent of their gambling winnings. If you won $10,000 but lost $15,000, you could deduct $10,000 in losses, effectively zeroing out your taxable gambling income. The New Rule (Starting 2026) Beginning with the 2026 tax year, gambling losses will be deductible at only 90% of the amount of winnings. While this may sound like a minor adjustment, the impact is significant. Example: You win $100,000 and lose $100,000 during the year. Under the old rule: You would report $100,000 of income and deduct $100,000 of losses, resulting in zero taxable gambling income. Under the new rule: You can deduct only $90,000 of those losses on your federal income tax returns. That means you’ll still be taxed on $10,000 of “phantom income,” even though you truly broke even. This rule applies to all gamblers, whether you buy the occasional lottery ticket or operate as a professional gambler. How Itemized Deductions Work It’s important to understand that gambling losses are deductible only if you itemize deductions on your tax return. Here’s what that means: Standard vs. Itemized Deduction Every taxpayer can take the standard deduction—a fixed amount based on filing status. For 2025, the standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. Alternatively, you can choose to itemize deductions if the total of your eligible deductions (mortgage interest, charitable contributions, state and local taxes, medical expenses, and gambling losses, among others) is higher than the standard deduction. Where Gambling Losses Appear Gambling losses are reported on Schedule A, Itemized Deductions, not directly against gambling winnings. You must report all gambling winnings in full as income. Losses are deducted separately on Schedule A, up to the allowable limit (100% through 2025, 90% starting in 2026). Recordkeeping Requirements To claim these deductions, you must keep meticulous records—receipts, tickets, player’s club statements, and a diary of gambling activity. Without proper documentation, the IRS may disallow your deduction even if you had genuine losses. Why It Matters The IRS projects that this change will raise more than $1 billion in revenue over the next decade, but it comes at the expense of fairness. Many taxpayers will now find themselves paying tax on income they never actually earned. Professional gamblers, in particular, may feel the heaviest impact, as their livelihoods often involve large swings of wins and losses. Additionally, because gambling losses are only deductible for those who itemize, some taxpayers may find that the standard deduction provides a bigger benefit—even if it means their gambling losses go unused. This makes strategic planning even more important. Planning Ahead For 2025, the old rules remain in effect. If gambling is part of your financial life, I strongly recommend:  Evaluating whether itemizing makes sense in your situation. Keeping meticulous records of all winnings and losses. Budgeting for higher tax liability in 2026 and beyond, even if you expect to break even. Consulting with a tax professional to explore potential strategies for minimizing the impact. At SBS CPA Group, we’re here to help clients navigate these changes with confidence. If you’d like to review your individual situation and discuss strategies for 2025 and beyond, please reach out to your CPA and we’d be glad to assist. Mike Sylvester, CPA