October 2025 Newsletter

E-File System Closing

Did you miss the October 15th extended filing deadline for your 2024 tax returns? Though the IRS has not announced when they will shut down the e-file system for annual maintenance, in an effort to prepare for the upcoming 2025 tax return filing season, the firm will be closing the electronic filing system on November 21st. The last day to submit your documentation to meet this filing deadline is November 7th. Late submissions will be submitted for electronic file once the firm reopens the electronic filing system. We anticipate reopening the system late January 2026, or at least one week after the IRS reopens their e-file system. Upload your documentation today!

Year-End Planning

• Start gathering your tax documentation

• Review and adjust your Federal & State withholding with your employer

• Maximize contributions to your workplace retirement plan

• If you are 73 y/o or older, be sure to take all your required minimum distributions (RMDs) from your tax-deferred retirement accounts.

• Consider if converting a traditional IRA to a Roth makes sense for your tax position

• Maximize your charitable contributions

• Reduce or eliminate capital gains taxes with tax-loss harvesting

• Maximum contribution limits for Health Spending Accounts (HSA) and Traditional IRAs

• Contribute to a Roth IRA

• Contribute to State 529 college savings accounts

• Revisit your estate plan for updates

Tax planning should not be a one time thing, nor should it only be done at tax time. Planning throughout the year, in advance of big financial transactions, and as your financial position changes will ensure that you are not surprised when you file your taxes. Many tax planning strategies must be completed well before December 31st in order to fully benefit. 

So, start early! Have questions or need help? Schedule a consultation today!

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News & Resources

Shutdown Resources

• Maryland

• District of Columbia

• Virginia

IRS Operations

The IRS has furloughed approximately half of its staff and closed a good portion of its operations. The overall affect could mean a freeze or delay on audit activity, the issuance of new guidance on tax law changes, and IRS correspondences, and create processing backlogs. We encourage you to continue to do your part and remain compliant, but also pack your patience during this time. We will keep you updated as additional information is received.

Tax Law Changes

Many of the changes in the One Big Beautiful Bill take effect on January 1, 2026, but there are some that are retroactive and could impact your 2025 tax returns that you file in 2026. Please keep in mind many have certain requirements such as income limitations, and some are not permanent changes. Here are the 2025 changes that may affect your returns:

• No tax on tips equates to a deduction of up to $25,000 per taxpayer with income phaseout limitations

• No tax on overtime equates to a deduction of up to $12,500 per taxpayer with income phaseout limitations

• Increase in Child Tax Credit to $2,200 for qualified taxpayers

• Increased state and local tax (SALT) itemized deduction to $40,000

• Increase in the standard deduction to $15,750 for Single, $23,625 for Head of Household, and $31,500 for Married Filing Jointly filers

• The Electric Vehicle Credit ended as of September 30, 2025

• Deduction for interest payments on certain US made vehicles

• Savings accounts for children - a form of an IRA retirement account with a $1,000 tax credit when opened for a child born between January 1, 2025, and December 31, 2028

We're Hiring!!!

We are looking to hire high caliber, experienced seasonal tax preparers and reviewers for our high-volume tax filing season.  Must have a minimum of 3-5 years of actual tax preparation experience. Interested candidates should email their resume and three professional references to admin@shcpasolutions.com

with “Seasonal Tax Preparer” in the subject line.

We are also seeking a highly skilled and experienced Senior Auditor to join our growing firm.  3-6 years audit experience in a public accounting firm (non-profit audit experience a plus). Interested candidates should email their resume and three professional references to admin@shcpasolutions.com with “Experienced Auditor” in the subject line.

**Resumes will be heavily scrutinized.