Adonai Inner Circle Solutions

🚨 TAX PROFESSIONAL REMINDER:

“I SAW IT ONLINE” IS NOT DUE DILIGENCE.

One of the biggest mistakes a tax preparer can make is accepting information simply because the client is confident about it.

The IRS’s current due-diligence guidance says paid preparers must not ignore facts or implications from what a client tells them and must ask reasonable follow-up questions when information appears incorrect, inconsistent or incomplete.

This is especially important with returns involving:

• EITC
• CTC/ACTC
• ODC
• AOTC
• Head of Household
• Schedule C + EITC

🚨 HERE’S THE PART I WANT EVERY AIC PREPARER TO REMEMBER:

A client saying:

“That’s how I did it last year.”

is not verification.

A client saying:

“Another preparer gave me this deduction.”

is not verification.

A TikTok video saying:

“Everybody qualifies.”

is definitely not verification.

Your job is to ask questions, evaluate the facts, document the answers and apply the law.

The IRS specifically notes that Schedule C returns claiming EITC can require additional inquiries when business income or expenses appear inconsistent, incorrect or incomplete. Preparers must document those additional inquiries and the client’s responses.

And the IRS currently lists red flags such as:

🚩 Round-number Schedule C income or expenses
🚩 Little or no business income when income would be expected
🚩 Little or no records
🚩 A Schedule C loss that produces a maximum EITC
🚩 Business activity that doesn’t make sense based on the information provided

AIC STANDARD

DON’T ASSUME.

DON’T IGNORE.

ASK.

DOCUMENT.

VERIFY.

A good preparer doesn’t just know how to enter numbers into software.

A good preparer knows when the numbers require another question.

🤍 Adonai Inner Circle Solutions
The Circle of Growth, Guidance & Greatness.

📞 972-469-2357
📧 [email protected]
🌐 www.adonaiinctax.com

📚 TAX-EXEMPT DOESN’T MEAN TAX-FREE

A tax-exempt organization still has responsibilities. 🤍

For example, organizations seeking 501(c)(3) recognition generally apply using Form 1023 or Form 1023-EZ if eligible, and tax-exempt organizations can still have annual filing and compliance requirements. Also, sales-tax exemption is generally governed by state law, not federal law.

Tax-exempt status is a legal status not a “no rules” status.

Educate. Document. Comply.
That’s where professional tax knowledge matters.

Good morning!

New day. New opportunities. New progress.
Stay focused, move with purpose, and keep building the vision.

Make today count.

Tax Tip Tuesday 🤍

Not every deduction saves you a dollar-for-dollar on your tax bill. Understanding how deductions actually work and keeping good records can make a big difference when you file.

Know the rules. Keep the records. File with intention.

🚨 2026 TAX UPDATE: TIPS & OVERTIME WILL HAVE NEW REPORTING CODES

Tax professionals and employers put this one on your radar.

The IRS has updated the 2026 Forms W-2 and 1099 instructions to account for the new deductions for qualified tips and qualified overtime.

💵 QUALIFIED TIPS

For 2026 W-2 reporting, employers will use:

Box 12 Code TP
to report the total amount of cash tips reported to the employer.

Box 14b
will report the applicable Treasury Tipped Occupation Code(s).

⏰ QUALIFIED OVERTIME

Employers will use:

Box 12 Code TT

to report the total amount of qualified overtime compensation.

And here’s an important distinction:

The amount reported on the W-2 isn’t necessarily the amount the employee will ultimately deduct.

The IRS specifically explains that an employer could report $30,000 of qualified overtime in Box 12, Code TT, while the employee’s deduction remains subject to the applicable deduction limit.

1099 RECIPIENTS MATTER TOO

The 2026 Forms 1099-MISC and 1099-NEC have also been updated to accommodate reporting of:

✔️ Cash tips
✔️ Treasury Tipped Occupation Codes
✔️ Qualified overtime compensation

🎓 AIC TAX PRO TIP

Don’t wait until filing season to learn the new boxes.

When 2026 W-2s and 1099s start coming in, preparers need to understand what these new codes mean before entering the information into the return.

This is exactly why continuing education matters.

VERIFY. DOCUMENT. PREPARE. REVIEW.

🤍 Adonai Inner Circle Solutions
The Circle of Growth, Guidance & Greatness.

📞 972-469-2357
📧 [email protected]
🌐 www.adonaiinctax.com

Follow AIC for IRS updates, tax education, business tips and important deadlines.

🚨 IRS UPDATE: IRS2Go Has Been Replaced

Taxpayers who are accustomed to using IRS2Go should know that the IRS launched a new official IRS mobile app on September 25, 2026.

The new app replaces IRS2Go and provides secure mobile access to selected Individual Online Account services, including certain account information and self-service options.

What does this mean for tax professionals?

If you’re helping a client check their IRS account, refund information, notices or other account-related information:

Make sure you’re directing them to the current official IRS resources.

Don’t send clients to outdated apps or random links circulating through social media.

And here’s another reminder for our tax professionals:

The IRS recently posted an updated Publication 4687, Paid Preparer Due Diligence, along with updated resources for reporting suspected abusive tax promotions or preparers.

AIC STANDARD:

VERIFY.
Is the information current?

DOCUMENT.
Do you have the proper records?

PREPARE.
Are you applying the rules correctly?

REVIEW.
Does the return and supporting documentation make sense?

Tax professionals don’t just prepare returns.

We stay current.

🤍 Adonai Inner Circle Solutions
The Circle of Growth, Guidance & Greatness.

📞 972-469-2357
📧 [email protected]
🌐 www.adonaiinctax.com

Follow AIC for IRS updates, tax education, business education and important deadlines.

Business growth starts with clarity.

Busy doesn’t always mean productive.
Before you add more, make sure you understand what you already have.

Get clear. Get organized. Then grow. 🤍

Adonai Inner Circle Solutions
The Circle of Growth, Guidance & Greatness.

⚠️ TAX PROFESSIONAL REMINDER: THE TRUTH ABOUT SECTION 179 VEHICLE WRITE-OFFS

As we approach the end of Q3, misinformation about business vehicle deductions is everywhere.

One of the biggest misconceptions?

“Buy a vehicle over 6,000 pounds and write off the whole thing.”

Not so fast. 🛑

Before a business owner makes a major vehicle purchase for tax purposes, there are several things that need to be evaluated:

1️⃣ BUSINESS USE MATTERS

To claim a Section 179 deduction for property, the IRS generally requires more than 50% qualified business use. Personal use doesn’t magically become a business deduction.

2️⃣ THE VEHICLE DOESN’T DETERMINE THE DEDUCTION BY ITSELF

Vehicle type, business-use percentage, cost, placed-in-service date, income limitations and other depreciation rules can affect the amount you can actually deduct.

3️⃣ DOCUMENTATION MATTERS

Your mileage, business purpose, expenses and other supporting records should accurately reflect how the vehicle is actually being used.

A vehicle deduction isn’t something you should choose simply because someone on social media said, “It’s a write-off.”

THE BOTTOM LINE:

A business vehicle may provide valuable tax benefits when it is genuinely used for business and the requirements are properly met.

But don’t buy a $70,000 vehicle just to save money on taxes.

Spend $70,000 to save $70,000? That’s not tax planning.

Tax planning means understanding the rules before you make the purchase.

💼 Thinking about purchasing a vehicle or other major business asset?

Talk to your tax professional BEFORE you sign the paperwork.

At AIC, we believe in:

VERIFY. DOCUMENT. PREPARE. REVIEW.

🤍 Adonai Inner Circle Solutions
The Circle of Growth, Guidance & Greatness.

📞 972-469-2357
📧 [email protected]
🌐

Home - adonaiinnercircle Welcome to Adonai Inner Circle Where Growth, Guidance & Greatness Meet. Keep More of Your Money Build Real Financial Power. […]

Meet Saige. 🦉👑✨

She’s giving wisdom, strategy, confidence, and hustle everything the Inner Circle represents.

Because around here, we don’t just work hard… we move with wisdom, build with purpose, and elevate together.

👑 Saige
Wisdom Meets Hustle.

Welcome to the AIC Inner Circle where growth, guidance & greatness meet. 🤍✨ Meet Saige. 🦉👑✨