Higginbotham-Baldeon Enrolled Agents, Inc.

The month of October arrived, and we have more due dates. First, the due date is for companies and taxpayers with payroll; they must file and pay their tax liability for the Form 941 (Federal) and Form RT-6 (Unemployment with Florida DOR) by October 31, 2025. The next due date is on October 15, 2025, which is the due date for the personal tax returns, and the taxpayers need to include Form K-1 from their partnership and/or S-Corporation, whose due date was September 15, 2025. It is important to file your tax return even if you owe money to the IRS.  Some taxpayers delay filing their taxes after the due date because they don’t want the IRS to start collecting the taxes they owe.  It is important to remember that there are two penalties: one for not filing on time, including extension by October 15, 2025, and the second for not paying your tax liability by April 15, 2025. That is why I recommend filing the tax return even if you have to pay taxes to the IRS, and avoid unnecessary extra penalties. Perhaps, for personal tax returns with tax liability under $50,000, the IRS will grant, in most cases, an installment agreement up to 72 months. It is crucial to set up monthly automatic payments for the installment agreement, and this will prevent the installment agreement from missing a payment and being cancelled. Now, I bring some updates on payments and refund checks from the Treasury. On March 25, 2025, President Trump issued an executive order called “Modernizing Payments To and From America’s Bank Account.” Effective September 30, 2025, and to the extent permitted by law, the Secretary of the Treasury shall cease issuing paper checks for all Federal disbursements, including intragovernmental payments, benefits payments, vendor payments, and tax refunds, except in some exceptional circumstances. This means that taxpayers who typically receive their federal tax refunds by check, make IRS payments, and other government payments will no longer be eligible to receive them in the mail by paper check after September 2025. The order promotes digital payment methods by direct deposits, debit card payments, digital wallets, and real-time payment systems. If you do not have a bank account to receive direct deposit, you can safely access resources to open an account at FDIC: GetBanked, MyCreditUnion.gov, or sign up for a Direct Express Debit Mastercard. Currently, the IRS does not allow direct deposits into non-US accounts; the only option is to apply your refund as payment toward next year’s taxes. More good business tax stuff next month.  Remember, this is a very brief overview.  It is your responsibility to discuss any tax and financial changes with your professional advisor for assistance in evaluating your situation.  For details and specific assistance in applying the general information in this article, call us at your earliest convenience or contact your tax advisor. Provided by Pedro L. Baldeon, E.A., (321) 632-5726, a member of the National Society of Tax Professionals.