Patsy A. Porter CPA PA

The IRS has released its 2026–2027 per diem rates for certain business travel expenses, effective Oct. 1, 2026. Under the high-low substantiation method, the rate for lodging, meals and incidental expenses for travel to high-cost localities within the continental United States (CONUS) rises to $329 per day, from $319. The rate for other CONUS localities rises to $230, from $225. The portion attributable to meals remains $86 for high-cost areas and $74 for other areas. The incidental-expenses-only rate remains $5. Employers can pay more than the IRS per diem rates, but excess amounts generally must be substantiated or treated as taxable wages. Contact us at (913) 367-2707 to learn about all your options for substantiating business travel expenses.

As your business grows, more people may need access to your accounting system. But when was the last time you reviewed the system’s user permissions? Outdated or excessive access can increase the risk of fraud, errors and unauthorized changes to your financial records. Year end is a good time to do some housekeeping. Confirm that employees and outside service providers have only the access they currently need. Pay special attention after employees change roles or leave your business, or when you switch vendors. We can help evaluate your accounting system’s security settings and strengthen internal controls. Call us at (913) 367-2707 to get started.

Simple mistakes can prevent you from reaching retirement goals. The biggest error is not saving enough. If you expect to maintain your current lifestyle in retirement — which could last three decades or more — you’ll need to accumulate a surprisingly large sum. We can help set up a savings plan you’ll stick to. Call us at (913) 367-2707.

You must pay the alternative minimum tax (AMT) if your AMT liability exceeds your regular tax liability. An exemption of $90,100 is available ($140,200 for joint filers, half that for separate filers), but it phases out when income exceeds certain levels — which have dropped for 2026. Plus, the exemption is now phased out twice as fast as in 2025. Add to that the impact of a potentially larger state and local tax deduction (which isn’t AMT-deductible), and you might be at higher AMT risk this year. Call us at (913) 367-2707 for help assessing your risk and finding strategies to minimize your taxes.

If you’re responsible for collecting, accounting for or remitting federal taxes withheld from employee paychecks, beware of the trust fund recovery penalty (TFRP). As a responsible individual, you may be personally liable for a 100% penalty on income and employment taxes your business either fails to collect or fails to remit to the IRS. Your actions must be “willful,” meaning you’ve been, or should have been, aware of the responsibility and either intentionally disregarded the law or were indifferent to it. According to the IRS, no “evil intent or bad motive” is required. Call us at (913) 367-2707 if you receive a letter from the IRS about the TFRP or for help with tax compliance.

Reconstructing business mileage records months after the fact can be frustrating — and unreliable. If you or your employees use personal vehicles for business, establish a system for logging trips as they occur. QuickBooks users can take advantage of mobile tools that automatically track trips and classify business vs. personal mileage. Other mileage apps or a well-maintained manual log can also work. As year end approaches, make sure your records include key details, such as mileage and business purpose. Timely, accurate documentation is essential for bookkeeping, employee reimbursements and tax reporting. Call us at (913) 367-2707 for help improving your mileage tracking process.

Estate tax laws are complex, and failing to plan could mean leaving your loved ones with less than what you’d expected. Now is the time to take action by reviewing your estate plan, updating beneficiary designations, and exploring strategies such as gifting or establishing trusts that may help minimize tax exposure. Every situation is unique, and the right approach depends on your family’s needs, assets and long-term goals. Contact us at (913) 367-2707 for assistance structuring your estate in a tax-efficient way.

Did you celebrate your 73rd birthday in 2026? If you have money in an IRA, 401(k), SEP or SIMPLE plan, you generally must take your first required minimum distribution (RMD) by this Dec. 31 (or, potentially, by April 1 of next year). RMDs are annual withdrawals of specified amounts based on your age and the account’s value at the end of the last tax year. For more information about managing retirement income, contact us at (913) 367-2707.

If you’re sending money abroad, beware of a possible 1% excise tax. This new tax generally applies to transfers of cash, money orders or cashier’s checks from U.S. senders to foreign recipients via certain remittance transfer providers such as Western Union and MoneyGram. But transfers made via credit or debit card, bank account transfer, or digital wallet aren’t subject to the excise tax. Essentially, the tax doesn’t apply to transfers from accounts in financial institutions subject to Bank Secrecy Act requirements or to credit or debit cards issued in the U.S. So to avoid the extra expense, consider using a card or ACH transfer from your own bank account. Contact us at (913) 367-2707 to learn more.

If you disagree with an IRS decision, you may have more options than you realize. The Taxpayer Bill of Rights entitles taxpayers to a “fair and impartial administrative appeal” of most IRS decisions, including many penalties. The IRS Independent Office of Appeals is separate from the office that made the original determination and provides an impartial review of your case. You have the right to a written response explaining the Appeals decision. You may also have the right to take your case to court. Appeal deadlines can be strict, so act promptly. If you receive an IRS notice or disagree with a decision, call us at (913) 367-2707 to discuss your next steps.