News & Updates from Hagen CPA, LLC

ALERT: New 2026 IRS Letter Scam (CP53E)

Wed, 29 Apr 2026 13:52:59 GMT

�� ALERT: New 2026 IRS Letter Scam (CP53E)

If you received an IRS Notice CP53E about a "direct deposit change" or "unable to process refund" notice, DO NOT act immediately.

Scammers are creating fake versions of this letter right now to steal your refund and personal information! ��

What you need to know:

✅ It’s a real letter, but often a scam: Many people are receiving fraudulent letters, while others are caught in an IRS glitch affecting 800,000+ taxpayers.
⚠️ The Red Flag: Scammers ask to click a link, scan a QR code, or provide Social Security Numbers via phone.
��️ Protect Yourself: The IRS will NOT send QR codes or demand urgent action via email.

What to do if you receive one:

Do not call the number on the letter.
Do log into your secure IRS online account to verify its legitimacy.
Contact us immediately to verify your tax refund status before you click anything.

Stay safe this tax season!

10 Critical Mistakes to Avoid With the Help of a Certified Public Accountant

Mon, 13 Apr 2026 10:30:19 GMT

Managing your finances—whether for a business or your personal life—comes with a long list of responsibilities, deadlines, and compliance requirements. While it may be tempting to handle everything independently, even small oversights can lead to costly consequences. Tax inefficiencies, missed deductions, compliance issues, and poor financial planning decisions often stem from avoidable mistakes.

This is where working with a certified public accountant becomes not just helpful, but essential. A qualified professional brings technical expertise, regulatory awareness, and strategic insight that go far beyond basic bookkeeping or tax filing. More importantly, they help you avoid critical errors that could impact your financial stability long-term.

Below are some of the most common and costly mistakes individuals and business owners make—and how partnering with a certified public accountant can help you avoid them.

1. Misunderstanding Tax Obligations and Filing Requirements

One of the most common mistakes is assuming you fully understand your tax obligations. Tax laws are complex, frequently updated, and vary depending on income type, business structure, and location. Misinterpreting filing requirements can result in penalties, audits, or overpaying taxes.

Many taxpayers rely on software or generalized advice, but these tools lack the nuance required for more complex financial situations. According to Code for America, the IRS has provided free tax filing options through partnerships with private tax software companies for more than two decades, yet many taxpayers still struggle to file accurately or optimize their returns.

A certified public accountant ensures your filings are accurate, compliant, and optimized. They stay current with tax code changes and can interpret how those changes directly impact your financial situation—something DIY approaches often miss.

2. Overlooking Legitimate Deductions and Credits

Failing to claim eligible deductions and credits is essentially leaving money on the table. This is especially common among small business owners, freelancers, and individuals with multiple income streams.

Many deductions require detailed documentation, proper categorization, and a clear understanding of eligibility rules. Without that knowledge, taxpayers often err on the side of caution and skip deductions altogether—or worse, claim them incorrectly.

A certified public accountant identifies all applicable deductions while ensuring compliance. From home office expenses to depreciation schedules and industry-specific credits, they help maximize your return without increasing audit risk.

3. Mixing Personal and Business Finances

Blurring the line between personal and business finances is a critical mistake that can create accounting confusion, tax complications, and legal exposure. It becomes difficult to track expenses accurately, justify deductions, or present clean financial records.

This issue is particularly common in early-stage businesses or sole proprietorships where formal financial systems may not yet be established.

Working with a certified public accountant helps you implement proper financial separation from the start. They can guide you on account structuring, expense tracking systems, and compliance practices that protect both your business and personal assets.

4. Failing to Plan for Taxes Year-Round

Many individuals and businesses treat taxes as a once-a-year task. This reactive approach often results in unexpected liabilities, cash flow strain, and missed planning opportunities.

Effective tax management requires a proactive, year-round strategy. Estimated payments, income timing, expense planning, and entity structuring all play a role in minimizing tax burdens.

A certified public accountant provides ongoing guidance, not just seasonal support. By planning ahead, they help you reduce surprises and make informed financial decisions throughout the year rather than scrambling at tax time.

5. Ignoring Cash Flow Management Principles

Profitability does not always equal liquidity. Businesses can appear successful on paper while struggling to meet day-to-day financial obligations due to poor cash flow management.

Common mistakes include failing to forecast cash flow, underestimating expenses, or not maintaining adequate reserves. These issues can quickly escalate into operational disruptions.

A certified public accountant helps you develop accurate cash flow projections, monitor financial health, and implement controls that ensure sustainability. Their insights allow you to make data-driven decisions rather than relying on assumptions.

6. Choosing the Wrong Business Structure

Selecting an inappropriate business entity—such as operating as a sole proprietorship when an LLC or S corporation would be more advantageous—can have long-term tax and liability implications.

Many business owners make this decision based on convenience or incomplete information, without fully understanding the trade-offs.

A certified public accountant evaluates your specific situation, including income level, growth plans, and risk exposure, to recommend the most advantageous structure. This decision can significantly impact your tax liability and operational flexibility over time.

7. Neglecting Proper Recordkeeping and Documentation

Accurate and organized financial records are the foundation of sound financial management. Yet, many individuals and businesses fail to maintain proper documentation, making it difficult to substantiate deductions or respond to audits.

Poor recordkeeping often leads to missed opportunities, compliance issues, and increased stress during tax season.

By working with a certified public accountant, you can establish systems for consistent and compliant recordkeeping. They also ensure that your documentation aligns with regulatory expectations, reducing risk and improving efficiency.

8. Relying Too Heavily on DIY Financial Tools

DIY accounting software and tax preparation platforms have made financial management more accessible, but they are not a substitute for professional expertise. These tools are only as effective as the information entered and the user's understanding of financial principles.

While they may work for very simple situations, they often fall short when dealing with complex tax scenarios, business growth, or strategic planning.

A certified public accountant provides context, interpretation, and foresight that software cannot replicate. They help you avoid costly mistakes that automated systems may overlook or misinterpret.

9. Missing Deadlines and Compliance Requirements

Late filings, missed payments, and overlooked compliance obligations can result in penalties, interest charges, and reputational damage. This is particularly critical for businesses that must adhere to multiple reporting requirements throughout the year.

Managing these deadlines manually increases the likelihood of error, especially as financial complexity grows.

A certified public accountant ensures that all deadlines are met and compliance requirements are fulfilled. They implement structured processes that keep your financial responsibilities on track and reduce administrative burden.

10. Failing to Seek Strategic Financial Advice

Perhaps the most significant mistake is viewing accounting as purely transactional rather than strategic. Financial decisions—such as investments, expansions, or major purchases—should be guided by data and expert insight.

Without professional input, individuals and business owners often make decisions based on incomplete information or short-term thinking.

A certified public accountant acts as a strategic advisor, helping you align financial decisions with long-term goals. Their expertise extends beyond compliance to include forecasting, risk management, and growth planning.

Avoiding financial mistakes is not just about staying compliant—it's about building a stable, efficient, and growth-oriented financial foundation. From tax planning and recordkeeping to strategic decision-making, the risks of going it alone can outweigh the perceived savings of a DIY approach.

Each of the mistakes outlined above has the potential to create long-term financial consequences, many of which are entirely preventable with the right guidance. Working with a certified public accountant ensures that your finances are managed with precision, foresight, and expertise.

If you want to reduce risk, improve efficiency, and make more informed financial decisions, professional support is not optional—it's essential.

Ready to take control of your financial future? At Hagen CPA, LLC, we work with you to identify risks, optimize your tax strategy, and build a stronger financial foundation—contact us today to get started.

6 Insider Tax Preparation Services Clients Wish They Knew

Fri, 06 Feb 2026 22:07:44 GMT

The annual ritual of filing taxes often evokes a mixture of dread and confusion for many taxpayers. Whether you are an individual navigating personal deductions or a business owner managing complex payroll requirements, the stakes are high. While many view the process as a simple matter of data entry, the reality is far more intricate. Professional tax preparation services offer a glimpse into a world of strategic planning and regulatory nuance that most taxpayers never see. Understanding the inner workings of this industry can transform a stressful seasonal obligation into a streamlined component of your financial health.

1. Navigating the Complexity of Contemporary Codes

The sheer volume of regulations governing how money is earned, spent, and taxed is staggering. For the average person, keeping up with every minor adjustment passed by legislative bodies is nearly impossible. This is where the true value of expertise becomes apparent. According to Precision Business Insights, with the U.S. tax code exceeding 70,000 pages, is a significant driver for the tax preparation services market across all segments. This astronomical page count represents a labyrinth of rules that can either penalize the uninformed or reward the well-prepared.

When you engage with professional tax preparation services, you are not just paying for software; you are investing in a shield against this overwhelming complexity. Experts spend hundreds of hours annually studying these pages to identify nuances that software algorithms might overlook. This deep dive into the code allows for the identification of credits and deductions that are often buried within obscure sections of the law.

2. Identifying Hidden Deductions Early

Many taxpayers believe that the time to think about deductions is during the spring when forms are due. However, professionals in the field of tax preparation services know that the best savings are identified long before the filing deadline. By the time the year has ended, many opportunities to restructure transactions or categorize expenses have already passed.

Proactive planning allows individuals to document charitable contributions, business expenses, and medical costs in real-time. When a professional reviews your financial activity throughout the quarters, they can spot patterns that suggest a shift in strategy. This might involve timing the purchase of equipment for a business or adjusting the way personal investments are sold. The goal is to ensure that when the final documents are prepared, every possible legal reduction in liability has been captured through meticulous record-keeping and foresight.

3. Minimizing Risks of Federal Audits

The fear of an audit is a common anxiety, yet many people inadvertently trigger red flags through simple errors or inconsistent reporting. Reliable tax preparation services act as a first line of defense against such scrutiny. Professionals understand the "norms" for various industries and income levels. If your reported figures fall outside of these expected ranges, an expert can help you gather the necessary documentation to justify those numbers before the government even asks.

Consistency is a primary focus for experts. They ensure that information reported on your personal filings matches what is found on business documents or information returns sent by employers and banks. By performing internal reconciliations, these services catch discrepancies that would otherwise be flagged by automated government systems. This attention to detail provides a level of security that DIY methods simply cannot replicate, offering peace of mind that your filings are robust and defensible.

4. Optimizing Long-Term Wealth Strategies

Filing a return is often seen as a backward-looking activity—a summary of what happened last year. However, high-level tax preparation services treat the return as a roadmap for the future. Every line on a tax form tells a story about your financial habits, from how you save for retirement to how you manage debt.

Experts use this data to provide guidance on wealth accumulation. For instance, they might suggest shifting funds into different types of accounts to reduce future liability or explain how a current windfall will impact your obligations in the coming years. By looking at the "big picture," these professionals help you build a strategy where tax efficiency is integrated into every major financial decision. This holistic approach ensures that you are not just saving money today, but also protecting your assets for decades to come.

5. Leveraging Advanced Filing Technologies

The tools used by top-tier tax preparation services go far beyond the retail software available to the general public. These professional-grade systems feature sophisticated diagnostic tools that scan for errors, omissions, and potential audit risks across thousands of data points. They also allow for seamless integration with banking and accounting platforms, which reduces the likelihood of manual entry errors.

Furthermore, these technologies facilitate secure communication and document storage. In an era where data breaches are a constant threat, having a secure portal to transmit sensitive financial information is vital. Professionals invest heavily in cybersecurity to protect client data, ensuring that your social security numbers and financial histories remain private. This technological edge allows for a faster, more accurate, and significantly more secure filing process than traditional paper-based or basic digital methods.

6. Evaluating Diverse Business Structures

For entrepreneurs, the way a company is legally organized has a massive impact on how much money stays in the business. Specialists in tax preparation services are essential when deciding between various corporate structures. Whether you are operating as a sole proprietorship, a partnership, or a corporation, each choice carries specific obligations and benefits.

A professional can run "what-if" scenarios to show how different structures would affect your bottom line as the business grows. They can also assist with the complexities of "pass-through" entities, where business income is reported on personal returns. As laws regarding business deductions evolve, having a consultant who understands the intersection of corporate law and tax liability ensures that your business remains competitive and compliant. This guidance is particularly valuable during phases of rapid expansion or when bringing on new partners.

The world of taxation is much more than just a collection of numbers on a page; it is a dynamic and ever-changing landscape that requires constant vigilance. Relying on professional tax preparation services provides more than just a completed form. It offers a strategic partnership that addresses the immense complexity of the legal code, reduces the risk of government intervention, and paves the way for future financial stability. By understanding these insider perspectives, you can move from a position of seasonal stress to one of year-round confidence.

When you choose to work with an expert, you are acknowledging that your time and financial security are worth the investment. The insights gained from professional oversight can lead to significant savings and a clearer understanding of your overall economic standing.

As the regulatory environment continues to grow in complexity, the value of specialized knowledge will only increase. Moreover, the peace of mind that stems from professional intervention is an intangible yet invaluable asset. In an era where financial transparency is paramount, knowing that your filings have been vetted by a seasoned expert mitigates the psychological burden of potential errors.

If you are looking for a dedicated partner to navigate these complexities with precision and care, consider reaching out to the professionals at Hagen CPA, LLC. Our team is committed to providing the clarity and expertise you need to manage your financial obligations effectively.

Tips to Organize Your Tax Records

Thu, 08 Jan 2026 21:00:05 GMT

As important tax records start filling mailboxes, how can you make sure your tax preparation goes smoothly and efficiently this year?

Here are some tips.

Keep it all in one place.

It seems obvious, but how often have you found yourself going through piles of paper looking for that elusive 1099 tax form or charitable deduction receipt? If you only do one thing, this is it.

Time to sort.

When you have everything all together, the best practice is to sort your information into the same buckets used in your tax return. At a minimum, sort the information into the basic categories below. If you have a lot of one category, sort that stack into the following sub-categories.

A. Income

Wages (W-2s)
Alimony (pre-2019 divorce agreements)
Business income (1099's, K-1s)
Interest income (1099-INT)
Dividends (1099-DIV)
Winnings (W-2G, 1099-G)
Social Security (SSA-1099)
Investments (1099-B)
Other Income Items

B. Income Adjustments

Student loan interest
Tuition & fees deductions
Alimony paid (pre-2019 divorce agreements)
Educator expenses
Other education expenses
IRA contributions
HSA/MSA contributions

C. Itemized Deductions

Taxes paid
Charitable contributions
Interest expense (mortgages)
Medical/Dental expenses
Investor/Other expenses
Casualty/Theft losses

D. Credit Information

Child & dependent care expenses
Adoption expenses
Education expenses

E. Business/Rental

Sort income and expenses for each business activity, hobby activity, or rental unit
Note: Remember, this list is not all-inclusive. It is here to help you sort your information into a usable form to make tax filing easier.

F. New tax laws. This year there are new tax laws that require your attention:

Tax-free tips. Get and retain records to prove any tip income from 2025.
Tax-free overtime. Get your employer to provide records of any overtime you worked in 2025.
Vehicle loans. If you purchased a new vehicle and have a loan on the vehicle, keep the detailed loan document. If the vehicle is U.S. assembled, this could be a new deduction for you.

G. Not sure bucket.

There may be things you receive that you aren't certain about needing for tax filing purposes. These items should be gathered in one place for review.

Sum it up.

Once the information has been categorized, create a summary of the information. This summary can be a printed copy of an organizer or it could be a simple recap you create.

Is something missing?

Pull out last year’s tax return and create a list of things you needed last year. Use this as a checklist against this year’s information. While this process will not identify new items, it will help identify missing items that qualified in prior years.

Finalize required documentation.

Certain deductions require substantiation and/or logs to qualify your expense. Common areas that require this are: business mileage, charitable mileage, medical mileage, moving mileage, non-cash charitable contributions, and certain business expenses. These logs should be maintained throughout the year, but now is a good time to make sure they are complete and ready to go for tax filing.

It is very easy to overlook something given the lengthy list of taxable income items, deductions, and credits. By following these tips you can greatly reduce this risk.

Client Update: January 2026

Thu, 08 Jan 2026 20:33:45 GMT

Happy New Year!

With the holidays behind us, it's time to summarize last year's activities and prepare to file your 2025 tax return. So as you wait to receive the needed documentation, why not consider squeezing in a tax-savings New Year's resolution? This month's newsletter outlines three to consider.

You’ll also find guidance on staying organized to prepare for filing your 2025 tax return. This is even more important with recent tax law changes including the tax-free tips and tax-free overtime benefits. There are also articles outlining practical money ideas anyone can use plus a look at technology changes that are beginning to show up in everyday life.

As always, should you have any questions, please call. And feel free to forward this information to someone who could use it!

IN THIS ISSUE

Happy New Year...Consider These Tax Resolution Ideas
It's Tax Time! Ideas to Get Organized
Five Great Money Tips
Raising a Financially Savvy Child
Improving the Usefulness of Your Bookkeeping

As always, should you have any questions or concerns regarding your tax situation please feel free to call.

9 Easy Tax Prep Wins Clients Love Most

Mon, 22 Dec 2025 14:33:51 GMT

When it comes to reliable and stress-free tax services, clients of Hagen CPA, LLC know they're choosing a trusted partner. With decades of experience serving Wisconsin and Northern Illinois, Hagen CPA combines personalized care with expert guidance to make tax season far less intimidating. The firm's commitment goes beyond simply preparing returns; it focuses on understanding each client's unique financial situation, whether they're an individual taxpayer, a small business owner, or someone navigating more complex investments and deductions.

By taking the time to provide tailored advice, Hagen CPA, LLC ensures that clients not only meet their tax obligations but also make informed financial decisions that can benefit them throughout the year. This combination of experience, attention to detail, and genuine care is what consistently earns the firm loyalty and trust from its growing client base.

1. Making Tax Prep Simple Through Document Management

One of the most common challenges clients face during tax season is organizing their financial documents. Receipts, W-2s, 1099s, and payroll records can quickly become overwhelming. Hagen CPA, LLC addresses this by offering secure and organized methods for submitting documents. Clients can upload everything through a secure portal or schedule in-person appointments to go over paperwork. This approach eliminates the stress of hunting for forms and ensures that all information is accounted for. By streamlining document management, we allow clients to focus on their daily lives instead of worrying about missing documents or late submissions.

2. Delivering Expert Tax Prep With Certified Staff

Tax law is notoriously complex and constantly changing. Hagen CPA, LLC, employs certified professionals, including CPAs and enrolled agents, who understand both individual and business tax situations. Their expertise ensures that returns are meticulously prepared, maximizing deductions and credits while minimizing errors. In addition, if the IRS ever questions a return, we can represent clients directly, providing a level of protection that only qualified tax professionals can offer. For clients with intricate financial circumstances, this type of knowledgeable support is invaluable, giving confidence and reducing stress during tax season.

3. Offering Flexible Options for Every Client

Every client has different needs and schedules. Some prefer a face-to-face meeting to discuss financial details, while others want the convenience of simply handing over documents and letting experts handle the rest. Hagen CPA, LLC accommodates both approaches. Clients can schedule live appointments to review returns in real time or utilize drop-off options to streamline the process. This flexibility empowers clients to choose the method that best fits their lifestyle, reducing the time and effort required for successful tax prep. The result is a more personalized and manageable tax season for everyone.

4. Providing Year-Round Tax Support

Many firms focus solely on tax season, leaving clients without guidance for most of the year. Hagen CPA, LLC takes a different approach by offering dedicated support throughout the year. Clients can reach out for advice or planning if financial situations change or if they have questions about upcoming tax obligations. Continuous support helps prevent last-minute scrambling and ensures that clients stay on top of compliance, saving them time, stress, and potential penalties. By offering year-round availability, we transform tax prep from a seasonal chore into an ongoing, proactive financial strategy.

5. Integrating Tax Prep With Comprehensive Financial Services

Hagen CPA, LLC provides more than just tax prep. The firm also handles bookkeeping, payroll, business planning, and financial statements, offering a full suite of integrated services for both individuals and businesses. This integration allows clients to maintain a clear and unified picture of their finances and reduces the likelihood of errors or overlooked details. Small business owners, for example, can consolidate payroll, accounting, and tax preparation services, streamlining processes and saving valuable time. Individuals also benefit from comprehensive oversight of their financial health, empowering them to make informed and strategic decisions. By combining tax prep with other essential financial services, we ensure that clients receive coordinated, consistent, and effective guidance year-round.

6. Strengthening Client Relationships Through Local Expertise

Hagen CPA, LLC has served clients in Janesville and Evansville, Wisconsin, since 1977. As a family-owned, local firm, our company prioritizes relationships over transactions, focusing on building long-term trust and understanding each client's unique financial situation. This approach means clients receive personalized attention tailored to their specific circumstances and goals. The firm's deep community knowledge also allows them to understand local regulations, economic trends, and regional business needs, providing more precise and relevant guidance. Many clients return year after year not only for technical expertise but also for the trust, familiarity, and genuine care that come from working with a firm truly invested in their community and long-term success.

7. Ensuring Accuracy, Compliance, and Audit Protection

Mistakes on tax returns can lead to penalties, stress, and audits. Hagen CPA, LLC ensures accuracy and compliance by relying on certified professionals who stay updated on the latest tax laws, regulations, and industry best practices. Clients gain peace of mind knowing their returns are prepared correctly, thoroughly, and efficiently. In the rare event of an audit, we represent clients directly, navigating communications with the IRS, addressing any questions, and handling the process on their behalf. Accuracy, compliance, and protection against audits are critical benefits that make professional tax prep a smart and worthwhile investment for any client.

8. Providing Transparent Communication and Clear Expectations

Clear communication is essential to reducing anxiety during tax season. Hagen CPA, LLC offers upfront guidance about what information is needed, what to expect during the process, and how fees are determined. Clients know exactly what their tax prep will involve and what it will cost, which removes uncertainty and builds confidence. Transparent communication strengthens client trust and makes the entire process more efficient and predictable. Clients appreciate knowing that they can ask questions, clarify details, and receive answers promptly, making tax prep a smoother, more reassuring, and ultimately more empowering experience.

9. Enabling Forward-Looking Tax Planning

Beyond preparing past returns, Hagen CPA, LLC helps clients plan for the future. Tax prep isn't just a reflection of last year's finances but also an opportunity to optimize future outcomes. By analyzing income, deductions, potential liabilities, and upcoming financial changes, the firm can guide clients toward strategies that reduce future taxes and avoid pitfalls. This forward-looking approach benefits both individuals and businesses by creating a proactive roadmap for long-term financial success and stability. Clients see tax prep as more than a yearly requirement; it becomes an ongoing, strategic tool for smart financial planning.

Tax prep doesn't need to be stressful or overwhelming. Hagen CPA, LLC turns the experience into a series of wins for its clients. From streamlined document submission and expert handling to flexible options, year-round support, integrated services, local expertise, accuracy, transparent communication, and forward-looking planning, every element is designed to make tax season easier and more effective.

By combining deep knowledge of tax laws with a commitment to personalized service, we ensure clients feel confident and well-prepared, no matter the complexity of their financial situation. With revenue for tax preparation service companies increasing at an average annual growth rate of 2.9% over the past five years, reaching fourteen point five billion dollars in 2025, according to IBISWorld, investing in professional services is more important than ever. Make your next tax season a win by contacting Hagen CPA, LLC for personalized guidance and stress-free tax prep .

IRS to Phase Out Paper Checks

Thu, 20 Nov 2025 21:43:04 GMT

While the IRS encourages electronic payments, it has not stopped accepting checks yet for the current filing season (as of November 2025).

A federal executive order mandates the phase-out of paper checks for most transactions (including tax refunds and payments to the government) by September 30, 2025; however, official IRS guidance indicates that for 2024 and prior tax returns, current procedures (including check payments with Form 1040-V) should be followed until further notice, with the full transition expected with the 2026 tax filing season.

Online Payment Instructions for Tax Clients

Use one of the following official IRS methods to ensure your payment is processed correctly and on time:

IRS Direct Pay (Recommended for individuals)

This free service allows payments directly from a checking or savings account without any registration or fees.

Action: Go to the official IRS Direct Pay website .
Steps:
Select the reason for the payment (e.g., "Balance Due") and the tax year the payment is for.
Verify identity using personal information from a prior year's tax return.
Enter bank account information (routing and account numbers) and the payment amount.
Schedule the payment date (up to 365 days in advance) .
Receive an immediate confirmation number and an optional email confirmation.

Pay by Debit or Credit Card

Clients can pay via an IRS-authorized third-party payment processor.

Action: Go to the IRS Pay Your Taxes by Debit or Credit Card website for a list of approved processors.
Note: The payment processors charge a convenience fee for this service; the IRS does not receive any portion of this fee.

Electronic Funds Withdrawal (EFW) during E-filing

If you are filing your return through a tax professional, the payment can be submitted simultaneously.

Action: Integrate the payment request when completing the electronic filing process.
Note: This is available only at the time of e-filing the return.

Electronic Federal Tax Payment System (EFTPS)

This service is ideal for individuals and businesses who need to make multiple or recurring payments (such as estimated taxes).

Action: Enroll at the official EFTPS website or call 1-800-555-4477.
Note: Enrollment may take several days, so clients should plan ahead.

Important Reminder

When paying electronically for a balance due, clients do not need to mail in a paper Form 1040-V payment voucher. Retaining the electronic payment confirmation for their records is sufficient.

Wisconsin Department of Revenue Targets Retirement Income in New Audit Initiative

Thu, 06 Nov 2025 21:59:28 GMT

The Wisconsin Department of Revenue (WDOR) has launched a limited audit initiative focused on retirement income reporting — specifically, IRA distributions that may qualify as Qualified Charitable Distributions (QCDs).

WHY YOU MIGHT RECEIVE A NOTICE

As part of this project, some Wisconsin taxpayers — particularly those age 70 ½ and older — may receive a notice of additional tax due if the WDOR's records don't clearly show that certain IRA distributions were made directly to charitable organizations as QCDs.

The WDOR receives retirement distribution data from the IRS and financial institutions, but this information does not indicate whether a distribution went directly to a charity. As a result, even taxpayers who correctly made a QCD may still receive a notice or bill.

The first wave of notices was issued during the first week of October, and the WDOR plans to send additional rounds weekly throughout October and November.

If you receive one of these notices, review it carefully — in many cases, the amount listed as "due" may not actually be owed.

WHAT TO DO IF YOU RECEIVE A NOTICE

If you're contacted by the WDOR, don't panic . These cases are typically straightforward to resolve. You generally have 60 days to appeal, and your response should include documentation showing that your IRA trustee made the distribution directly to a qualified charitable organization.

Acceptable Documentation Includes:

Acknowledgment from the charity confirming the date(s) and amount(s) of the contribution and stating that no goods or services were provided in return.

Written acknowledgment of the contribution from the qualified organization, including the contribution date(s) and amount(s).Proof of distribution, such as an electronic funds transfer record or a copy of a check issued from your IRA directly to the charity.

Be sure to include your Tax Account Number (TAN), Letter ID, and tax period listed on the notice when submitting documentation.

Appeals can be submitted electronically through MyTaxAccount , by fax, or by mail.

WE'RE HERE TO HELP

If you receive a WDOR notice or have questions about your Qualified Charitable Distribution, contact Hagen CPA. Our tax professionals can help you review your documentation and respond appropriately to ensure your charitable giving is properly recognized.