Jan 2, 2026
2025 Client Letter
2025 Client Letter
Happy Holidays Everyone!
We hope you have all had a wonderful holiday season, and are excited for the start of a New Year! 2025 has certainly been an exciting year for our team. To the many new clients who have joined us this year, welcome!
To those who have been with us for decades, we extend a heartfelt thank you.
Most of you know, from the announcement made last Fall, that Paula purchased the tax business from Gordy this year. With Gordy still working with us on tax & estate planning, as well as business consulting, the transition has been seamless as it has been “business as usual” other than Paula being involved in more of the tax planning meetings.
Just a quick reminder, as stated in the letter sent out this past Fall, all tax returns will now be channeled through Paula. While Gordy will still assist with a limited amount of tax returns, he will not be gathering any tax documents or having tax meetings at his home. Please do not e-mail or text your documents to Gordy. Likewise, do not mail them to his home address or drop them off at his house. Gordy will also no longer travel to clients’ homes to pick up tax documents. All documents must be delivered to the office. Please do not call or text Gordy’s cell phone, or e-mail him with information or questions. You will likely not receive a response. You are welcome to copy Gordy on e-mails sent to Paula or Cheyanne. If you would like to speak with Gordy, please call the office to get a message to him. The office staff, however, will likely be able to answer most of your questions.
We are so fortunate to have an incredible team in place who have all worked together for years now, and we are excited for the start of a successful tax season! Here is a quick reminder of each team member, and their specialty.
· Paula Randle-Haugen – Owner & CEO – manages all aspects of the business & all tax return processes. Paula will still personally review each tax return before it is finalized, as she has for the past 9 years.
· Gordy Asmus, EA – Senior Consultant – tax & estate planning, business consulting, IRS issues & audits
· Cheyanne Brewer – Office Manager – assists Gordy with IRS issues and prepares tax returns
· Amy Marsen – Payroll Specialist – payroll & sales tax return processing, tax return delivery & e-filing
· Zibbey Thompson – Bookkeeping Specialist / Executive Administrative Assistant – handles the majority of bookkeeping services, main contact for receipt of tax return documents & engagement letters
· Jennifer Sahmoun – Part-time Bookkeeping Specialist
With the goal of timely and accurately prepared tax returns in mind, we want to remind everyone that in-person meetings are rarely necessary to have your tax return prepared. Dropping off, e-mailing, faxing, or mailing your tax documents to the office works very well, and we will always call you or schedule a Zoom meeting for a final review before finalizing your tax return. If you are interested in e-mailing your tax documents to us, please send an e-mail to zibbey@asmustax.com and Zibbey will send you a secure link for the uploading of your documents.
Due to the limited amount of time available to complete hundreds of tax returns by each deadline, efficiency is crucial. Please wait to send tax return information until you have received ALL documents. Please keep in mind, it is the taxpayer’s responsibility to promptly respond and provide your preparer with the information necessary to complete a timely and accurate tax return. If we have made multiple attempts to contact you, and have received no response, your tax return will be automatically extended.
Also note, many tax forms are no longer mailed, and must now be obtained from online sources, such as 1099 forms related to investments and 1099-SA & 5498-SA forms for your HSA account. We are not able to pull Primerica tax documents on your behalf. Please do not assume we have access to those, even if you work with Gordy or Phyllis on the Primerica side. That is a completely separate business unrelated to the tax office. You will need to provide those forms to the tax office. If you are unsure of how to retrieve your Primerica tax documents, please call their customer service line at 1-800-544-5445.
Tax Law Updates:
The One Big Beautiful Bill Act (OBBBA), which passed on July 4th, has created some tax law changes; some are effective in 2025, while others take effect in 2026. Here are a few highlights of the changes that will affect many of you.
Ø You may have heard news stating there would be “no tax on social security.” This is not exactly the case. While social security earnings will still be taxed, depending on other income, taxpayers 65 or older will receive an additional $6,000 deduction on top of their standard deduction. For married filing joint (MFJ) taxpayers who are 65 or older, this means a total deduction of $46,700 is subtracted from Adjusted Gross Income (AGI) to determine taxable income. (Note: the extra deduction starts to phase out for MFJ taxpayers with a Modified AGI of $150,000 or more.)
Ø No tax on tips and overtime – up to $25,000 in qualified tips and $12,500 (per person) of qualified overtime wages can be deducted from taxable income. If you earned tips or overtime in 2025, please be sure your employer has included this information on your W-2 or provided you with a report of overtime wages to pass on to us, along with your W-2.
Ø SALT Deduction Cap – For taxpayers able to itemize, the deductible State and Local Tax (SALT) deduction has been capped at $10,000 in the past. You are now able to deduct up to $40,000.
Ø Child Tax Credit – The credit increases from $2,000 to $2,200 per child under 17.
Ø Car Loan Interest – If you purchased a new vehicle in 2025, and that vehicle was assembled in the U.S., you are able to deduct up to $10,000 of interest paid on your car loan. Please provide the make & model of your vehicle, as well as the VIN number and loan origination date, in order to claim the deduction.
Ø Elimination of Clean Energy Credits – clean vehicle tax credits for new and used EVs are eliminated for vehicles acquired after September 30, 2025. Several residential energy credits have been terminated for property placed in service after December 31, 2025.
Ø Charitable Deductions for taxpayers who do not itemize – starting in 2026, there will be a charitable deduction allowed for taxpayers who do not have enough itemized deductions. Up to $1,000 per person ($2,000 MFJ) of cash contributions will be deducted from gross income.
Ø Meals for Employer’s Convenience – no longer deductible starting in 2026. Previously 50% deductible, meals provided on business premises for the convenience of the employer will no longer be deductible. Business Travel Meals as well as Client Business Meals will remain 50% deductible. (Paula apologizes to anyone she misinformed about this!) Employee Social Events, i.e. expenses for recreational or social activities, such as company holiday parties or picnics, primarily for the benefit of non-highly compensated employees, remain 100% deductible.
Ø Important Notice to Minnesota Employers – Minnesota’s Paid Family and Medical Leave program starts on January 1, 2026. Amy has done her best to contact all clients affected by this, but if you are not familiar with the program, please contact Amy for details to be sure you are in compliance. This affects ALL Minnesota employers, regardless of size or type of employee.
Beware of IRS Scams:
Phishing e-mail and phone call scams continue to become more sophisticated. Please note the IRS and MN Revenue do not call, email, or text people. They are not allowed to call until after you receive proper written notice. Never click on a link in an e-mail or text, and never provide private information to anyone who calls claiming to be from the IRS or State Revenue Department. Be sure to contact us with questions.
Service Fees & Referral Discounts:
1. Business Clients (Schedules C, E and F) please provide a 1-2 page summary of your income and expenses. If there is a stack of receipts or papers to be reviewed, please know we must charge for the bookkeeping time involved in the scanning and categorizing of receipts.
2. Please know that we welcome questions throughout the year. If you have an in-depth question that requires research, an IRS phone call, or a meeting such as tax planning, business planning, or business setup, we do need to charge a fee for our time. However, if you have just a quick question you’d like to ask over the phone or e-mail us about, we do not charge a fee.
3. Just a reminder that we do offer referral discounts! For every new client referred to us, you will receive a $50 credit on your account once the new client’s invoice has been paid. Keep in mind we can serve clients nationwide using our remote service capabilities!
Important Deadlines to Remember:
· January 31st – All payroll tax returns must be filed and paid. All W-2’s and 1099’s must be delivered to recipients. All TASC Medical Plan expenses must be submitted. If we assist you with any of these items, please submit your information ASAP to allow adequate processing time.
· March 2nd – Farm tax returns due unless you paid previous year estimated taxes by January 15th.
· March 16th – S-Corporation (1120-S) and Partnership (1065) tax returns due.
· April 15th – Individual (1040) and Corporation (1120) tax returns due.
Be sure to watch our website for news of this year’s early bird prize. It will be travel themed!
Thank you for your assistance in making this a great tax season. We truly appreciate your continued patronage. Happy New Year everyone!
Sincerely,
The Asmus Team