Maximize Your Refund: Tools to Help You Get Organized and More…
A complete and organized file allows us to maximize your deductions and credits. To ensure accurate and timely filing of your tax returns, please gather all necessary documents. Below are tools to help you get organized and ensure nothing is missed along with other resources to help manage your personal taxes.
Individual Tax Organizers
We Offer Tailored Tax Organizers
To make this process easier, we provide customized organizers to ensure all your deductions are accounted for. Please complete the organizer that best fits your situation:
Individual Taxpayer Organizer – Rental
Individual Taxpayer Organizer – Sole Proprietorship and Rental
There is a list of common documents below.
Common Forms and Information Needed to Prepare Returns
Key Income Forms
These forms are provided by employers, banks, and other institutions by the end of January or mid-February.
☐ Form W-2: From each employer, showing wages earned and taxes withheld.
☐ Form W-2G: For any gambling or lottery winnings.
☐ Form 1099-INT: For interest income from banks or investments.
☐ Form 1099-DIV: For dividends and distributions from investments.
☐ Form 1099-NEC: For non-employee compensation if you worked as a freelancer or independent contractor.
☐ Form 1099-K: For payments received via third-party networks like Venmo, PayPal, or online marketplaces.
☐ Form 1099-G: For government payments like unemployment benefits or state tax refunds.
☐ Form 1099-R: For distributions received from retirement plans, pensions, or annuities.
☐ Form SSA-1099: For Social Security benefits received.
☐ Form 1095-A: If they enrolled in a health insurance plan through the Health Insurance Marketplace.
☐ Schedules K-1: For income from partnerships, S-corporations, estates, or trusts.
Documents for Deductions and Credits
Relevant receipts and statements are needed to claim specific tax breaks.
☐ Form 1098: For mortgage interest paid on your home or a rental.
☐ Form 1098-E: For student loan interest paid.
☐ Form 1098-T: For tuition expenses paid to an educational institution.
☐ Charitable Records: Receipts for both cash and non-cash donations.
☐ Medical Expenses: Records of medical/dental costs and health insurance premiums paid out-of-pocket.
☐ Childcare Records: Documentation of expenses, including the provider’s name, address, and tax ID (SSN or EIN).
☐ Estimated Tax Payments: Records of any quarterly payments made for Form 1040-ES and Form 540-ES.
Personal Information Needed
Beyond income and expense forms, you will need basic personal information:
☐ SSN or TIN: For yourself, your spouse, and all dependents.
☐ Dates of Birth: For everyone listed on the return.
☐ Identity Protection PIN (IP PIN): If the IRS has issued one to protect against identity theft.
☐ Banking Details: Your account and routing numbers for direct deposit.
Additional Information:
Additional help is a phone call away! ● 951-902-5667 ● www.batservices.com
Refund Status
Check Your Refund Status
To check the status of your refund, you will need your Social Security Number or Individual Taxpayer Identification Number (ITIN), your filing status, and the exact whole dollar amount of your expected refund unless you sign into your account.
- Federal (IRS): Use the IRS “Where’s My Refund?” Tracker or sign into your IRS Online Account.
- California (FTB): Use the FTB Refund Status Portal or sign into your MyFTB Account. MyFTB Account.
Quick Tip for 2026
- Update Frequency:Both the IRS and FTB update their systems once a day, typically overnight. There is no need to check multiple times per day.
- When to Check:
- E-filed returns: Wait 24 hours after the IRS or FTB has accepted your return.
- Paper returns: Wait 4 weeks after mailing your return.
- Direct Deposit Requirement: For the 2026 season, the IRS is phasing out paper checks. Ensure you have provided valid bank account and routing numbers to avoid delays or a “frozen” refund status.
- Expected Timelines: Most e-filed federal and California refunds are issued within 21 days. However, if you claimed the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), the IRS cannot issue your refund until after February 16, 2026.
Tax Accounts and Payments
Manage Your Tax Accounts & Payments
The most efficient way to track your balances and make payments is through the official IRS and FTB portals.
Federal Taxes (IRS)
- IRS Online Account: Create or sign in to view your balance, payment history, and key data from your most recent tax return.
- IRS Direct Pay: Pay your tax bill or estimated tax payments directly from your checking or savings account with no registration required.
State of California (FTB)
- MyFTB Account: Register for full account management, view tax images, and use secure messaging to contact the FTB.
- FTB Web Pay: Make a quick payment (balance due, extension, or estimated tax) using just your SSN/ITIN and last name. No account registration required.
Penalties and Interest
Penalties and Interest (2026)
Federal Penalty Types (IRS)
- Failure to File: Applies if you don’t file by the due date. The penalty is generally 5% of the unpaid tax for each month it’s late, up to 25%.
- The “60-Day” Warning: If your return is over 60 days late, the minimum penalty for 2026 increases to the lesser of $525 or 100% of the tax owed. Filing even a few days late is always better than waiting past the 60-day mark.
- Failure to Pay: 0.5% of the unpaid tax for each month it remains unpaid, up to 25%.
- Combined Penalty Rule: If both the Failure to File and Failure to Pay penalties apply in the same month, the 5% Failure to File penalty is reduced by the 0.5% Failure to Pay penalty, resulting in a combined 5% monthly charge (rather than 5.5%).
- Accuracy-Related: Generally, 20% of the underpayment if you don’t claim all income or take unqualified deductions.
- Underpayment of Estimated Tax: Applies if you don’t pay enough tax throughout the year (quarterly).
Federal Interest Rates
The IRS underpayment interest rate for individuals is compounded daily and is subject to quarterly changes based on the Federal Short-Term Rate + 3%.
- For current rates, search for the Federal Short-Term Rate and add 3% to it for that quarter.
- The rate for all quarters in 2025 was 7%.
- The rate for all quarters in 2024 was 8%
State of California Penalties (FTB)
- Late Filing: 5% of the unpaid tax per month, up to 25%. The minimum penalty for a balance due is $135 or 100% of the tax, whichever is less.
- Late Payment: 5% of the unpaid tax plus 0.5% per month for the duration of the underpayment (up to 40 months), capped at 25%.
- Estimated Tax Penalty: Charged if quarterly payments are missed or insufficient.
California Additional Fees (2025–2026 Fiscal Year)
The following cost recovery fees may be added to your balance if the FTB must take collection action:
- Collection Cost Recovery Fee: $362 (for individuals).
- Filing Enforcement Fee: $131.
- Lien Fee: Varies by county.
Payment Plans and Relief
Payment Plans
If you cannot pay your tax balance in full, you should set up a formal plan immediately to reduce late-payment penalties.
- Short-Term Payment Plan: For balances under $100,000 to be paid within 180 days. There is no setup fee.
- Long-Term Installment Agreement: For balances under $50,000 to be paid over 72 months. The online setup fee is approximately $22 with direct debit.
- Reduced Penalties: Once a plan is active, the Failure to Pay penalty is typically reduced from 0.5% to 0.25% per month.
California Payment Options (FTB)
- FTB Installment Agreement: Generally available if you owe $25,000 or less and can pay within 60 months. A $34 setup fee applies.
- Electronic Requirement: If your 2026 payment exceeds $20,000, California requires electronic payment to avoid a 1% non-compliance penalty.
Penalty Relief & Abatement Options
If you have received a penalty notice, you may qualify for relief. We help clients navigate the following programs:
- First-Time Abate (FTA): You may qualify for an administrative waiver if you have a clean compliance record for the past three years.
- Reasonable Cause: Relief for penalties incurred due to circumstances beyond your control (e.g., natural disasters, serious illness, or inability to obtain records).
- Statutory Exceptions: Specific relief provided by legislation for certain tax situations.
- Appeals: If a request for relief is denied, we can assist in appealing the IRS decision.
State of California Relief (FTB)
- One-Time Abate: Individual taxpayers may be eligible for a one-time penalty abatement for a single tax year.
- Reasonable Cause: Similar to federal rules, the FTB may waive penalties if you can prove you acted with “ordinary business care and prudence.”
Need Help?
Contact BAT Services if you need assistance responding to a tax notice, setting up a payment plan, or requesting a penalty abatement.
Trump Accounts
Trump Accounts are a new type of tax-deferred individual retirement account (IRA) specifically designed for children under age 18 and other eligibility requirements are met.
There is a Treasury Pilot Program that adds a one-time $1,000 seed contribution for US citizens born between January 1, 2025, and December 31, 2028, when a tax election is filed on Form 4547 and the authentication process is complete. Only one funded Trump Account is allowed per child.
Michael and Susan Dell pledged $6.25 billion to add an extra $250 to Trump Accounts for the first 25 million eligible children (age 10 and under) in ZIP codes with median incomes below $150,000.
Fidelity offers a detailed explanation of Trump Accounts.
Key Information
- All accounts will initially be held by a Treasury-designated financial agent. Rollovers to private firms like Fidelity or Vanguard will be available later.
- Filing Form 4547 starts the process, but the “authorized individual” must complete an authentication process starting in May 2026 to fully open the account.
- An online portal at trumpaccounts.gov is expected to launch in mid-2026 for easier enrollment.
Contributions
- For each child with an established Trump Account, the aggregate limit is $5,000/year (indexed for inflation after 2027), subject to IRS rules.
- Certain contributions, such as the $1,000 pilot program contribution, qualified general contributions, and rollovers, are not counted toward the annual contribution limit.
- Employees contributions (salary reductions) may also fund these accounts through pre-tax salary reductions if the employer offers this feature through a Section 125 cafeteria plan. Employees can only use salary reduction to fund a dependent child’s account, not their own.
- Employer contributions under section 128 are limited to $2,500/year, per employee, and count toward the aggregate limit. The employer contribution can be split among multiple children. These are tax-free benefits; they are excludable from the employee’s gross income and not subject to payroll taxes.
- Both employer direct contributions and employee pre-tax contributions count toward the $2,500 annual limit under the employer’s program.
- Personal contributions create “basis” (after-tax), while government, charitable, and employer contributions are pre-tax and will be fully taxable upon withdrawal.
- Contributions cannot be made before July 4, 2026.
Investment Restrictions
- Mutual funds or ETFs that track the S&P 500 or another equity index for which regulated futures contracts are traded, with at least 90% invested in US companies.
- Expense ratio cap: 0.10% (10 basis points) or less.
Use of Funds
- During the growth period (generally before January 1 of the year the child turns 18), distributions from a Trump Account are restricted and are permitted only for specific reasons (such as rollovers, excess contributions, or upon death of the beneficiary).
- Beginning January 1 of the year the child turns 18, the Trump Account is treated similarly to a traditional IRA.
- Distributions made after this point may be subject to the 10% additional tax on early distributions, unless an exception applies (such as qualified higher education expenses or first-time home purchase). Restrictions apply.
For current information, see:
https://www.trumpaccounts.gov/
Instructions for Form 4547 (draft)
IRS IR-2025-117
IRS Notice 2025-68