Tax and Accounting News

IRS Releases Updated Contingency Plan

The IRS has updated its contingency lapse plan, detailing how operations will proceed past the first five days of the federal government shutdown. The plan, which took effect on Oct. 8, 2025, outlines which functions will continue, which will pause and how employees will be managed during a prolonged shutdown scenario through April 2026. Despite the impending employee furlough, the IRS maintains it will continue to protect government property and data systems, issue certificates of U.S. residency and maintain connections with other federal agencies such as Social Security and OPM.

The IRS will continue with other core services:

  • Testing and completing the upcoming filing year programs
  • Processing returns with payments
  • Processing remittances to include payment perfection
  • Processing disaster relief transcripts
  • Designing and printing of tax forms

The following activities are furloughed and will NOT be conducted:

  • Issuing refunds
  • Processing non-disaster relief transcripts, and income verification services including express service/return
  • Processing individual amended returns
  • All audit functions, examining returns and processing non-electronic tax returns that do not include remittances
  • Non-automated collections
  • Legal counsel for non-excepted activities
  • Taxpayer services such as responding to taxpayer questions (call sites)
  • The Taxpayer Advocate Service is closed

Out of approximately 74,299 employees, about 39,870 (53.6%) will remain working under “exempt” or “excepted” status. These include positions funded by multi-year appropriations, legally authorized activities, or roles necessary to protect life, property or taxpayer data.

Once appropriations resume, furloughed employees will be recalled within hours under a structured communication plan. The IRS has released additional detailed information for its employees on the employee emergency news web page. The IRS will amend the plan as needed as the shutdown continues or if there is a presidentially-declared federal disaster, in which case, the IRS will support FEMA with call center assistance

New Kansas Laws Effective July 1st, 2025

Senate Bill 35 discontinues the state property tax levies for the Kansas educational building fund and the state institutions building fund and instead finances these expenses with revenue from the state general fund.

Senate Bill 269 which was enacted in April 2025 over the governor’s veto, creates a trigger-based system to reduce tax rates when individual and corporate income tax revenues exceed an inflation-adjusted FY 2024 baseline and the Budget Stabilization Fund balance is at 15 percent of the prior year’s general fund tax collections.  The individual income tax rate will be reduced first, until it reaches a flat rate of 4 percent, followed by reductions to the corporate income tax surtax until the normal tax and surtax reach a combined rate of 4 percent.  Finally, the privilege tax will be reduced until the combined normal tax and surtax amount is 2.6 percent for banks and 2.62 percent for trusts and savings and loan associations  The first year an individual income tax cut may be triggered un this law is tax year 2026.  So, nothing has changed as of today, but we could see lower rates in 2026.

woman using calculator and working on business finances

Corporate Transparency Act

On 03/21/25, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule (IFR) that removes the requirement for U.S companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act.

In this interim final rule, FinCEN revises the definition of “reporting company” in its implementing regulations to mean only those entities that are formed under the law of a foreign country and that have registered to do business in any U.S. State or Tribal jurisdiction by the filing of a document with a secretary of state or similar office (formerly know as “foreign reporting companies”).  FinCEN also exempts entities previously know as “domestic reporting companies” from BOI reporting requirement.

Thus, through this interim final rule, all entities created in the United States–including those previously know as “domestic reporting companies”–and their beneficial owners will be exempt from the requirement to report BOI to FinCEN.  Foreign entities that meet the new definition of a “reporting company” and do not qualify for an exemption from the reporting requirement must report their BOI to FinCEN under new deadlines,.  These foreign entities, however, will not be required to report any U.S. persons as beneficial owners, and U.S. persons will not be required to report BOI with respect to any such entity for which they are a beneficial owner.

Upon the publication of the interim final rule, the following deadlines apply for foreign entities that are reporting companies:

  • Reporting companies registered to do business in the United States before the date of publication of the IFR must file BOI reports no later than 30 days from that date.
  • Reporting companies registered to do business in the United States on or after the date of publication of the IFR have 30 calendar days to file an initial BOI report after receiving notice that their registration is effective.

Continue reading “Corporate Transparency Act”

New Login System

 What you need to know:

  • You’ll need to create a new username and password. To do this, you’ll need your current NetClient CS login ID and password. If you’ve saved these details to your browser, please memorialize them. If you’ve forgotten your login ID, please contact our office and ask for Johna Carr.
  • The sign-in page will look different but will function the same way. This video showcases the new experience. Please watch this video as it is very helpful.
  • You’ll need to enable two-factor authentication. There are several options available to verify your identity when you log in. One option is the Auth0 Guardian mobile app, which is free on the Apple App Store for iOS and Google Play Store for Android. Learn more about two-factor authentication.
  • We recommend using the option that will send a text message to your phone. This method may be more familiar and is commonly used for two-factor authentication.