Safeguard Your Finances During the Season of Spending

The holiday season brings joy, generosity—and unfortunately, a surge in fraud. With online shopping at an all-time high and year-end spending in full swing, cybercriminals are more active than ever. For individuals and businesses alike, vigilance is essential to avoid falling victim to scams that can lead to financial loss, reputational damage, and regulatory headaches.

Why Fraud Spikes During the Holidays

• Increased Transaction Volume The sheer number of purchases creates more opportunities for fraudsters to slip through unnoticed.
• Urgency & Distraction Shoppers are rushed, distracted, and less likely to scrutinize suspicious emails or websites.
• Targeted Scams Fraudsters exploit seasonal trends with fake promotions, counterfeit gift cards, and phishing emails disguised as shipping updates or holiday deals.
• AI-Driven Threats Synthetic identity fraud and deepfake scams are on the rise, with criminals using advanced technology to mimic legitimate businesses.

Fraud Prevention Tips for Individuals

• Shop Only on Trusted Sites Stick to well-known retailers and verify URLs before entering payment information.
• Avoid Public Wi-Fi for Transactions Use secure, private networks when shopping or accessing financial accounts.
• Watch for Phishing Emails Be cautious of messages claiming to be from delivery services or retailers. Look for misspellings, urgent language, and suspicious links.
• Monitor Your Accounts Check bank and credit card statements regularly for unauthorized charges. Even a small charge you don’t recognize may indicate a compromised account.  Fraudsters will ‘test the waters’ by charging a small amount.  If the cardholder doesn’t notice or flag it, the fraudster will try a much larger charge.  If you don’t recognize a charge, contact your bank or credit card provider for assistance.
• Use Credit Over Debit Credit cards offer stronger fraud protection and easier dispute resolution.

Fraud Prevention Tips for Businesses

• Train Employees Educate staff on recognizing phishing attempts, fake invoices, and social engineering tactics.
• Secure Your E-commerce Platform Implement multi-factor authentication, real-time fraud detection tools, and SSL encryption.
• Vet Third-Party Vendors Ensure partners follow cybersecurity best practices—63% of breaches are linked to third-party vulnerabilities.
• Patch Software Promptly 82% of breaches involve known vulnerabilities that were left unpatched.
• Prepare an Incident Response Plan Having a plan in place can reduce recovery time and minimize damage if a breach occurs.

Holiday fraud is more than a seasonal nuisance—it’s a serious financial threat. Whether you’re shopping for gifts or closing out your business year, taking proactive steps to secure your data and finances is essential.

Maximize Retirement Contributions, Fulfill RMDs & Optimize Your Tax Position

As the year draws to a close, now is the time to take proactive steps to reduce your tax liability and strengthen your financial position. Whether you’re an individual investor, a business owner, or nearing retirement, year-end planning can make a meaningful difference. Below is a checklist of essential tasks to complete before December 31.

Required Minimum Distributions (RMDs)

If you’re age 73 or older (or inherited a retirement account), you’re required to take RMDs from:

• Traditional IRAs
• SEP IRAs and SIMPLE IRAs
• Employer-sponsored plans like 401(k)s

Key Points:

• RMDs must be taken by December 31, unless it’s your first year (then you may defer until April 1 of the following year).
• Failing to take your RMD can result in a 50% penalty on the amount not withdrawn.
• Consider Qualified Charitable Distributions (QCDs) if you’re 70½ or older—up to $100,000 can be donated directly to charity tax-free and count toward your RMD.

Maximize IRA & 401(k) Contributions

Traditional & Roth IRAs:

• 2025 contribution limit: $6,500 (or $7,500 if age 50+)
• Deadline: April 15, 2026, but contributing before year-end may help with planning and compounding

401(k), 403(b), and 457 Plans:

• 2025 contribution limit: $23,000 (or $30,500 if age 50+)
• Contributions must be made by December 31 to count for the current tax year

Planning Tip: Maxing out retirement contributions not only builds long-term wealth but also reduces taxable income if contributing to traditional accounts.

Other Year-End Tax Planning Tasks

1. Review Capital Gains & Losses

• Harvest losses to offset gains and reduce taxable income
• Be mindful of the wash-sale rule when repurchasing securities

2. Consider Roth Conversions

• Converting traditional IRA funds to a Roth IRA can lock in current tax rates
• Ideal for clients in lower-income years or expecting future tax increases

3. Evaluate Flexible Spending Accounts (FSAs)

• Use remaining balances before year-end or risk forfeiture
• Some plans offer a grace period or carryover—check with your employer

4. Make Charitable Contributions

• Donations must be made by December 31 to qualify for 2025 deductions
• Consider donating appreciated assets for additional tax benefits

5. Review Estimated Tax Payments

• Ensure sufficient payments to avoid penalties
• Consider making a fourth-quarter payment by January 15, 2026

Final Thoughts

Year-end tax planning is about more than compliance—it’s about strategy. Whether you’re optimizing retirement savings, managing distributions, or leveraging charitable giving, these actions can have a lasting impact on your financial health.

Need assistance? Our team is here to assist with personalized guidance to help ensure you’re making the most of every opportunity before the calendar turns.

“Debunking IRS Myths: What You Really Need to Know”

We’re excited to present the second of two free webinars led by our Tax Dispute Resolution Manager, Lori Rodrigues. With over a decade at the IRS as a Revenue Agent and Appeals Officer, plus years as a CPA helping clients resolve tax issues, Lori brings insider knowledge and practical expertise to taxpayers and business owners alike.

For Individuals: “Debunking IRS Myths: What You Really Need to Know” 

Think the IRS is out to get you? That you can’t negotiate your tax debt? Or that once you get a notice, it’s game over? Let’s set the record straight.

Join us at 11:30am on Oct. 29, 2025 for a myth-busting, eye-opening hourlong webinar designed to help individuals understand their rights, options, and the truth behind common IRS misconceptions.

What We’ll Cover:

• Top 10 myths about the IRS—and the facts that debunk them
• What really happens when you owe back taxes
• How to respond to IRS notices without panic
• Resolution strategies that actually work (and who qualifies)

Reserve your spot today by clicking the link below:
Debunking IRS Myths – What You Really Need to Know,
Wednesday, 10/29/2025, 11:30AM – 12:30PM

As the holidays approach, many of us start thinking about giving back. Whether it’s supporting your favorite local nonprofit, donating to your place of worship, or helping a cause you care deeply about, charitable giving is a tradition that feels good. But it can also make a meaningful difference on your tax return—if you plan it the right way.  Use the following guidelines to manage your charitable gifts during this season of giving. 

To be deductible on a federal return, charitable contributions must meet IRS criteria:

Qualified Recipients

• IRS-recognized 501(c)(3) organizations.  You can check eligibility by visiting IRS Tax Exempt Organization Search Tool:
  https://www.irs.gov/charities-non-profits/tax-exempt-organization-search
• Government entities, such as schools (if used for public purposes)
• Certain international organizations (under specific treaties)

Political groups and social clubs are generally not qualified charitable organizations.  If you’re giving through a crowd-funding platform such as GoFundMe, your donation would only be deductible if the recipient is a registered 501(c)(3) organization.

Eligible Donation Types

• Cash contributions (check, credit card)
• Non-cash assets (securities, digital currencies, real estate, vehicles)
• Volunteer-related expenses (mileage, supplies)
  Note: Time or services are not deductible.

Documentation Requirements

• Under $250: Bank record or receipt
• $250 or more: Written acknowledgment from the charity
• Over $500 (non-cash): IRS Form 8283
• Over $5,000 (property): Qualified appraisal required

Timing matters, as well: only contributions made before December 31st count for this year’s tax return. That means gifts made in January 2026 will apply to next year, not this one. If you’re thinking of donating, doing it now ensures your generosity works to your tax advantage this year.  

“Bunching” donations can help maximize current-year deductions. Since the standard deduction is fairly high, some taxpayers find it difficult to itemize and benefit from their giving each year. By combining multiple years’ worth of contributions into a single tax year, you may cross the threshold that allows you to itemize—and maximize your deduction. For example, if you’re already planning to donate to a particular charity in 2026, you can make the gift before the end of this year to boost your total 2025 giving.

Another strategy is to think beyond cash. Donating appreciated stock or other assets can give you a double benefit: you avoid paying capital gains tax on the appreciation, and you get a charitable deduction for the fair market value of the gift. That’s a win-win from both a tax and charitable giving perspective

Donor Advised Funds (DAFs) are another strategic and tax-efficient tool for charitable giving that can complement a client’s overall financial and estate planning. By contributing to a DAF, donors receive an immediate tax deduction while retaining the flexibility to recommend grants to their favorite charities over time. This allows clients to separate the timing of their tax deduction from their philanthropic decisions, making DAFs especially useful in high-income years or during liquidity events. DAFs offer a streamlined way to manage charitable contributions, reduce taxable income, and build a lasting legacy of giving—all while simplifying recordkeeping and compliance.

Charitable giving should always start with the heart—but when you add a little strategy, it can also be a powerful tax-saving tool.

If you’d like to review your options and make sure your generosity is working as hard for your taxes as it does for your favorite causes, let’s schedule a quick call. With the right plan, you can maximize both the impact of your gift and the benefit on your tax return. Here’s to giving in ways that matter—both now and for the future!

Your Q3 estimated taxes are due soon. And yes, we could remind you of the due date and tell you to double-check your numbers. But honestly? That’s not the conversation we should be having right now.

While everyone else is focused on paying their quarterly taxes, smart business owners are looking ahead—specifically at Q4.

September is more than just a deadline. It’s a pivot point.

You’ve got nine months of income, expenses, payroll, and cash flow behind you. And you’ve got just enough time left in the year to make strategic moves that could lower your tax bill, boost your profitability, or set you up for a stronger January.

This is the month to zoom out for a look at the big picture. Instead of just asking, “Did I pay enough in estimated taxes?” ask:

• Am I on track with income goals—or did I quietly blow past them in Q2?
• Are there planned purchases or investments I can make before year-end to lock in deductions?
• Have I reviewed my payroll strategy to see if I need to adjust owner compensation or bonuses before December?
• Am I properly documenting everything I want to deduct—or will I be stuck guessing at tax time?
• And maybe most important of all: have I set myself up to keep more of what I earn?

Quarterly taxes are just a small part of the larger picture. They reflect how your business is performing—but they don’t help you control the outcome. That’s where planning comes in.

Too often, we see business owners get blindsided in January. They assumed everything was fine because they paid their quarterly estimates. But when we finally dig into the books, we discover missed opportunities. Missed write-offs. Missed timing strategies. And in some cases? A much larger tax bill than expected—because no one sat down to do a real projection before the year ended.

Let’s not do that this year.

If you’re already paying estimated taxes, you’re ahead of the game. But let’s not stop there. Let’s use this moment to shape what your Q4 looks like—not just file reports about what happened after the fact.

September and October are great times to look at the big picture and make sure you’re on track with your end-of-year tax strategy.  As, your trusted advisor, Dillwood Burkel & Millar can help – call today to schedule a year-end tax-planning consultation.

As your trusted accounting advisors, we’re not just here to help you file taxes and balance books—we’re here to protect your financial well-being. Fraudsters are becoming more sophisticated, targeting individuals and small businesses alike with schemes that can jeopardize your hard-earned money and sensitive data.

Here’s what you need to know to stay one step ahead.

The Most Common Scams Affecting Our Community

1. Tax Scams

Scammers impersonate IRS agents or tax professionals, threatening audits or demanding payment.

• What to Watch For: Calls or emails demanding immediate payment, threats of arrest, or requests for personal info.
• Our Advice: The IRS will never call or email you to demand payment. Always verify with us before responding.

2. Business Email Compromise (BEC)

Hackers pose as vendors, executives, or employees to redirect payments or steal data.

• What to Watch For: Sudden changes in payment instructions, unfamiliar email addresses, urgent requests.
• Our Advice: Confirm payment changes by phone. Use multi-factor authentication and secure email practices.

3. Phishing & Identity Theft

Emails or texts mimic banks, payroll providers, or even accounting firms to steal login credentials.

• What to Watch For: Misspelled URLs, unexpected attachments, or requests for login info.
• Our Advice: Never click suspicious links. Contact us directly if you’re unsure about a message.

4. Investment and Retirement Scams

Fraudsters offer “guaranteed” returns or push unregistered investment opportunities.

• What to Watch For: Pressure to act fast, secrecy, or too-good-to-be-true promises.
• Our Advice: Consult with us before making any major financial moves. We’ll help vet opportunities.

5. Payroll and Employee Fraud

Scammers target payroll systems or impersonate employees to reroute direct deposits.

• What to Watch For: Requests to change bank info via email, unusual login activity.
• Our Advice: Use secure HR platforms and verify changes with a phone call or in-person confirmation.

Smart Habits for Financial Safety

• Keep Software Updated: Outdated systems are vulnerable to breaches.
• Use Strong Passwords: And change them regularly—especially for financial accounts.
• Review Statements Regularly: Spotting fraud early is key to minimizing damage.
• Lean on Us: If something feels off, reach out. We’re here to help you assess and respond.

Final Thoughts

Fraud prevention isn’t just about caution—it’s about confidence. With our team as your partner, you can navigate financial decisions with clarity and peace of mind. Let’s keep your finances secure, your data protected, and your future fraud-free.

If you’d like a personalized fraud risk review or want to learn more about secure financial practices, contact us today.

When it comes to selecting an accounting firm, the decision goes far beyond financial statements and tax returns. You’re choosing a trusted advisor —one that should understand your business, your community, and your values. In today’s globalized world, it’s tempting to look for the cheapest option, but savvy clients know that quality, trust, and local commitment are what truly count.

So how do you choose the right one? Start local.

Local Firms, Local Impact

Choosing a local accounting firm means investing in your own community. These firms are deeply rooted in the local economy—they understand the regional business climate, state regulations, and industry-specific challenges that national or overseas firms might overlook. At Dillwood Burkel & Millar (DBM), we’re proud to hire graduates from Sonoma State University and other northern California universities, keeping top-tier talent right here at home. When you choose local, you’re investing in the future of our amazing county.

• We’re just down the street when you need us—not across the country or halfway around the world.
• You’re not just a number at DBM. We offer face-to-face meetings, quick responses, and a genuine interest in your success.
• We support local nonprofits, sponsor community events, and shop locally ourselves.

Why Outsourcing Can Be Risky

Some firms cut costs by outsourcing accounting work overseas. While this might look efficient on paper, it often comes at the expense of quality, security, and accountability.

Locally focused accounting firms like DBM:

• Keep all work in-house, ensuring your sensitive financial data is handled by professionals bound by U.S. regulations and ethical standards.
• Maintain direct oversight, so nothing gets lost in translation or delayed across time zones.
• Build long-term relationships, not transactional ones.
• Provide peace of mind and trusted advisers who are truly invested in your success.

What to Look For in an Accounting Firm

If you’re evaluating accounting firms, here are a few questions to ask:

• Do they have strong ties to the local business community?
• Are their employees active members of the community?
• Is all work performed locally, without international outsourcing?
• Can the firm offer references from other local businesses?

Choosing the right accounting firm isn’t just about crunching numbers—it’s about choosing a team that understands your world and stands beside you in it.

Let’s Talk

Thinking about switching firms? Curious about how your current setup compares? We’d love to sit down and chat—no pressure, just coffee and conversation.

At the end of the day, accounting is about trust, relationships, and building something great together—right here in Sonoma County.

As we approach the final stretch of 2025, several federal energy tax credits are nearing expiration—and some deadlines are closer than you might think. For clients considering energy-efficient upgrades or electric vehicle purchases, now is the time to take action and lock in valuable savings before these incentives disappear.

Electric Vehicle Credit — Deadline: September 30, 2025

New or Used Clean Vehicle Credit

• Up to $7,500 for qualifying new electric vehicles
• Contracts must be signed by September 30, 2025, even if delivery occurs later
• Vehicles must meet final assembly and battery sourcing requirements

There are income limits and vehicle price caps, as well, so please contact our office if you’re planning to take advantage of these soon-to-expire credits.

Residential Energy Credits — Deadline: December 31, 2025

Residential Clean Energy Credit

• 30% credit for solar panels, solar water heaters, and battery storage systems
• Systems must be installed by December 31, 2025

Energy Efficient Home Improvement Credit

• Covers 30% of qualified expenses for upgrades like insulation, windows, doors, and energy audits
• Annual limits include:
  • $1,200 total for general improvements
  • $600 for windows/skylights
  • $250 per door (up to $500)
  • $150 for home energy audits
  • $2,000 for heat pumps, water heaters, and biomass stoves

These credits are part of the Inflation Reduction Act and are designed to encourage cleaner, more efficient energy use at home.

What Homeowners Should Do Now

• Confirm installation dates: Credits apply only to systems installed—not just purchased—before the deadline
• Keep documentation: Save receipts, product certifications, and audit reports
• Consult your tax advisor: We can help determine eligibility and ensure proper reporting on your tax return

Final Thoughts

These energy credits offer a rare chance to reduce your tax bill while investing in long-term savings and sustainability. If you’re considering upgrades or purchases, don’t wait—these opportunities may not be around next year.

For more details, visit IRS.gov or contact our office to discuss your options.