Sellers CPA Tax Newsletter – November 2026: Gratitude, Recovery, and the Year-End Countdown

From the Desk of Carol Sellers, CPA Sellers CPA LLC https://sellerscpa.net 108 W Cusseta St, Dadeville, AL 36853 (256) 825-8259

Dear Valued Clients and Friends,

November has settled over Lake Martin. The water is quieter, the hardwoods along the shoreline have turned, and the smell of wood smoke drifts through Dadeville on the cool evenings. It is a month for gratitude, and this year that word carries extra weight. Hurricane Isaias swept across the southern half of our state in early October, and many of our neighbors in Tallapoosa, Elmore, Coosa, Lee, and Chambers counties are still cleaning up. If your family or business was affected, please know that both the IRS and the Alabama Department of Revenue have granted relief, and I have laid it out plainly below.

Beyond storm recovery, November is the month the tax year starts to feel real. We have about eight weeks left to make moves that matter on your 2026 return, and the IRS is beginning to release the numbers that will shape 2027. Here is what I am watching this month.

Quote to ponder: "Gratitude is not only the greatest of virtues, but the parent of all the others." — Cicero A grateful heart and an organized file cabinet both make December a lot easier.

Federal Tax Updates

Hurricane Isaias relief is automatic for 40 Alabama counties. On October 14, the IRS announced (AL-2026-01) that taxpayers who live or have a business in the federally declared disaster area now have until February 4, 2027 to file most returns and make most payments that were originally due on or after October 7, 2026. The covered counties include Tallapoosa, Elmore, Coosa, Lee, Chambers, Macon, Montgomery, Autauga, Chilton, Russell, Tuscaloosa, and Mobile, among others. The relief covers 2025 individual returns on extension (the IRS has stated those filers have until February 7, 2027), quarterly estimated payments due in this window, and quarterly payroll and excise returns normally due November 2. Two important limits: payments for tax year 2025 that were due back on April 15 are not covered, and W-2 and 1099 information returns are not postponed. The IRS applies the relief automatically based on your address of record, so you do not need to call, but if you receive a penalty notice for a covered period, let me know and we will get it abated.

Casualty losses may be deductible, and you get to choose the year. If you suffered uninsured or unreimbursed storm damage in the declared area, federal law allows you to claim the loss either on your 2026 return or on your 2025 return (amended if already filed). Choosing the earlier year can put a refund in your hands sooner. Keep photographs, repair estimates, insurance correspondence, and receipts, and write the FEMA declaration number, AL-0017-DR, on any return claiming the loss.

The IRS is asking everyone to do a year-round checkup. In its October 23 reminder, the IRS encouraged taxpayers to run the Tax Withholding Estimator before year-end, especially after a marriage, divorce, new child, or job change, and to set up an IRS Individual Online Account to view balances, notices, and transcripts. For our self-employed clients and gig workers, this is also the moment to confirm that estimated payments have kept pace with income.

2027 inflation adjustments are expected but not yet official. Analysts are projecting a roughly 3.2 percent increase in bracket thresholds for 2027, with a projected standard deduction near $33,200 for joint filers and $16,600 for single filers, and a projected 401(k) deferral limit of $25,500. The IRS has not published its official figures as of this writing, so treat these as estimates. I will share the confirmed numbers as soon as they are released.

Retirement plan corrections just got easier. On October 22, Treasury and the IRS updated the Employee Plans Compliance Resolution System for employer retirement plans and, for the first time, created a self-correction program for IRAs. If your small business sponsors a 401(k) or SIMPLE plan and you have ever worried about a missed deferral or late deposit, this is good news. We can review your plan's operation together.

Washington watch. Congress returns after the election for a lame-duck session, and the tax press expects any year-end package to be smaller than in past years, since the One Big Beautiful Bill Act made so many provisions permanent. Nothing has been enacted as of this writing. I will not speculate on what may pass, but I will keep you informed.

Quote to ponder: "The hardest thing in the world to understand is the income tax." — Albert Einstein He never had to deal with a disaster extension on top of it. That is what I am here for.

Key November Deadlines

• November 2: Third-quarter Form 941 was due. Taxpayers in the Isaias disaster counties have until February 4, 2027 to file the return, though payroll tax deposits themselves were not postponed.

• November 2: Alabama state and county business privilege license renewals were due (moved from October 31 because it fell on a weekend). Late penalties begin November 3.

• November 10: Employees who received $20 or more in tips during October report them to their employer on Form 4070.

• November 16: Extended Form 990 filing deadline for calendar-year tax-exempt organizations.

• November 20: Alabama sales, use, and withholding returns for October activity, and the first Alabama vapor products tax return.

• December 31: Last day for 2026 required minimum distributions, charitable contributions, and most other year-end moves.

• February 4, 2027: New federal and Alabama deadline for disaster-affected taxpayers in the 40 declared counties.

Please confirm which dates apply to your situation. Disaster relief depends on your address of record, and some county-level licenses have their own rules.

Alabama State Updates

ALDOR matched the federal storm relief. On October 15, the Alabama Department of Revenue announced that individual income tax returns that were due October 15 for taxpayers in the 40 counties under the Governor's state of emergency now have until February 4, 2027. No contact with ALDOR is required. Payments for 2025 that were due in April are not eligible. If you need relief for other state filings, such as sales tax, business privilege tax, or withholding, ALDOR will consider those requests case by case, and I can make the call on your behalf.

Business license renewals. Because October 31 fell on a Saturday, ALDOR extended the privilege license renewal deadline to November 2, with late penalties starting November 3. If you have not renewed, do it now, and if your business is in a declared county and you missed it because of the storm, we may be able to request relief.

Alabama's new vapor products tax is live. Effective October 1, the state imposes a 10-cents-per-milliliter excise tax on consumable vapor products sold at wholesale or imported into Alabama. Wholesalers and registered retailers must hold a Vapor Products Tax License, available at no fee through My Alabama Taxes, and file monthly by the 20th. If you sell these products, your first return covers October and is due November 20.

Local rate changes. ALDOR continues to post local sales and use tax rate changes, including an October update for Walker County. If your business collects in multiple jurisdictions, make sure your point-of-sale rates are current.

Quote to ponder: "It is not the man who has too little, but the man who craves more, that is poor." — Seneca Contentment is a fine thing, but so is knowing exactly what you have before December 31.

Your November Planning Checklist

• Storm-affected clients: Gather photos, estimates, and insurance paperwork now. Decide with me whether a casualty loss belongs on 2025 or 2026. Confirm that any extended returns are filed well before February 4.

• Extension filers outside the disaster area: Your October 15 deadline has passed. If you have not filed, call me this week so we can limit penalties.

• Business owners: Confirm your Alabama business license is renewed. Review 2026 equipment purchases, since bonus depreciation and Section 179 decisions should be made before year-end. Make sure third-quarter payroll filings are complete.

• Employees and retirees: Run the IRS Withholding Estimator. If you are 73 or older, confirm your 2026 required minimum distribution is scheduled before December 31. Consider a qualified charitable distribution if you give to church or charity.

• Investors: Review unrealized gains and losses for harvesting opportunities before the market closes for the year.

• Everyone: Create or log in to your IRS Online Account, and set up a folder for 2026 tax documents so January is not a scramble.

Schedule your year-end planning session. November is the best month to sit down together, because there is still time to act. To schedule a paid consultation, call Carol Sellers at (256) 825-8259 or email carol@sellerscpa.net.

Thank you for trusting Sellers CPA with your family's and your business's finances. From our office on West Cusseta Street, I wish you a warm and grateful Thanksgiving.

Warm regards, Carol Sellers, CPA Owner, Sellers CPA LLC Dadeville, Alabama

This newsletter is for informational purposes only and does not constitute tax or legal advice. Consult your CPA or tax professional for advice specific to your situation. Tax laws are complex and subject to change.