Sellers CPA Tax Newsletter – October 2026: Falling Leaves, Final Deadlines, and a Fresh Look at Year-End

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,

October has arrived in Dadeville with cooler mornings on Lake Martin, the smell of woodsmoke on the breeze, and Friday-night lights that seem to shine a little brighter this time of year. Across Alabama, it is a month of harvest, homecoming, and the last big push of the year. For taxpayers, it is also the month when the extension calendar runs out, and the final quarter of 2026 is fully underway.

This edition covers the October 15 extension deadline, a handful of fresh IRS announcements from late September, Alabama items that take effect this month, and a practical checklist to carry you toward year-end.

Quote to ponder: "In this world nothing can be said to be certain, except death and taxes." – Benjamin Franklin

Ben Franklin never met a filing deadline he didn't respect. Neither should we, especially the one on October 15.

Federal Tax Updates

The extension season ends October 15. Taxpayers who requested an automatic extension for their 2025 individual (Form 1040) or C corporation (Form 1120) returns must file by Thursday, October 15, 2026. There is no second extension. Keep in mind that an extension gives you more time to file, not more time to pay. Any 2025 tax that was not paid by the April due date continues to accrue interest and, generally, a late-payment penalty of 0.5% per month (up to 25%) until it is paid. If we are still waiting on documents from you, please don't let October 14th become a surprise.

IRS interest rates hold steady. The IRS announced that interest rates will remain unchanged for the fourth quarter of 2026, beginning October 1: 7% per year, compounded daily, for both individual underpayments and overpayments, and 9% for large corporate underpayments. A 7% rate is a good reason to pay any balance due promptly.

A new IRS mobile app. On September 25, the IRS launched a new IRS app that replaces IRS2Go. It lets taxpayers check refund and amended-return status, view account balances, make payments, see select notices, and access tax records and transcripts. Current IRS2Go users do not need to download a separate app, since it updates automatically. As always, download only from the official app stores or IRS.gov, and be wary of look-alike apps and unsolicited messages.

Proposed rules for farmland sales. On September 28, Treasury and the IRS issued proposed regulations on a provision that allows eligible sellers of qualified farmland to a qualified farmer to pay the tax on the gain in four equal annual installments. Generally, the land must have been used for farming (or leased to farmers) for substantially all of the prior 10 years, the buyer must be an individual actively engaged in farming, and the land must remain in agricultural use for 10 years. These are proposed rules, and comments are being accepted through November 30, 2026. If you are a landowner thinking of selling, this is worth a conversation before you sign anything.

Legislation to watch. The tax provisions of last year's One Big Beautiful Bill Act continue to roll out through IRS guidance, and we will keep passing along what affects you. We are not aware of any new federal tax legislation that has been finalized for this month, and we don't want to speculate on proposals that have not become law.

Quote to ponder: "Autumn is a second spring when every leaf is a flower." – Albert Camus

Year-end planning works the same way. The fourth quarter is a second chance to make 2026 bloom.

Key Upcoming Deadlines

• October 1: New IRS interest rates take effect for the fourth quarter (7% for individuals). Alabama's vapor products excise tax also begins (see below).

• October 15 (Thursday): Final deadline for extended 2025 individual and C corporation returns.

• October 20: Alabama vapor products tax returns are due the 20th of each month for the prior month's activity, for affected businesses.

• October 31 (Saturday): Alabama business privilege license renewals are due. Because the date falls on a weekend, the Alabama Department of Revenue has advised that renewals must be postmarked by Monday, November 2, and delinquent penalties should not be imposed until November 3.

Please confirm any other filing dates that apply to your specific situation with our office, since payroll, sales tax, and other due dates vary.

Alabama State Updates

New vapor products tax begins October 1. Under Act 2025-377, Alabama imposes an excise tax of 10 cents per milliliter on consumable vapor products sold at wholesale or imported into the state. Wholesalers and registered retailers must obtain a Vapor Products Tax License through MyAlabamaTaxes at no cost. Returns are due on the 20th of the following month, and a 4.75% discount is available for filing and paying in full by the due date. Businesses operating without proper licensing may face penalties.

Business license reminder. The Alabama Department of Revenue has reminded businesses that state and county business privilege licenses are due October 31, with the weekend-adjusted postmark deadline of November 2, 2026 described above.

New utility tax exemptions. Under Act 2026-595, natural gas or electricity used for commercial aquaculture aeration systems, commercial greenhouses, pivot irrigation systems, and poultry houses is exempt from Alabama's utility gross receipts tax from September 1, 2026 through August 31, 2029. Qualifying businesses must obtain Form STE-3 (Utility Tax Certificate of Exemption) from the Department and provide it to their utility provider, and accounts serving both exempt and non-exempt uses require separate metering. The exemption does not cover industrial hemp or cannabis production. Agricultural families around Tallapoosa County may want to review this.

Your October Planning Checklist

• Extension filers: Deliver any missing 2025 documents right away so your return can be filed before October 15.

• Balance due? Interest is running at 7%. Pay what you owe as soon as you can.

• Re-check your 2026 withholding and estimates. With roughly 90 days left, a fresh projection can help you avoid surprises next April.

• Business owners: Review equipment purchases, retirement plan options, and payroll before year-end. Fall is the traditional window to design a new plan.

• Landowners and farmers: Talk to us before selling farmland or installing qualifying agricultural utility equipment.

• Alabama businesses: Renew your privilege license on time, and confirm whether the new vapor products tax applies to you.

• Everyone: Try the new IRS app from official sources, keep good records, and start a running list of 2026 charitable gifts.

Quote to ponder: "An investment in knowledge pays the best interest." – Benjamin Franklin

A little planning in October pays real dividends in December and April.

If you would like to talk through your extension, your 2026 projection, or your year-end strategy, Carol Sellers would be glad to hear from you.

Contact Carol Sellers at (256) 825-8259 or carol@sellerscpa.net to schedule a paid consultation.

Thank you for trusting Sellers CPA with your financial journey. Here's to crisp evenings, full stadiums, and a strong finish to 2026.

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.