Check Mate: Docs Go Digital, Refunds Go Direct
After a successful rollout of our digital client organizers last tax season, we’re bringing them back. Watch for a secure email communication in mid-January with information on your tax organizer and options to provide your tax documents.
To stay compliant with the recent federal mandate eliminating paper checks, we’ll ask for your current checking account information for refund deposits. If you already use direct deposit, please confirm your routing and account numbers are still accurate. Note: If you use TaxCaddy to submit your tax documents, nothing has changed and you can continue to utilize this convenient resource.
We expect, but as of this date still do not have, additional guidance from the IRS regarding electronic payments to the IRS. Taxpayers can continue using current payment methods until further notice. Once we have the guidance, we’ll send communication with specific instructions on how to make online payments and set up IRS accounts.
Coming Soon: Aiwyn Client Portal for Easier Payments
Starting Jan. 6, our new Aiwyn Client Portal will make managing invoices and payments easier, faster and more secure. You’ll receive an email with details and helpful resources, including a preview of what future invoice emails will look like.
Questions? Our billing team is ready to help: billing@honkamp.com
Passing the Torch: Honkamp Team Members Set for Retirement
We’re celebrating two Honkamp leaders as they prepare for retirement: Jim Brems, Cedar Rapids, Iowa; and Craig Herbst, Dubuque, Iowa. Jim will retire Dec. 31, 2025, while Craig will retire in spring 2026. Each has had an incredible impact on our clients, teams and communities throughout their careers.
Join us in thanking Jim and Craig for their dedication and wishing them all the best as they step into their next chapter!
Loy-al to Excellence
We’re excited to announce that Kelly Loy, senior manager in our Madison, Wis. office, will be promoted to principal effective Jan. 1, 2026. Kelly’s dedication, expertise and commitment to client success have made a lasting impact. We look forward to seeing how Kelly continues to lead and inspire in this new role.
Join us in congratulating Kelly on this well-deserved achievement!
New Digs and Fresh Vibes
We’ve been busy giving our offices a glow-up. The Platteville, Wis. office just wrapped up its remodel; swing by One Insight Drive and see the transformation for yourself. Meanwhile, our Coralville, Iowa team is settling into a brand-new space at 1101 5th Street, Suite 204, and we’d love for you to stop in and say hello.
And there’s more on the horizon: our Hiawatha and Cedar Rapids, Iowa offices are joining forces, merging into one location soon. Stay tuned for the official date and details.
Come visit, check out the upgrades and let us know how we can help you thrive in the new year!
A Fresh View Ahead
Our offices aren’t the only things that received a refresh. We’re excited to announce that our brand-new website went live December 17. And the journey doesn’t stop there—phase two enhancements are already in the works and will launch this February. Check out the new site: www.honkamp.com
Peace of Mind for Tax Time
The IRS continues to prioritize enforcement and compliance with its 2025–2026 Priority Guidance Plan focusing on digital assets, small business audits and high-income taxpayer reviews. These efforts reflect a broader strategy to increase voluntary compliance and address high-risk issues through targeted examinations and streamlined audit selection methods.
To help manage potential audit risks, we offer our 2025 Audit Protection Plan, which covers Honkamp’s response to tax notices and audits at no additional cost.
Why enroll?
- No additional fees for audit support
- Comprehensive coverage for business and individual returns
- Expert representation and peace of mind
Be on the lookout for Audit Protection Plan information included in your tax organizers. If you have any questions, reach out to your account manager.
Your Guide to Year-End Tax Wins
The tax landscape just got a major makeover, and we’re here to help you make the most of it. The 2025 Year-End Tax Letter breaks down what matters most for individuals, business owners and investors.
Inside, you’ll find highlights on:
- The latest from the One Big Beautiful Bill Act (OBBB) and SECURE 2.0 Act
- New opportunities for deductions and credits
- Key moves to maximize your tax position before the ball drops
Don’t let new rules catch you off guard. Check out the letter for actionable insights to keep your finances in top shape: 2025 Year End Tax Letter
Need a refresher on the OBBB? Check out our resources page: H.R. 1, the “One Big Beautiful Bill Act” – Honkamp
New Tax Breaks for Overtime and Tips
Big news for employees who go the extra mile! Two new tax breaks could put more money back in your pocket this season:
- Overtime Deduction Update: Eligible workers can deduct the premium portion of overtime pay (such as the “half” portion of “time-and-a-half” compensation)—up to $12,500 for single filers or $25,000 for joint filers. Income limits apply, and the deduction phases out for higher earners.
- Tip Deduction Update: If you earn tips, you may now deduct up to $25,000 of reported tip income. This applies whether you itemize or take the standard deduction, with similar income limits and phase-outs.
Both updates also highlight other tax changes, including increased deductions for car loan interest and state and local taxes.
Check out the full details and see how these new rules could benefit you:
Tip Deduction
Overtime Wages
Don’t Let Your Taxes Go Through the Roof
It’s almost that time of year. Soon, notices of property tax assessments will land from local taxing authorities. But here’s the thing: assessment methods often miss the mark on real market conditions, and inflated values can mean you’re paying more tax than you should. Did you know you can appeal your assessed property value and the resulting tax bill? We can arrange an evaluation of your property tax assessment and, if warranted, coordinate an appeal to help keep your taxes in check.
Keep an eye out for more communication from us as we approach property tax assessment notice dates in spring 2026. Don’t let an overblown assessment take a bite out of your bottom line.
Hard Hats, Hot Takes: The Latest Construction Industry Economic Report
Curious about what’s driving the construction industry as we head into 2026? The latest quarterly economic report from CICPAC, an association for CPAs and consultants that specialize in serving construction clients, is packed with insights on GDP trends, housing starts, labor costs, material prices and more. Get the scoop on how government shutdowns, tariffs and shifting market conditions are shaping the industry, plus forecasts for residential and nonresidential construction, regional growth potential and sector-by-sector outlooks.
Whether you’re planning, building or just keeping an eye on the market, this report is a must-read for anyone in construction or related fields. Check out the full report for data, expert analysis and actionable takeaways: November 2025 Economic Report
Blueprints for Brilliance: Manufacturing Webinar Series Recap
Missed our manufacturing webinar series? Don’t sweat it, we’ve got you covered. Each session tackled the topics that matter most to manufacturers, helping you stay ahead of the curve:
- 2025 Tax Reform: Decoding the “Big Beautiful Bill” for Manufacturers
Dive into the latest tax legislation and discover how changes to Section 174 amortization, R&D credits, bonus depreciation and energy incentives impact your year-end planning and entity strategy.
Watch the recording here. - Depreciation Decisions That Deliver: Leveraging the OBBB for Bonus, Energy and Beyond
Get the scoop on updates to depreciation rules, including 100% bonus depreciation, new deductions for Qualified Production Property and the sunsetting of energy incentives, plus practical tips for year-end tax planning.
Watch the recording here. - Decoding the “Big Beautiful Bill”: What It Means for R&D Tax Planning
Learn how new federal legislation affects R&D credit eligibility, IRS reporting requirements and documentation strategies to optimize and protect your credit claims in today’s compliance landscape.
Watch the recording here.
Bill-ieve It or Not: Big Tax Wins for Manufacturers
Ready to supercharge your tax strategy? Honkamp Principal Jenn Faust breaks down the One Big Beautiful Bill (OBBB) and what it means for manufacturers. From revived R&D expensing to enhanced depreciation and new opportunities for Qualified Production Property, Jenn shares actionable insights to help you maximize cashflow and stay ahead of the competition.
Read the full article and see how you can make the most of these powerful new provisions: Maximizing OBBB Tax Benefits for Manufacturers
Retro Relief: R&D Deductions Go Back in Time
Small businesses can now retroactively expense domestic R&D costs from 2022–2024, thanks to the OBBB. If your average annual gross receipts are $31 million or less, you may qualify for immediate tax refunds, just amend your returns by July 4, 2026.
As we prepare your 2025 tax return, we will let you know if you are eligible to file amended returns or if you are required to take any additional deductions in 2025 and/or 2026.
For more information, check out this article: Small businesses gain retroactive tax relief
Stormy Weather, Sunny Solutions: Wisconsin Tax Relief Unpacked
On Sept. 17, the IRS announced relief for Wisconsin taxpayers impacted by storms that began on Aug. 9, 2025. Affected counties include Milwaukee, Washington and Waukesha.
Wisconsin residents hit by recent storms can breathe a little easier, tax relief is on the way. Our article breaks down the IRS and state provisions designed to help storm victims recover, including extended deadlines and special deductions. If you or your business were affected, don’t miss these key updates that could lighten your financial load.
Get the details and see how you can weather the storm with confidence: Tax relief for Wisconsin storm victims
Payroll Power-Up
With the acquisition of Smart-HR in October, Honkamp Payroll is bringing more expertise and robust solutions to help businesses streamline payroll, HR and employee benefits. Ready to simplify your workforce management? Reach out to Jarrod Haiar, director of business development, to learn how Honkamp Payroll can work for you.
Book a meeting with Jarrod or reply to this newsletter to get started!
Honkamp’s Stars Shine Bright
We’re proud to celebrate the outstanding achievements of our team members who earned Honkamp’s top honors this year. Congratulations to:
- Arnie Honkamp Firm First Award: Kyle Cleary, assurance supervisor, Dubuque, Iowa
- Internal Customer Service Star: Scott Madsen, accounting supervisor, Coralville, Iowa
- External Customer Service Star: Shannon McDermott, accounting supervisor, Hiawatha, Iowa
Learn more about the awards and our winners here: Honkamp Recognizes 2025 Annual Award Winners
Award-Winning Team
Our commitment to our people and environment is reflected in being voted a Top Workplace in Iowa, and in the ongoing recognition our team members receive for their dedication to their roles and communities. We’d like to highlight personal achievements in quarter 4:
- Reggie Rowe was recognized as a Rising Star by the Telegraph Herald: 2025 Rising Star: Reggie Rowe
- Kyle Boardman was honored as a Forty Under 40 Leader by the Corridor Business Journal: Kyle Boardman | 2025 Forty Under 40 Honoree | Honkamp, P.C.
- James Cash was recognized as top accountant in St. Louis by the St. Louis Business Journal.