Preparation of federal, state and local tax returns, bookkeeping services and payroll services.
March 18th, 2021
ITEMS OF INTEREST!
I want to touch base on a couple of important items:
The IRS announced yesterday that the Tax Filing Deadline has been extended to Monday, May 17th.
HOWEVER, I encourage those who plan to drop off or mail/email your information to do so without delay. We are only fully staffed until April 15th.
OUR OFFICE WILL BE CLOSED FROM FRIDAY, APRIL 16TH THROUGH MONDAY, APRIL 26TH.
I have asked a lot of my extraordinary staff over the last two years and will not allow them to delay their own personal and family needs that have already been scheduled.
We are very much aware of the new stimulus legislation. There are several clients who are impacted by the forgiveness of $10,200 of Unemployment Compensation received by each taxpayer in 2020. (There are limitations) We have a list of those of you who have already filed. We will begin to prepare AMENDED RETURNS in order to get refunded the money. Please be patient…the very last thing you want to do is to have two returns in the “system” at one time.
It would probably be prudent to wait until the filing season is over to submit your return. For those who have filed a return accepted by the IRS and owe money that has not yet been paid, we will amend prior to the due date.
STIMULUS payments have been issued effective March 17th. Most of you who qualify have had the monies directly deposited. Others will receive a paper check if the IRS does not have direct deposit information. Yet others will get a tax credit on 2021’s 1040. We will do our very best to make sure that those of you who qualify get the proceeds. I ask for your PATIENCE!! As you well know by now, this is a moving target. The IRS is understaffed, their systems are antiquated and this is brand new territory and the timing could not be worse.
As difficult as this filing season has been due to the last minute changes prior to tax season and the major changes mid-season, I feel extremely confident that we are up for the challenge. Our clients have been wonderful to work with and that gives us the added incentive to do our very best to help navigate through this crazy season and provide guidance throughout the year.
MOST IMPORTANTLY…I feel better this March than I did a year ago that we all WILL get back to normal before too long!! As the saying goes: “please take care of yourself, nobody will do it better”!!
It has been a different year for all of us. We are starting this year in a perilous atmosphere but with high hopes that over the next several months there will be a return to some type of normalcy.
Our goal is to prepare your tax returns as professionally and timely as we have done in the past while making everyone’s safety our top priority. To that end, we will not have face-to-face appointments at this time. Many of you already take advantage of the mail-in/drop-off service that we have offered for years. In addition, our software has a user-friendly feature whereby we can send you a link so you can upload your documents securely. Just call the office or email one of us when you have all your information gathered and we’ll email the link to you. Again, keeping everyone’s safety at the forefront, when your returns are completed, we can mail them to your or securely email a digital copy. And this year you will now have the ability to sign and securely return the signature authorization forms to us.
Please contact firstname.lastname@example.org to update your email address. This will not only allow us to share information securely but will also permit us to correspond with you through our website at www.tompaolo.com. You can access prior letters and updates by logging in with the password tompaolo.
On December 27, 2020 the $2.3 trillion Consolidated Appropriations Act was signed into law. Theis 5,556-page stimulus bill supplemented the $2.2 trillion CARES Act enacted on March 19th. By all indications, the new administration is planning another stimulus package.
STIMULUS PAYMENTS: One of the key provisions that affect your individual tax returns include the two Economic Impact Payments, commonly referred to as stimulus payments, that were available last summer and early this year. These payments were an advance on the credits possibly available to you on your 2020 return. It is imperative that we know exactly how much you received for each payment. If you did not receive a payment you may be eligible for a credit on your tax return. The IRS is to be sending Notice 1444 to taxpayers showing the actual amount of your payments. Please include this with your tax documents.
CHARITABLE CONTRIBUTIONS: Another key provision of the most recent bill allows taxpayers to deduct up to $300 in charitable contributions whether you itemize or not. Please provide documentation.
RETIREMENT DISTRIBUTIONS: Finally, another measure meant to help taxpayers economically affected by the novel Coronavirus has to do with distributions from your IRAs and 401(k)s. If you were economically impacted by COVID-19 and are under the age of 59 ½, the 10% penalty on the early withdrawal has been waived. The bill also provides options for re-contributing the distribution over 3 years. Let us know if this applies to you.
MILEAGE RATES: Business mileage rates decrease to 56 cents/mile. Remember that this is only federally deductible for those who are self-employed. However, PA will allow unreimbursed business expenses with appropriate documentation. Please include a mileage log with your tax information as well as receipts for other allowable unreimbursed expenses. For those able to itemize deductions, the mileage rate for medical travel is also reduced to 17 cents/mile and 14 cents/mile for charitable activities.
HEALTH INSURANCE: There is no longer an individual mandate penalty for those who do not have health insurance. However, if you purchased your health insurance through the Marketplace, you must include Form 1095-A with your tax information. This form will give us information about any advance premium you received so that we may calculate the tax credit that you may receive or repay.
PAYMENTS. We now accept all major credit cards as payment for our services. Payment must be received before we provide you with your return. This can be done over the phone if you want your return mailed or emailed to you.
PREPARATION LIST. On the back of this letter you will find a list of items needed to prepare your return.
Thanks you for your continued loyalty. We will continue to do our very best to be available to answer your questions throughout the year.
P.S. Many of you look forward to my letter each year only to read the joke at the end. Well, things being how they are, this year AIN’T NO JOKE!
We are already into the second month of the three-month extension of the filing deadline which was granted as a result of the Covid-19 pandemic and I want to touch base with you on a few things.
First of all, we are hoping that everyone continues to be safe and healthy during these extraordinary times. Our business has remained open but, in an effort to respect the social distancing guidelines, we have limited the amount of traffic in our office. We are fortunate in that we are available to address your questions and prepare your returns.
These are very confusing times and I often feel more like a weatherman than a tax accountant. I find myself using terms like “partly”, “mostly”, and “there is a good chance”. When will I get my stimulus check, my unemployment check, my Payroll Protection acknowledgment, are all questions that have been at the forefront these last few weeks.
As you all know by now, we are in unchartered territory. We will try to stay up to date and help you as best we can but the rules keep changing and the federal and state governments are on overload.
One thing I’m certain of is that there will be more stimulus to this economy. Everything so far has assumed this situation would be remedied by June 30th. That is not going to happen. As of this writing, the House of Representatives passed a 3 Trillion-dollar bill. The Senate will make its changes but you can bet it will happen.
If you have not had your return prepared as of yet, PLEASE do so as soon as possible. If you owe money, it still does not have to be paid until July 15th. You NEED to be up to date with your tax situation in time for the next stimulus payment. Waiting until the last minute could jeopardize the timelines of any additional monies due to you. Knowing where you stand tax wise is key to planning for what comes next.
No matter what happens from here, we will be available throughout the year to do our best to help answer your questions.
TIMELINE FOR IRS STIMULUS CHECKS (for those who will receive paper checks) :
|ADJUSTED GROSS INCOME||DATE OF MAILING|
|Less than $10,000||April 24|
|$10,001 – $20,000||May 1|
|$20,001 – $30,000||May 8|
|$30,001 – $40,000||May 15|
|$40,001 – $50,000||May 22|
|$50,001 – $60,000||May 29|
|$60,001 – $70,000||June 5|
|$70,001 – $80,000||June 12|
|$80,001 – $90,000||June 19|
|$90,001 – $100,000||June 26|
|$100,001 – $110,000||July 3|
|$110,001 – $120,000||July 10|
|$120,001 – $130,000||July 17|
|$130,001- $140,000||July 24|
|$140,001 – $150,000||July 31|
|$150,001 – $160,000||August 7|
|$160,001 – $170,000||August 14|
|$170,001 – $180,000||August 21|
|$180,001 – $190,000||August 28|
|$190,001 – $198,000||Sept. 4|
|All remaining payments||Sept. 11|
We offer all regular tax services such as federal and state tax returns for personal, corporations, LLCs, partnerships, as well as sales tax and use tax reporting and filing. (more)
We offer bookkeeping services to our business clients. The most important management tool for a business is accurate records. (more)
what makes us special.
Located in the mall at 105 Caste Village since 1983, we have had the privilege to serve our clients for over 32 years. By staying well-informed of the many tax law changes, paying strict attention to detail, keeping a reasonable fee structure and trying our very best, we have succeeded in building our business strictly by word of mouth. We are available throughout the year to help our clients with any tax questions they may have. We do not charge our clients for that advice. This formula has worked for us over the last 30+ years to retain our wonderful client base.